Business Context and Reporting Period
This Form 6-K filing by Capital Product Partners L.P. (CPLP) is dated September 10, 2008. The company is a Marshall Islands master limited partnership and an international owner of modern double-hull tankers. As of the filing date, CPLP owns 18 vessels, including 15 MR tankers, two small product tankers, and one Suezmax crude oil tanker. All vessels are currently under medium to long-term charters with major energy and trading firms.
Key Financial Metrics and Contract Details
The filing does not provide consolidated revenue, profit, cash flow, or debt figures for the reporting period. However, it details specific financial terms for two extended time charters:
- Vessels: Agisilaos and Arionas (37,000 dwt, 2006-built MR product tankers).
- Extension Term: 13 months, expiring in March 2010 and June 2010, respectively.
- New Base Gross Rate: $20,000 per day (Net rate: $19,750 per day) for both vessels.
- Profit Sharing: A 50/50 arrangement on revenues above the base rate continues, settled quarterly.
Material Changes Versus Prior Period
The primary material change is the extension of charters at rates higher than the expiring contracts:
- Agisilaos: Rate increased from a base gross of $17,721 (net $17,500) per day to $20,000 (net $19,750) per day.
- Arionas: Rate increased from a base gross of $19,240 (net $19,000) per day to $20,000 (net $19,750) per day.
Guidance, Outlook, and Risks
Management expressed satisfaction with the continued relationship with BP Shipping Limited and the ability to secure higher rates upon charter expiration. The filing includes a standard forward-looking statement disclaimer, noting that expected charter expiration dates and other forecasts involve risks and uncertainties that could cause actual results to differ materially. The company disclaims any obligation to update these statements.
Investor Verification Checklist
- Verify the exact expiration dates of the extended charters (March 2010 and June 2010) against the company's full fleet schedule.
- Confirm the total number of vessels currently under charter with BP Shipping Limited versus other counterparties.
- Review the specific terms of the 50/50 profit-sharing arrangement to understand potential upside variability.
- Check subsequent filings for any changes in the base rates or charter status of the Agisilaos and Arionas.