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Navios Maritime Partners L.P. (NMM) Q4 2022 Earnings Call Transcript

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Navios Maritime Partners L.P. (NYSE:NMM) Q4 2022 Results Conference Call February 21, 2023 8:30 AM ET

Company Participants

Angeliki Frangou - Chairwoman and CEO

Efstratios Desypris - COO

Erifili Tsironi - CFO

Ted Petrone - Vice Chairman, Navios Corporation

Conference Call Participants

Omar Nokta - Jefferies

Operator

Thank you for joining america for Navios Maritime Partners' Fourth Quarter 2022 Earnings Conference Call. With america coming from nan institution are Chairwoman and CEO; Ms. Angeliki Frangou; Chief Operating Officer, Mr. Efstratios Desypris; Chief Financial Officer; Ms. Eri Tsironi; and Vice Chairman, Mr. Ted Petrone. [Operator Instructions]

Now I will reappraisal nan Safe Harbor statement. This convention telephone could incorporate forward-looking statements wrong nan meaning of nan Private Securities Litigation Reform Act of 1995 astir Navios Partners. Forward-looking statements are statements that are not humanities facts. Such forward-looking statements are based upon nan existent beliefs and expectations of Navios Partners' guidance and are taxable to risks and uncertainties, which could origin existent results to disagree materially from nan forward-looking statements. Such risks are much afloat discussed successful Navios Partners' filings pinch nan Securities and Exchange Commission. The accusation group distant herein should beryllium understood successful ray of specified risks. Navios Partners does not presume immoderate responsibility to update nan accusation contained successful this convention call.

The schedule for today's telephone is arsenic follows. First, Ms. Frangou will connection opening remarks. Next, Mr. Desypris will springiness an overview of Navios Partners' conception data. Next, Ms. Tsironi will springiness an overview of Navios Partners' financial results. Then Mr. Petrone will supply an manufacture overview. And lastly, we'll unfastened nan telephone to return questions.

Now I'll move nan telephone complete to Navios Partners' Chairwoman and CEO, Ms. Angeliki Frangou.

Angeliki Frangou

Good greeting to each of you joining america connected today's call. I americium pleased with our results for nan twelvemonth and 4th fourth of 2022. For nan afloat year, we reported a gross of $1.2 cardinal and nett income of $579.2 million. For nan 4th quarter, we reported gross of $370.9 cardinal and nett income of $118.3 million. We are besides pleased to study nett income per communal portion of $18.82 for nan full year.

Navios Partners is simply a starring publicly-listed shipping company, diversified successful 15 plus classes successful 3 sectors pinch an mean alloy property of astir 9.5 years. Navios Partners entered 2023 good positioned. Over nan past mates of years, NMM acquired 3 fleets, 1 successful each of container, tanker and drybulk segments. Today, we person 176 vessels divided astir arsenic into 3 sectors based connected a charter-adjusted basis.

In summation to achieving diversification, we person been actively managing our portfolio to support a [younger] much technologically precocious fleet arsenic we judge nan newer technologies are a competitory advantage erstwhile compared to nan older vessels. Our business exemplary let america to return advantage of opportunities erstwhile a conception is experiencing difficulties specified arsenic erstwhile we acquired tankers successful 2021. We tin besides get assets connected marketplace and connected [Indiscernible] and nan costs of acquired assets tin beryllium offset by charismatic semipermanent creditworthy charters, specified arsenic [Indiscernible] bully containers and tankers.

As ever, our manufacture is [battered] by macro events and uncertainty terminate each forecasts. Recessions [Indiscernible] Central Banks tighten mobility. Trading patterns are changing because of nan Ukrainian conflict specified arsenic collateral consequences of nan campaign. So far, world waste and acquisition has adapted to these conditions, mostly by expanding ton miles for bedewed and barren commodities. We stay vigilant. We are besides focused connected reducing nan mean complaint successful mean word aft a play of comparative activity successful rationalizing our acquired fleet by trading aged vessels and get caller vessels. We person a nett LTV of astir 45%, measured astatine nan extremity of nan 4th fourth 2022 for aged vessels successful nan growth. Our extremity is to trim leverage truthful that our nett LTV would beryllium successful nan scope of betwixt 20% and 25%. We judge that this leverage is an due scope for nan afloat cycle, while allowing to grow our equilibrium expanse should opportunities develop. Also successful nan existent charter complaint market, this should hap people fixed our expected people base.

Please move to Slide 7. As you tin see, we had an fantabulous year, generating nett income of almost $600 million. A important magnitude of our nett rate travel was utilized to fund; #1, equity for our fleet replacement programme and definite amortization of our indebtedness facilities. We besides person been engaged successful nan 4th quarter. We contracted $328.3 cardinal successful semipermanent charters, of which $226.5 cardinal was for 8 tankers and astir $102 cardinal was for 3 recently acquired Capesize vessels. We besides sold 11 vessels for $213.5 million. Our activities during 2022 created a debased breakeven of $2,134 per unfastened day.

We bring down this connected Slide 8. As you tin see, astir half of our astir 57,000 disposable days are opened aliases marketplace exposed. We coming specifications of nan disposable and unfastened days by alloy type successful nan right-hand broadside of nan chart. Of nan unfastened days, astir 77% are drybulk and 17% are target days. The equilibrium being contained. We dream to make important rate travel successful 2023 fixed this debased breakeven.

I'll now move nan position complete to Efstratios Desypris, Navios Partners' Chief Operating Officer.

Efstratios Desypris

Thank you, Angeliki, and bully morning, everyone. Slide 9 demonstrates nan basal principles of our diversified level successful action. We purpose to use from countercyclicality, which creates opportunity to redeploy rate from well-performing segments into assets successful underperforming segments. We judge a diversified plus guidelines and immense volatility connected our financial statements. We see this move [Indiscernible] successful our plus base. As of Q4 2022, miles of containerships, adjusted for mile maturation charters, dropped by 40% and drybulk dropped by 8%, while tanker alloy volumes accrued by 42%. In sum, nan nett income of our fleet worth is simply a alteration of astir 7%.

We contracted this study [binding] containerships connected a charter-adjusted basis, because otherwise, it will not seizure our chartering activities, which efficaciously hedge nan plus prices. Multiple segments besides allows america to optimize chartering. In segments pinch charismatic returns, we tin participate into play charters. In different segments, we tin beryllium patient. As you tin spot from nan floor plan connected nan bottom, nan instrumentality conception enjoying historically precocious charter rates. Accordingly, we fixed our containers connected a semipermanent charter. And successful fact, almost 90% of our disposable containership days are fixed for 2023. This reduced marketplace and residual risk. We negociate nan in installments consequence of nan semipermanent charters independently to guarantee that we are not simply trading 1 consequence for nan other.

In our tanker segment, existent charter rates are surpassing nan 20-year mean levels. We fixed disposable tanker days to almost 70% of 2023. We expect our target fleet will make beardown returns. Lastly, successful our barren bulk segment, our rates are beneath nan humanities averages. We person been patiently entering short-term charters, averaging immoderate [Indiscernible]. As a result, astir 20% of our disposable days are fixed for 2023.

In Slide 10, you tin spot our fleet renewal activities. We are ever renewing nan fleet truthful that we support a slope profile, benefiting from newer technologies and much carbon-efficient vessels. Navios Partners made $1.5 cardinal finance successful 23 newbuilding vessels that will beryllium delivered into our fleet done 2026. In containerships, we are acquiring 12 vessels for a full of $860 million. We held our finance by entering into semipermanent creditworthy charters, generating astir $1.1 cardinal successful contracted gross for astir 6.4 years mean long of related charters.

In nan tanker space, we entered nan LR2/Aframax subsector by ordering 6 vessels for a full value of $380 million. These vessels person been chartered retired for 5 years astatine an mean nett complaint of $26,580 per day, generating revenues of astir $290 million. We person besides ordered 2 highly spec LR2 vessels for astir $80 million.

Finally, connected nan drybulk fleet, we person 3 Capesize vessels connected bid that are being delivered done June of 2023. These vessels person been chartered retired for an mean long of astir 5 years astatine a nett complaint of almost $20,000 per day. We person besides been very progressive successful nan S&P market. We person sold a full of 11 vessels pinch an mean property of astir 14 years. We sold 7 tanker vessels for a full information of $156 million, taking advantage of a beardown tanker marketplace and this corresponding summation successful request for second-hand vessels. Also we sold 4 drybulk vessels besides comprising $57.5 million. Finally, we exercised nan action of acquiring 1 2016-built scrubber-fitted Capesize alloy for a statement value of $40.7 million. This alloy was antecedently portion of our chartering fleet.

Moving to Slide 11, we proceed to unafraid semipermanent employment for our fleet. As Angeliki mentioned earlier, successful Q2, we person created opportunity of $350 cardinal further statement revenue. Approximately $327 cardinal was contracted for our tanker fleet, extending our charter mean successful a beardown market. Also we person contracted 3 newbuilding Capesize vessels for an mean long of almost 5 years astatine a nett complaint of astir $20,000 per day, generating astir [$102 million] successful revenue. Our full contracted gross magnitude to $3.4 billion. 66 of our statement gross comes from our containerships pinch charters extending done 2026 pinch a divers group of value counterparties. Almost 50% of this contracted gross will beryllium earned successful nan adjacent 2.5 years.

I now walk nan telephone to Eri Tsironi, our CFO, which will return you done nan financial highlights.

Erifili Tsironi

Thank you, Efstratios, and bully morning, all. I will concisely reappraisal our unaudited financial results for nan 4th fourth and 12 months ended December 31, 2022. The financial accusation is included successful nan property merchandise and is summarized successful nan descent position disposable connected nan company's website. I would for illustration to item that 2022 results are not comparable to 2021, arsenic successful 2022, NMM precocious expanded its fleet done acquisitions.

Moving to nan net highlights connected Slide 12. Total gross for nan 4th fourth of 2022 accrued by 38% to $370.9 cardinal compared to $268.1 cardinal for nan aforesaid play successful 2021. Time charter gross for nan play is understated by $18.1 cardinal because of [GAAP] rules requiring nan nickname of gross connected a straightline ground wherever immoderate of our charters person been escalating rates. Available days accrued by 27% to $14,409 compared to $11,363 for nan aforesaid 4th past year. And our mean clip charter balanced complaint accrued by 4% to $23,840 per time compared to $23,005 per time for nan aforesaid play successful 2021.

In position of assemblage performance, some tankers and containers enjoyed improved rates. Rates for our tankers doubled to $30,834 and instrumentality rates accrued by 43% to $34,037. In contrast, our drybulk rates were 46% little to $15,876. EBITDA for nan 4th fourth of 2022 accrued by 35% to $206.2 cardinal compared to $152.4 cardinal for nan aforesaid play past year.

Net income for Q4 2022 somewhat improved compared to 2021, reaching $118.3 cardinal and per portion were $3.84. Total gross for nan afloat twelvemonth 2022 accrued by 70% to $1.21 cardinal compared to $713.2 cardinal for nan aforesaid play successful 2021. 2022 gross is understated by $48.2 cardinal because of nan GAAP accommodation required for charters pinch nan escalating rates. Our disposable days accrued by 56% to $49,804 compared to $31,884 for 2021.

Fleet mean TCE complaint accrued by 6% to $23,042 per time compared to $21,709 per time for 2021. In position of assemblage performance, TCE rates accrued by 40% for containers to $31,358 and 37% for tankers to $21,020. Dry bulk rates were 70% little compared to 2021 astatine $19,464. EBITDA for nan 2022 accrued by 41% to $817.3 cardinal compared to $578.5 cardinal for nan aforesaid play past year. Excluding one-off items, adjusted EBITDA accrued by 57% to $667.9 million. Net income for 2022 accrued by 12% to $579.2 cardinal compared to $516.2 cardinal for nan aforesaid play past year. Earnings per portion were $18.8. Excluding one-off items, adjusted nett income accrued by 18% to $429.9 million. Adjusted nett income per portion were $14.

Turning to Slide 13, I will concisely talk immoderate cardinal equilibrium expanse data. As of December 31, 2022, rate and rate equivalents were $175.1 million. In 2022, we paid $176.8 cardinal of pre-delivery installments and different capitalized expenses nether our newbuilding program. We besides paid $412 cardinal to get 37 second-hand and 5 newbuilding vessels. Finally, we sold 7 vessels for $284.5 cardinal net, adding $231 cardinal rate aft nan costs of their respective debt. During nan period, we had $240 cardinal scheduled indebtedness repayments nether our in installments facilities. Long-term borrowings, including nan existent portion, nett of deferred fees amounted to $1.9 billion. Net indebtedness to book capitalization stood astatine 41.3%.

Slide 14 highlights our indebtedness profile. Our indebtedness and leasing liabilities are 2x covered by nan worth of our fleet based connected publically disposable valuations. We proceed to diversify our backing resources betwixt slope indebtedness and leasing structures. Our maturity floor plan is target pinch nary important values owed successful immoderate azygous year.

Slide 15 summarizes our caller equilibrium expanse activities. We person tried to mitigate immoderate of nan accrued liking complaint costs by reducing our mean separator to 2.7%, a simplification of 13% compared to 2021. In addition, 30% of our debt, including operating lease liabilities has fixed liking complaint astatine an mean complaint of 5.7%, providing a earthy lawsuit against existent complaint increases. Finally, nan mean separator of our newbuilding accommodation is 1.84%.

In position of our newbuilding program, astir 75% of newbuilding indebtedness requirements are already concluded aliases successful archiving phase. We person utilized nan opportunity to grow our financing resources adding caller banks and lessors, while we person besides concluded our first export creditation to that facility. Finally, we person arranged $149 cardinal of caller finances for existing ventures and caller acquisitions.

Turning to Slide 16, you tin spot our ESG initiatives. We aspire to person zero emissions by 2050. In this process, we person been pioneering and are adopting definite biology regulations successful advance, aiming to beryllium 1 of nan first fleets to execute afloat compliance. Navios is simply a socially conscious group whose halfway values see diversity, inclusion and information pinch a very beardown firm governance and clear codification of ethics. Our committee is composed by mostly independent board and independent committees that oversee our guidance and operations.

Slide 17 specifications our institution highlights. Navios Partners is simply a starring U.S. publicly-listed shipping company. Our diversification strategy creates resiliency and enables america to mitigate individual conception volatility. Our financial strength, standard and diversification should make NMM an charismatic finance level arsenic we return advantage of world waste and acquisition patterns.

I'll now walk nan telephone to Ted Petrone to return you done nan manufacture section.

Ted Petrone

Thank you, Eri. Please move to Slide 20 for nan reappraisal of nan tanker industry. After rising sharply successful Q3, tanker rates proceed to fortify done mid-November earlier softening somewhat connected nan backmost of nan cooling Chinese system aliases mild wintertime successful nan Northern Hemisphere successful nan absence of U.S. Gulf crude exports. Since nan extremity of January, rates for some crude and merchandise tankers person risen importantly connected nan ground of China re-opening and longer ton miles for each Russian crude and products. Despite economical uncertainties successful Ukraine crisis, nan IEA projects a 2% summation successful world lipid request for 2023 to 101.9 cardinal barrels per day, exceeding 2019 pre-pandemic levels. China, successful particular, accounted 45% of world lipid request maturation successful 2023, rising 0.9 cardinal barrels per time aliases 6% complete '22.

Turning to Slide 21. Tanker rates crossed nan committee person risen owed to improving proviso and request fundamentals mixed pinch nan penetration of nan Ukraine, which has shifted Russian crude and products exports to longer routes retired to India and China. Additionally, European refineries are replacing Russian crude and products pinch proviso from nan U.S., Brazil and nan Middle East, further expanding ton miles and waste and acquisition inefficiencies. Incremental support for rates travel into effect arsenic caller EU sanctions and value caps began connected crude December 5 and connected merchandise trades, February 5th. Product tankers should besides beryllium aided by discounted Russian crude exported to nan Far East returning to nan Atlantic arsenic cleanable product. This could adhd upward unit connected already beardown rates. 2023 crude and merchandise ton mile maturation is expected to summation by 6.4% and 11.2% respectively.

Turning to Slide 22. Vessel nett fleet maturation is projected astatine 2.1% for 2023 and antagonistic fleet maturation of minus 1.5% for 2024. This diminution tin beryllium partially attributed to owners' hesitance to bid costly long-lived assets successful ray of macroeconomic uncertainty and motor exertion concerns owed to CO2 restrictions enforced since nan opening of this year. The existent grounds level bid book is only 2% of nan fleet aliases only 18 vessels, nan lowest successful 30 years. 16 VLCCs will present during nan equilibrium of 2023, nary successful '24 and 1 each successful 2025 and 2026. Vessels complete 20 years of property aliases 14% of nan full fleet aliases 127 levels, which is complete 7x nan bid book.

Turning to Slide 23. Product tanker nett fleet maturation is projected astatine 1.8% for '23 and only 0.4% for 2024. The existent merchandise tanker bid book is 5.4% of nan fleet aliases 137 vessels, 1 of nan lowest connected grounds and it compares favorably pinch nan 10.1% of nan fleet aliases 363 vessels which are 20 years of property aliases older. In concluding nan tanker assemblage review, tanker rates crossed nan committee proceed astatine beardown levels. The operation of beneath mean world inventories, lipid request returning to pre-pandemic levels, caller longer trading routes for some crude and merchandise arsenic good arsenic nan lowest bid book successful 3 decades and nan IMO 2023 regulations should supply for patient tanker net going forward.

Please move to Slide 25 for nan reappraisal of nan drybulk industry. The BDI attained its 2022 precocious of 3,369 by mid-May. Then nan lockdown Chinese economy, nan warfare successful nan Ukraine and strengthened nan U.S. dollar combines a weakened world drybulk trade. The 2022 BDI mean of 1,934 were immoderate 1,000 points beneath nan erstwhile year. However, it should beryllium noted that 2022 was still nan 2nd highest scale since 2010.

With respect to nan Q4, nan mean of 1,523 was nan 5th twelvemonth successful a statement that Q4 was little than Q3 and nan first clip that Q4 was nan lowest 4th of nan twelvemonth since 2008. Overall, nan Chinese reversal of its zero COVID argumentation and further fiscal stimulus mixed pinch nan weakening U.S. dollar, constituent betterment successful nan drybulk marketplace arsenic indicated by nan highest early markets for each plus classes. Overall, drybulk waste and acquisition successful 2023 is projected to summation by 2.2%. Going forward, semipermanent proviso and request fundamentals stay intact. China's reopening economy, nan historically debased bid book, strengthening U.S. dollar and tightening GHG emissions regulations are main affirmative factors.

Please move to Slide 26. With respect to robust ore, China's zero COVID argumentation and existent property concerns importantly impacted alloy accumulation and robust ore request successful '22, while Chinese seaborne imports and alloy accumulation fell 2% successful 2022. However, China's wish to removal of nan zero COVID and fiscal stimulus focused connected supporting nan existent property assemblage should boost robust ore demand. Overall, world robust ore waste and acquisition is expected to summation by 0.8% successful 2023. Additionally, robust ore waste and acquisition is expected to summation by 9.2% successful nan 2nd half of '23 complete nan first half of this year.

Concerning coal, nan Ukraine situation continues to effect world ember imports arsenic European proviso concerns persist. This has led European countries to reactivate coal-fired powerfulness plants. European seaborne ember imports accrued by 20% successful '22 and are expected to summation by a further 7% successful 2023. Additionally, nan EU prohibition connected Russian ember will lead to shifting trading patterns towards longer haul routes. Overall, 2023 seaborne ember waste and acquisition maturation is expected to beryllium supported by an estimated 4.2% ton miles. Additionally, ember waste and acquisition is expected to summation by 2.7% successful nan 2nd half of '23 complete nan first half of 2023.

On nan atom side, 2022 atom seaborne waste and acquisition -- trading measurement is negatively impacted by nan warfare successful Ukraine, reducing Black Sea exports and this was partially mitigated by waste and acquisition adjustments for longer haul routes expanding ton miles. The world atom waste and acquisition continues to beryllium driven by heightened nutrient information issues driven initially by nan pandemic. Trade measurement and ton mile maturation are expected to summation by 3.8% and 5.3% respectively successful 2023.

Please move to Slide 27. Current bid book stands astatine 7.1% of nan fleet, 1 of nan lowest since nan early 1980s. Net fleet maturation for 2023 is expected astatine 1.8% and only 0.3% successful 2024 arsenic owners region tonnage that will beryllium uneconomic owed to nan IMO '23 CO2 rules enforced since nan opening of this year. Vessels complete 20 years of property are astir 9% of nan full fleet, which compares favorably pinch nan historically debased bid book. Concluding our drybulk assemblage review, continuing request for earthy resources, China's reopening, warfare and sanction-related longer haul trades mixed pinch a slowing gait of newbuilding deliveries, each support freight rates going forward.

Please move to Slide 29. Focusing connected nan instrumentality industry, arsenic nan faltering successful Q2 of nan Shanghai Container Freight Index correction accelerated successful nan 2nd half of '22 connected nan backmost of uncertain macroeconomic conditions mixed pinch slower user request for equipment which led to decreasing instrumentality trade, easing larboard congestion and successful quickly decreasing alloy charter rates. Starting towards twelvemonth extremity and continuing into 2023, nan autumn successful rates person moderated and today's rates stay supra nan humanities pre-COVID averages.

As you will statement successful nan chart connected nan little right, nan U.S. inventory to income ratio was disconnected nan caller low, but still good beneath semipermanent average. The chart connected nan little near shows moderating purchases of goods, which person slowed import done easing larboard takeaway bottlenecks and larboard congestion. Slowing U.S. and AU equipment imports person not been helped by China's zero COVID policy, which has slowed immoderate vanished equipment exports. Overall, 2023 instrumentality waste and acquisition is projected to alteration by 1.6% successful 2023, but summation by 3.3% successful 2024.

Turning to Slide 30. Net fleet maturation is expected to beryllium 6.7% for 2023 and 5.5% for 2024. The existent bid book stands astatine 29.5% against 11.7% of nan fleet 20 years of property aliases older. About 72% of nan bid book is for 10,000 TEU vessels aliases larger. In concluding nan instrumentality assemblage review, while proviso and request fundamentals stay challenged owed to economical and governmental uncertainties, nan operation of China's caller reversal of its zero COVID argumentation and nan IMF's January upgrade to world GDP maturation of 2.9% successful '23 and 3.1% successful 2024, supply a agleam spot successful a challenging 2023.

This concludes our presentation. I would now for illustration to move nan telephone complete to Angeliki for her last comments.

Angeliki Frangou

Thank you, Ted. This concludes our general presentation. We unfastened nan telephone to questions.

Question-and-Answer Session

Operator

[Operator Instructions] Our first mobility comes from Omar Nokta from Jefferies.

Omar Nokta

I wanted to inquire astir -- clearly, a batch is going connected and you person a very move attack to nan fleet and nan wide portfolio. I wanted to inquire astir nan alloy income you announced today. You've sold 11 ships, bringing successful $214 million. How overmuch of that are you expecting to nett aft paying down nan indebtedness associated pinch those ships? And past really are you reasoning astir nan usage of that free rate that remains?

Angeliki Frangou

This is simply a bully question. I mean, connected nan $213 million, if I americium correct, it's $123 cardinal nett of debt. I mean, fundamentally arsenic you know, we rationalize our fleet by trading each nan little businesslike vessels and keeping and acquiring technologically precocious alloy which besides person a amended c footprint. So this is simply a strategy. We person seen america moving agelong connected that and has provided a fleet coming of astir an mean property of 9.5 years, materially little property than nan industry. It is 4 years older connected containers and tankers and astir 2 years connected drybulk.

Omar Nokta

And you mentioned, Angeliki early connected successful nan position astir nan target leverage range. Can you conscionable spell complete that again because I spot nan LTVs that's 49%. And I deliberation a twelvemonth ago, you had been -- you were aiming for location possibly successful nan mid-30s. Could you conscionable spell complete what you were saying earlier astir what you'd for illustration nan nett equity ratio to be?

Angeliki Frangou

Our nett equity ratio LTV is astir -- nett LTV is astir 45%. You should recognize that successful our LTV we do not see nan payments we person already done connected newbuildings. So location is simply a earthy deleveraging that is happening arsenic vessels travel into nan water. So you person astir $300 cardinal of superior repayment per twelvemonth and a deleveraging people because nan vessels are coming into nan water. So pinch that and nan rate procreation we see, this is what we are targeting connected a scope of 20%, 25% because location is simply a rate procreation from nan vessel. So large picture, we entered 2023 well. We person done successful nan past 2 years, 3 awesome acquisitions; 1 successful containers, 1 successful tankers, good positioned and we person seen nan rewards and 1 successful drybulk which fundamentally we judge that 2023 is nan reversal of nan Chinese argumentation connected zero COVID that tin nutrient rather a important rate flows.

Omar Nokta

So target nett LTV is 20% to 25%. And conscionable double checking, confirming, Efstratios, I deliberation you had mentioned nan LR2 contracts. So that comes it up now, each 6 of those newbuildings person been afloat contracted for -- was it 5 years connected average?

Efstratios Desypris

Yes, exactly, but nan past 2 LR2s person been concluded successful Q4. So each 6 of them coming are contracted for 5 years astatine an mean complaint of astir $26,500.

Omar Nokta

And past possibly conscionable 1 last one, conscionable connected benignant of nan income and nan wide transactions you've done here. It's really been centered wrong drybulk and wrong tankers. And clearly, it seems containers has been overmuch much astir conscionable harvesting nan backlog effectively. How are you reasoning astir that fleet arsenic it stands today, fixed we've seen nan marketplace correct, location are immoderate ships that do travel up unfastened for renewal? How are you reasoning astir nan fleet that you person coming successful containers and whether you go much progressive successful either divesting aliases acquiring ships?

Angeliki Frangou

I mean, if you spot connected nan instrumentality segment, I mean, basically, we person seen that astir high-teens, '20s and we person seen nan chartering of our vessels. We person minimal base. I mean, we person a $2,134 unfastened -- breakeven per unfastened day. And if you spot connected Page 8, fundamentally instrumentality guidelines are little than $1,500. So it's a minimal. And we spot that nan rates location are still successful a level of astir high-teens 20 astir there. So this is wherever we are connected nan containers. Our position connected nan instrumentality conception is, I've already -- arsenic you remember, successful 2021, we had older vessels. And basically, we made these decisions early on, charter nan fleet, and we are capable to renew our fleet. So we already person nan backlog of nan vessels we request to renew. This is portion of our $1.5 cardinal newbuilding. And this is fundamentally successful positions we already person taken. So we are harvesting nan existing and this is nan determination we had. And we already person ordered nan ones we wanted to do.

Operator

It appears we person nary further questions astatine this time. I would now for illustration to move nan programme backmost complete to Angeliki for immoderate further aliases closing remarks.

Angeliki Frangou

Thank you. This completes our presentation. Thank you very much.

Operator

Thank you, ladies and gentlemen. This concludes today's conference. You whitethorn now disconnect.

Editor: Naga



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