Frangou sees signs of dry bulk fleet size rationalization

“We see signs that the market is beginning to rationalize the number of vessels in the market,” says Angeliki Frangou, Chairman and CEO of dry bulk specialist Navios Maritime Partners L.P. (NYSE: NMM). “Non-deliveries continue, with 40% of the projected order book failing to deliver for the first six months of 2011. In addition, scrapping is accelerating. Year to date, about 2.65% of the dry bulk fleet was scrapped, representing about 195 vessels and 14.2 million dead weight tons. Yet, about 20% of the fleet remains older than 20 years. With steel prices at an all time high, we would expect scrapping to continue at an accelerated rate and rationalization of the global fleet to proceed.”

Navios Maritime Partners L.P. reported i financial results for the second quarter and six months ended June 30, 2011 that included:   

• 2.3% increase in cash distribution to $0.44 per unit for Q2 2011
• 37.2% increase in quarterly Revenues to $45.7 million
• 43.5% increase in quarterly Operating Surplus to $28.7 million
• 41.5% increase in quarterly Adjusted EBITDA to $34.8 million

“I am pleased with our results for the quarter, during which we increased adjusted net income by 32.6% and adjusted EBITDA by 41.5%,” said Ms. Frangou. “These strong results and our stable business allowed us to increase our distribution by 2.3% — to $0.44 quarterly and $1.76 annually. This is the second time in the last three quarters we have raised our dividend.”

July 27, 2011