| Tuesday | ||||
Capital Product Partners… Capital Product Partners announced that it has agreed a new time charter for the M/V Akadimos with a major liner company. The charter for the M/V Akadimos is expected to commence in the second quarter of 2023 in direct continuation of her present charter with a duration of approximately 24 months. The Partnership estimates that this charter may generate $34.4 million of gross revenue. As a result of the above employment update, the Partnership's charter coverage for the remainder of 2023 and 2024 has increased to 96%. | ||||
| Over a month ago | ||||
Capital Product Partners… Capital Product Partners announced the successful delivery of the LNG carrier 'Asterix I'. The vessel was delivered on February 17, 2023 and has started her seven year employment with Hartree Partners Power & Gas Company Limited, who maintain an option to extend by an additional two years. The vessel acquisition was financed through a combination of a $12.0 million cash deposit advanced to Capital Maritime & Trading Corp in 2022, $184.0 million of debt drawn under a sale and leaseback transaction with CMB Financial Leasing and $34.0 million of cash at hand. The CMBFL lease has quarterly principal repayments of $2.2 million, a tenor of ten years and the option to repurchase the vessel at a predetermined price after the first anniversary of the arrangement, together with a purchase option of $96.5 million at the expiration of the lease in February 2033. | ||||
Reports Q4 revenue… Reports Q4 revenue $79.9M, consensus $74.01M. | ||||
| Over a quarter ago | ||||
Capital Product Partners… Capital Product Partners announced that U.S. Treasury Regulations that come into effect on January 1, 2023, will not affect its unitholders. The regulations require brokers to withhold on gross proceeds received by a non-U.S. person from the sale of an interest in a publicly traded partnership which is taxed as a partnership for U.S. federal income tax purposes. As a result of these regulations, certain non-U.S. brokers may not permit non-U.S. persons to hold such PTP interests in their brokerage account. The Partnership is a publicly traded partnership that has elected to be taxed as a corporation for U.S. federal income tax purposes. Therefore, interests in the Partnership are not subject to these regulations. | ||||
Reports Q3 revenue… Reports Q3 revenue $71.9M, consensus $71.4M. Jerry Kalogiratos, Chief Executive Officer of our General Partner, commented: "We are delighted to see the continued strong financial performance of the Partnership during the third quarter of 2022 compared to the same period last year, driven by a number of key strategic commercial and financial decisions." "Building on our fleet renewal program, we have taken delivery in the last 12 months of four brand new additional LNG/Cs and one 13,312 TEU container vessel, while we have committed to acquire one more LNG/C and another two 13,278 TEU container vessels, all with long-term charters attached. Accordingly, we have divested four older container vessels taking advantage of historically high asset prices. As a result, the weighted average age of our fleet is 6.3 years and remaining charter duration 7.0 years with a contracted revenue backlog of approximately $1.9 billion." "In addition, the Partnership's successful EUR 100.0 million issue of seven-year unsecured bonds was followed by debt repayments of $123.7 million, maintaining the overall leverage at conservative levels, while reducing exposure to rising interest rates." "All the above and consistent with the Partnership's capital allocation policy of an active unit repurchase program and quarterly distributions, demonstrate the Partnership's commitment to continue to grow its asset base, while returning capital to its unitholders." | ||||
Capital Product Partners… Capital Product Partners announced the increase of the day rate for two of its LNG carriers, 'Aristarchos' and 'Asklipios', as well as the extension of the firm period by approximately 6.4 years to June and September 2031, respectively. In addition, the charterer was granted two options per vessel, each one for two years. As a result of the extension and the higher day rate, firm contracted revenues under the two charters increased from approximately $118.4 million to $485.7 million. The increased day rate will apply from September 1, 2022. The remaining charter duration for CPLP's fleet is now extended to 7.0 years from 6.2 as of June 30, 2022. | ||||
Reports Q2 revenue $74M… Reports Q2 revenue $74M vs. $39.8M last year. Jerry Kalogiratos, CEO of our General Partner, commented: "We are pleased to witness the continued strong financial performance of the Partnership during the second quarter of 2022 compared to the same period last year, primarily as a result of our entry in the LNG shipping sector in the second half of 2021. In parallel, we continue our strategic fleet renewal, having successfully completed the delivery of the M/V Archimidis and the M/V Agamemnon to their buyer, and accordingly, to position the Partnership for further growth with the recently announced acquisitions of three eco, dual fuel ready, hybrid scrubber fitted 13,278 TEU container vessels and one latest generation 174,000 CBM LNG/C - all with long term charters attached. In addition, the successful issue of a EUR 100.0 million Bond on the Athens Exchange, the second in a period of 12 months, at a fixed interest cost of 4.40% for a term of seven years, demonstrates the ability of the Partnership to raise incremental capital and provides us with financial flexibility in view of our vessel acquisition program and rising interest rates. Returning capital to our unitholders remains a priority for the Partnership, as in addition to our stated quarterly distribution guidance, we continue with our unit buyback program, which also allows us to take advantage of what we believe is a dislocation between the Partnership's intrinsic value and its equity valuation." | ||||
Jefferies analyst Omar… Jefferies analyst Omar Nokta initiated coverage of Capital Product Partners with a Buy rating and $20 price target. Capital Products has transformed over the past few years as it switched its business model to a long-term contracted profile from that of a more short-term contracted fleet, noted Nokta, who sees the company's fleet of 25 ships mostly fixed on long-term charters providing revenue visibility and "a much higher quality of earnings." | ||||
Stifel analyst Benjamin… Stifel analyst Benjamin Nolan lowered the firm's price target on Capital Product Partners to $17 from $20 and keeps a Buy rating on the shares. Ahead of earnings season for the group, Nolan said Q2 was "generally a good quarter for most aspects of the shipping market" as shipping remains tight and he expects that should remain so for the balance of the year. However, consumer demand is certainly at risk and recession risk is likely to have a greater impact on consumer oriented markets like containers and to a lesser extent dry bulk, while tankers and gas shipping should be largely unaffected, Nolan contends in his earnings preview. | ||||
Capital Product Partners… Capital Product Partners announced the acquisition of one 174,000 cubic meter latest generation X-DF LNG carrier and three 13,278 TEU hybrid scrubber-fitted, latest generation eco container vessels, all with long term charters attached, for total consideration of $597.5M; and The sale of two 8,266 TEU container vessels, namely the M/V Archimidis and the M/V Agamemnon, for total consideration of $130M. Acquisition of One 174,000 cbm LNG/C & Three 13,278 TEU Container Vessels The Partnership today announced that it has agreed to exercise its right of first offer and acquire one 174,000 cbm latest generation X-DF LNG/C and three 13,278 TEU hybrid scrubber-fitted Tier III and Phase III, dual fuel ready eco container sister vessels from Capital Maritime & Trading, for total consideration of $597.5M. The LNG/C, to be named "Asterix I", is currently under construction by Hyundai Heavy Industries , South Korea, and is expected to be delivered to the Partnership in January 2023 upon its delivery from the shipyard. The LNG/C Asterix I comes with a long-term time charter with Hartree Partners Power & Gas Company Limited for a firm period of 5 years, which, together with the optional period, expires in 2031. The total consideration for the four vessels amounts to $597.5M and is expected to be financed with approximately $122M of cash, $468M of debt and $7.5M in CPLP common units. These acquisitions are expected to generate approximately $73.4 million of annual gross revenue over the firm period of the charters. The vessels will be paid for upon the delivery of each ship. The issuance of common units to the Seller will occur upon the delivery of the first vessel, the M/V Manzanillo Express. | ||||
