Diversified Greek shipowner Capital Product Partners (CPLP) saw its profits hit by an $8m impairment on the sale of a capesize bulker.
The Nasdaq-listed company said net income dropped 64% in the three months to the end of June to $7.4m.
The result reflected an impairment charge of $8m from the sale of the 179,221-dwt Cape Agamemnon (built 2010).
The Cape Agamemnon will be delivered to an unnamed buyer in October.
Chief executive Jerry Kalogiratos said the bulker was a non-core asset that was being sold as part of the strategic renewal of the company’s fleet.
The vessel is the only dry bulk vessel in the Greek shipowner’s fleet, and its sale leaves the company as an owner of large container ships and LNG carriers.
CPLP bought the Cape Agamemnon in 2011 from sponsor Capital Maritime & Trading for a reported $89.5m. Today, it is estimated to be worth just $22m, according to VesselsValue.
The company has been looking for a buyer since the bulker came off a 10-year time charter to Cosco Shipping in 2021.
High debt
Prior to the non-cash impairment, net income was $15.4m in the second quarter. That is down from $20.4m in the same period last year.
The US-listed master limited partnership attributed the drop to increased interest expense, higher debt, and higher operating expenses.
Revenues rose by 20% to $88.5m as the company took delivery of a series of four vessels.
That included a trio of neo-panamax boxships comprising the 13,300-teu Manzanillo Express (built 2022) and its sisterships Itajai Express and Buenaventura Express (both built 2023).
The vessels have 10-year charters with Germany’s Hapag-Lloyd.
CPLP revealed it had reached a commercial agreement with Hapag-Lloyd, which will refund part of the cost of upgrades to three other boxships that have been fitted with scrubbers.
The agreement relates to the 9,954-teu Athos, Athenian and Aristomenis (all built 2011). These are on charter to the German operator until May 2026 at just under $27,000 per day.
CPLP owns 15 large container ships and seven LNG carriers, including the 174,000-cbm Asterix I (built 2023), which is chartered out for seven years.
