Thank you for joining us on Navios Maritime Partners Third Quarter 2020 Earnings Conference Call. With us today from the company are Chairman and CEO, Ms. Angeliki Frangou; Chief Financial Officer, Mr. Stratos Desypris; and Executive President of Business Development, Mr. George Achniotis. 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 webcast 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' financial results. Then Mr. Achniotis will provide an operational update and an industry overview; and lastly, we'll open the call to take questions. Now I'll turn the call over to Navios Partners' Chairman and CEO, Mrs. Angeliki Frangou. Angeliki?

Thank you, Doris, and good morning to all of you joining us on today's call. Given the difficulties associated with the pandemic, I am pleased with the results for the third quarter of 2020. During the third quarter, Navios Partners reported revenue of $64.5 million and adjusted EBITDA of $30.9 million. Although, drybulk demand in the first half of 2020 was hurt by the global shutdowns, fiscal stimulus and other policy measures helped global economies rebound in Q3 and continue to rebound in Q4. We believe that this improvement is attributable to the exit from quarantines, food security consideration, and new purchasing patterns in the pandemic economy. Consequently, we are optimistic about the expected growth in demand throughout Q4 in 2021. As you can see from Slide 5, NMM’s fleet is currently 55 vessels. NMM holds a 35.7% interest in Navios Maritime containers. On Slide 6, you can see why Navios Partners is a premium drybulk shipping platform. We maintain a strong balance sheet with low leverage. Our net debt-to-book capitalization is 39.2%. We have staggered debt maturities and no committed growth CapEx requirements. We also have about $465 million in remaining contracted revenue and low break-even of $5,365 per open day for Q4 2020. Slide 7 details the pandemic impact on global trade. Obviously, GDP for the first half of 2020 was weak given the global shutdown. However, the economic outlook for 2021 is favorable. The IMF expects global GDP to grow by 5.2%, led mainly by China, and an expected GDP growth of 8.2% next year. As a result of the disruption to economic activity, during the first half of 2020, drybulk trade is expected to contract by 2.7% in 2020. However, as economies continue to recover drybulk trade is projected to increase by 3.9% in 2021. Slide…

Thank you, Angeliki, and good morning, all. I will briefly review our unaudited financial results for the third quarter and nine months ended September 30, 2020. The financial information is included in the press release and summarized in the slide presentation available on the company's website. Before I start discussing our financial highlights, I would like to draw your attention to certain one-off items that are listed in Slide 11. For simplicity, the discussion of the financial results below exclude the effect of one-off items listed in the slides. Moving to the financial results, as shown on Slide 11, our revenue for the third quarter of 2020 increased by $1 million to $64.5 million compared to $63.5 million for Q3 2019. The increase was mainly due to the 39% increase in available days in 2020. The increase was mitigated by 27% decrease in the time charter equivalent rate achieved in the third quarter of 2020. Our adjusted EBITDA for the third quarter of 2020 was $30.9 million compared to $41.3 million in the third quarter of 2019. However, compared to the second quarter of 2020, our adjusted EBITDA increased by 116%, reflecting the significantly improved rate environment. Adjusted net income for the quarter amounted to $8.8 million. Opening surplus for the third quarter of 2020 amounted to $16 million and the replacement and maintenance CapEx reserve was $9.5 million. Fleet utilization for the third quarter of 2020 was over 99%. Moving to the nine month operations, time charter revenue for the nine months of 2020 decreased by $0.6 million to $157.5 million compared to $158.1 million in 2019. The decrease was mainly due to the 22% decrease in the time charter equivalent achieved in the nine months of 2020. This decrease was partially mitigated by the 30% increase in our…

Thank you, Stratos. Please turn to Slide 18. Q3 saw a jump in BDI with a quarterly average settling close to double Q2 at 1,522. The quarter started with a nine months high of the PPI in July before softening in August. However seasonality return as the PPI reached year-to-date high on October 6, at 2097, led by Atlantic iron ore and grain exports primarily to China before correcting over the last few weeks. However, the Chinese economy, which accounts for approximately 40% of global dry bulk trade, continued positive growth on the back of government stimulus, particularly aimed at infrastructure spending. China according to the IMF will be the only major requirement to grow this year at 1.9% with further growth of 8.2% expected in 2021. With the entire globe continuing to be affected by the pandemic, the IMF projected global GDP contraction of 4.4% for 2020 led by 5.8% contractually in advanced economies. Governments got put in place unprecedented emergency monetary and fiscal plans to support the economies. In light of these the IMF projects 5.2% of global GDP growth in 2021. The 2020 updated forecast for dry bulk trade is a contraction of 2.7% and growth of 3.9% in 2021. Turning to Slide 19. The graph on the left shows that for 2021 dry bulk demand for the three major cargoes of iron ore, coal and grain is focused to outpace 2020. This increase is led by coal, which is expected to grow by [Technical Difficulty]. If you look at the graph on the right, net fleet growth is forecast to be 3.4% this year and only 1.3% for 2021. Net fleet growth is expected to remain low over the next few years as the order book is the lowest on record. Turning to Slide 20. Despise…

Thank you, George. This completes our formal presentation. We open the call for questions.

[Operator Instructions] Your first question comes from the line of Chris Wetherbee with Citi.

Yes. Hey, thanks for taking the question guys. I hope you're well. I guess I wanted to start George where you left off on the order book. And maybe to get a better understanding of how we see this kind of playing out, so we're at the lowest level that we've seen, I guess, on a record for the order book just over 6% of the fleet. It seemed that with uncertainty in the world orders have been extraordinarily difficult to come by. If you go into 2021, how do you see this kind of plan out? What would you expect in terms of fleet growth for the dry bulk fleet in 2021, number one? And then I guess maybe what the replenishment of the order book, if there is any you look like number two.

Chris, I think – this is Angeliki. I think one of the things that makes us very optimistic on dry bulk is that basically, we have the lowest order book of 6.3%, with vessels that are over 20 about 6.5%. So basically, you have a very -- overall, almost one of the lowest order books. But the most -- the reason that we're optimistic is because there are still periods where order books are low, but then they start having an increase all the around the world. I mean, the different date is because of the technological uncertainty, and this is not something like a scrapper where you have this kind of a solution to all the other places. I think the technological issues, what will be the end and what technology? This uncertainty, we need to -- order book across shopping, and we know for some time. That gives you a runway where we see that demand is there because of food security, because of our additional stockpiles for infrastructure. So you have a condition that we haven't seen for a long time. And the technological uncertainty is something that will remain for some time because basically shipping is in the need for solution into the long-haul and then they're in a much more different -- we don't have yet the solution on the engine or the correct -- something that will give the propulsion for these kinds of movement. So I think that this is a very positive issue, and that's why we'll not see any [indiscernible]

Okay. And if you had – I mean if you had debenture, I guess, I think we’re dealing 3% plus in terms of fleet expansion in 2020. You’d expect that number to be lower is my guess in 2021?

2021, we expect it to reach it further 1%.

Okay. That’s helpful. Appreciate that. And then I guess, I wanted to circle back to debt maturities in 2021, I think a little over $130 million. Can you talk a little bit about sort of what the plan is for that and go into a bit more detail on sort of how that is going to be addressed?

I'll let Stratos, but this picture is, as we said a little bit below at around 50%, and all of them are very low levels that the larger one is basically recovered the entire refinancing initiatives, scrap values, which definitely our most job, and much more very valuable cash flows and everything, but its' -- they are very easily financing these transactions.

Just to add to what Angeliki has been saying. I mean, the three facilities, as we said, two of them are below 50% of our obligation and fund was very reasonably [indiscernible]. And the third one, you have two elements that you need to take into account. The first one, but the scrap value almost entirely covered the refinancing amount. But on the second item that you have take into account is that this facility includes the five HMM vessels. And just the TEU, these five vessels alone is coming almost 2x the whole gate service of these facilities. So, yes, we feel very confident in the refinancing of this.

Okay. Okay. That's helpful. Thanks very much for the time. I appreciate it.

Your next question comes from the line of Randy Giveans with Jefferies.

Hi, this is Chris Robertson on for Randy. Thanks for taking our call. How are you, Angeliki?

Good morning, how are you doing?

Good, good. So I guess, just on the – our first question on the distribution cut. So I guess now that the drybulk and container ship markets have improved. How are you thinking about increasing the distribution going forward? And how will you balance that with unit repurchases as you're trading at a pretty big discount to NAV at the moment?

This was a conservative posture. I mean, you have to realize we're in the pandemic economy. And as that, I mean, you see positive effects, as I said on – we have a steady supply and strong demand because of food security, because of need of inventories to be ahead, but we have to be – we have to have a conservative posture. And as in net – as we see, I mean, today, what we're doing is basically we have – with a low breakeven, no levers. We are ready to get the cash flows that we see that are generated. On dividends is something that we're going to more normalized, at least we see visibility far more clear. Then we see that we give a temporary investments. We have other ways to increase with buybacks, with other rates. But I think on the current conditions with an uncertainty that is developing, we need to have more conservative posture.

Okay. That's fair. I guess, following up on that then, so around the decision to purchase the two vessels, in light of the discount to NAV in the unit price at the moment, kind of what drove the decision to buy vessels now, instead of maybe repurchasing some units?

We're a different company after all, and we have a portfolio of assets that are unique, and the plan is absolute and we make sure that we have the right assets to have – to generate the cash flow. So what we did is basically, it is about, we bought two vessels that are over six years old and Capesize and Panamax Japanese fleet, high quality, as well as some vessels that over 12 years old. So that is a replacement of asset. That makes sense. And it is an ongoing part of our business, buying larger vessels, younger vessels, to keep our end capacity, to grow our end capacity and this is – and this reflects our portfolio. That is part of an ongoing process.

All right. Yes. Thanks for the clarity. That's it for us. Thank you.

Thank you. I'd now like to turn the call back over to Angeliki.

Thank you. This concludes our Q3 results.

Thank you. This concludes today's conference call. You may now disconnect.