Angeliki Frangou's Navios orders new vessels, grows charter backlog to US$3.7Bn

During its Q2 financial results announcement, the US-listed, Greece-based shipowner revealed a newbuilding deal for four 115,000-dwt Aframax/LR2 tankers, each fitted with scrubbers. The deal is valued at US$263.7M and deliveries are expected throughout the first half of 2028.

In addition, Navios Partners has placed an order for two methanol-ready and scrubber-fitted 7,900-TEU container ships at an aggregate cost of US$212.0M. These vessels are anticipated to be delivered in the latter half of 2026.

Navios’ orderbook currently includes 28 vessels, comprising 20 tankers and eight container ships, representing a total investment of US$1.8Bn.

Busy S&P quarter

Navios is also actively renewing its fleet by purchasing modern tonnage and selling older vessels. In 2024, the company acquired five Japanese-built bulk carriers with an average age of 8 years, previously chartered-in.

Its latest acquisition involves a 2015-built 61,339-dwt ultra-Handymax bulk carrier, purchased for approximately US$25.4M.

In Q2, Navios sold three vessels – two 2009-built MR2 product tankers and one 2005-built post-Panamax bulk carrier – generating proceeds of US$64.6M. Since the start of 2024, the Greek owner has offloaded seven vessels with an average age of over 17 years, totalling US$157.2M in sales.

Navios Partners now operates a fleet of 179 vessels, including 75 bulk carriers, 56 tankers and 48 container ships, including the under-construction tonnage.

Robust contracted revenues

For Q2 2024, Navios reported revenues of US$342.1M, down from US$346.9M in the same period last year. Net income was US$101.4M, a decrease from US$112.3M in Q2 2023.

The decrease in net income was attributed to lower time charter equivalent (TCE) rates for its fleet. Although higher earnings were secured from its bulk carriers, the TCE of the company was negatively impacted by its container ships and tankers.

From January to June 2024, revenues rose to US$660.7M, compared with US$656.4M in 2023, while net income fell to US$174.8M from US$211.4M.

Navios Partners has secured new long-term charters for 18 vessels, projecting revenues of US$561.0M. With these recent deals, the Greece-based owner has contracted revenues totalling US$3.7Bn through 2037.

Analysts approve

Following the disclosure of its financial results, Navios’ share price surged more than 10%, as analysts praised the company’s strong performance and shareholder-friendly initiatives.

The board of directors declared a cash distribution of US$0.05 per unit for Q2 2024. Additionally, Navios Partners has been actively repurchasing units under its US$100.0M common unit repurchase programme. As of 12 August 2024, the shipowner had repurchased 197,148 common units for a total cash consideration of US$9.7M.

To date in 2024, Navios has returned approximately US$12.8M to its shareholders.