Capital Product Partners L.P. Announces First Quarter 2014 Financial Results and Charter Renewals for a Number of Its Vessels
The Partnership's net income for the quarter ended
Operating surplus for the quarter ended
Revenues for the first quarter of 2014 were
Total expenses for the first quarter of 2014 were
Total other expense, net for the first quarter of 2014 amounted to
As of
As of
Fleet Developments
The M/T Ayrton II (51,260 dwt, IMO II/III Chemical Product Tanker built 2009,
The M/T Assos and M/T Atrotos were redelivered to us by
Market Commentary
Product tanker spot earnings softened in the first quarter of 2014, as adverse weather conditions in
The product tanker period market remained solid during the quarter, with charterers' interest in MR tonnage remaining strong, while period rates remained at the highest levels since
On the supply side, the ordering activity for MR tankers declined sharply during the first quarter of 2014, as most quality shipyards have now exhausted their capacity through 2016. Analysts expect that net fleet growth for product tankers for 2014 will be in the region of 3.9%, while overall demand for product tankers for the year is estimated to grow at 4.7%.
Suezmax spot earnings rose during the first quarter of 2014 to the highest level since the second quarter of 2010. Most of the gains were registered in the first half of the quarter as strong Chinese crude oil demand due to local stock building resulted in increased long-haul exports from
The period charter rates, despite a small improvement in the quarter, as well as the number of period fixtures in the Suezmax sector remained at historically low levels in the first quarter of 2014.
On the supply side, the Suezmax orderbook is among the lowest in the industry, corresponding to 7.3% of the current fleet. Suezmax tanker demand is expected to continue growing in 2014, driven by increased crude oil shipments from the Atlantic basin to the Far East. Overall, industry analysts forecast that Suezmax vessel demand is expected to grow by approximately 5.2% in the full year 2014, with net fleet growth projected at 1.5%.
Quarterly Common and Class B Unit Cash Distribution
On
In addition, on
Management Commentary
Mr.
"We are very pleased to see the improved operating surplus of the Partnership for the first quarter 2014, which is primarily the result of the steps we have taken during 2013 to grow the Partnership by increasing our fleet size by a total of five container vessels, each with long term period coverage.
"The product tanker period market continued to be robust throughout the first quarter 2014 with solid period fixture activity, thus allowing the Partnership to employ a number of its product tankers at attractive period rates."
Conference Call and Webcast
Today,
Conference Call Details
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 866 819 7111 (U.S. Toll Free Dial In), 0800 953 0329 (
A replay of the conference call will be available until
Slides and Audio Webcast
There will also be a simultaneous live webcast over the Internet, through the
Forward-Looking Statements
The statements in this press release that are not historical facts, including our expectations regarding employment of our vessels, redelivery dates and charter rates, fleet growth and demand, newbuilding deliveries and slippage as well as market and charter rate expectations and expectations regarding our quarterly distributions, amortization payments, ability to pursue growth opportunities and grow our distributions and annual distribution guidance may be forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended). These forward-looking statements involve risks and uncertainties that could cause the stated or forecasted results to be materially different from those anticipated. Unless required by law, we expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations, to conform them to actual results or otherwise. We assume no responsibility for the accuracy and completeness of the forward-looking statements. We make no prediction or statement about the performance of our units.
About
For more information about the Partnership, please visit our website: www.capitalpplp.com.
CPLP-F
Unaudited Condensed Consolidated Statements of Comprehensive Income | ||||||||||
(In thousands of United States Dollars, except number of units and earnings per unit) | ||||||||||
For the three month period ended |
||||||||||
2014 | 2013 | |||||||||
Revenues | $ | 30,768 | $ | 26,511 | ||||||
Revenues - related party | 16,679 | 13,454 | ||||||||
Total Revenues | 47,447 | 39,965 | ||||||||
Expenses: | ||||||||||
Voyage expenses | 1,016 | 1,772 | ||||||||
Voyage expenses - related party | 80 | 80 | ||||||||
Vessel operating expenses | 10,641 | 8,299 | ||||||||
Vessel operating expenses - related party | 4,186 | 4,297 | ||||||||
General and administrative expenses | 1,292 | 2,601 | ||||||||
Depreciation & amortization | 14,370 | 11,867 | ||||||||
Operating income | 15,862 | 11,049 | ||||||||
Non operating income (expense),net: | ||||||||||
Gain from bargain purchase | - | 17,475 | ||||||||
Other income (expense), net: | ||||||||||
Interest expense and finance cost | (4,707 | ) | (3,715 | ) | ||||||
Gain on interest rate swap agreement | - | 4 | ||||||||
Interest and other income | 87 | 200 | ||||||||
Total other expense, net | (4,620 | ) | (3,511 | ) | ||||||
Net income | $ | 11,242 | $ | 25,013 | ||||||
Preferred unit holders' interest in Partnership's net income | 4,045 | 5,270 | ||||||||
$ | 141 | $ | 395 | |||||||
Common unit holders' interest in Partnership's net income | $ | 7,056 | $ | 19,348 | ||||||
Net income per: | ||||||||||
• Common units (basic and diluted) | $ | 0.08 | $ | 0.28 | ||||||
Weighted-average units outstanding: | ||||||||||
• Common units (basic and diluted) | 88,440,710 | 68,383,911 | ||||||||
Comprehensive income: | ||||||||||
Partnership's net income | $ | 11,242 | $ | 25,013 | ||||||
Other Comprehensive income: | ||||||||||
Unrealized gain on derivative instruments | - | 462 | ||||||||
Comprehensive income | $ | 11,242 | $ | 25,475 | ||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||
(In thousands of United States Dollars, except number of units and earnings per unit) | ||||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 64,288 | $ | 63,972 | ||
Trade accounts receivable, net | 3,459 | 4,365 | ||||
Due from related parties | 4 | 667 | ||||
Above market acquired charters | - | 612 | ||||
Prepayments and other assets | 1,437 | 1,376 | ||||
Inventories | 3,447 | 2,740 | ||||
Total current assets | 72,635 | 73,732 | ||||
Fixed assets | ||||||
Vessels, net | 1,162,631 | 1,176,819 | ||||
Total fixed assets | 1,162,631 | 1,176,819 | ||||
Other non-current assets | ||||||
Above market acquired charters | 126,975 | 130,770 | ||||
Deferred charges, net | 5,114 | 5,451 | ||||
Restricted cash | 15,000 | 15,000 | ||||
Total non-current assets | 1,309,720 | 1,328,040 | ||||
Total assets | $ | 1,382,355 | $ | 1,401,772 | ||
Liabilities and Partners' Capital | ||||||
Current liabilities | ||||||
Current portion of long-term debt | $ | 5,400 | $ | 5,400 | ||
Trade accounts payable | 8,104 | 7,519 | ||||
Due to related parties | 7,806 | 13,686 | ||||
Accrued liabilities | 4,491 | 5,387 | ||||
Deferred revenue | 7,842 | 6,936 | ||||
Total current liabilities | 33,643 | 38,928 | ||||
Long-term liabilities | ||||||
Long-term debt | 576,565 | 577,915 | ||||
Deferred revenue | 4,497 | 3,503 | ||||
Total long-term liabilities | 581,062 | 581,418 | ||||
Total liabilities | 614,705 | 620,346 | ||||
Commitments and contingencies | ||||||
Partners' capital | 767,650 | 781,426 | ||||
Total liabilities and partners' capital | $ | 1,382,355 | $ | 1,401,772 | ||
Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
(In thousands of United States Dollars) | ||||||||
For the three month period ended |
||||||||
2014 | 2013 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 11,242 | $ | 25,013 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Vessel depreciation and amortization | 14,370 | 11,867 | ||||||
Gain from bargain purchase | - | (17,475 | ) | |||||
Amortization of deferred charges | 149 | 46 | ||||||
Gain on interest rate swap agreements | - | (4 | ) | |||||
Amortization of above market acquired charters | 4,407 | 2,386 | ||||||
Equity compensation expense | - | 1,169 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts receivable | 906 | (2,187 | ) | |||||
Due from related parties | 663 | - | ||||||
Prepayments and other assets | (61 | ) | (58 | ) | ||||
Inventories | (707 | ) | (777 | ) | ||||
Trade accounts payable | 958 | 1,014 | ||||||
Due to related parties | (5,880 | ) | (127 | ) | ||||
Accrued liabilities | (910 | ) | 399 | |||||
Deferred revenue | 1,953 | (3,384 | ) | |||||
Drydocking costs | (295 | ) | - | |||||
Net cash provided by operating activities | 26,795 | 17,882 | ||||||
Cash flows from investing activities: | ||||||||
Vessel acquisitions and improvements | (110 | ) | (130,000 | ) | ||||
Additions to restricted cash | - | (3,000 | ) | |||||
Net cash used in investing activities | (110 | ) | (133,000 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of Partnership units | - | 75,075 | ||||||
Expenses paid for issuance of Partnership units | - | (1,772 | ) | |||||
Proceeds from issuance of long-term debt | - | 54,000 | ||||||
Loan issuance costs | (1 | ) | (11 | ) | ||||
Payments of long-term debt | (1,350 | ) | - | |||||
Dividends paid | (25,018 | ) | (19,783 | ) | ||||
Net cash (used in) / provided by financing activities | (26,369 | ) | 107,509 | |||||
Net increase / (decrease) in cash and cash equivalents | 316 | (7,609 | ) | |||||
Cash and cash equivalents at beginning of period | 63,972 | 43,551 | ||||||
Cash and cash equivalents at end of period | $ | 64,288 | $ | 35,942 | ||||
Supplemental cash flow information | ||||||||
Cash paid for interest | $ | 4,104 | $ | 3,461 | ||||
Non-Cash Investing and Financing Activities | ||||||||
Private placement costs relating to Class B preferred units included in liabilities | $ | - | $ | 791 | ||||
Capital expenditures included in liabilities | $ | 46 | $ | - | ||||
Capitalized dry docking costs included in liabilities | $ | 295 | $ | - |
Appendix A - Reconciliation of Non-GAAP Financial Measure
(In thousands of U.S. dollars)
Description of Non-GAAP Financial Measure - Operating Surplus
Operating Surplus represents net income adjusted for non-cash items such as depreciation and amortization expense and deferred revenue. Operating Surplus is a quantitative standard used in the publicly-traded partnership investment community to assist in evaluating a partnership's ability to make quarterly cash distributions. Operating Surplus is a non-GAAP financial measure and should not be considered as an alternative to net income or any other indicator of the Partnership's performance required by accounting principles generally accepted in
Reconciliation of Non-GAAP Financial Measure - Operating Surplus |
For the three-month period ended |
|||
Net income | $ | 11,242 | ||
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Depreciation and amortization | 14,573 | |||
Deferred revenue | 5,387 | |||
OPERATING SURPLUS PRIOR TO CLASS B PREFERRED UNITS DISTRIBUTION | 31,202 | |||
Class B preferred units distribution | (4,034 | ) | ||
ADJUSTED OPERATING SURPLUS | 27,168 | |||
Increase in recommended reserves | (6,183 | ) | ||
AVAILABLE CASH | 20,985 |
Contact Details:
CEO and CFO
+30 (210) 4584 950
E-mail: i.lazaridis@capitalpplp.com
Finance Director
+30 (210) 4584 950
E-mail: j.kalogiratos@capitalpplp.com
Investor Relations / Media
Tel. +1-212-661-7566
E-mail: cplp@capitallink.com
Source:
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