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Navios Maritime Partners L.P. (NMM)
NYSE - Nasdaq Real Time Price. Currency in USD
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As of 12:36PM EDT. Market open.
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NMM just upgraded to BB- from B+ and put on positive outlook at S&P.
The Baltic Dry Index rose 2.9% to 3,267 on Thursday, its highest since June 2010 and extending gains for a seventh straight session, supported by prospects of robust demand and despite China’s efforts to limit rising commodity prices. The capesize, which tracks iron ore and coal cargos of 150,000-tonnes, surged 5% to a one-month high of 4,212; and the panamax index which tracks cargoes of about 60,000 to 70,000 tonnes of coal and iron ore, advanced 1.1% to 3,558, a peak since June of 2010. Among smaller vessels, the supramax index rose 41 points to 2,754. source: Baltic Exchange
Navios Maritime Partners L.P. Announces Long Term Charters on Five Containerships
— 8:24 AM ET 06/15/2021
MONACO, June 15, 2021 (GLOBE NEWSWIRE) -- Navios Maritime Partners L.P. ( NMM ) (“Navios Partners”) , an international owner and operator of dry cargo vessels, announced today that it has secured new long-term time charters for five containerships. The containerships have been chartered-out for 35 – 36 months at an average rate of approximately $41,723 net per day. The charters have the following structure: The first year is chartered-out at $54,313 net per day, the second year at $45,425 net per day and the remaining 11 months of the minimum period at $23,972 net per day.
Just noting this... the current bdi is at a high since June 2010. With less than 2 weeks left in 2Q, NMM should be reporting by 1st week in August or sooner if they follow past practices. Presumably the analytics firms would be adjusting based on the report. I think it would be conservative to say this has been a very profitable quarter for shipping and NMM in particular.
Jefferies analyst Randy Giveans also expects capesize rates to reach $40,000 per day in the third quarter amid high commodity prices, higher iron-ore exports from Brazilian miner Vale.
Restocking of coal inventories by India and China as well as slow fleet growth should also keep rates at that level, he said.
"As for dry bulk equities, an uplift is being partially priced in, but if rates truly stay at those levels for a quarter, dry bulk equities should appreciate meaningfully," he told TradeWinds.
Today: 34,930 +1,672
MTD avg 25,595
YTD avg 23,324 vs 2020 YTD 5,564
FFA Q3 + Q4 average 42,500
All routes gaining today on the back of good physical activity. FFA dips slightly, but still suggest a strong June average.
Short Volume Exploded today to 42.8% of volume:
Market Date_____Short Volume____Total Volume(MM Shares)___US:NMM Short Volume Ratio
Baltic Dry Index Rises 2.87% to 3,267
Capesize +5.03% to $34,930
Panamax +1.16% to $30,686
Supramax 58k tons +1.55% to $30,299
Handysize +0.81% to $23,010
efferies expects bulker owner Star Bulk Carriers to keep rising its quarterly dividend throughout the year, given the strong fundamentals within the dry bulk sector.
The US investment bank foresees the company raising the payout to $0.76 per share for the second quarter from $0.30 per share given for the first three months of this year.
It also expects the Greek owner to hand over $1.27 per share for the third quarter and then pay out $1.97 per share for the fourth quarter.
"We expect total 2022 dividend payments of $4.30 per share, equating to a 19% current yield," Giveans wrote.
"Management indicated that it would prioritize the dividend while also slowly reducing its leverage."
Jefferies also raised its price target for Star Bulk's shares to $28 from $25 and reiterated a buy status for the equity.
NPR's Planet Money newsletter explains the containership situation - look up:
"How 'Chaos' In The Shipping Industry Is Choking The Economy".
Planet Money has a pretty broad readership / listenership. I think it's interesting how the containership story is now becoming public interest & we're seeing non-finance outlets covering the story for it's value just as a story.
Maybe it was Nick First but somebody suggested we're in the 5th inning for share prices. I say the Planet Money piece is a base hit, maybe a double.
FFA's really rocked today. I think we'd have finished higher if not for the Fed reaction.
LONG and STRONG. Way long...
A little extra detail on this one:
Baltic Dry Index Rises 4.99% to 3,176
Capesize +8.54% to $33,258
Panamax +3.43% to $30,335
Supramax 58k tons +1.73% to $29,838
-> Aug FFA +8% to $35k/d
Handysize +0.56% to $22,824
NM filed 6Ks tonight for both NM and NSALI for Q1 ending March 2020 with reference to March 2020.
In regard to Nm, they highlighted an agreement to form an Eighth Supplemental Indenture on the 11.25% note due 2022 - with the majority bondholders now called the June 2021 Consenting Noteholders.
They also gave a fleet update which may be of interest here:
“The Company agreed to sell to unrelated third parties: (i) the Navios Astra, a 2006-built Ultra-Handymax vessel of 53,468 dwt, for a sale price of $6.6 million (completed in February 2021); and (ii) the Navios Serenity, a 2011-built Handysize vessel of 34,690 dwt for a sale price of $10.4 million (expected to be completed in June 2021).
The Company agreed to sell to a related party: (i) the Navios Centaurus, a 2012-built Panamax vessel of 81,472 dwt, and the Navios Avior, a 2012-built Panamax vessel of 81,355 dwt, for a sale price of $39.3 million, including working capital adjustments (completed in March 2021); and (ii) a 2011-built Capesize vessel previously chartered-in by Navios Holdings, for which the net sale proceeds were $8.5 million.”
Good morning fellow shipping magnates. Another good day for dry bulkers. Capesize index +9% to $33k a day. Brazil China route +9% to $33k a day. July FFA +5% to $43k a day
August FFA +3% to $43k a day.
$SHIP is the only USA listed pure Capesize play. Now SHIP owns 16 vessels up by 5 from Q1.
Quick check what is the short volume ratio
SHIP has the highest short volume and the higher the volume the more likely for the price to move violently up due to short sellers scrambling to cover their losing positions once the price goes higher (feedback loop).... and since we are seeing very strong shipping rates the stocks are well positioned to go higher. Also there is more and more interest in shipping. Recently M. Burry (Big Short 2008), George Soros and others invested in shipping.
Feel free to share, copy paste on other channels.
Dry bulk is the place to be.
This has been mentioned before, but don’t discount retail buying power as the next few quarters are released.
We are going to see everything go way, way up, including revenues, profits, EPS, P/E, etc. I’m holding into 2022 at a minimum, and ideally will not sell until 2023+.
Time will tell.
Something to consider. This space has been in the doghouse for years, nothing new in that statement. Thus far, most of the bulkers have yet to report any earnings as a result of the significantly higher rates that we're currently enjoying. Sure, we longs are aware of the huge numbers that will be reported in Q2, BUT, many potential investors are not because we are out of sight while lying in the doghouse. When Q2 is reported the numbers will be so impressive that new investors will take notice and he new interest will drive the share prices much higher. Because we follow the sector so closely we tend to think that others will have picked up on the positive changes that have recently occurred. when Q2 is reported, the money will be in the bank as far as new investors are concerned, until then it's only a possibility. Most of the Analysts are already on board with the recovery but the investing public want to see the money before committing.
We'll see in about six weeks whether this holds weight.
According to the 1Q presentation, NMM was already profitable for the full year by more than $20+million. AF also made note there were 9000 open index days remaining in 2021 at a then average rate of $29+k. Not knowing how many shares have been distributed through the ATM makes estimating EBITDA a bit difficult, but suffice to say earnings should be well in excess of $3/unit for 2Q.
From Twitter - This is the best explanation of NMM I have ever seen: :-)
Quokka Capital @StevenH45332279
Replying to @James56487175
Agree, I bought some too. NMM is the hot girl with Herpes, you know you shouldn’t, but you can’t resist.
Austin First shared on Twitter:
Springing maturity removed on $NM 2022 notes giving them an extension from September until next year to repay. This removes the urgency for which $NMM has been using its ATM. Now plenty of time to generate enough cash from operations to buy all $NM assets without the ATM
New York-listed Navios Maritime Holdings has bought more time to pay off its $305m notes due in 2022 as it revealed a new loan from a company owned by chief executive Angeliki Frangou.
The senior secured debt was sold in 2017 at a coupon of 11.25%.
The notes are secured by a first priority lien on stock owned by subsidiaries that are guarantors of the company. They are Navios GP, Navios Maritime Acquisition, Navios South American Logistics and Navios Maritime Partners.
The 179,000-dwt capesize bulker Navios Azimuth (built 2009) is also pledged as security.
VesselsValue assesses the ship at a value of $29m.
New deal in place
An Securities & Exchange Commission (SEC) filing has revealed that Navios has agreed a new deal with the majority of bondholders that eliminates the company's obligation to make a maturity offer in September this year for the outstanding amount.
This would have been triggered when the owner redeems $100m of the debt.
The bulker company plans to fund this redemption through the sale of the capesize and a new $75m loan from Frangou's N Shipmanagement Acquisition.
The bondholder deal also allows Navios Maritime to use all past and future dividends paid on pledged shares for general corporate purposes. The only exception to this is the equity of Navios South American Logistics.
wonder who buys that cape?? hmmmm
Baltic Dry Index Rises 3.05% to 2,944
Capesize +5.88% to $29,383
Panamax +1.3% to $28,751
Supramax 58k tons +1.23% to $28,866
Handysize +0.2% to $22,573
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