Navios Maritime Partners L.P. Announces Distribution Policy and Agreement to Acquire 2005-built Panamax
March 12 2018 - 8:29AM
Navios Maritime Partners L.P. ("Navios Partners") (NYSE:NMM), an
owner and operator of drybulk and container vessels, announced that
its board of directors has adopted a distribution policy of $0.08
per common unit annually.
Navios Partners also announced today that it agreed to acquire a
2005-built Panamax Vessel for $12.95 million, with delivery
expected in March 2018.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios
Partners stated, “I am pleased we were able to restore
distributions for our unit holders. Over the past couple of years,
we used our cash flow to solidify our balance sheet and to renew
and expand our drybulk fleet. Indeed, since 2016, we grew our
drybulk fleet by 37% and reduced its average age by 12%, on a
deadweight tons basis. In the process, we established a unique
platform in the drybulk sector capable of generating significant
cash flow. We will share free cash flow with our unit holders
through distributions, which we hope to increase as market
opportunity and cash flow permit.”
Distribution PolicyNavios Partners announced
its board of directors has adopted a distribution policy under
which it intends to declare quarterly cash distribution in the
amount of $0.02 per unit, or $0.08 annually. Based on its current
capitalization, Navios Partners expects to distribute approximately
$3.4 million quarterly and $13.7 million annually. The first
quarterly distribution of $0.02 per unit for the first quarter of
2018 will be payable on May 14, 2018 to all unit holders of record
on May 10, 2018.
Navios Partners will review its distribution policy regularly,
and future distributions will be at the discretion of the board of
directors after taking into account Navios Partners’ cash flow,
earnings, financial position, among other relevant matters.
Vessel DetailsNavios Partners agreed to acquire
a 2005-built Panamax vessel, of approximately 87,000 dwt, for
$12.95 million. The vessel is expected to be delivered to Navios
Partners' owned fleet in March 2018. Based on the current rate
environment(Clarksons’ 1-year time charter rate for Panamax vessels
as of March 2, 2018), the vessel is expected to generate
approximately $3.2 million of annual EBITDA, assuming operating
expenses approximating current operating costs and 365 revenue and
cost days.
Navios Partners is expected to finance the acquisition with cash
on its balance sheet and bank debt at terms similar to its existing
banking facilities.
Fleet UpdateFollowing this acquisition, Navios
Partners controls 40 vessels.
About Navios Maritime Partners L.P.Navios
Partners (NYSE:NMM) is a publicly traded master limited partnership
which owns and operates container and dry bulk vessels. For
more information, please visit our website at
www.navios-mlp.com.
Forward-Looking StatementsThis press release
contains 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 including Navios Partners’ 2018 cash flow generation, future
contracted revenues, future distributions and its ability to have a
dividend going forward, opportunities to reinvest cash accretively
in a fleet renewal program or otherwise, potential capital gains,
our 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. 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. Such statements include
comments regarding expected revenue and time charters. 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 known and unknown risks and are based upon a
number of assumptions and estimates which 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, 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 cargo
shipping sector in general and the demand for our Panamax,
Capesize, Ultra-Handymax and Container vessels in particular,
fluctuations in charter rates for dry cargo carriers and container
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, 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 Securities and Exchange Commission,
including its Form 20- Fs and Form 6- Ks. 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.
Public & Investor Relations Contact:Navios
Maritime Partners L.P. +1.212.906.8645 Investors@navios-mlp.com
Nicolas Bornozis Capital Link, Inc. +1.212.661.7566
naviospartners@capitallink.com
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