Thank you for joining us for Navios Maritime Partners First Quarter 2024 Earnings Conference Call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou; Chief Operating Officer, Mr. Stratos Desypris; and Chief Financial Officer, Ms. Eri Tsironi; and Vice Chairman, Mr. Ted Petrone. As a reminder, this conference call is being webcast. To access the webcast, please go to the Investors section of Navios Partners' website at www.navios-mlp.com. You'll see the webcasting link in the middle of the page, and a copy of the presentation referenced in today's earnings conference call will also be found there. Now I will review the safe harbor statement. This conference call could contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Navios Partners. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Navios Partners' management, and are subject to risks and uncertainties which could cause actual results to differ materially from the forward-looking statements. Such risks are more fully discussed in Navios Partners' filings with the Securities and Exchange Commission. The information set forth herein should be understood in light of such risks. Navios Partners does not assume any obligation to update the information contained in this conference call. The agenda for today's call is as follows: First, Ms. Frangou will offer opening remarks. Next, Mr. Desypris will give an overview of Navios Partners' segment data. Next, Ms. Tsironi will give an overview on Navios Partners' financial results. Then Mr. Petrone will provide an industry overview. And lastly, we'll open the call to take questions. Now I turn the call over to Navios Partners' Chairwoman and CEO, Ms. Angeliki Frangou. Angeliki?

Good morning to all of you joining us on today's call. I am pleased with the results for the first quarter of 2024. For the quarter, we reported revenue of $318.6 million and net income of $73.4 million. Earnings per common unit was $2.38. In the first quarter of 2024, regional conflicts, particularly in the Middle East, continue to affect transportation. This can be seen in the material reduction in transit through the Red Sea and the Suez Canal. In addition, the U.S. and European economies are managing inflationary pressures and are generally healthy, with Europe rebounding after a period of softness. As a result of these and other factors, this was Navios Partners' strongest first quarter financial performance ever. We remain cautious, as many of the factors driving this robust maritime environment can change quickly, [indiscernible] comfort-driven and efficiencies, clear and [indiscernible] suffers from a further wave of inflation. As usual, we continue to execute on our strategic initiatives by focusing on things that we can control, such as reducing leverage and modernizing our energy efficient fleet. I would also note that we continue to take long-term covers where available, as rates are around or exceeding long-term averages. For example, we recently chartered out a Capesize vessel for 2.9 years, almost 3 years, at the net daily rate of $28,500. Please turn to Slide 7. Navios Partners is a leading publicly-listed shipping company, diversified in 15 asset classes in 3 sectors. We have $318.4 million of cash in our balance sheet. For sales, year-to-date, we sold four vessels, generating $92.6 million gross sale proceeds, of which $9.8 million of sales was completed in the first quarter of 2024. $82.8 million of sales will be completed in the second quarter of 2024. For acquisitions, year-to-date, we spent $245.7 million acquiring…

Thank you, Angeliki, and good morning, all. Please turn to Slide 9, which details our operating free cash flow potential for the remaining 9 months of 2024. We have fixed 67% of our available days at an average rate of $25,874 net per day. This contracted revenue exits our total cash expense by $53.3 million, and we also have 13,820 remaining open core index linked base that could provide potential additional free cash flow. On the right side of the slide, we provide our 42,112 available days by vessel type, so you can perform your own sensitivity analysis. However, whatever number used, we should develop substantial cash flow for the remaining 9 months of 2024. Please turn to Slide 10. We are always renewing the fleet so that we maintain a young profile. It is part of our strategy to reduce our carbon footprint by modernizing our fleet, benefiting from new technologies and [ ecovessels ] with [ really nice ] characteristics. During 2024, we had delivery of three vessels: two 5,300 TEU containerships, both chartered out for an average of 5.2 years at an average net daily rate of $37,050 net per day and one LR2/aframax vessel, which has been chartered out for 5 years at $26,366 net per day. The contracted revenue of the three vessels delivered amounts approximately $190 million. Following the deliveries, we have $1.6 billion remaining investment in 26 newbuilding vessels, delivering to our fleet through 2027. In containerships, we have nine vessels to be delivered, with a total acquisition price of approximately $672 million. We have mitigated the risks with long-term creditworthy charters, generating about $0.9 billion in revenue over a 6.8-year average charter duration. In the tanker space, we acquired 17 vessels, for a total price of approximately $950 million. We chartered out…

Thank you, Stratos, and good morning all. I will basically review on our audited financial results for the first quarter of 2024. The financial information is included in the press release and summarized in the slide presentation available on the company's website. Moving to the earnings highlights on Slide 12. Total revenue for the first quarter of 2024 increased by 3% to $319 million compared to $310 million for the same period in 2023. Available days decreased by 3% to 13,540 compared to 13,908 for the same quarter last year. Our combined fleet time charter equivalent rates increased by 3% to $21,514 per day compared to $20,811 per day for the same period in 2023. In terms of sector performance, our TCE rate for our dry bulk vessels improved by 29% to $14,209 per day compared to $10,998 per day for the same period last year. The time charter equivalent rate for our tankers was $28,087 per day, which is in line with Q1 2023 level, where the container TCE rate decreased by 15% to $29,838 per day. EBITDA for Q1 2024 and Q1 2023 was positively affected from gains from vessel sales equal to $2 million and $33 million, respectively. Adjusted EBITDA for Q1 2024 increased by $9 million to $164 million. Adjusted net income for Q1 2024, increased by 8% to $71 million compared to $66 million in Q1 2023. Adjusted earnings per common unit for Q1 '24 were $2.32. Turning to Slide 13. I will briefly discuss some key balance sheet data. As of March 31, 2024, cash and cash equivalents, including restricted cash and time deposits in excess of 3 months, were $318 million. During the first quarter of 2024, we paid $55 million net of related debt of predelivery installments under our newbuilding program, vessel…

Thank you, Eri. Please turn to Slide 17 for a view of the current trade disruptions. The Red Sea entrance leading to the Suez Canal, a strategic maritime transit point, continues to operate at restricted transit levels. Red Sea disruptions have caused a rerouting of shifts via the Cape of Good Hope, increasing costs and fund miles. Since the first half of December, transits have reduced by 59% for containers, 40% for tankers and 55% for dry bulk vessels. Panama Canal daily transit restrictions stand at about 33% below normal, with additional transits anticipated by month end. Please turn to Slide 19 for a review of the tanker industry. World GDP grew at [ 3.2% ] in '23, with similar growth expectation in '24, based on the IMF's April forecast. In spite of economic uncertainties and the crisis of the Ukraine and Red Sea, the IEA projects a 1.2 million barrel per day increase in world oil demand for 2024. Chinese crude imports continued at healthy levels, averaging at 11 million barrels per day in Q1. After a seasonally strong Q4 in 2023, rates remain firm on the back of rising demand and increasing refinery throughput. The OPEC plus crude export cuts have been mitigated by increased Atlantic to Far East exports, increasing ton miles. Additionally, seaborne crude and clean trading patterns, which were initially diverted to longer haul routes through the Russian sanctions, have once again been rerouted by the above-mentioned Red Sea disruptions. These even longer [ route ] hauls continue to increase ton miles, putting upward pressure on both costs and rates. Turning to Slide 20. As previously mentioned, both crude and product rates remain strong across the board, due to healthy supply and demand fundamentals and shifting trading patterns. [ Product ] tankers are also aided…

This concludes our formal presentation. We open the call to questions.

[Operator Instructions] We'll go now to Omar Nokta with Jefferies.

It sounds like -- it looks like things are going quite nicely for Navios, with all three pillars of your business going well: tankers, dry bulk, containers all seem to be in decent shape. Does that change anything in terms of deploying capital or monetizing assets for you? Or is it more of the same, where we can just expect you to continue to fine-tune the fleet?

Yes, we like [indiscernible]. Omar, basically, I mean, we are 4 months into the year. We are about 67%, 70% fixed. And we can say that basically as you can see also from Slide 7, we have $53 million revenues above cash, above our cash expenses. So that gives us a comfortable position. It gives us visibility. And we can see that this year will be very [indiscernible] or better than 2023. So this gives us ability to further implement our strategies. You have seen our cash building up, even though we have a lot of newbuilding payments and our leverage going down. Basically, on the other side, we have to mitigate the market risk. That's a big thing. And we are doing that, as you can see, constantly.

Is there any kind of -- just in terms of what we're seeing in the market, it seems like there's plenty of opportunity. You've obviously been very active. Is there a segment or asset class that you would say stands out as compelling above the rest at this point, whether it's for new investments or potentially divestment?

Listen, we are opportunistic on this. When we see values that make sense on all the vessels, we will sell. I mean we have relationships built on newbuildings are a little bit more difficult because values have moved up. So you need to make sure that the transaction, that you are -- the newbuilding that we are actually opening, which is basically a liability, unless you actually are able to fix it at an attractive return and a good residual value risk. This is the thing that we are constantly monitoring. With values of newbuildings going up, it's more difficult to actually execute on that strategy because you need to see rates going up, or you have to have certain relations. On the [ sports ] vessels, is about -- we see transactions, but it's all the good long-term charters. We see even dry picking up during longer durations at attractive rates. But it's always also influenced by the Red Sea, which -- let's not forget that the Red Sea can disappear at any moment, and that will be a good thing, and that will fundamentally change the rate environment we are living.

Right. No, no, that's a good point. And maybe just one final one for me. You've had the stated goal now for some time. We're trying to get leverage down to that 20% to 25% level. I guess one question, it seems perhaps a bit achievable over the next maybe 12 to 18 months. So the question would be, is that something you also see as a realistic time period to get leverage that low? And then also, what -- have you thought about what happens to Navios once you achieve that goal? Does anything change strategically going forward?

The goal to reach it is it may be about a year from today as we get the vessels into the water because of delever. Let's not forget that basically, on the leverage ratio, we do not count the backlog that we have. We have about 3.3 billion of contracted revenue that creates a good buffer and good visibility for the further years. And as you saw this year, we are already getting our new buildings into the water, which as we get them, we delever automatically. So this is a process that we will be working very -- a lot on the remaining of the year and the beginning of the next. And this is a goal, it's an end result. You are guiding to that direction, and we are also building the cash.

And we have no additional questions standing by at this time. I'd like to turn the floor back over to Angeliki Frangou for any additional closing comments.

Thank you. This completes our first quarter results. Thank you.

Once again, ladies and gentlemen, that will conclude today's call. Thank you for your participation. You may disconnect at this time.