Navios Maritime Partners' 2Q15 Earnings: Key Investor Takeaways
NMM's share price falls after 2Q15 earnings miss
Navios Maritime Partners LP (NMM) announced its 2Q15 results on July 30. The earnings were a miss on market expectations due to the revenue miss. This led the stock to fall 3.1% after the earnings release. Year-to-date, NMM's share price has fallen by 10.1%, mainly driven by the slowdown in the dry bulk industry.
Navios Maritime Partners' revenues increased 2.3% year-over-year (or YoY) to $56.5 million due to the delivery of two container vessels, YM Utmost and YM Unity, in the second half of 2014. Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) came in at $38.7 million for 2Q15, compared with $36.4 million for 2Q14.
Diana Shipping (DSX) reported in-line 2Q15 results on July 31, 2015. DryShips Inc. (DRYS), on the other hand, posted weaker-than-expected 2Q15 results and took an impairment charge of $1.3 billion due to the deconsolidation of Ocean Rig UDW (ORIG). Safe Bulkers (SB) also slightly missed consensus EPS estimates for its 2Q15 earnings reported on July 30, on the back of lower time charter equivalent rates earned.
In this series, we'll analyze Navios Partners' 2Q15 earnings in detail, including the reasons for the earnings miss. We'll also discuss the guidance provided by NMM's management about the second half of 2015.
At various points in the series, we'll compare the company's performance with that of others in the sector to give investors additional insight.
About Navios Maritime Partners
Navios Maritime Partners (NMM) was formed in 2007 by Navios Maritime Holdings (NM). NMM is engaged in seaborne transportation services for a range of dry bulk commodities, including iron ore, coal, grain, and fertilizer.
NMM has a 2.7% holding in the Guggenheim Shipping ETF (SEA). The SPDR S&P 500 Trust ETF (SPY) covers the broader industry index.
Navios Maritime Partners (NMM) operates 31 vessels with an average age of 8.1 years. NMM's current fleet includes eight Capesize, 12 Panamax, and three Ultra-Handymax vessels. It also has eight container vessels. The company has started shifting its focus to container ships, as the dry bulk sector continues to be weak.
Since its inception, Navios has increased its distribution by 26.4%. It has also increased its fleet capacity, measured by deadweight tonnage (or DWT), by 420%.
Before discussing NMM's earnings, in the next part we'll see how the dry bulk shipping industry has performed. We'll also explore Navios management's take on its performance.
Why the NMM's Revenue Miss Might Be Positive Going Forward
NMM's revenue came in at $56.5 million versus market expectations of $59.4 million. This also resulted in an earnings per share miss.
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