Capital Product Partners is back on the growth path after merging its tankers with Diamond S Shipping. .
The Envagelos Marinakis-led shipowner posted a $7.2m in profit from its continuing operations for the first three months of 2019, as expenses fell by $6.5m to $15.4m thanks to the disposal of two ships last year.
The quarter also saw the completion of the company's merger with privately-held, Connecticut-based Diamond S Shipping on 27 March, creating the world's third largest tanker owner in a shares-for-shares deal.
Jerry Kalogiratos, chief executive of Capital GP, the company's general partner, said: "We believe that to date the DSS transaction has overall been an accretive transaction for our unitholders.
"Among other metrics, the sum-of-the-part equity value as of the date of this announcement was greater than the stand-alone market capitalization of CPLP immediately before the consummation of the transaction.
"Importantly, this transaction allows CPLP to reshape its business towards a modern fleet with remaining charter duration of more than five years, providing CPLP unitholders with increased stability and cash flow visibility.
"On that basis, we are looking forward to expanding our asset base again with modern vessels employed under medium- to long-term charters with a view to growing our long-term distributable cash flow."
The deal left the company with 11 ships, 10 neopanamax boxships plus a bulker.
The company said the neopanamax vessels had seen "marked" increases in yearlong charter rates, with ships fetching $24,000 average daily gross rates.
The company noted that Capital GP has nine ships, two containerships and the remainder crude tankers, on long-term charters which could be dropdown candidates.
