Navios Maritime Partners L.P.(NMM) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For the full year 2024, the company reported revenue of $1.33 billion, with$332.5 million in the fourth quarter. Net income was $367.3 million for the year and$94.7 million for the fourth quarter. Earnings per common unit were $11.98 for the year and$3.11 for the fourth quarter [7][31][34] - The fleet time charter equivalent (TCE) rate for Q4 2024 increased by 2.6% to $23,205 per day compared to Q4 2023, while available days increased by 1.1$45 million to $182 million compared to Q4 2023, primarily due to the prepayment of charter hire received in 2023 [30] Business Line Data and Key Metrics Changes - The TCE rate for the dry bulk fleet increased by approximately 1$17,079 per day, while the container fleet's TCE rate increased to $30,623 per day. In contrast, the tanker TCE rate decreased by approximately 3$26,646 per day [29][32] - The company generated $79 million in additional contracted revenue in Q4 and year-to-date 2025, with$59.4 million from tankers and $19.6 million from container ships [26] Market Data and Key Metrics Changes - The company ended 2024 with a contracted revenue of$3.6 billion and $312.1 million in cash on the balance sheet. As of February 7, 2025, 63$425 per open index day [10][12] - The Red Sea entrance to the Suez Canal continues to operate at restricted transit levels, affecting shipping routes and costs [43] Company Strategy and Development Direction - The company is focused on fleet renewal and modernization, having purchased 46 newbuildings since Q1 2021, with 23 vessels delivered. The fleet age remains stable, and the company aims to maximize energy efficiency [16][22] - The company has a diversified fleet, which serves as a pillar of stability amid geopolitical uncertainties, with $3.6 billion in contracted revenue providing a buffer against market volatility [70] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of geopolitical events, such as the conflicts in Ukraine and the Middle East, on global trade and the shipping market. The resolution of these conflicts could significantly affect market dynamics [8][70] - The management expressed confidence in the company's ability to navigate uncertainties due to its diversified fleet and strong contracted revenue [70] Other Important Information - The company paid$0.20 per unit in dividends for 2024 and repurchased 489,955 common units for $25 million under its unit repurchase program [11] - The company has$70.8 million available under its unit repurchase program as of February 7, 2025 [12] Q&A Session Summary Question: How have geopolitical uncertainties affected the company's operations and capital deployment? - Management acknowledged the uncertainties in the market due to geopolitical events and tariffs but emphasized the solid results for 2024 and the company's diversified fleet as a stabilizing factor [66][70] Question: What is the current appetite for vessel capacity among customers? - Management noted that there is still an appetite for tonnage among major liner companies, despite the uncertainties surrounding the Red Sea and Suez Canal [72][74]