Navios Maritime Partners L.P. (NYSE:NMM) Q1 2019 Earnings Conference Call Transcript

May 06, 2019 • 08:30 am ET


Navios Maritime Partners L.P. (NYSE:NMM) Q1 2019 Earnings Conference Call Transcript


Loading Event

Loading Transcript


Thank you for joining us for Navios Maritime Partners First Quarter 2019 Earnings Conference Call. With us today from the Company are Chairman and CEO, Mrs. Angeliki Frangou; Chief Financial Officer, Mr. Stratos Desypris; and Executive Vice President of Business Development, Mr. Georgios Achniotis.

As a reminder, this conference call is being webcast. To access the webcast, please go to the Investor Section of Navios Partners website at You'll see the webcast link in the middle of the page and a copy of the presentation referencing today's earnings conference call will also be found there.

Now I will review the safe harbor statement. This conference call could contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Navios Partners. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Navios Partners management and subject to numerous material risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements. Such risks are more fully discussed in Navios Partners filings with the Securities and Exchange Commission, including the company's most recent 20-F. The information discussed on this call should be understood in light of such risks. Navios Partners does not assume any obligation to update the information contained in this conference call.

The agenda for today's call is as follows. First, Mrs. Frangou will offer opening remarks. Next, Mr. Desypris will give an overview of Navios Partners' financial results. And then Mr. Achniotis will provide an operational update and an industry overview. And lastly, we'll open the call for questions.

Now I'll turn the call over to Navios Partners Chairman and CEO, Mrs. Angeliki Frangou. Angeliki?

Angeliki N. Frangou

Thank you, Dorothy, and good morning to all of you joining us on today's call. I'm pleased with the results of the first quarter of 2019, during which Navios Partners reported $46.8 million of revenue and $22.7 million of adjusted EBITDA.

These results were particularly strong given the weak rate market. Charter rates in the drybulk sector was devastated by the tragic dam collapse in Brazil which occurred in January. The closure of certain Brazilian mines not only removed a significant amount of iron ore from the supply chain, but also did show on the longest route to China, the biggest user of iron ore.

Overall, there was a disproportionate negative impact on charter rate. Despite this challenging backdrop, NMM managed to earn a time charter rate of $13,209 per day for its fleet in the first quarter of 2019. Moreover, we have seen material rate improvements since the first quarter. The current spot rate of $11,182 per day is up about 90% from the average spot rate for the month of February and March. For the quarter, we declared a quarterly distribution of $0.02 per unit, representing a current yield of approximately 8%.

As you can see from slide five, NMM owns 37 vessels. Two years ago, we leveraged the weakness in the container