Capital Product Partners L.P. Announces Fourth Quarter 2013 Financial Results, Charter Renewals for a Number of Its Vessels and the Increase of Its Senior Secured Credit Facility to $225.0 Million
The Partnership's net income for the quarter ended
Operating surplus for the quarter ended
Revenues for the fourth quarter of 2013 were
Total expenses for the fourth quarter of 2013 were
Total other expense, net for the fourth quarter of 2013 amounted to
As of
As of
Fleet Developments
The M/T Aias (150,393 dwt, Crude Oil Tanker built 2008
The M/T Amore Mio II (159,982 dwt, Crude Oil Tanker built 2001, Daewoo Shipbuilding & Marine Engineering Co., Ltd.,
The M/T Arionas (36,725 dwt, IMO II/III Chemical Product Tanker built 2006, Hyundai Mipo Dockyard Company, Ltd.,
All charters were unanimously approved by the
In
As a result of the above acquisitions and charter extensions, the weighted average remaining charter duration of our fleet is 8.8 years as of
Increase of Partnership's Credit Facility to
In
Market Commentary
Product tanker spot earnings modestly weakened in the fourth quarter of 2013 compared to the third quarter of 2013, but remained at overall robust levels. The decline was mainly driven by lower rates on the transatlantic trade as the lack of arbitrage opportunities and decreased
The product tanker period market experienced increased activity in the fourth quarter and throughout 2013, in response to the strengthening spot rate environment and the positive outlook for the sector, while period rates rose to the highest levels since
On the supply side, the product tanker order book continued to experience slippage during 2013, as approximately 33% of the expected MR and handy size tanker newbuildings were not delivered on schedule. Analysts expect that net fleet growth for product tankers for 2014 will be in the region of 3.4%, while overall demand for product tankers for the year is estimated to grow at 4.2%.
The Suezmax spot market improved significantly in the fourth quarter, supported by seasonally stronger demand, along with increased long-haul crude movements from
Slippage for the Suezmax tanker order book continues to affect tonnage supply as approximately 54% of the expected crude newbuildings were not delivered on schedule. Suezmax tanker demand is expected to grow by 4.8% in the full year 2014 with net fleet growth projected at 2.4%.
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 fourth quarter 2013, which reflects the full quarterly contribution of the three additional 5,023 TEU container vessels with 12 year period charters that we acquired in
"Importantly, the product tanker market continued to improve throughout 2013 with solid period fixture activity on the back of an improving spot market following continuous growth of U.S. exports of refined products and refinery capacity dislocation, thus allowing the Partnership to employ its product tankers at increased 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 / (Loss) | |||||||||||||||||
| (In thousands of United States Dollars, except number of units and earnings per unit) | |||||||||||||||||
| For the three months period ended |
For the year ended |
||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||
| Revenues | $ | 33,710 | $ | 20,949 | $ | 116,520 | $ | 84,012 | |||||||||
| Revenues - related party | 13,308 | 17,360 | 54,974 | 69,938 | |||||||||||||
| Total Revenues | 47,018 | 38,309 | 171,494 | 153,950 | |||||||||||||
| Expenses: | |||||||||||||||||
| Voyage expenses | 1,523 | 777 | 5,776 | 5,114 | |||||||||||||
| Voyage expenses related party | 86 | 133 | 314 | 554 | |||||||||||||
| Vessel operating expenses | 11,295 | 6,476 | 38,284 | 22,126 | |||||||||||||
| Vessel operating expenses - related party | 4,101 | 4,727 | 17,039 | 23,634 | |||||||||||||
| General and administrative expenses | 1,373 | 2,252 | 9,477 | 9,159 | |||||||||||||
| Loss / (gain) on sale of vessel to third parties | 7,073 | - | 7,073 | (1,296 | ) | ||||||||||||
| Depreciation and amortization | 14,307 | 11,994 | 52,208 | 48,235 | |||||||||||||
| Vessels' impairment charge | - | 43,178 | - | 43,178 | |||||||||||||
| Operating income / (loss) | 7,260 | (31,228 | ) | 41,323 | 3,246 | ||||||||||||
| Non operating income / (expense), net: | |||||||||||||||||
| (Loss) / gain on sale of claim | (644 | ) | - | 31,356 | - | ||||||||||||
| Gain from bargain purchase | - | - | 42,256 | - | |||||||||||||
| Total non operating (loss) / income, net: | (644 | ) | - | 73,612 | - | ||||||||||||
| Other income (expense), net: | |||||||||||||||||
| Interest expense and finance cost | (4,661 | ) | (3,852 | ) | (15,991 | ) | (26,658 | ) | |||||||||
| Gain on interest rate swap agreement | - | 25 | 4 | 1,448 | |||||||||||||
| Interest and other income | 2 | 48 | 533 | 775 | |||||||||||||
| Total other expense, net | (4,659 | ) | (3,779 | ) | (15,454 | ) | (24,435 | ) | |||||||||
| Net income / (loss) | $ | 1,957 | $ | (35,007 | ) | $ | 99,481 | $ | (21,189 | ) | |||||||
| Preferred unit holders' interest in Partnership's net income / (loss) | $ | 3,807 | $ | 3,325 | $ | 18,805 | $ | 10,809 | |||||||||
| $ | (36 | ) | $ | (767 |
) | $ | 1,598 | $ | (640 | ) | |||||||
| Common unit holders' interest in Partnership's net income / (loss) | $ | (1,814 | ) | $ | (37,565 |
) | $ | 79,078 | $ | (31,358 | ) | ||||||
| Net (loss) / income per: | |||||||||||||||||
| Common unit basic | $ | (0.02 | ) | $ | (0.55 | ) | $ | 1.04 | $ | (0.46 | ) | ||||||
| Weighted-average units outstanding: | |||||||||||||||||
| Common units basic | 86.682,014 | 68,383,478 | 75,645,207 | 68,256,072 | |||||||||||||
| Net (loss) / income per: | |||||||||||||||||
| Common unit diluted | $ | (0.02 | ) | $ | (0.55 | ) | $ | 1.01 | $ | (0.46 | ) | ||||||
| Weighted-average units outstanding: | |||||||||||||||||
| Common units diluted | 86,682,014 | 68,383,478 | 97,369,136 | 68,256,072 | |||||||||||||
| Comprehensive income / (loss): | |||||||||||||||||
| Partnership's net income / (loss) | 1,957 | (35,007 | ) | 99,481 | (21,189 | ) | |||||||||||
| Other Comprehensive income: | |||||||||||||||||
| Unrealized gain on derivative instruments | - | 467 | 462 | 10,762 | |||||||||||||
| Comprehensive income / (loss) | $ | 1,957 | $ | (34,540 | ) | $ | 99,943 | $ | (10,427 | ) | |||||||
| Unaudited Condensed Consolidated Balance Sheets | ||||||
| (In thousands of United States Dollars) | ||||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 63,972 | $ | 43,551 | ||
| Trade accounts receivable, net | 4,365 | 2,346 | ||||
| Due from related parties | 667 | -- | ||||
| Above market acquired charters | 612 | -- | ||||
| Prepayments and other assets | 1,376 | 1,259 | ||||
| Inventories | 2,740 | 2,333 | ||||
| Total current assets | 73,732 | 49,489 | ||||
| Fixed assets | ||||||
| Vessels, net | 1,176,819 | 959,550 | ||||
| Total fixed assets | 1,176,819 | 959,550 | ||||
| Other non-current assets | ||||||
| Trade accounts receivable, net | -- | 848 | ||||
| Above market acquired charters | 130,770 | 47,720 | ||||
| Deferred charges, net | 5,451 | 2,021 | ||||
| Restricted cash | 15,000 | 10,500 | ||||
| Total non-current assets | 1,328,040 | 1,020,639 | ||||
| Total assets | $ | 1,401,772 | $ | 1,070,128 | ||
| Liabilities and Partners' Capital | ||||||
| Current liabilities | ||||||
| Current portion of long-term debt | $ | 5,400 | $ | -- | ||
| Trade accounts payable | 7,519 | 4,776 | ||||
| Due to related parties | 13,686 | 17,447 | ||||
| Derivative instruments | -- | 467 | ||||
| Accrued liabilities | 5,387 | 2,781 | ||||
| Deferred revenue | 6,936 | 10,302 | ||||
| Total current liabilities | 38,928 | 35,773 | ||||
| Long-term liabilities | ||||||
| Long-term debt | 577,915 | 458,365 | ||||
| Deferred revenue | 3,503 | 2,162 | ||||
| Total long-term liabilities | 581,418 | 460,527 | ||||
| Total liabilities | 620,346 | 496,300 | ||||
| Commitments and contingencies | -- | -- | ||||
| Partners' capital | 781,426 | 573,828 | ||||
| Total liabilities and partners' capital | $ | 1,401,772 | $ | 1,070,128 | ||
| Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
| (In thousands of United States Dollars) | ||||||||
| For the years ended |
||||||||
| 2013 | 2012 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income / (loss) | $ | 99,481 | $ | (21,189 | ) | |||
| Adjustments to reconcile net income / (loss) to net cash provided by operating activities : | ||||||||
| Vessel depreciation and amortization | 52,208 | 48,235 | ||||||
| Vessels' impairment | -- | 43,178 | ||||||
| Gain from bargain purchase | (42,256 | ) | -- | |||||
| Amortization of deferred charges | 405 | 480 | ||||||
| Amortization of above market acquired charters | 13,594 | 7,904 | ||||||
| Equity compensation expense | 3,528 | 3,826 | ||||||
| Gain on interest rate swap agreements | (4 | ) | (1,448 | ) | ||||
| Loss / (gain) on sale of vessels to third parties | 7,073 | (1,296 | ) | |||||
| Accrual on gain on sale of claim | 644 | -- | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade accounts receivable | (1,171 | ) | 221 | |||||
| Due from related parties | (667 | ) | -- | |||||
| Prepayments and other assets | (117 | ) | 237 | |||||
| Inventories | (407 | ) | 1,677 | |||||
| Trade accounts payable | 2,066 | (5,594 | ) | |||||
| Due to related parties | (3,761 | ) | 7,009 | |||||
| Accrued liabilities | 1,573 | 480 | ||||||
| Deferred revenue | (1,852 | ) | 1,078 | |||||
| Drydocking costs | (761 | ) | -- | |||||
| Net cash provided by operating activities | 129,576 | 84,798 | ||||||
| Cash flows from investing activities: | ||||||||
| Vessel acquisitions and improvements | (363,038 | ) | (1,614 | ) | ||||
| Increase in restricted cash | (4,500 | ) | (3,750 | ) | ||||
| Proceeds from sale of vessels | 32,192 | 21,299 | ||||||
| Net cash (used in) / provided by investing activities | (335,346 | ) | 15,935 | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of Partnership units | 195,771 | 140,000 | ||||||
| Expenses paid for issuance of Partnership units | (3,410 | ) | (1,673 | ) | ||||
| Proceeds from issuance of long-term debt | 129,000 | -- | ||||||
| Payments of long-term debt | (4,050 | ) | (175,215 | ) | ||||
| Loan issuance costs | (2,879 | ) | (348 | ) | ||||
| Dividends paid | (88,241 | ) | (73,316 | ) | ||||
| Net cash provided by / (used in) financing activities | 226,191 | (110,552 | ) | |||||
| Net increase / (decrease) in cash and cash equivalents | 20,421 | (9,819 | ) | |||||
| Cash and cash equivalents at beginning of period | 43,551 | 53,370 | ||||||
| Cash and cash equivalents at end of period | $ | 63,972 | $ | 43,551 | ||||
| Supplemental Cash Flow Information | ||||||||
| Cash paid for interest | $ | 14,845 | $ | 25,864 | ||||
| Non-Cash Investing and Financing Activities | ||||||||
| Capital expenditures included in liabilities | $ | 103 | $ | 134 | ||||
| Offering expenses included in liabilities | $ | (7 | ) | $ | 1,908 | |||
| Capitalized dry docking and deferred costs included in liabilities | $ | 628 | $ | -- | ||||
| Fair value of vessels purchased, M/V Archimidis and M/V Agamemnon | $ | -- | $ | 133,000 | ||||
| Fair value of vessels sold, M/T Alexander the Great and M/T Achilleas, reduced by the net cash consideration received | $ | -- | $ | (137,500 | ) | |||
| Acquisition of above market time charter | $ | 97,256 | $ | 4,500 | ||||
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, loss on vessel sale 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 | $ | 1,957 | ||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||
| Depreciation and amortization | 14,500 | |||
| Deferred revenue | 5,714 | |||
| Loss on sale of a vessel | 7,073 | |||
| OPERATING SURPLUS PRIOR TO CLASS B PREFERRED UNITS DISTRIBUTION | 29,244 | |||
| Class B preferred units distribution | (4,045 | ) | ||
| ADJUSTED OPERATING SURPLUS | 25,199 | |||
| Increase in recommended reserves | (4,226 | ) | ||
| AVAILABLE CASH | $ | 20,973 | ||
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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