Navios Maritime Partners L.P. (NYSE:NMM) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 08:30 am ET


Navios Maritime Partners L.P. (NYSE:NMM) Q2 2020 Earnings Conference Call - Final Transcript


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Thank you for joining us for Navios Maritime Partners' Second Quarter 2020 Earnings Conference Call. With us today from the Company are Chairman and CEO, Ms. Angeliki Frangou; Chief Financial Officer, Mr. Stratos Desypris; and Executive Vice President of Business Development, Mr. George Achniotis.

As a reminder, this conference call is being webcast. To access the webcast, please go to the Investors section of Navios Partners' website at You'll see the webcast link in the middle of the page, and a copy of the presentation referenced in 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 are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements. Such risks are fully discussed in Navios Partners' filings with the Securities and Exchange Commission. The information set forth herein 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, Ms. Frangou will offer opening remarks; next, Mr. Desypris will give an overview of Navios Partners' financial results; then, Mr. Achniotis will provide an operational update and an industry overview; and lastly, we'll open the call to take questions.

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

Angeliki Frangou

Thank you, Doris, and good morning to all of you joining us on today's call. While the pandemic has clearly affected business, countries and people all over the world, the Navios family continues to persevere. We take great pride in the safety of our employees, and we have adapted to this ever-changing environment.

Despite the pandemic, I am pleased with the results for the second quarter of 2020. Navios Partners reported $46.5 million in revenue and $14.3 million in adjusted EBITDA. Navios Partners also declared a quarterly distribution of $0.05 per unit, representing an annual distribution of $0.20 per unit. This distribution represents a reduction from the previous quarterly distribution.

We choose to reduce our distribution in light of the combination of challenges and opportunities from the ongoing pandemic. The pandemic negative effect on global economic activity can be seen in the duration of the downturn in charter rate. Year-to-date 2020, the Capesize 5TC rate is averaging around $9,700 per day. Even with rates recovering the past month, as countries emerge from quarantine and return to normalized ways of doing business, the charter rate is still 50% less than the 2019 average of $18,000.

As you can see from Slide 5, NMM's fleet is currently 53 vessels. In December 2019, we liquidated Navios Europe I. And during the second quarter of 2020, we