Why Navios Maritime Partners Shares Are Surging Tuesday

Navios Maritime Partners L.P. (NYSE:NMM) shares are trading higher Tuesday after the company reported second-quarter results.

Revenue fell 1.4% Y/Y to $342.2 million, beating the consensus of $332.3 million. The company attributed the decline in revenue to a decrease in the available days of the fleet and the decrease in the Time Charter Equivalent (TCE) rate.

The TCE rate declined by 2.2% Y/Y to $23,384 per day, and the available days of the fleet decreased by 0.5% to 13,498 days. Adjusted earnings per unit was $3.06, beating the consensus of $3.04.

Adjusted EBITDA dipped to $189.8 million from $191.5 million a year ago, mainly owing to a fall in time charter and voyage revenues and an increase in vessel operating expenses.

Operating cash flow for the quarter stood at $131.5 million, compared to $133.8 million a year ago. The company held $318.4 million in cash and equivalents as of June-end. The company has $3.7 billion contracted revenue as of August 2024.

In July 2024, Navios Partners agreed to sell three vessels for $64.6 million, with the sales expected to close in the second half of the year. Navios Partners owns and operates a fleet comprised of 75 dry bulk vessels, 48 containerships and 56 tankers.

Buyback & Dividend: Through August 12, 2024, pursuant to its previously announced repurchase program, the company repurchased 197,148 units for $9.7 million.

Including dividends, Navios Partners has returned $12.8 million to unitholders in 2024, with $90 million still available under the program.

Navios Partners has secured 73.5% and 45.7% of its available days for the last six months of 2024 and all of 2025, respectively.

Navios Partners expects contracted revenue of $537.6 million for H2 2024 and $759.2 million for 2025. The average daily charter-out rate is projected at $26,245 for H2 2024 and $28,509 for 2025.

Angeliki Frangou, Chairwoman and Chief Executive Officer of Navios Partners, said, “We are continuing to invest in our business by purchasing attractive assets. With substantial improvement in net LTV since the end of 2023, we have also been repurchasing units under our $100 million common unit repurchase program.”

Price Action: NMM shares are up 10.9% at $52.52 at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.