Among a bit of doom and gloom lately with the fluctuations in the dry bulk market, Navios Maritime Partners L.P. (NYSE: NMM), an owner and operator of dry cargo vessels, reports a significant improvement in their second quarter financial results.
Ms. Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, comments:
“I am pleased with the results for the second quarter of 2012. We increased EBITDA by 18% and net income by almost 24%. We also increased our annual distribution by a penny and announced a quarterly distribution of $0.4425 per unit. The increased distribution represents an annual distribution of $1.77 and a yield of approximately 13%.”
Six month periods ended June 30, 2012 and 2011
Time charter revenues for the six month period ended June 30, 2012 increased by $8.6 million or 9.7% to $97.1 million, as compared to $88.5 million for the same period in 2011. The increase was mainly attributable to the acquisitions of the Navios Luz and the Navios Orbiter on May 19, 2011 and the acquisition of the Navios Buena Ventura on June 15, 2012.
As a result of these vessel acquisitions, available days of the fleet increased to 3,292 days for the six month period ended June 30, 2012, as compared to 2,981 days for the six month period ended June 30, 2011. TCE decreased to $29,614 for the six month period ended June 30, 2012, from $30,013 for the six month period ended June 30, 2011.
On June 15, 2012, Navios Partners acquired from Navios Maritime Holdings Inc. the Navios Buena Ventura, a 179,259 dwt Capesize vessel built in 2010, for a cash purchase price of $67.5 million. The Navios Buena Ventura has been chartered-out at a net rate of $29,356 per day until October 2020, which Navios Partners expects to contribute an annualized EBITDA of approximately $8.3 million.
On June 29, 2012, Navios Partners entered into an agreement with a third party for the acquisition of the Navios Soleil, a 57,337 dwt Ultra-Handymax, and the Navios Heliosa, a 77,075 dwt Panamax vessel. The vessels were bought for a cash purchase price of $20.7 million and $20.8 million respectively and will be delivered to Navios by the end of July.
The acquisition of the three vessels is being financed with proceeds from the May 2012 offering of 4,600,000 common units and the balance with new bank financing.
Ms. Frangou commented on the acquisitions: “With the acquisition of vessels from the S&P market, we have taken the next step in the evolution of Navios Partners. These vessels are relatively young, purchased for prices that we view as attractive today and in the longer term and profitable even at these low charter rates. We believe that these vessels will be able to serve Navios Partners now while also providing the potential for increased distributions in an improved market.”
Additional details can be found in Navios’ press release HERE.