Capital Clean Energy takes ‘step in the right direction’ as Marinakis cedes some control

Webber Research has given a qualified thumbs up to the newly branded Capital Clean Energy Carriers after Evangelos Marinakis relinquished some control, among changes that led to governance that is better aligned with shareholders.

The Nasdaq-listed company is the former Capital Product Partners, the shipowner backed by the Greek tycoon that has shifted to focus on LNG and what it describes as energy transition shipping.

The name change, which became official on Monday, also involves a shift from a master limited partnership structure to a corporation trading under the ticker symbol CCEC.

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“CCEC’s rebranding and conversion mark the final steps in the firm’s strategic pivot towards energy transition shipping and better aligning its corporate structure and governance with industry standards,” said Webber Research analyst Alex Bidwell.

He said the new structure is not perfect, as it retains some related party relationships.

“Ultimately, what we think matters here is that it’s a step in the right direction, with CCEC’s leverage toward both LNG shipping, CO₂ and alternative fuels eventually becoming the primary value drivers for the stock,” he wrote.

Bidwell did not say whether the structure could give Capital Clean Energy a better rating on Webber Research’s annual ESG Scorecard, which ranks companies based on environmental, social and governance factors but is heavily weighted towards the latter.

In 2023, Capital Product was ranked 34 out of 64 companies, mostly in the shipping sector, making it the second-best in the bottom half of the ranking.

Under the new structure, general partner units held by Marinakis’ Capital Maritime & Trading and its affiliates were converted to 3.5m common shares, leaving the Greek shipowner with majority control.

After Bidwell’s note, Capital Clean Energy filed papers with the US Securities & Exchange Commission showing Marinakis and Capital Maritime with 51.1% of the new company’s shares.

“Under the conversion, the general partner (GP) has surrendered significant control over CCEC, forfeiting veto rights over significant transactions and governance matters, and its ability to nominate three directors to the board,” Bidwell wrote.

“While CCEC’s sponsor Capital Maritime has relinquished GP control, it will have the right to nominate up to three directors based on ownership thresholds, with the remaining directors nominated by CCEC’s nominating committee.”

Bidwell noted that the majority of the new company’s board of directors will be independent.