Capital Product Partners L.P. (Nasdaq: CPLP) is an international shipping company and leader in the seaborne transportation of refined oil products and chemicals. Our modern, state-of-the-art product tankers are fully chartered under medium- to long-term time and bareboat charters. We are well-positioned to benefit from the growth dynamics of the product tanker industry worldwide and to capitalize on potential acquisition opportunities in the fragmented shipping market. CPLP is compliant with current and pending regulatory requirements applicable to its tankers. A publicly traded Master Limited Partnership, CPLP was formed in early 2007 with a strategy to maintain and extend its leadership position in the product tanker segment of the shipping industry.
Our fleet today consists of 18 double-hull product/crude tankers (total carrying capacity: approx. 850,000 dwt) with an average age of 3 years, including 12 Ice Class 1A, double-hull MR product tankers, one of the largest such fleets in the world, capable of carrying crude oil, fuel oil and a wide range of refined oil products and chemicals, including edible oils.
Currently our vessels are chartered under medium to long-term time charters or bareboat charters (two to ten years, with an average remaining term of approximately 3 years, as of December 2008) to BP Shipping Limited, Morgan Stanley Capital Group, Overseas Shipholding Group, Shell International Trading & Shipping Company Ltd. and Trafigura Beheer B.V. We believe that we have a base of stable cash flows, given the combination of the medium to long-term nature of our charters (which provide for the receipt of a fixed base fee for the life of the charter) and our management agreement with a subsidiary of Capital Maritime (that provides, for a fixed daily fee, management for five years per vessel from delivery and includes the next scheduled drydocking or special survey of the vessels).
In addition, all but two of our current time charters contain 50/50 profit sharing provisions that allow us to realize additional revenues when spot rates are higher than the base rates incorporated in our charters or in some instances through greater utilization of our vessels by our charterers.
Our sponsor, Capital Maritime & Trading Corp. is a long-established, diversified shipping group based in Greece, which currently owns a 46.6% stake in us. We benefit from our sponsor's prominent position in the shipping market, its relationships with oil majors and its cost-effective fleet management.
A publicly traded master limited partnership, we have elected to be treated as a C-Corp. for tax purposes (our investors receive the standard 1099 form and not a K-1 form).
