Greek owner of ocean-going vessels Capital Product Partners L.P. showed strong results in the first quarter ended March 31, 2024. The company posted total revenue for the quarter of $104.5m, compared to $81m during the first quarter of 2023.

The increase in revenue was primarily attributable to the revenue contributed by the newbuild vessels acquired by the partnership, namely the LNG/C Asterix acquired on February 17, 2023, the Buenaventura Express acquired on June 20, 2023, the LNG/C Amore Mio I acquired on December 21, 2023 and the LNG/C Axios II acquired on January 2, 2024, partly offset by the sale of the Cape Agamemnon on November 7, 2023, the sale of the Long Beach Express on February 26, 2024 and the sale of Akadimos on March 8, 2024.

Net income at the firm climbed to $33.9m or $17.5m excluding the gain on sale of vessels, compared with net income of $10m for the first quarter of 2023, an increase of 239%.

Meanwhile the owner disposed the 68,618-dwt container vessel, Long Beach Express, built in 2008, and the vessel Akadimos 115,534-dwt eco-Flex, wide beam container vessel, built in 2015.

The company concluded the sale of the two vessels recognizing a gain on sale of $16.4m.

It also entered into memoranda of agreement for the sale of five additional container vessels.

The partnership also took delivery of the LNG/C Axios II on January 2. This is the second delivery under the partnership’s agreement to acquire 11 latest generation two-stroke (MEGA) liquefied natural gas carriers, which closed on December 21, 2023.

The Nasdaq-listed owner currently owns 19 high specification vessels, including nine latest generation LNG/Cs and nine neo-panamax container vessels, one of which it has agreed to sell to an unaffiliated party, and one panamax container carrier vessel, which the company has also agreed to sell to an unaffiliated party.

Additionally, CPLP has agreed to acquire nine additional latest generation LNG/Cs to be delivered between the second quarter of 2024 and the first quarter of 2027.

Management Commentary

The chief executive Jerry Kalogiratos commented: “I am pleased to see the Partnership’s continued progress in executing the business plan outlined in November 2023. This includes the acquisition of two latest generation LNG/C vessels and the successful sale of five container vessels, with agreements in place for the sale of two additional container vessels.

“These sales are expected to generate net proceeds of approximately $182.5 million, in line with our announced intention to gradually divest from the container business.

“Finally, we expect another three-brand new, latest generation LNG/Cs to join our fleet in the coming months, -all with long term charters in place- while we continue to focus on the conversion of the Partnership into a corporation and growing further our footprint in LNG and energy transition gas shipping.”