Earlier today, Navios Maritime Partners (NMM) reported their Q3 2023 results, including
- Revenue of $323.2M
- EBITDA of $180.8M
- Net income of $89.8M
- Modified an Ultra-Handymax to serve as a transshipment vessel for NSALI
- Added $257.9M in contracted backlog (from 9 vessels)
- Charter amendments on 4 container vessels
- With 83.36% of Q4 days already fixed, NMM has ~$52M excess cash already.
- Decent cash position of $269.2M (but that means nothing to shareholders)
With a combination of some decent unrealized gains and unrealized losses, need to do some careful thinking about this holding.
Late last week, I did end up trimming my NMM stake.
NMM is a frustrating holding. A lot of it has to do with CEO Angeliki Frangou’s management style. I will give her credit for some of her moves
- Selling the two mid-size/large container vessels for $220M
- Cultivating the business with ZIM - newbuilds and existing vessels (though going forward, that contract coverage might represent some risk)
- Cultivating the business with HMM
- The tanker newbuilds - coverage on 10 of 16 newbuilds, each with 5-year charters, provides a good cushion.
- The vessel modified for transshipment. Though, in this case, this is a self-interest deal, and that’s where the problem with AF lie. Since NSALI is now a private entity that she runs, IMHO, the deal is more about her than NMM.