Capital Product Partners L.P.
Nasdaq:CPLP
$8.24   - 0.03
03 Sep 2010
4:00 PM ET
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Company Profile

Capital Product Partners L.P., a publicly traded master limited partnership, is an international owner of product tankers. We were formed in early 2007 by Capital Maritime & Trading Corp., an established international shipping company, with a view to maintain and further its leadership in the product tanker segment.

Our fleet currently consists of 13 newly built, double-hull product tankers, five of which were delivered following the completion of our IPO in April 2007. Each of our vessels is capable of carrying crude oil, refined oil products, such as gasoline, diesel, fuel oil and jet fuel, as well as edible oils and chemicals, such as ethanol. Our 12 Ice Class 1A vessels represent the largest Ice Class 1A medium-range (MR) fleet in the world based on number of vessels and carrying capacity at this time. All of our vessels are currently chartered under medium to long-term time and bareboat charters to large charterers such as BP Shipping Limited, Morgan Stanley Capital Group, Overseas Shipholding Group and Trafigura Beheer B.V.

We have an agreement to purchase three additional MR product tanker sister vessels that are scheduled for delivery in January, June and August 2008, all of which will be under bareboat charters commencing at the time of delivery. Excluding any additional acquisitions, we expect that by the end of the third quarter of 2008, our fleet will consist of 16 double-hull product tankers with an average age of approximately 1.7 years.

The combination of the medium to long-term nature of our charters and our fixed rate management agreement with Capital Maritime through its affiliate Capital Ship Management Corp. provides us with a strong base of stable cash flows. In addition, all but one of our current time charters contain 50/50 profit sharing provisions that allow us to realize additional revenues when spot rates are higher than the base rates incorporated in our charters or in some instances through greater utilization of our vessels by our charterers. We expect to grow our fleet further through Capital Maritime's extensive product tanker newbuilding program and through accretive acquisitions of product tankers from the second-hand market. Capital Maritime retains approximately a 41% interest in the Partnership.


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