Capital Product Partners L.P.(US:CPLP)2024-02-05 16:00Financial Performance - Total revenues for Q4 2023 were $95.5 million, representing a 20% increase from $79.9 million in Q4 2022[27]. - Total revenues for the year 2023 were $360.6 million, compared to $299.1 million in 2022, marking a 20.5% growth[67]. - Operating income for Q4 2023 was $40.5 million, an increase from $37.8 million in Q4 2022, reflecting a 4.5% rise[67]. - Net income for Q4 2023 was $12.7 million, a decrease of 40% compared to $21.1 million in Q4 2022[27]. - Partnership's net income for Q4 2023 was $12.7 million, down from $21.1 million in Q4 2022, a decrease of 40.5%[67]. - Net income per common unit for Q4 2023 was $0.48, compared to $1.03 in Q4 2022, a decline of 53.4%[67]. - Operating surplus for Q4 2023 was $40.5 million, slightly down from $41.7 million in Q3 2023, with a capital reserve allocation of $39.0 million[39]. - Interest expense and finance costs for the year totaled $104.9 million, compared to $55.4 million in 2022, a significant increase of 89.5%[67]. Expenses - Total expenses for Q4 2023 were $55.1 million, up 31% from $42.1 million in Q4 2022, primarily due to increased vessel operating expenses and a non-cash impairment charge of $3.5 million[2][29]. - General and administrative expenses for Q4 2023 rose to $5.7 million, compared to $4.0 million in Q4 2022, mainly due to costs related to the LNG/C Transaction[2]. - Vessel operating expenses increased to $17.7 million in Q4 2023 from $15.0 million in Q4 2022, a rise of 11.5%[67]. Fleet and Operations - The average number of vessels in the fleet increased by 13% to 22.5 vessels in Q4 2023[21]. - The LNG fleet capacity is projected to grow by 10.5%, outpacing LNG tonne-mile trade growth of 5.6% in 2024[46]. - The Partnership expects to deliver four Remaining Vessels between Q3 2026 and Q1 2027, with an additional payment of $909.9 million due for these vessels[59]. Financing and Capital - The company concluded a $500.0 million rights offering and successfully acquired 11 latest generation two-stroke (MEGA) Liquefied Natural Gas Carriers (LNG/C) for a total acquisition price of $3,130.0 million[1][22]. - Total debt as of December 31, 2023, was $1,787.8 million, reflecting an increase of $488.6 million from $1,299.2 million a year prior[30]. - The Partnership paid a deposit of $174.4 million for the Initial Vessels, representing 10% of the total acquisition price of $1,287.0 million[41]. - The acquisition of LNG/C Axios II was financed through a $190.0 million senior secured loan and a $92.6 million drawdown under Seller's Credit[34]. - Cash at the end of 2023 was $204.1 million, including $11.7 million in restricted cash[56]. Market Outlook - The company anticipates increasing shipping demand for LNG/Cs, with newbuild orders expected to surpass current yard capacity by the end of the decade[10]. - LNG spot rates for a 2-stroke vessel averaged $171,250 in Q4 2023, while the 1-year time charter rate was around $70,000/day as of January 2024[63]. Distribution - The company declared a cash distribution of $0.15 per common unit for Q4 2023, payable on February 13, 2024[9]. Shareholder Metrics - The weighted-average units outstanding for Q4 2023 were 25,941,874, compared to 19,505,152 in Q4 2022, an increase of 32.9%[67]. - The Partnership completed a $500.0 million Rights Offering, issuing 35,087,719 common units at a price of $14.25 each[40].