Capital Product Partners has secured long term fixed rate timecharters with profit sharing arrangements for a VLCC and two Suezmaxes currently trading in the spot market.
The VLCC 'Alexander The Great' plus the Suezmaxes 'Amoureux' and 'Aias' have all secured employment with the Partnership's sponsor, Capital Maritime & Trading Corp (CMTC), for a maximum period of up to three years.
The VLCC will earn a gross charter rate of $28,000 per day plus 50/50 profit share on actual earnings settled every six months for the first 12 months of its timecharter to CMTC.
CMTC has the option to extend the charter for a second year at $34,000 per day and for a third year at $38,000 per day with the same profit share arrangements.
The Suezmaxes will earn a gross charter rate of $20,000 per day, plus a similar profit sharing arrangement. Again, CMTC has the option to extend the employment for a second year at $24,000 per day and for a third year at $28,000 per day with the same profit share arrangements.
All three vessels are expected to be delivered to CMTC under their respective contracts in October/November 2011.
Ioannis Lazaridis, CEO and CFO of the Partnership's General Partner said: "We are pleased to announce the long term fixed rate period employment for three of our five spot crude tanker vessels, shortly after the successful completion of the merger with Crude Carriers Corp.
"This is consistent with the Partnership's business model of long term charter coverage for our fleet. We intend to also fix our remaining two crude tanker vessels in the coming months as opportunities arise, in order to reduce the Partnership's remaining crude spot market exposure.
"The profit share arrangements we have secured for all three vessels is an important feature of these charters, as it allows the Partnership to benefit from a recovery in the crude tanker spot market going forward and enhance future distribution growth.
"Following the commencement of the announced charters, the Partnership's charter coverage of total fleet days is estimated to stand at 64% for 2012. We have positioned a number of our product tankers to open during the coming 12 months, given the favourable product tanker market fundamentals that we see.
“The average remaining charter duration of our fleet stands at 5.2 years, assuming that CMTC will exercise its extension options for all three vessels," Lazaridis concluded.