MONACO - Navios Maritime Partners L.P. (NYSE: NYSE:NMM), an international owner and operator of dry cargo and tanker vessels, announced a significant earnings beat for the first quarter of 2024.
The company reported adjusted earnings per share (EPS) of $2.32, surpassing the analyst consensus of $2.01 by $0.31. Revenue for the quarter was also robust, coming in at $318.6 million, well above the consensus estimate of $280 million.
The first quarter's financial performance was marked by a substantial year-over-year (YoY) increase in revenue. Angeliki Frangou, Chairwoman and CEO, attributed the strong results to continued regional conflict, particularly in the Middle East, which has driven transportation demand. Additionally, the healthy state of the US and European economies contributed to what Frangou described as the "strongest first quarter financial performance ever" for the company.
Navios Maritime's strategic moves during the quarter included the sale of vessels, totaling $92.6 million in gross sale proceeds, and the acquisition of new vessels amounting to $245.7 million. These actions are part of the company's ongoing efforts to modernize its fleet and reduce leverage. Notably, the company has also taken long-term cover by chartering out vessels at rates around or exceeding long-term averages, showcasing prudent financial management in a robust maritime environment that the CEO acknowledges can change quickly.
Navios Maritime Partners declared a cash distribution for the first quarter of 2024 of $0.05 per unit, maintaining its commitment to shareholder returns. The distribution is set to be paid on May 14, 2024, to unitholders of record as of May 10, 2024.
The company's operational highlights reveal a diverse and extensive fleet, with 76 dry bulk vessels, 46 containerships, and 54 tankers, including 17 newbuilding tankers expected to be delivered through 2027. With a fixed 67.2% of its available days for the last nine months of 2024 and 40.6% for 2025, Navios Maritime is well-positioned to capitalize on market opportunities and navigate the dynamic shipping industry landscape.
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