Business Context and Reporting Period
This Form 6-K filing by Capital Product Partners L.P. (CPLP) covers the period of March 2011, specifically reporting on a press release dated March 8, 2011. CPLP is a Marshall Islands master limited partnership and an international owner of modern double-hull tankers, including 18 MR tankers, two small product tankers, and one Suezmax crude oil tanker.
Key Financial Metrics and Operational Data
The filing details a specific charter agreement rather than full financial statements. Key operational metrics include:
- Charter Rate: The M/T Axios was fixed at a gross daily charter rate of $13,500.
- Charter Duration: 12 months (+/- 30 days), commencing March 4, 2011, with earliest expected redelivery in February 2012.
- Charter Coverage: Following this agreement, fleet charter coverage stands at approximately 75% for 2011 and 49% for 2012 based on total revenue days.
- Revenue, Profit, Cash Flow, Debt, Liquidity: The filing text does not provide clear values for these specific financial metrics.
Material Changes
The primary material change is the successful chartering of the M/T Axios to Petroleo Brasileiro S.A. (Petrobras). This vessel was previously fixed with the company's sponsor, Capital Maritime & Trading Corp, for a 12-month period that terminated on March 2, 2011. The new agreement extends the Partnership's relationship with Petrobras, bringing the total number of vessels under charter with this oil major to two.
Outlook, Risks, and Management Commentary
Management expressed satisfaction with extending the relationship with Petrobras. The filing includes standard forward-looking statements regarding expected redelivery dates, charter rates, and coverage ratios. Management explicitly disclaims any obligation to update these statements and notes that risks and uncertainties could cause actual results to differ materially from anticipated results. No specific risks or contingencies beyond standard market uncertainties are detailed in this specific report.
Investor Verification Checklist
- Verify the exact terms of the M/T Axios charter agreement with Petrobras, including the $13,500 daily rate and 12-month duration.
- Confirm the updated fleet utilization rates of 75% for 2011 and 49% for 2012 against the total fleet of 21 vessels.
- Review the transition of the M/T Axios from the sponsor's charter to the Petrobras charter to ensure no operational gaps occurred.
- Check subsequent filings for actual revenue recognition related to this new charter.