SEC Form 6-K filed by Navios Maritime Partners LP

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

OF THE SECURITIES EXCHANGE ACT OF 1934

DATED: November 22, 2023

Commission File No. 001-33811

 

 

NAVIOS MARITIME PARTNERS L.P.

 

 

 

7 Avenue de Grande Bretagne, Office 11B2

Monte Carlo, MC 98000 Monaco

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒            Form 40-F ☐

 

 

 

NAVIOS MARITIME PARTNERS L.P.

FORM 6-K

TABLE OF CONTENTS

 

This Report on Form 6-K is hereby incorporated by reference into the Navios Maritime Partners L.P. Registration Statement on Form F-3, File No. 333-271842.

Operating and Financial Review and Prospects

The following is a discussion of the financial condition and results of operations for the three and nine month periods ended September 30, 2023 and 2022 of Navios Maritime Partners L.P. (referred to herein as “we”, “us”, “Company” or “Navios Partners”). All of the financial statements have been stated in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). You should read this section together with the consolidated financial statements and the accompanying notes included in Navios Partners’ 2022 Annual Report filed on Form 20-F with the U.S. Securities and Exchange Commission (the “SEC”) on March 24, 2023.

This Report contains and will contain forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, TCE rates (as defined herein), and Navios Partners’ expected cash flow generation, future contracted revenues, future distributions and its ability to make distributions going forward, opportunities to reinvest cash accretively in a fleet renewal program or otherwise, potential capital gains, its ability to take advantage of dislocation in the market and Navios Partners’ growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters and Navios Partners’ ability to refinance its debt on attractive terms, or at all. Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Partners at the time these statements were made. Although Navios Partners believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Partners. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks relating to: global and regional economic and political conditions including global economic activity, demand for seaborne transportation of the products we ship, the ability and willingness of charterers to fulfill their obligations to us and prevailing charter rates, the economic condition of the markets in which we operate, shipyards performing scrubber installations, construction of newbuilding vessels, drydocking and repairs, changing vessel crews and availability of financing, potential disruption of shipping routes due to accidents, wars, sanctions, diseases, pandemics, political events, piracy or acts by terrorists; uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long- term time charters, our ability to maximize the use of our vessels, expected demand in the dry and liquid cargo shipping sectors in general and the demand for our drybulk, containerships and tanker vessels in particular, fluctuations in charter rates for drybulk, containerships and tanker vessels, the aging of our fleet and resultant increases in operations costs, the loss of any customer or charter or vessel, the financial condition of our customers, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors, fluctuation in interest rates and foreign exchange rates, increases in costs and expenses, including but not limited to: crew, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, general domestic and international political conditions, competitive factors in the market in which Navios Partners operates; risks associated with operations outside the United States; and other factors listed from time to time in Navios Partners’ filings with the SEC, including its Form 20-F and Form 6-K. Navios Partners expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Partners’ expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Partners makes no prediction or statement about the performance of its common units.

 

2

Recent Developments

In November 2023, Navios Partners took delivery of the Zim Sparrow, a 2023-built 5,300 TEU containership.

In October 2023, Navios Partners agreed to charter-out to its affiliate Navios South American Logistics Inc. the Navios Vega, following her modification to a transhipper vessel, for a period of five years at a rate of $25,800 net per day. This transaction was negotiated with, and unanimously approved by, the conflicts committee of Navios Partners.

In October 2023, Navios Partners sold the Navios Beaufiks, a 2004-built Capesize vessel of 180,310 dwt, to an unrelated third party, for a net sales price of $12.6 million.

Overview

We are an international owner and operator of dry cargo and tanker vessels, formed on August 7, 2007 under the laws of the Republic of the Marshall Islands. Olympos Maritime Ltd. is our general partner (the “General Partner”).

As of November 17, 2023, there were 30,184,388 outstanding common units and 622,296 general partnership units. Navios Maritime Holdings Inc. (“Navios Holdings”) currently owns an approximately 10.3% ownership interest in Navios Partners and the General Partner currently owns an approximately 2.0% ownership interest in Navios Partners based on all outstanding common units and general partnership units.

Fleet

Navios Partners’ fleet consists of 80 drybulk vessels, 47 containerships and 53 tanker vessels, including 16 newbuilding tanker vessels (ten Aframax/LR2 and six MR2 Product Tanker chartered-in vessels under bareboat contracts), that are expected to be delivered through 2027 and 11 newbuilding containerships (nine 5,300 TEU and two 7,700 TEU), that are expected to be delivered through 2025.

We generate revenues by charging our customers for the use of our vessels to transport their dry cargo commodities, containers, crude oil and/or refined petroleum products. In general, the vessels in our fleet are chartered-out under time charters, which range in length from one to twelve years at inception. From time to time, we operate vessels in the spot market until the vessels have been chartered out under short-term, medium and long-term charters.

 

3

The following table provides summary information about our fleet as of November 14, 2023:

 

Owned Drybulk Vessels		Type		Built				Capacity (DWT)				Charter-Out Rate(1)		Index(2)		Expiration Date(3)
Navios Christine B		Ultra-Handymax			2009				58,058			—		99.0% average BSI 58 10TC		Aug-24
Navios Celestial		Ultra-Handymax			2009				58,063			$  12,065 —		No 100% average BSI 58 10TC		Dec-23 Apr-25
Navios Vega		Ultra-Handymax			2009				57,573			— $  25,800		Scheduled repairs —		Dec-23 Dec-28
Navios La Paix		Ultra-Handymax			2014				61,485			$  13,287 —		— 111.0% average BSI 58 10TC		Dec-23 Jul-24
Navios Hyperion		Panamax			2004				75,707			$  19,000		No		Nov-23
Navios Orbiter		Panamax			2004				76,602			—		100.0% average BPI 4TC		Dec-23
Navios Hope		Panamax			2005				75,397			$  11,550 $    9,625 —		No No 100.0% average BPI 4TC		Dec-23 Mar-24 Jun-24
Navios Taurus		Panamax			2005				76,596			$  11,887 —		No 100.0% average BPI 4TC		Dec-23 Mar-24
Navios Sun		Panamax			2005				76,619			— $    9,625 —		BPI 82 - $1,286 No BPI 82 - $1,286		Dec-23 Mar-24 Dec-24
Navios Asteriks(24)		Panamax			2005				76,801			—		BPI 82 - $1,286		Sep-24
Navios Helios		Panamax			2005				77,075			$  11,694 —		No 100.0% average BPI 4TC		Dec-23 Jan-24
Navios Apollon I		Panamax			2005				87,052			$  11,638		No		Dec-23
N Amalthia		Panamax			2006				75,318			$  12,332 —		No 90.0% average BPI 82		Dec-23 Apr-24
Navios Sagittarius(5)		Panamax			2006				75,756			—		BPI 82 - $1,286		Sep-24
Navios Galileo		Panamax			2006				76,596			$  12,121 —		No 89.0% average BPI 82		Dec-23 Jan-24
N Bonanza		Panamax			2006				76,596			$  11,935 $    9,866 —		No No 100.0% average BPI 4TC		Dec -23 Mar-24 Apr-24
Navios Harmony		Panamax			2006				82,790			Spot		—		—
Copernicus N		Panamax			2010				93,062			$    9,500		No		Dec -23
Unity N		Panamax			2011				79,642			$  12,968 —		No 89.0% average BPI 4TC		Dec -23 Oct-24
Odysseus N		Panamax			2011				79,642			—		100.0% average BPI 4TC		Nov-23
Rainbow N		Panamax			2011				79,642			—		100.0% average BPI 4TC		Dec-23
Navios Avior		Panamax			2012				81,355			$  12,954 —		No 100.0% average BPI 82		Dec-23 Feb-24
Navios Centaurus		Panamax			2012				81,472			$  13,084 $  11,021 —		No No 101.0% average BPI 82		Dec -23 Mar-24 Jul-24
Navios Victory		Panamax			2014				77,095			$  14,048 —		No 96.0% average BPI 4TC		Dec-23 Oct-24
Navios Alegria(24)		Panamax			2016				84,852			$  14,197		No		Jul-24
Navios Sphera		Panamax			2016				84,872			$  13,343 $  11,628 —		No No 108% of average BPI 82		Dec-23 Mar-24 Apr-24

 

4

Navios Sky(5)		Panamax			2015				82,056			$  13,073 $  11,558 —		No No 105.0 % average BPI 82			Dec -23 Mar-24 Sep-24
Navios Horizon I		Panamax			2019				81,692			$  15,304 —		No 110.0% average BPI 82			Dec-23 Apr-25
Navios Uranus(6)		Panamax			2019				81,821			$  15,593		No			Jan-24
Navios Herakles I(6)		Panamax			2019				82,036			$  13,517 $  11,684 $  13,733 —		No No No 113.5% average BPI 82			Dec-23 Mar-24 Jun-24 Jul-24
Navios Galaxy II(6)		Panamax			2020				81,789			$  13,184 $  11,902 $  13,612 —		No No No 112.5% average BPI 82			Dec-23 Mar-24 Jun-24 Dec-24
Navios Felicity I(6)		Panamax			2020				81,962			$  14,919		No			Dec-23
Navios Magellan II(6)		Panamax			2020				82,037			$  13,298 $  12,005 $  14,430		No No No			Dec-23 Mar-24 Jun-24
Navios Primavera(5)		Panamax			2022				82,003			$  16,145 $  12,658 —		No No 115.0% average BPI 82			Dec-23 Mar-24 Sep-24
Navios Meridian(5)		Panamax			2023				82,010			$  13,426 $  12,438		No No			Dec-23 Mar-24
Navios Fantastiks(5)		Capesize			2005				180,265			$  18,911		No			Feb-24
Navios Stellar(5)		Capesize			2009				169,001			—		99.0% average BCI 5TC			Apr-24
Navios Aurora II		Capesize			2009				169,031			—		99.0% average BCI 5TC			May-24
Navios Happiness		Capesize			2009				180,022			$  20,710 —		No 109.0% average BCI 5TC			Dec-23 Oct-24
Navios Bonavis(5)		Capesize			2009				180,022			$  15,339 —		No 107.0% average BCI 5TC			Dec-23 Apr-24
Navios Phoenix(5)		Capesize			2009				180,242			$  16,859 —		No 100.0% average BCI 5TC + $1,905 per day			Dec-23 Feb-24
Navios Sol(5)		Capesize			2009				180,274			$  20,378 —		No 110.0% average BCI 5TC			Dec-23 Apr-24
Navios Lumen(5)		Capesize			2009				180,661			$  16,264 —		No 107.0% average BCI 5TC			Dec-23 Apr-24
Navios Pollux(5)		Capesize			2009				180,727			—		100.0% of pool earnings			Jan-24
Navios Antares(5)		Capesize			2010				169,059			—		100.0% average BCI 5TC			Feb-24
Navios Symphony		Capesize			2010				178,132			$  19,458 —		No 104.5% average BCI 5TC			Dec-23 Jan-24
Navios Melodia		Capesize			2010				179,132			—		105.0% average BCI 5TC			Apr-24
Navios Luz		Capesize			2010				179,144			$  15,911 —		No 106.0% average BCI 5TC			Dec-23 May-24
Navios Etoile		Capesize			2010				179,234			$  17,456 —		No 105.0% average BCI 5TC			Dec-23 Feb-24
Navios Buena Ventura		Capesize			2010				179,259			—		105.0% average BCI 5TC			Feb-24
Navios Bonheur		Capesize			2010				179,259			— —		103.0% average BCI 5TC 104.0% average BCI 5TC			Dec-23 Jan-25
Navios Fulvia		Capesize			2010				179,263			—		105.0% average BCI 5TC			Feb-24
Navios Aster		Capesize			2010				179,314			—		108.0% average BCI 5TC			Mar-24
Navios Ace(5)		Capesize			2011				179,016			—		107.25% average BCI 5TC			Feb-25

 

5

Navios Altamira		Capesize			2011				179,165			$  16,467 —		No 107.0% average BCI 5TC		Dec-23 Mar-24
Navios Azimuth		Capesize			2011				179,169			$  18,554 —		No 105.0% average BCI 5TC		Dec-23 Feb-24
Navios Koyo		Capesize			2011				181,415			$  19,057 —		No 118.0% average BCI 5TC		Dec-23 Apr-24
Navios Ray(5)		Capesize			2012				179,515			$  19,950 —		No 105.0% average BCI 5TC		Dec-23 Jan-25
Navios Joy		Capesize			2013				181,389			—		Freight Voyages		Aug-25
Navios Gem		Capesize			2014				181,336			$  19,030 —		No 128.0% average BCI 5TC		Dec-23 Mar-24
Navios Canary(24)		Capesize			2015				180,528			$  24,819 —		No 125.0% average BCI 5TC		Dec-23 Jan-25
Navios Corali(24)		Capesize			2015				181,249			—		131.0% average BCI 5TC		Oct-24
Navios Felix(24)		Capesize			2016				181,221			$  18,905 —		No 100.0% average BCI 5TC + $4,085 per day		Dec-23 Mar-24
Navios Mars		Capesize			2016				181,259			—		126.0% average BCI 5TC		Jan-24
Navios Armonia(6)		Capesize			2022				182,079			$  20,750		No		Sep-27
Navios Azalea(6)		Capesize			2022				182,064			$  19,950		No		Nov-27
Navios Astra(14)		Capesize			2022				182,393			$  21,000		No		Aug-27
Navios Altair(6)		Capesize			2023				182,115			$  19,600		No		Nov-27
Navios Sakura(6)		Capesize			2023				182,169			$  19,550		No		Mar-28
Navios Amethyst(6)		Capesize			2023				182,212			$  19,550		No		Feb-28

 

Owned Containerships		Capacity (TEU)		Built		Charter-Out          Rate(1)				Index(2)		Expiration Date(3)
Navios Summer(5)		3,450		2006		$ $ $ $	39,795 30,320 20,845 34,110			No No No No		May-24 May-25 May-26 Jul-26
Navios Verano (5)		3,450		2006		$	18,818			No		Apr-26
Hyundai Hongkong		6,800		2006		$ $	30,119 21,083			No No		Dec-23 Dec-28
Hyundai Singapore		6,800		2006		$ $	30,119 21,083			No No		Dec-23 Dec-28
Hyundai Busan		6,800		2006		$ $	30,119 21,083			No No		Aug-24 Aug-29
Hyundai Shanghai		6,800		2006		$ $	30,119 21,083			No No		Aug-24 Aug-29
Hyundai Tokyo		6,800		2006		$ $	30,119 21,083			No No		Dec-23 Dec-28
Protostar N		2,741		2007		$	11,700			No		Aug-25
Navios Spring(5)		3,450		2007		$	19,744			No		Mar-24
Matson Lanai(5)		4,250		2007		$	55,794			No		Jul-25
Navios Indigo(5)		4,250		2007		$ $ $ $	43,875 34,125 24,375 41,438			No No No No		Apr-24 Apr-25 Apr-26 Aug-26

 

6

Navios Vermilion(5)		4,250		2007		$ $ $	45,425                              23,972 41,722				No No No			Dec-23 Nov-24 Dec-24
Navios Verde(5)		4,250		2007		$	21,725				No			Apr-25
Navios Amarillo(5)		4,250		2007		$ $ $ $	92,381 63,956 28,425 9,475				No No No No			Jan-24 Jan-25 Jan-26 Jan-28
Navios Azure		4,250		2007		$	20,748				No			Apr-26
Navios Domino(5)		4,250		2008		$	23,453				No			Sep-25
Matson Oahu (ex Navios Delight)(5)		4,250		2008		$ $	45,425 19,701				No No			Nov-23 Oct-24
Navios Magnolia		4,730		2008		$ $ $	45,425 23,972 41,722				No No No			Nov-23 Oct-24 Nov-24
Navios Jasmine		4,730		2008		$ $	48,000 22,500				No No			Mar-25 May-27
Navios Chrysalis		4,730		2008		$	23,453				No			Jun-25
Navios Nerine		4,730		2008		$ $	23,972 41,722				No No			Sep-24 Oct-24
Spectrum N		2,546		2009		$	36,538				No			Mar-25
Navios Devotion(5)		4,250		2009		$ $ $ $	43,875 34,125 24,375 41,438				No No No No			Mar-24 Mar-25 Mar-26 Jul-26
Navios Destiny(5)		4,250		2009		$ $ $	45,425 23,972 41,722				No No No			Nov-23 Oct-24 Nov-24
Navios Lapis		4,250		2009		$	20,244				No			Apr-24
Navios Tempo		4,250		2009		$	44,438				No			Sep-25
Navios Miami		4,563		2009		$ $	23,972 41,722				No No			Oct-24 Nov-24
Navios Dorado		4,250		2010		$	21,676				No			Jun-24
Zim Baltimore		4,360		2010		$ $ $ $	43,875 34,125 24,375 41,438				No No No No			Jan-24 Jan-25 Jan-26 May-26
Navios Bahamas		4,360		2010		$ $	48,000 22,500				No No			Apr-25 Jun-27
Zim Carmel		4,360		2010		$ $ $ $	42,164 32,689 23,214 39,795				No No No No			Apr-24 Apr-25 Apr-26 Jun-26
Zim Sparrow		5,300		2013		$ $ $ $ $ $	42,900 39,000 37,050 35,100 31,200 37,050				No No No No No No			Nov-24 Nov-25 Nov-26 Nov-27 Nov-28 Jan-29
Navios Unison(5)		10,000		2010		$	26,276				No			Jun-26
Navios Constellation(5)		10,000		2011		$	26,276				No			Jun-26
Fleur N		2,782		2012		$	19,750				No			Mar-24
Ete N		2,782		2012		$	19,750				No			Feb-24

 

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Owned Tanker Vessels		Type		Built				Capacity (DWT)				Charter-Out Rate(1)				Profit Sharing Arrangements				Expiration Date(3)
Hector N		MR1 Product Tanker			2008				38,402			$	Scheduled Repairs 20,738				— No				Dec-23 Dec-25
Nave Equinox		MR2 Product Tanker			2007				50,922			$	20,392	(8)			No				Nov-24
Nave Pulsar (24)		MR2 Product Tanker			2007				50,922			$	21,231	(8)			No				Sep-25
Nave Orbit		MR2 Product Tanker			2009				50,470			$	15,306				No				Oct-24
Nave Equator		MR2 Product Tanker			2009				50,542			$	23,305				No				Oct-24
Nave Aquila (5)		MR2 Product Tanker			2012				49,991			$	27,156				No				Jun-24
Nave Atria (5)		MR2 Product Tanker			2012				49,992			$	14,887				No				Nov-24
Nave Capella		MR2 Product Tanker			2013				49,995			$	22,138				No				Jan-25
Nave Alderamin		MR2 Product Tanker			2013				49,998			$	22,138				No				Nov-24
Nave Bellatrix (5)		MR2 Product Tanker			2013				49,999			$ $	25,675 19,750				No No				Aug-24 Aug-25
Nave Orion (5)		MR2 Product Tanker			2013				49,999			$	22,138				No				Dec-24
Nave Titan		MR2 Product Tanker			2013				49,999			$	25,891				No				Feb-25
Bougainville		MR2 Product Tanker			2013				50,626			$	21,800	(7)			No				Oct-26
Nave Pyxis		MR2 Product Tanker			2014				49,998			$	25,891				No				Jan-25
Nave Luminosity		MR2 Product Tanker			2014				49,999			$	23,004	(10)			No				Dec-25
Nave Jupiter		MR2 Product Tanker			2014				49,999			$	21,231				No				Oct-28
Nave Velocity		MR2 Product Tanker			2015				49,999			$	15,553	(11)			No				Oct-24
Nave Sextans		MR2 Product Tanker			2015				49,999			$	23,196	(10)			No				May-26
Nave Ariadne		LR1 Product Tanker			2007				74,671				Floating Rate	(12)			No				Feb-24
Nave Cielo		LR1 Product Tanker			2007				74,671			$	26,564				No				Jan-24
Nave Andromeda		LR1 Product Tanker			2011				75,000			$	28,394				No				Mar-25
Nave Cetus		LR1 Product Tanker			2012				74,581			$	32,094				No				Jul-25
Nave Cassiopeia		LR1 Product Tanker			2012				74,711			$	33,150	(13)			No				Jan-25
Nave Estella		LR1 Product Tanker			2012				75,000			$	28,394				No				Dec-24
Nave Rigel		LR1 Product Tanker			2013				74,673				Floating Rate	(12)			No				Dec-23
Nave Atropos		LR1 Product Tanker			2013				74,695			$	21,971				No				Oct-24
Nave Galactic		VLCC			2009				297,168				Freight voyage				No				Nov-23
Nave Spherical		VLCC			2009				297,188				Floating Rate				Yes	(15)			Jan-24
Nave Constellation		VLCC			2010				296,988				Freight voyage				No				Dec-23
Nave Quasar		VLCC			2010				297,376				Scheduled Repairs				—				—
Nave Synergy		VLCC			2010				299,973				Freight voyage				No				Nov-23
Nave Universe		VLCC			2011				297,066				Freight voyage				No				Dec-23
Nave Buena Suerte		VLCC			2011				297,491			$	47,906				Yes	(16)			Jun-25

 

8

Bareboat-in Vessels		Type		Built				Capacity (DWT)				Charter-Out Rate(1)				Index(2)		Expiration Date(3)
Navios Libra		Panamax			2019				82,011			$ $	13,418             11,955 —			No No 109.75% average BPI 82		Dec-23 Mar-24 Jun-24
Navios Star		Panamax			2021				81,994			$ $	12,637 11,526 —			No No 110.0% average BPI 82		Dec-23 Mar-24 Apr-24
Navios Amitie		Panamax			2021				82,002			$ $	12,531 11,896 —			No No 110.0% average BPI 82		Dec-23 Mar-24 Apr-24
Baghdad		VLCC			2020				313,433			$	27,816	(17)		No		Sep-30
Nave Electron		VLCC			2021				313,239			$	47,906			Yes(16)		Jan-26
Erbil		VLCC			2021				313,486			$	27,816	(17)		No		Feb-31
Nave Celeste		VLCC			2022				313,418				Floating rate Floating rate			Yes(18) Yes(4)		May-24 Jul-29

 

Chartered-in Vessels		Type		Built		Capacity (DWT)				Charter-Out Rate(1)				Index(2)		Expiration Date(3)
Navios Lyra		Handysize		2012			34,718			$	9,975			No		Dec-23
Navios Venus		Ultra- Handymax		2015			61,339			$	14,552 —			No 111.0% average BSI 58 10TC		Dec-23 Feb-24
Navios Amber(19)		Panamax		2015			80,994			$	19,000			No		Apr-24
Navios Coral(19)		Panamax		2016			84,904			$	14,486 —			No 108.0% average BPI 82		Dec-23 Feb-24
Navios Citrine(19)		Panamax		2017			81,626			$   $   $	13,570 11,898 13,675 —			No No No 110.0% average BPI 82		Dec-23 Mar-24 Jun-24 Oct-24
Navios Dolphin(19)		Panamax		2017			81,630			$	14,013	(20)		No		Dec-24
Navios Gemini(21)		Panamax		2018			81,704			$	14,919			No		Dec-23

 

Owned Containerships to be Delivered

Expected Delivery

Capacity (TEU)

Charter- Out Rate(1)

Index(2)

Expiration Date(3)

TBN I

Q4 2023

5,300

$ $ $ $ $ $

42,900 39,000 37,050 35,100 31,200         37,050

No No No No No No

Dec-24 Dec-25 Dec-26 Dec-27 Dec-28 Feb-29

TBN VI

H1 2024

5,300

$ $ $ $ $ $

42,900 39,000 37,050 35,100 31,200 37,050

No No No No No No

Jan-25 Jan-26 Jan-27 Jan-28 Jan-29 Mar-29

 

9

TBN II		H1 2024		5,300		$ $ $ $ $ $	42,900 39,000         37,050 35,100 31,200 37,050			No No No No No No		May-25 May-26 May-27 May-28 May-29 Jul-29
TBN III		H1 2024		5,300		$ $ $ $ $ $	42,900 39,000 37,050 35,100 31,200 37,050			No No No No No No		Jun-25 Jun-26 Jun-27 Jun-28 Jun-29 Aug-29
TBN VII		H1 2024		5,300		$ $ $ $ $ $	42,900 39,000 37,050 35,100 31,200 37,050			No No No No No No		Mar-25 Mar-26 Mar-27 Mar-28 Mar-29 May-29
TBN IV		H2 2024		5,300		$ $ $ $ $ $	42,900 39,000 37,050 35,100 31,200 37,050			No No No No No No		Aug-25 Aug-26 Aug-27 Aug-28 Aug-29 Oct-29
TBN V		H2 2024		5,300		$ $ $ $ $ $	42,900 39,000 37,050 35,100 31,200 37,050			No No No No No No		Nov-25 Nov-26 Nov-27 Nov-28 Nov-29 Jan-30
TBN VIII		H2 2024		5,300		$	37,500			No		Feb-30
TBN IX		H2 2024		5,300		$	37,500			No		Apr-30
TBN XVII		H1 2025		7,700		$ $ $ $ $	57,213 52,238 37,313 27,363 24,875	(23)		No No No No No		Jan-28 Jan-31 Jan-33 Jan-35 Jan-37
TBN XVI		H2 2024		7,700		$ $ $ $ $	57,213 52,238 37,313 27,363 24,875	(23)		No No No No No		Dec-27 Dec-30 Dec-32 Dec-34 Dec-36

 

10

Tanker Vessels to be Delivered		Type		Expected Delivery				Capacity (DWT)				Charter-Out Rate(1)				Profit Sharing Arrangements		Expiration Date(3)
TBN X		Aframax / LR2			H1 2024				115,000			$	26,366	(22)		No		Apr-29
TBN XI		Aframax / LR2			H2 2024				115,000			$	26,366	(22)		No		Jul-29
TBN XII		Aframax / LR2			H2 2024				115,000			$	25,576	(22)		No		Oct-29
TBN XIII		Aframax / LR2			H2 2024				115,000			$	25,576	(22)		No		Dec-29
TBN XIV		Aframax / LR2			H1 2025				115,000			$	27,798	(22)		No		Mar-30
TBN XV		Aframax / LR2			H1 2025				115,000			$	27,798	(22)		No		May-30
TBN XXIV		Aframax / LR2			H1 2026				115,000			$	27,788	(9)		No		Apr-31
TBN XXV		Aframax / LR2			H1 2026				115,000			$	27,788	(9)		No		May-31
TBN XXVI		Aframax / LR2			H2 2026				115,000				—			—		—
TBN XXVII		Aframax / LR2			H2 2026				115,000				—			—		—
TBN XVIII(6)		MR2 Product Tanker			H2 2025				52,000			$	22,959			No		Nov-30
TBN XIX(6)		MR2 Product Tanker			H1 2026				52,000			$	22,959			No		May-31
TBN XX(6)		MR2 Product Tanker			H2 2026				52,000				—			—		—
TBN XXI(6)		MR2 Product Tanker			H1 2027				52,000				—			—		—
TBN XXII(6)		MR2 Product Tanker			H1 2027				52,000				—			—		—
TBN XXIII(6)		MR2 Product Tanker			H1 2027				52,000				—			—		—

 

(1)	Daily charter-out rate per day, net of commissions.

(2)	Index rates exclude commissions.

(3)	Estimated dates assuming the midpoint or Company’s estimate of the redelivery period by charterers.

(4)	Bareboat charter based on adjusted TD3C-WS with floor $26,730 and collar at $36,630.

(5)	The vessel is subject to a sale and leaseback transaction with a purchase obligation at the end of the lease term.

(6)	The vessel is subject to a bareboat contract with a purchase option at the end of the contract.

(7)	Charterer’s option to extend charter for one year at $24,900 net per day.

(8)	The premium for when the vessel is trading on ice or follow ice breaker is $1,481 per day.

(9)	Charterer’s option to extend the charter for one year at $29,738 net per day plus one year at $31,200 net per day.

(10)	Charterer’s option to extend the charter for one year at $27,913 net per day.

(11)	Charterer’s option to extend the charter for one year at $16,540 net per day plus one year at $17,528 net per day.

(12)	Rate based on pool earnings.

(13)	Charterer’s option to extend the charter for one year at $40,950 net per day.

(14)	The vessel is subject to a bareboat contract with a purchase obligation at the end of the contract.

(15)	Contract provides for TD3C-TCE index plus $1,463 premium.

(16)	Profit sharing arrangement of 35% above $54,388, 40% above $59,388 and 50% above $69,388.

(17)	Charterer’s option to extend the bareboat charter for five years at $29,751 net per day.

(18)	Bareboat charter based on adjusted TD3C-WS with floor $22,572 and collar at $29,700.

(19)	The vessel is subject to a charter-in agreement with a purchase option at the end of the agreement, classified as a finance lease.

(20)	Charterer’s option to extend charter for one year at $15,200 net per day.

(21)	Purchase option in the form of the right of first refusal and profit share on sale of vessel.

(22)	Charterer has the option to extend for five further one-year options at rates increasing by $1,234 net per day each year.

(23)	Charterer’s option to extend charter for two years at $24,875 net per day.

(24)	The vessel is subject to a sale and leaseback transaction with a purchase option at the end of the lease term.

 

11

Our Charters

We provide seaborne shipping services under short, medium, and long-term time charters, bareboat charters and voyage charters with customers that we believe are creditworthy. For the nine month period ended September 30, 2023, no customer accounted for 10.0% or more of our total revenues. For the nine month period ended September 30, 2022, Swissmarine Marine Pte. Ltd. Singapore (“Swissmarine”) represented approximately 10.5% of our total revenues. No other customers accounted for 10.0% or more of our total revenues for any of the periods presented.

Our revenues are driven by the number of vessels in the fleet, the number of days during which the vessels operate and our charter hire rates, which, in turn, are affected by a number of factors, including:

 

•

the duration of the charters;

•

the level of spot and long-term market rates at the time of charters;

•

decisions relating to vessel acquisitions and disposals;

•

the amount of time spent positioning vessels;

•

the amount of time that vessels spend in dry dock undergoing repairs and upgrades;

•

the age, condition and specifications of the vessels;

•

the aggregate level of supply and demand in the liquid, dry and containerized cargo shipping industry;

•

economic conditions, such as the impact of inflationary cost pressures, decreased consumer discretionary spending, fluctuations in foreign currency exchange rates, increasing interest rates, and the possibility of recession or financial market instability;

•

armed conflicts, such as the Israel Gaza war and Russian/Ukrainian conflicts; and

•

the outbreak of global epidemics or pandemics such as coronavirus (COVID-19).

Time charters are available for varying periods, ranging from a single trip (spot charter) to long-term which may be many years. In general, a long-term time charter assures the vessel owner of a consistent stream of global revenue. Operating the vessel in the spot market affords the owner greater spot market opportunity, which may result in high rates when vessels are in high demand or low rates when vessel availability exceeds demand. We intend to operate our vessels in the medium to long-term charter market. Vessel charter rates are affected by world economics, international events, weather conditions, strikes, governmental policies, supply and demand and many other factors that might be beyond our control. Please read the section entitled “Risk Factors” in our 2022 Annual Report on Form 20-F for a discussion of certain risks inherent in our business.

We could lose a customer or the benefits of a charter if:

•

the customer fails to make charter payments because of its financial inability, disagreements with us or otherwise;

•

the customer exercises certain rights to terminate the charter of the vessel;

•

the customer terminates the charter because we fail to deliver the vessel within a fixed period of time, the vessel is lost or damaged beyond repair, there are serious deficiencies in the vessel or prolonged periods of off-hire, or we default under the charter; or

•

a prolonged force majeure event affecting the customer, including damage to or destruction of relevant production facilities, war or political unrest prevents us from performing services for that customer.

Under some of our time charters, either party may terminate the charter contract in the event of war in specified countries or in locations that would significantly disrupt the free trade of the vessel. Some of the time charters covering our vessels require us to return to the charterer, upon the loss of the vessel, all advances paid by the charterer but not earned by us.

 

12

Trends and Factors Affecting Our Future Results of Operations

We believe the principal factors that will affect our future results of operations are the economic, regulatory, political and governmental conditions that affect the shipping industry generally and that affect conditions in countries and markets in which our vessels engage in business. Please read the section entitled “Risk Factors” in our 2022 Annual Report on Form 20-F for a discussion of certain risks inherent in our business.

Results of Operations

Overview

The following table reflects certain key indicators of Navios Partners’ fleet performance for the three and nine month periods ended September 30, 2023 and 2022.

 

		Three Month Period Ended September 30, 2023   (unaudited)				Three Month Period Ended September 30, 2022   (unaudited)				Nine Month Period Ended September 30, 2023   (unaudited)				Nine Month Period Ended September 30, 2022   (unaudited)
Available Days(1)			13,759				12,897				41,239				35,394
Operating Days(2)			13,646				12,785				40,869				35,008
Fleet Utilization(3)			99.2%				99.1%				99.1%				98.9%
Time Charter Equivalent rate (per day)(4)		$	22,052			$	23,781			$	22,242			$	22,717
Vessels operating at end of periods			153				166				153				166

 

(1)

Available days for the fleet represent total calendar days the vessels were in Navios Partners’ possession for the relevant period after subtracting off-hire days associated with scheduled repairs, dry dockings or special surveys and ballast days relating to voyages. The shipping industry uses available days to measure the number of days in a relevant period during which a vessel is capable of generating revenues.

 

(2)

Operating days are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues.

 

(3)

Fleet utilization is the percentage of time that Navios Partners’ vessels were available for generating revenue, and is determined by dividing the number of operating days during a relevant period by the number of available days during that period. The shipping industry uses fleet utilization to measure efficiency in finding employment for vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs, dry dockings or special surveys.

 

(4)

Time Charter Equivalent rate (“TCE rate”) per day is defined as voyage, time charter revenues and charter-out revenues under bareboat contracts (grossed up by currently applicable fixed vessel operating expenses) less voyage expenses during a period divided by the number of available days during the period. The TCE rate per day is a customary shipping industry performance measure used primarily to present the actual daily earnings generated by vessels on various types of charter contracts for the number of available days of the fleet.

 

13

FINANCIAL HIGHLIGHTS

The following table presents consolidated revenue and expense information for the three and nine month periods ended September 30, 2023 and 2022.

 

		Three Month Period Ended September 30, 2023 ($000) (unaudited)				Three Month Period Ended September 30, 2022 ($000) (unaudited)				Nine Month Period Ended September 30, 2023 ($000) (unaudited)				Nine Month Period Ended September 30, 2022 ($000) (unaudited)
Time charter and voyage revenues		$	323,176			$	322,387			$	979,636			$	839,665
Time charter and voyage expenses			(39,877)				(35,439)				(121,596)				(74,300)
Direct vessel expenses			(15,941)				(15,398)				(48,145)				(39,511)
Vessel operating expenses (entirely through related parties transactions)			(82,856)				(78,928)				(248,622)				(226,089)
General and administrative expenses			(19,524)				(15,597)				(59,559)				(43,683)
Depreciation and amortization of intangible assets			(54,513)				(59,270)				(162,768)				(143,820)
Amortization of unfavorable lease terms			3,521				24,779				16,431				64,205
Gain on sale of vessels, net			7,170				143,764				50,771				143,764
Interest expense and finance cost, net			(31,849)				(22,270)				(100,703)				(50,019)
Interest income			3,314				74				7,414				98
Other expense, net			(2,840)				(6,938)				(11,605)				(9,321)
Net income		$	89,781			$	257,164			$	301,254			$	460,989
EBITDA(1)		$	180,838			$	321,433			$	571,275			$	611,028
Adjusted EBITDA(1)		$	173,668			$	177,669			$	520,504			$	467,264
Operating Surplus (1)		$	84,924			$	94,790			$	249,292			$	240,859

 

(1)

EBITDA, Adjusted EBITDA and Operating Surplus are non-GAAP financial measures. See “Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities, EBITDA and Operating Surplus” for a description of EBITDA, Adjusted EBITDA and Operating Surplus and a reconciliation of EBITDA, Adjusted EBITDA and Operating Surplus to the most comparable measure under U.S. GAAP.

Period over Period Comparisons

For the Three Month Period ended September 30, 2023 compared to the Three Month Period ended September 30, 2022

Time charter and voyage revenues: Time charter and voyage revenues of Navios Partners for the three month period ended September 30, 2023 slightly increased by $0.8 million, or 0.2%, to $323.2 million, as compared to $322.4 million for the same period in 2022. The increase in revenue was mainly attributable to the increase in the available days of our fleet, partially mitigated by the decrease in TCE rate. For the three month periods ended September 30, 2023 and 2022, the time charter and voyage revenues were negatively affected by $9.7 million and $13.6 million, respectively, relating to the straight-line effect of the containership and tanker charters with de-escalating rates. For the three month period ended September 30, 2023, the TCE rate decreased by 7.3% to $22,052 per day, as compared to $23,781 per day for the same period in 2022. The available days of the fleet increased by 6.7% to 13,759 days for the three month period ended September 30, 2023, as compared to 12,897 days for the same period in 2022 mainly due to the acquisition of the 36-vessel drybulk fleet from Navios Holdings and the deliveries of newbuilding and secondhand vessels, partially mitigated by the sale of vessels.

 

14

Time charter and voyage expenses: Time charter and voyage expenses for the three month period ended September 30, 2023 increased by $4.5 million to $39.9 million, as compared to $35.4 million for the three month period ended September 30, 2022. The increase was mainly attributable to a: (i) $3.1 million increase in bunkers expenses arising from the increased days of freight voyages in the third quarter of 2023; (ii) $1.0 million increase in other voyage expenses; (iii) $0.5 million increase in port expenses; and (iv) $0.3 million increase in bareboat and charter-in hire expense of the tanker and drybulk fleet primarily due to the expansion of our fleet. The above was partially mitigated by a $0.4 million decrease in brokers’ commissions.

Direct vessel expenses: Direct vessel expenses for the three month period ended September 30, 2023, increased by $0.5 million to $15.9 million, as compared to $15.4 million for the three month period ended September 30, 2022. The increase of $0.5 million was mainly attributable to the amortization of the deferred drydock and special survey costs due to the expansion of our fleet.

Vessel operating expenses: Vessel operating expenses for the three month period ended September 30, 2023, increased by approximately $4.0 million to $82.9 million, as compared to $78.9 million for the same period in 2022. The increase was mainly due to the expansion of our fleet and the adjustment of the fixed daily fee in accordance with the management agreements (the “Management Agreements”), partially mitigated by the sale of vessels.

General and administrative expenses: General and administrative expenses increased by $3.9 million to $19.5 million for the three month period ended September 30, 2023, as compared to $15.6 million for the three month period ended September 30, 2022. The increase was mainly due to a: (i) $3.1 million increase in administrative expenses paid to the Manager (as defined herein) as per the administrative services agreement (the “Administrative Services Agreement”), mainly due to the expansion of our fleet, partially mitigated by the sale of vessels; and (ii) $0.8 million increase in professional and legal fees, as well as audit fees and other administrative expenses.

Depreciation and amortization of intangible assets: Depreciation and amortization of intangible assets amounted to $54.5 million for the three month period ended September 30, 2023, as compared to $59.3 million for the three month period ended September 30, 2022. The decrease of $4.8 million was mainly attributable to a: (i) $12.9 million decrease in amortization of favorable lease terms; and (ii) $3.9 million decrease in the depreciation due to the sale of 21 of our vessels during the second half of 2022 and the nine month period ended September 30, 2023. The above decrease was partially mitigated by a: (i) $11.4 million increase in the depreciation expense due to the delivery of the 36-vessel drybulk fleet and the delivery of 11 vessels during the second half of 2022 and the nine months period ended September 30, 2023; and (ii) $0.6 million increase in the depreciation expense due to vessel improvements. Depreciation of vessels is calculated using an estimated useful life of 25 years for drybulk and tanker vessels and 30 years for containerships, respectively, from the date the vessel was originally delivered from the shipyard.

Amortization of unfavorable lease terms: Amortization of unfavorable lease terms amounted to $3.5 million and $24.8 million for the three month periods ended September 30, 2023 and September 30, 2022, respectively, related to the fair value of the time charters with unfavorable lease terms as determined at the acquisition date of Navios Maritime Containers L.P. (“Navios Containers”) and at the date of obtaining control of Navios Maritime Acquisition Corporation (“Navios Acquisition”).

Gain on sale of vessels, net: Gain on sale of vessels, net amounted to $7.2 million for the three month period ended September 30, 2023, relating to one of our vessels amounted to $7.4 million, partially mitigated by an impairment loss of one of our vessels amounted to $0.2 million. Gain on sale of vessels, net amounted to $143.8 million for the three month period ended September 30, 2022, relating to the sale of two containerships.

 

15

Interest expense and finance cost, net: Interest expense and finance cost, net for the three month period ended September 30, 2023 increased by $9.5 million to $31.8 million, as compared to $22.3 million for the three month period ended September 30, 2022. The increase was mainly due to: (i) the increase in Navios Partner’s weighted average loan balance to $1,949.4 million for the three month period ended September 30, 2023, as compared to $1,579.0 million for the three month period ended September 30, 2022; and (ii) the increase of the weighted average interest rate for the three month period ended September 30, 2023 to 7.34% from 5.59% for the three month period ended September 30, 2022. The above increase was partially mitigated mainly by $4.3 million increase in the capitalized interest costs.

Interest income: Interest income amounted to $3.3 million for the three month period ended September 30, 2023 as compared to $0.1 million for the three month period ended September 30, 2022.

Other expense, net: Other expense, net for the three month period ended September 30, 2023 decreased by $4.1 million to $2.8 million, as compared to $6.9 million for the three month period ended September 30, 2022, mainly due to the decrease in expenses related to claims reserve and other miscellaneous expenses.

Net income: Net income for the three month period ended September 30, 2023 amounted to $89.8 million as compared to $257.2 million net income for the three month period ended September 30, 2022. The decrease of $167.4 million was due to the factors discussed above.

For the Nine Month Period ended September 30, 2023 compared to the Nine Month Period ended September 30, 2022.

Time charter and voyage revenues: Time charter and voyage revenues of Navios Partners for the nine month period ended September 30, 2023 increased by $139.9 million, or 16.7%, to $979.6 million, as compared to $839.7 million for the same period in 2022. The increase in revenue was mainly attributable to the increase in the available days of our fleet. For the nine month periods ended September 30, 2023 and 2022, the time charter and voyage revenues were negatively affected by $30.2 million and $30.1 million, respectively, relating to the straight-line effect of the containership and tanker charters with de-escalating rates. For the nine month period ended September 30, 2023, the TCE rate decreased by 2.1% to $22,242 per day, as compared to $22,717 per day for the same period in 2022. The available days of the fleet increased by 16.5% to 41,239 days for the nine month period ended September 30, 2023, as compared to 35,394 days for the same period in 2022 mainly due to the acquisition of the 36-vessel drybulk fleet from Navios Holdings and the deliveries of newbuilding and secondhand vessels, partially mitigated by the sale of vessels.

Time charter and voyage expenses: Time charter and voyage expenses for the nine month period ended September 30, 2023 increased by $47.3 million to $121.6 million, as compared to $74.3 million for the nine month period ended September 30, 2022. The increase was mainly attributable to a: (i) $20.1 million increase in bunkers expenses arising from the increased days of freight voyages during the nine month period ended September 30, 2023; (ii) $19.8 million increase in bareboat and charter-in hire expense of the tanker and drybulk fleet primarily due to the expansion of our fleet; (iii) $3.2 million increase in port expenses; (iv) $3.1 million increase in other voyage expenses; and (v) $1.1 million increase in brokers’ commissions.

Direct vessel expenses: Direct vessel expenses for the nine month period ended September 30, 2023, increased by $8.6 million to $48.1 million, as compared to $39.5 million for the nine month period ended September 30, 2022. The increase of $8.6 million was mainly attributable to the amortization of the deferred drydock and special survey costs due to the expansion of our fleet.

 

16

Vessel operating expenses: Vessel operating expenses for the nine month period ended September 30, 2023, increased by approximately $22.5 million to $248.6 million, as compared to $226.1 million for the same period in 2022. The increase was mainly due to the expansion of our fleet and the adjustment of the fixed daily fee in accordance with the Management Agreements, partially mitigated by the sale of vessels.

General and administrative expenses: General and administrative expenses increased by $15.9 million to $59.6 million for the nine month period ended September 30, 2023, as compared to $43.7 million for the nine month period ended September 30, 2022. The increase was mainly due to a: (i) $12.5 million increase in administrative expenses paid to the Manager (as defined herein) as per the Administrative Services Agreement, mainly due to the expansion of our fleet, partially mitigated by the sale of vessels; and (ii) $3.5 million increase in professional and legal fees, as well as audit fees and other administrative expenses; partially mitigated by a $0.1 million decrease in stock-based compensation expenses.

Depreciation and amortization of intangible assets: Depreciation and amortization of intangible assets amounted to $162.8 million for the nine month period ended September 30, 2023, as compared to $143.8 million for the nine month period ended September 30, 2022. The increase of $19.0 million was mainly attributable to a: (i) $42.4 million increase due to the delivery of the 36-vessel drybulk fleet and the delivery of 11 vessels during the second half of 2022 and the nine month period ended September 30, 2023; and (ii) $1.4 million increase in depreciation expense due to vessel improvements. The above increase was partially mitigated by a: (i) $9.8 million decrease in the depreciation due to the sale of 21 vessels during the second half of 2022 and the nine month period ended September 30, 2023; and (ii) $15.0 million decrease in amortization of favorable lease terms. Depreciation of vessels is calculated using an estimated useful life of 25 years for drybulk and tanker vessels and 30 years for containerships, respectively, from the date the vessel was originally delivered from the shipyard.

Amortization of unfavorable lease terms: Amortization of unfavorable lease terms amounted to $16.4 million and $64.2 million for the nine month periods ended September 30, 2023 and September 30, 2022, respectively, related to the fair value of the time charters with unfavorable lease terms as determined at the acquisition date of Navios Containers and at the date of obtaining control of Navios Acquisition.

Gain on sale of vessels, net: Gain on sale of vessels, net amounted to $50.8 million for the nine month period ended September 30, 2023, relating to a gain on sale of 13 of our vessels amounted to $51.0 million, partially mitigated by an impairment loss of one of our vessels amounted to $0.2 million. Gain on sale of vessels, net amounted to $143.8 million for the nine month period ended September 30, 2022, relating to the sale of two containerships.

Interest expense and finance cost, net: Interest expense and finance cost, net for the nine month period ended September 30, 2023 increased by $50.7 million to $100.7 million, as compared to $50.0 million for the nine month period ended September 30, 2022. The increase was mainly due to: (i) the increase in Navios Partner’s weighted average loan balance to $1,917.9 million for the nine month period ended September 30, 2023, as compared to $1,415.2 million for the nine month period ended September 30, 2022; and (ii) the increase of the weighted average interest rate for the nine month period ended September 30, 2023 to 7.25% from 4.59% for the nine month period ended September 30, 2022. The above increase was partially mitigated mainly by $11.4 million increase in the capitalized interest costs.

Interest income: Interest income amounted to $7.4 million for the nine month period ended September 30, 2023 as compared to $0.1 million for the nine month period ended September 30, 2022.

Other expense, net: Other expense, net for the nine month period ended September 30, 2023 increased by $2.3 million to $11.6 million, as compared to $9.3 million for the nine month period ended September 30, 2022, mainly due to the increase in expenses related to claims reserve and foreign exchange differences.

 

17

Net income: Net income for the nine month period ended September 30, 2023 amounted to $301.3 million as compared to $461.0 million net income for the nine month period ended September 30, 2022. The decrease of $159.7 million was due to the factors discussed above.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have, a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Liquidity and Capital Resources

We anticipate that our primary sources of funds for our short-term liquidity needs will be cash flows from our equity offerings, operations, proceeds from assets’ sales, long-term bank borrowings and other debt raisings. In addition to distributions on our units, our primary short-term liquidity needs are to fund general working capital requirements, cash reserve requirements including those under our credit facilities and debt service, while our long-term liquidity needs primarily relate to expansion and investment capital expenditures and other maintenance capital expenditures and debt repayment. As of September 30, 2023, Navios Partners’ current assets totaled $383.2 million, while current liabilities totaled $461.7 million, resulting in a negative working capital position of $78.5 million, primarily related to balloon payments totaling $76.9 million due under its financial liabilities and finance lease liabilities in the next 12 months. Navios Partners’ cash forecast indicates that it will generate sufficient cash through its contracted revenue of $3.4 billion as of November 14, 2023 and cash proceeds from the sale of vessels (see Note 4 – Vessels, net to the unaudited condensed consolidated financial statements included elsewhere in this Report) to make the required principal and interest payments on its indebtedness, provide for the normal working capital requirements of the business for a period of at least 12 months from the date of issuance of our unaudited condensed consolidated financial statements.

Generally, our long-term sources of funds derive from cash from operations, long-term bank borrowings and other debt or equity financings to fund acquisitions and expansion and investment capital expenditures. We cannot assure you that we will be able to secure adequate financing or to obtain additional funds on favorable terms to meet our liquidity needs.

Cash deposits and cash equivalents in excess of amounts covered by government provided insurance are exposed to loss in the event of non- performance by financial institutions. Navios Partners does maintain cash deposits and cash equivalents in excess of government provided insurance limits.

Navios Partners also minimizes exposure to credit risk by dealing with a diversified group of major financial institutions.

The following table presents cash flow information derived from the unaudited condensed Consolidated Statements of Cash Flows of Navios Partners for the nine month periods ended September 30, 2023 and 2022.

 

		Nine Month Period Ended September 30, 2023 ($ ‘000)       (unaudited)				Nine Month Period Ended September 30, 2022 ($ ‘000)       (unaudited)
Net cash provided by operating activities		$	348,613			$	366,271
Net cash used in investing activities			(72,423)				(265,710)
Net cash used in by financing activities			(182,115)				(159,687)
Increase/ (decrease) in cash, cash equivalents and restricted cash		$	94,075			$	(59,126)

 

18

Net cash provided by operating activities for the nine month period ended September 30, 2023 as compared to the net cash provided by operating activities for the nine month period ended September 30, 2022

Net cash provided by operating activities decreased by $17.7 million to $348.6 million for the nine month period ended September 30, 2023, as compared to $366.3 million for the same period in 2022. In determining net cash provided by operating activities, net income is adjusted for the effects of certain non-cash items as discussed below.

The aggregate adjustments to reconcile net income to net cash provided by operating activities was $184.2 million of non-cash positive net adjustments for the nine month period ended September 30, 2023, which consisted mainly of the following adjustments: (i) $162.8 million depreciation and amortization of intangible assets; (ii) $45.2 million non-cash amortization of deferred revenue and straight-line effect of the containership and tanker charters with de-escalating rates; (iii) $30.4 million amortization of deferred dry dock and special survey costs; (iv) $7.8 million amortization of operating lease assets/ liabilities; and (v) $5.2 million amortization and write-off of deferred finance costs and discount. These adjustments were partially mitigated by: (i) $50.8 million gain from sale of vessels, net; and (ii) $16.4 million amortization of unfavorable lease terms.

The net cash outflow resulting from the change in operating assets and liabilities of $136.9 million for the nine month period ended September 30, 2023 resulted from a: (i) $104.7 million decrease in amounts due to related parties; (ii) $66.1 million in payments for dry dock and special survey costs; (iii) $9.7 million decrease in accounts payable; and (iv) $6.3 million decrease in deferred revenue. This was partially mitigated by a: (i) $36.7 million decrease in accounts receivable; (ii) $7.1 million decrease in prepaid expenses and other current assets; and (iii) $6.1 million increase in accrued expenses.

The aggregate adjustments to reconcile net income to net cash provided by operating activities was $2.2 million of non-cash negative net adjustments for the nine month period ended September 30, 2022, which consisted mainly of the following adjustments: (i) $143.8 million gain from sale of vessels; and (ii) $64.2 million amortization of unfavorable lease terms. These adjustments were partially mitigated by: (i) $143.8 million depreciation and amortization of intangible assets; (ii) $36.2 million non-cash amortization of deferred revenue and straight-line effect of the containerships charters with de-escalating rates; (iii) $20.5 million amortization of deferred dry dock and special survey costs; (iv) $3.9 million amortization and write-off of deferred finance costs and discount; (v) $1.3 million amortization of operating lease assets/ liabilities; and (vi) $0.1 million stock-based compensation.

The net cash outflow resulting from the change in operating assets and liabilities of $92.5 million for the nine month period ended September 30, 2022 resulted from: (i) $48.8 million in payments for dry dock and special survey costs; (ii) a $26.2 million increase in prepaid expenses and other current assets; (iii) a $21.6 million increase in accounts receivable; (iv) a $6.8 million increase in amounts due from related parties; and (v) a $2.4 million decrease in amounts due to related parties. This was partially mitigated by a: (i) $7.8 million increase in accounts payable; (ii) $4.3 million increase in deferred revenue; and (iii) $1.2 million increase in accrued expenses.

 

19

Net cash used in investing activities for the nine month period ended September 30, 2023 as compared to the net cash used in investing activities for the nine month period ended September 30, 2022

Net cash used in investing activities for the nine month period ended September 30, 2023 amounted to $72.4 million as compared to $265.7 million for the nine month period ended September 30, 2022.

Net cash used in investing activities of $72.4 million for the nine month period ended September 30, 2023 was mainly due to: (i) $225.9 million related to deposits for the acquisition/ option to acquire vessels and capitalized expenses; and (ii) $83.9 million related to vessels’ acquisitions and additions. This was partially mitigated by $237.4 million of proceeds related to the sale of 13 vessels.

Net cash used in investing activities of $265.7 million for the nine month period ended September 30, 2022 was mainly due to: (i) $395.4 million related to vessels’ acquisitions and additions; and (ii) $95.5 million related to deposits for the acquisition/ option to acquire vessels and capitalized expenses. This was partially mitigated by: (i) $215.3 million of proceeds related to the sale of two vessels; and (ii) $9.9 million cash acquired through the delivery of the 36-vessel drybulk fleet.

Net cash used in financing activities for the nine month period ended September 30, 2023 as compared to net cash used in financing activities for the nine month period ended September 30, 2022

Net cash used in financing activities increased by approximately $22.4 million to $182.1 million outflow for the nine month period ended September 30, 2023, as compared to $159.7 million outflow for the same period in 2022.

Net cash used in financing activities of $182.1 million for the nine month period ended September 30, 2023 was mainly due to: (i) $708.1 million repayments of loans and financial liabilities; (ii) $13.2 million payments of deferred finance costs related to the new credit facilities and financial liabilities; and (iii) $4.6 million payments in total for cash distributions. This was partially mitigated by $543.8 million of proceeds from the new credit facilities and sale and leaseback agreements.

Net cash used in financing activities of $159.7 million for the nine month period ended September 30, 2022 was mainly due to: (i) $497.6 million repayments of loans and financial liabilities; (ii) $4.6 million payments in total for cash distributions; and (iii) $2.7 million payments of deferred finance costs related to the new credit facilities. This was partially mitigated by $345.2 million proceeds from new credit facilities.

 

20

Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities, EBITDA and, Operating Surplus

 

		Three Month Period Ended September 30, 2023 ($000) (unaudited)				Three Month Period Ended September 30, 2022 ($000) (unaudited)				Nine Month Period Ended September 30, 2023 ($000) (unaudited)				Nine Month Period Ended September 30, 2022 ($000) (unaudited)
Net cash provided by operating activities		$	120,270			$	219,108			$	348,613			$	366,271
Net increase in operating assets			32,481				14,948				22,288				103,465
Net decrease/ (increase) in operating liabilities			12,605				(62,898)				114,551				(10,918)
Net interest cost			28,535				22,197				93,289				49,921
Amortization and write-off of deferred finance cost			(1,625)				(1,251)				(5,243)				(3,928)
Amortization of operating lease assets/liabilities			(2,623)				(1,719)				(7,769)				(1,297)
Non-cash amortization of deferred revenue and straight-line			(15,974)				(12,676)				(45,222)				(36,128)
Stock-based compensation			(1)				(40)				(3)				(122)
Gain on sale of vessels, net			7,170				143,764				50,771				143,764
EBITDA(1)		$	180,838			$	321,433			$	571,275			$	611,028
Gain on sale of vessels, net			(7,170)				(143,764)				(50,771)				(143,764)
Adjusted EBITDA(1)		$	173,668			$	177,669			$	520,504			$	467,264
Cash interest income			3,241				74				6,718				98
Cash interest paid			(35,851)				(22,983)				(108,843)				(48,447)
Maintenance and replacement capital expenditures			(56,134)				(59,970)				(169,087)				(178,056)
Operating Surplus(2)		$	84,924			$	94,790			$	249,292			$	240,859

(1) EBITDA and Adjusted EBITDA

EBITDA represents net income before interest and finance costs, depreciation and amortization (including intangible accelerated amortization) and income taxes. Adjusted EBITDA represents EBITDA excluding certain items, as described in the table above. Navios Partners uses Adjusted EBITDA as a liquidity measure and reconciles EBITDA and Adjusted EBITDA to net cash provided by operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA in this document is calculated as follows: net cash provided by operating activities adding back, when applicable and as the case may be, the effect of: (i) net increase in operating assets; (ii) net decrease/(increase) in operating liabilities; (iii) net interest cost; (iv) amortization and write-off of deferred finance costs and discount; (v) gain on sale of assets, net; (vi) non-cash amortization of deferred revenue and straight line effect of the containerships and tankers charters with de-escalating rates; (vii) stock-based compensation expense; and (viii) amortization of operating lease assets/ liabilities. Navios Partners believes that EBITDA and Adjusted EBITDA are each the basis upon which liquidity can be assessed and presents useful information to investors regarding Navios Partners’ ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and make cash distributions. Navios Partners also believes that EBITDA and Adjusted EBITDA are used: (i) by potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.

 

21

Each of EBITDA and Adjusted EBITDA have limitations as an analytical tool, and should not be considered in isolation or as a substitute for the analysis of Navios Partners’ results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Partners’ performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.

EBITDA for the three month periods ended September 30, 2023 and 2022 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA decreased by $4.0 million to $173.7 million for the three month period ended September 30, 2023, as compared to $177.7 million for the same period in 2022. The decrease in Adjusted EBITDA was primarily due to a: (i) $4.5 million increase in time charter and voyage expenses, mainly due to the increase in bunker expenses arising from the increased days of freight voyages in the third quarter of 2023; (ii) $4.0 million increase in vessel operating expenses in accordance with our Management Agreements, mainly due to the expansion of our fleet; and (iii) $3.9 million increase in general and administrative expenses mainly due to the expansion of our fleet in accordance with our Administrative Services Agreement, partially mitigated by a: (i) $4.1 million decrease in other expenses, net; (ii) $3.5 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); and (iii) $0.8 million increase in time charter and voyage revenues.

EBITDA for the nine month periods ended September 30, 2023 and 2022 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA increased by $53.2 million to $520.5 million for the nine month period ended September 30, 2023, as compared to $467.3 million for the same period in 2022. The increase in Adjusted EBITDA was primarily due to a: (i) $139.9 million increase in time charter and voyage revenues; and (ii) $1.3 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items), that were partially mitigated by a: (i) $47.3 million increase in time charter and voyage expenses, mainly due to the increase in bunker expenses arising from the increased days of freight voyages in the first nine months of 2023 and bareboat and charter-in hire expense of the tanker and dry bulk fleet; (ii) $22.5 million increase in vessel operating expenses in accordance with our Management Agreements, mainly due to the expansion of our fleet; (iii) $15.9 million increase in general and administrative expenses mainly due to the expansion of our fleet in accordance with our Administrative Services Agreement; and (iv) $2.3 million increase in other expenses, net.

(2) Operating Surplus

Navios Partners generated Operating Surplus for the three and nine month periods ended September 30, 2023 of $84.9 million and of $249.3 million, respectively. Operating Surplus for the three and nine month periods ended September 30, 2022 was $94.8 million and $240.9 million, respectively. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (See “Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities, EBITDA and Operating Surplus” contained herein).

Operating Surplus represents net income adjusted for depreciation and amortization expense, non-cash interest expense, non-cash interest income, estimated maintenance and replacement capital expenditures and one-off items. Maintenance and replacement capital expenditures are those capital expenditures required to maintain over the long term the operating capacity of, or the revenue generated by, Navios Partners’ capital assets.

 

22

Operating Surplus is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership’s ability to make quarterly cash distributions. Operating Surplus is not required by accounting principles generally accepted in the United States and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.

Capital Expenditures

Navios Partners finances its capital expenditures with cash flow from operations, equity raisings, long-term bank borrowings and other debt raisings. Capital expenditures for each of the nine month periods ended September 30, 2023 and 2022 amounted to $309.8 million and $490.8 million, respectively.

Maintenance for our vessels and expenses related to drydocking expenses are reimbursed at cost by Navios Partners to Navios Shipmanagement Inc., (the “Manager”) and Navios Tankers Management Inc. (“Tankers Manager” and together with the Manager, the “Managers”) under the Management Agreements.

Maintenance and Replacement Capital Expenditures Reserve

The reserves for estimated maintenance and replacement capital expenditures for the three and nine month periods ended September 30, 2023 were $56.1 million and $169.1 million, respectively. We estimate that our annual replacement reserve for the year ending December 31, 2023 will be approximately $224.4 million, for replacing our vessels at the end of their useful lives. The reserves for estimated maintenance and replacement capital expenditures for the three and nine month periods ended September 30, 2022 were $60.0 million and $178.1 million, respectively.

The amount for estimated replacement capital expenditures attributable to future vessel replacement was based on the following assumptions: (i) current market price to purchase a five year old vessel of similar size and specifications; (ii) a 25-year useful life for drybulk and tanker vessels and a 30-year useful life for containerships; and (iii) a relative net investment rate.

The amount for estimated maintenance capital expenditures attributable to future vessel drydocking and special survey was based on certain assumptions including the remaining useful life of the owned vessels of our fleet, market costs of drydocking and special survey and a relative net investment rate.

Our Board of Directors, with the approval of the Conflicts Committee, may determine that one or more of our assumptions should be revised, which could cause our Board of Directors to increase or decrease the amount of estimated maintenance and replacement capital expenditures. The actual cost of replacing the vessels in our fleet will depend on a number of factors, including prevailing market conditions, charter hire rates and the availability and cost of financing at the time of replacement. We may elect to finance some or all of our maintenance and replacement capital expenditures through the issuance of additional common units, which could be dilutive to existing unitholders.

 

23

Limitations on Cash Distributions and Our Ability to Change Our Cash Distribution Policy

There is no guarantee that unitholders will receive quarterly distributions from us on the common units on any quarter.

Our ability to make distributions to our unitholders depends on the performance of our subsidiaries and their ability to distribute funds to us. The ability of our subsidiaries to make distributions to us may be restricted by, among other things, the provisions of existing and future indebtedness, applicable partnership and limited liability company laws and other laws and regulations.

See Note 13 – Cash distributions and earnings per unit to the unaudited condensed consolidated financial statements included elsewhere in this Report.

Quantitative and Qualitative Disclosures about Market Risks

Foreign Exchange Risk

Our functional and reporting currency is the U.S. dollar. We engage in worldwide commerce with a variety of entities. Although our operations may expose us to certain levels of foreign currency risk, our transactions are predominantly U.S. dollar denominated. Transactions in currencies other than U.S. dollars are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated, are recognized.

Interest Rate Risk

Interest rates have increased significantly as central banks in Europe, United States and other developed countries raise interest rates. The eventual implications of tighter monetary policy, and potentially higher long-term interest rates may drive a higher cost of capital for our Company.

Borrowings under our credit facilities and financial liabilities bear interest at a rate based on a premium over Secured Overnight Financing Rate (“SOFR”), which replaced U.S. LIBOR during the period. Therefore, we are exposed to the risk that our interest expense may increase if interest rates rise. For the nine month periods ended September 30, 2023 and 2022, we paid interest on our outstanding debt at a weighted average interest rate of 7.25% and 4.59%, respectively. A 1% increase in SOFR would have increased our interest expense for the nine month periods ended September 30, 2023 and 2022 by $10.3 million and $9.1 million, respectively.

Concentration of Credit Risk

Financial instruments, which potentially subject us to significant concentrations of credit risk, consist principally of trade accounts receivable. We closely monitor our exposure to customers for credit risk. We have policies in place to ensure that we trade with customers with an appropriate credit history.

For the nine month period ended September 30, 2023, no customer accounted for 10.0% or more of our total revenues. For the nine month period ended September 30, 2022, Swissmarine represented approximately 10.5% of our total revenues. No other customers accounted for 10.0% or more of our total revenues for any of the periods presented.

If we lose a charter, we may be unable to re-deploy the related vessel on terms as favorable to us due to the long-term nature of most charters and the cyclical nature of the industry or we may be forced to charter the vessel on the spot market at then market rates which may be less favorable than the charter that has been terminated. If we are unable to re-deploy a vessel for which the charter has been terminated, we will not receive any revenues from that vessel, but we may be required to pay expenses necessary to maintain the vessel in proper operating condition. If we lose a vessel, any replacement or newbuilding would not generate revenues during its construction acquisition period, and we may be unable to charter any replacement vessel on terms as favorable to us as those of the terminated charter.

 

24

Even if we successfully charter our vessels in the future, our charterers may go bankrupt or fail to perform their obligations under the charter agreements, they may delay payments or suspend payments altogether, they may terminate the charter agreements prior to the agreed-upon expiration date or they may attempt to renegotiate the terms of the charters. The permanent loss of a customer, time charter or vessel, or a decline in payments under our charters, could have a material adverse effect on our business, results of operations and financial condition and our ability to make cash distributions in the event we are unable to replace such customer, time charter or vessel. For further details, please read “Risk Factors” in our 2022 Annual Report filed on Form 20-F with the SEC on March 24, 2023.

Recent Accounting Pronouncements

The Company’s recent accounting pronouncements are included in the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this Report.

Critical Accounting Policies

Our financial statements have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates in the application of our accounting policies based on the best assumptions, judgments and opinions of management. Actual results may differ from these estimates under different assumptions or conditions.

Critical accounting policies are those that reflect significant judgments or uncertainties, and potentially result in materially different results under different assumptions and conditions. All significant accounting policies are as described in Note 2-Summary of Significant Accounting Policies to the notes to the consolidated financial statements included in the Company’s Annual Report on Form 20-F for the year ended December 31, 2022 filed with the SEC on March 24, 2023 and in Note 2-Summary of Significant Accounting Policies included in the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this Report.

 

25

Exhibit List

Exhibit No.

 

99.1

Sample Amendment and Restatement Deed, dated September  6, 2023, in relation to the Bareboat Charters and Memoranda of Agreement, dated March  31, 2018, by and among Sea 66 Leasing Co. Limited, Sea 67 Leasing Co. Limited, Sea 68 Leasing Co. Limited and Sea 69 Leasing Co. Limited wholly owned subsidiaries of China Merchants Bank Limited, providing for the sale and leaseback of the NAVE ATRIA, NAVE AQUILA, NAVE BELLATRIX and NAVE ORION respectively.*

* Filed herewith

 

26

INDEX

 

NAVIOS MARITIME PARTNERS L.P.		Page
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS AT SEPTEMBER  30, 2023 AND DECEMBER 31, 2022			F-2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022			F-3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022			F-4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022			F-6
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)			F-7

 

F-1

NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS BALANCE SHEETS

(Expressed in thousands of U.S. Dollars except unit data)

 

		Notes				September 30, 2023 (unaudited)				December 31, 2022
ASSETS
Current assets
Cash and cash equivalents			3			$	260,507			$	157,814
Restricted cash			3				8,666				17,284
Assets held for sale			4,7				13,130				—
Accounts receivable, net							38,333				75,030
Amounts due from related parties			12				1,212				—
Prepaid expenses and other current assets							61,358				60,296
Total current assets							383,206				310,424
Vessels, net			4				3,700,455				3,777,329
Deposits for vessels acquisitions			11				429,886				218,663
Other long-term assets			11				30,098				46,122
Deferred dry dock and special survey costs, net							123,770				99,999
Amounts due from related parties			12				39,338				41,403
Intangible assets			5				64,970				78,716
Operating lease assets			14				284,145				323,048
Total non-current assets							4,672,662				4,585,280
Total assets						$	5,055,868			$	4,895,704
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities
Accounts payable						$	17,439			$	27,117
Liabilities associated with the vessel held for sale			6				6,528				—
Accrued expenses							22,190				16,049
Deferred revenue							63,078				38,875
Operating lease liabilities, current portion			14				32,065				39,853
Amounts due to related parties			12				—				104,751
Current portion of financial liabilities, net			6				168,666				216,955
Current portion of long-term debt, net			6				151,754				174,140
Total current liabilities							461,720				617,740
Operating lease liabilities, net			14				247,916				271,262
Unfavorable lease terms			5				31,475				47,906
Long-term financial liabilities, net			6				828,428				864,661
Long-term debt, net			6				782,207				689,691
Deferred revenue							56,786				50,138
Other long-term liabilities							7,736				11,343
Total non-current liabilities							1,954,548				1,935,001
Total liabilities						$	2,416,268			$	2,552,741
Commitments and contingencies			11				—				—
Partners’ capital:
Common Unitholders (30,184,388 units issued and outstanding at each of September 30, 2023 and December 31, 2022)			1, 8				2,596,200				2,305,494
General Partner (622,296 units issued and outstanding at each of September 30, 2023 and December 31, 2022)			1, 8				43,400				37,469
Total partners’ capital							2,639,600				2,342,963
Total liabilities and partners’ capital						$	5,055,868			$	4,895,704

See unaudited notes to the condensed consolidated financial statements

 

F-2