Capital Product Partners has added a medium-range (MR) products tanker from its sponsor as it reported a third quarter result in line with expectations.
The Nasdaq-listed company has acquired the 49,999-dwt Amor (built 2015) from Capital Maritime & Trading Corp for $32.8m with a Cargill charter attached at a daily rate of $17,500.
Capital Product funded part of the deal with proceeds from the sale of the Hyundai Merchant Marine (HMM) equity compensation.
The tanker and boxship owner remained in the black but posted an anticipated smaller profit in the third quarter.
Net income of $11.8m was $2m lower than the corresponding quarter of 2015.
But revenue increased from $57.6m to $60.3m thanks to a bigger fleet.
Capital Product’s board of directors has approved the increase of the company’s quarterly dividend by around 7% to $0.08 per common unit.
Capital Product said the product tanker market experienced lower charter rates compared to the second quarter while the container charter market remained flat.
Jerry Kalogiratos, chief executive of Capital Product, said: “Regarding recent market developments, we note that the demand fundamentals for tankers, and especially product tankers, remain solid on the back of refinery capacity relocation, increased tonne-miles, and the low oil price environment.
“However, the high oil product inventories and the increased supply of tanker vessels has recently weighed on vessel earnings.
“The limited number of new tanker ordering thus far this year and the rationalization of excess shipyard capacity combined with solid industry fundamentals are positive trends for the tanker markets in the medium - to long- run.”
