US-listed Capital Product Partners (CPLP) saw profits rise fourfold after selling of a brace of neo-panamax boxships and acquisitions of LNG ships.
The Jerry Kalogiratos-led net company said net income jumped to $58.7m for the three months to the end of September — up from $11.1m in the corresponding period last year.
The result included a gain of $47.3m on the sale of the 8,266-teu boxship Archimidis (built 2006) and the one-year-younger sistership Agamemnon.
The two vessels were sold last year to liner giant Mediterranean Shipping Co.
Revenues rose 67% to $71.9m in the quarter, helped by the delivery of four LNG carriers towards the end of 2021.
Chief executive Jerry Kalogiratos attributed the performance to “a number of key strategic commercial and financial decisions”.
“We have divested four older container vessels taking advantage of historically high asset prices,” he said.
“As a result, the weighted average age of our fleet is 6.3 years and remaining charter duration seven years with a contracted revenue backlog of approximately $1.9bn.”
Delivery of neo-panamax
Master limited partnership CPLP currently owns 19 vessels comprising six LNG carriers, nine neo-panamax container ships, three panamax boxships and one capesize bulk carrier.
The company is also acquiring three 13,278-teu container ships and one LNG carrier between the third quarter of 2022 and the second quarter of 2023.
The first of the container ships, the 13,278-teu Manzanillo Express (built 2022) was delivered in October and has commenced a 10-year charter with Germany’s Hapag-Lloyd.
The two sisterships, Itajai Express and Buenaventura Express, are under construction in South Korea’s Hyundai Samho Industries for delivery in January and May next year.
The 174,000-cbm gas carrier Asterix I is scheduled for delivery from Hyundai Heavy Industries in January.
The gas carrier will then start a five-year charter with Hartree Partners Power & Gas.
Kalogiratos pointed to his company’s stronger financial footing following the successful conclusion in July of a €100m ($100m) issue of seven-year unsecured bonds on the Athens stock exchange.
The bonds will mature in July 2029 and have a coupon of 4.4%.
He said the bond issue had been followed by debt repayments of $123.7m.
This had maintained “the overall leverage at conservative levels, while reducing exposure to rising interest rates”, Kalogiratos said.
CPLP has been benefitting from a stronger demand for LNG vessels.
In August, the company negotiated rate increases and charter extensions on two of its LNG carriers that are on existing time charters with US LNG producer Cheniere Energy.
CPLP announced an increase in the day rates for the 174,000-cbm Aristarchos and Asklipios (both built 2021) at higher rates that started in September.