The shipping company Capital Product Partners LP (CPLP), today announced financial results for the fourth quarter that ended on December 31, 2021.
The last quarter of the year was characterized by strong performance, recording an increase in all economic indicators compared to the corresponding period of 2020, as well as the previous quarters of 2021.
The company’s total revenue in the 4th quarter of 2021 increased by 81%, reaching $ 63.6 million compared to $ 35.1 million in the 4th quarter of 2020, while net profit for the period under review increased to 40 million $ 7.3 million compared to the same period last year, recording an increase of 448%, positively affected by the successful sale of M / V “Adonis” in December 2021, recording a profit from the sale of 21.4 million. dollars.
Respectively, and on a yearly basis, the financial figures of CPLP recorded a growth course.
In particular, the company recorded a significant increase in its total revenue to $ 184.7 million compared to $ 140.9 million for 2020 and achieved a strong increase in net profits, which for 2021 more than tripled to 98.2 million. $ 30.4 million in 2020. As a result, net earnings per share for 2021 jumped to $ 5.14 from $ 1.60 in 2020.
Commenting on CPLP’s performance at the end of the year, Gerasimos Kalogiratos, CEO of the company, said:
“We are very pleased that in the fourth quarter of 2021 we completed the investment program we presented earlier this year for the acquisition of six state-of-the-art LNG vessels, valued at more than $ 1.2 billion. The acquisition of the six LNG vessels along with the three vessels Panamax container shipments we acquired earlier this year resulted in the addition of $ 1.3 billion worth of vessels and approximately $ 1.5 billion in contract revenue.
With these investments, we reduced the average age of our fleet from 10.8 to 7.8 years and accordingly reduced the company’s environmental footprint by introducing liquefied natural gas (LNG) as fuel for some of our ships. At the same time, we further diversify our sources of revenue and our customer base, while establishing our presence in the LNG market with a significant fleet and investments. “We believe that the LNG market is a fast-growing industry supported by positive long-term fundamentals, as both natural gas and liquefied natural gas are expected to play a key role in the energy transition to net zero.”
Overview of results of the 4th Quarter 2021
The increase in revenue is mainly due to the net increase in the average number of ships in the company’s fleet by 38%, after the acquisition of three container vessels with a capacity of 5,100 TEU in February 2021, which contributed total revenue of $ 4.1 million per quarter the acquisition of a total of six LNG vessels in the second half of 2021, which contributed total revenue of $ 22.1 million in the fourth quarter of 2021, partially offsetting the sale of the M / V “CMA CGM Magdalena” in May 2021 and the sale of M / V “Adonis” in December 2021.
Total operating expenses for the quarter amounted to $ 35.7 million, compared to $ 24.6 million in the fourth quarter of 2020 mainly due to the increase in the average fleet size to 19.3 ships in the fourth quarter of 2021, to comparison with 14 ships in the corresponding period of the previous year.
Regarding any impact of COVID-19 on the company’s financial condition and operation, CPLP estimates that for the fourth quarter of 2021, the additional operating and / or travel costs associated with COVID-19 were approximately $ 0.3 million. The company is assessing the impact of the pandemic on the container and LNG industries in general, but at present the container freight market seems to be benefiting from the impact of COVID-19 on the global trade supply chain.
Completion of the investment program for the acquisition of six LNG vessels
During the last three months of the year, the company received four newly built (year of construction 2020-2021) liquefied natural gas (LNGC) vessels, namely the “Attalos”, “Asklipios”, “Adamastos” and “Aristidis I”, successfully completing the investment program for the acquisition of 6 state-of-the-art LNG type X-DF ships, with a capacity of 174,000 cubic meters.
Issuance of Bonds on the Athens Stock Exchange
In October 2021, the company, through its 100% subsidiary, CPLP Shipping Holdings PLC, issued bonds worth 150 million euros, with a maturity of 5 years, with an interest rate of 2.65%, payable semi-annually.
Sale of M / V “Adonis”
On December 13, 2021, the Company completed the sale of the M / V “Adonis” (115,639 dwt / 9,288 TEU, Eco-Flex, Wide Beam Containership, year of construction 2015) and the ship was delivered to its new owners, generating gross revenue of approximately 49 , $ 3 million after the repayment of the outstanding debt. The Company recorded an accounting profit from the sale of the ship of $ 21.4 million.
Following the results of the 4th quarter of 2021, the company will distribute a dividend of $ 0.15 per common share, increased by 50% compared to the dividend per common share it had distributed in the previous quarters of 2021.
Source: Capital
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