CPLP Q4 Revenue Up 20% to $95.5M, Net Income Down 40% to $12.7M
Ticker: CCEC · Form: 6-K · Filed: Feb 6, 2024 · CIK: 1392326
| Field | Detail |
|---|---|
| Company | Capital Product Partners L.P. (CCEC) |
| Form Type | 6-K |
| Filed Date | Feb 6, 2024 |
| Risk Level | medium |
| Pages | 1 |
| Reading Time | 1 min |
| Sentiment | bearish |
Complexity: simple
Sentiment: bearish
Topics: earnings, financial-results, profitability, shipping
TL;DR
**CPLP's Q4 revenue jumped, but net income and EPS got crushed by soaring costs.**
AI Summary
Capital Product Partners L.P. (CPLP) announced its Q4 2023 financial results, reporting revenues of $95.5 million, a 20% increase from Q4 2022. However, net income significantly dropped by 40% to $12.7 million, and net income per common unit fell 53% to $0.48, largely due to a 52% surge in interest expense and finance costs to $27.9 million and a 31% rise in overall expenses to $55.1 million. This matters to investors because despite revenue growth, profitability per share has declined substantially, indicating higher operational and financing costs are eroding shareholder value.
Why It Matters
Despite strong revenue growth, Capital Product Partners L.P.'s profitability per share has significantly declined, which could impact future dividend payouts and stock valuation.
Risk Assessment
Risk Level: medium — The significant decline in net income and net income per common unit despite revenue growth indicates potential profitability challenges and increased financial leverage risk.
Analyst Insight
Investors should closely monitor CPLP's upcoming earnings calls for management's strategy to address rising interest expenses and declining net income per common unit, as these factors could negatively impact future dividends and stock performance. Consider the impact of higher financing costs on the company's ability to generate shareholder value despite revenue growth.
Key Numbers
- $95.5 million — Q4 2023 Revenues (Represents a 20% increase from Q4 2022, showing top-line growth.)
- $12.7 million — Q4 2023 Net Income (Represents a 40% decrease from Q4 2022, indicating significant pressure on profitability.)
- $0.48 — Q4 2023 Net Income per common unit (Represents a 53% decrease from Q4 2022, directly impacting shareholder earnings.)
- $27.9 million — Q4 2023 Interest expense and finance cost (Represents a 52% increase from Q4 2022, a major contributor to the decline in net income.)
- 20% — Revenue Increase (Percentage increase in revenues from Q4 2022 to Q4 2023.)
- 40% — Net Income Decrease (Percentage decrease in net income from Q4 2022 to Q4 2023.)
- 53% — Net Income per common unit Decrease (Percentage decrease in net income per common unit from Q4 2022 to Q4 2023.)
Key Players & Entities
- Capital Product Partners L.P. (company) — the registrant and owner of ocean-going vessels
- Gerasimos (Jerry) Kalogiratos (person) — Chief Executive Officer of Capital GP L.L.C., the general partner
- $95.5 million (dollar_amount) — Q4 2023 revenues
- $79.9 million (dollar_amount) — Q4 2022 revenues
- $12.7 million (dollar_amount) — Q4 2023 net income
- $21.1 million (dollar_amount) — Q4 2022 net income
- $0.48 (dollar_amount) — Q4 2023 net income per common unit
- $1.03 (dollar_amount) — Q4 2022 net income per common unit
- $27.9 million (dollar_amount) — Q4 2023 interest expense and finance cost
- $18.4 million (dollar_amount) — Q4 2022 interest expense and finance cost
Forward-Looking Statements
- CPLP's profitability will remain under pressure in the near term due to elevated interest rates. (Capital Product Partners L.P.) — medium confidence, target: Q1 2024
- The company may explore strategies to reduce finance costs or improve operational efficiency to boost net income. (Capital Product Partners L.P.) — medium confidence, target: Next 12 months
FAQ
What were Capital Product Partners L.P.'s revenues for the fourth quarter ended December 31, 2023?
Capital Product Partners L.P. reported revenues of $95.5 million for the fourth quarter ended December 31, 2023, which is a 20% increase compared to $79.9 million in the same period of 2022.
How did the net income for Capital Product Partners L.P. change from Q4 2022 to Q4 2023?
The net income for Capital Product Partners L.P. decreased by 40%, from $21.1 million in Q4 2022 to $12.7 million in Q4 2023.
What was the net income per common unit for Capital Product Partners L.P. in Q4 2023?
The net income per common unit for Capital Product Partners L.P. in Q4 2023 was $0.48, which is a 53% decrease from $1.03 in Q4 2022.
What was the primary reason for the significant increase in expenses for Capital Product Partners L.P. in Q4 2023?
A primary reason for the significant increase in expenses was the 52% surge in interest expense and finance cost, which rose from $18.4 million in Q4 2022 to $27.9 million in Q4 2023.
Who signed the 6-K report on behalf of Capital Product Partners L.P. and what is their title?
The 6-K report was signed by Gerasimos (Jerry) Kalogiratos, who holds the title of Chief Executive Officer of Capital GP L.L.C., the general partner of Capital Product Partners L.P.
Filing Stats: 175 words · 1 min read · ~1 pages · Grade level 9.3 · Accepted 2024-02-06 11:33:25
Filing Documents
- d636971d6k.htm (6-K) — 8KB
- d636971dex99i.htm (EX-99.I) — 145KB
- g636971g0206044930849.jpg (GRAPHIC) — 4KB
- 0001193125-24-025001.txt ( ) — 160KB
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CAPITAL PRODUCT PARTNERS L.P. Dated: February 6, 2024 By: Capital GP L.L.C., its general partner /s/ Gerasimos (Jerry) Kalogiratos Name: Gerasimos (Jerry) Kalogiratos Title: Chief Executive Officer of Capital GP L.L.C.