We are an international owner of modern tanker, container and drybulk vessels.
Our fleet of 30 modern high specification vessels (2.1 million dwt) with an
average age of approximately 6.8 years, consists of four Suezmax crude oil tankers,
eighteen modern MR tankers, all of which are classed as IMO II/III vessels,
seven post-panamax container carrier vessels and one Capesize bulk carrier.
Our vessels are capable of carrying a wide range of cargoes, including crude
oil, refined oil products such as gasoline, diesel, fuel oil and jet fuel, edible
oils and certain chemicals, such as ethanol, as well as dry cargo and containerized
goods. All our vessels were chartered under medium- to long-term time and bareboat
charters (with a revenue weighted average remaining term of approximately 8.3
years) to large charterers such as BP Shipping Limited, subsidiaries of OSG,
Maersk Line, HMM, CSSA S.A. (Total S.A.), Subtec S.A. de C.V. (“Subtec”),
Cosco, Engen Petroleum Ltd., Repsol Trading S.A. (“Repsol”) and
Capital Maritime. All our time and bareboat charters provide for the receipt
of a fixed base rate for the life of the charter, and in the case of 7 of our
24 time charters, also provide for profit sharing arrangements in excess of
the base rate.
The Marinakis family, including Evangelos M. Marinakis, our former chairman,
may be deemed to beneficially own on a fully converted basis a 17.6% and on
a non-fully converted basis a 19.9% interest in us through its beneficial ownership
of common units through, among others, Capital Maritime.
Our primary business objective is to pay a sustainable quarterly distribution
on our common units and Class B Units and to increase our distributions on our
common units over time by executing the following business strategies:
• Maintain medium- to long-term fixed charters. We believe that the medium
to long-term, fixed-rate nature of our charters and our cost efficient ship
management operations under our agreements with Capital Ship Management provide
visibility of revenues and cash flows in the medium to long-term. All of our
vessels were chartered under medium to long-term time and bareboat charters
with a revenue weighted average remaining term of approximately 8.3 years. As
our vessels come up for rechartering, we will seek to redeploy them under period
contracts that reflect our expectations of prevailing market conditions. We
will continue to evaluate growth opportunities across all shipping sectors,
with a focus on chartering our vessels to third parties. We believe that the
young age and diversified profile of our fleet, the high specifications of our
vessels and our Manager’s ability to meet the rigorous vetting requirements
of some of the world’s most selective major international oil companies
and major charterers in the tanker, drybulk and container sectors will position
us favorably to continue to secure medium to long-term charters for our vessels.
• Expand our relationships with both current and new charterers and capitalize
on our relationship with Capital Maritime. We aim to increase the number of
vessels we charter to our current third-party charterers in order to expand
our relationships with them and take advantage of their diverse shipping requirements.
We also believe that we can leverage our relationship with Capital Maritime
and its ability to meet the rigorous vetting and selection processes of leading
oil companies, as well as other charterers in the tanker, drybulk and container
sectors, in order to attract new charterers for our fleet and increase the product,
customer, geography and maturity diversity of our portfolio. We also believe
that Capital Maritime will remain a strong chartering option.
• Expand our fleet through opportunistic acquisitions. Our fleet currently
consists of 30 vessels with 2.1 million deadweight capacity, as compared to
eight vessels with 0.3 million deadweight capacity at the time of our IPO in
2007. We intend to continue to evaluate potential acquisitions of both newbuilds
and second-hand vessels from Capital Maritime and third parties in order to
make opportunistic acquisitions for our fleet while maintaining a strong balance
sheet. We also intend to take advantage of opportunities afforded to us by our
relationship with our sponsor Capital Maritime. On July 24, 2014, we entered
into a Master Vessel Acquisition Agreement with Capital Maritime to acquire
the
• Maintain a strong balance sheet through moderate use of leverage. While
we anticipate that we will finance our vessels and future vessel acquisitions
through a mix of debt and equity financing, we intend to maintain a moderate
level of leverage over time. By maintaining moderate levels of leverage, we
expect to retain greater flexibility than our more leveraged competitors, maintain
low breakeven rates and deliver steady distributions to our unitholders. In
addition, charterers have increasingly favored financially solid vessel owners,
and we believe that our anticipated balance sheet strength will enable us to
access more favorable chartering opportunities, as well as give us a competitive
advantage in pursuing vessel acquisitions.
• Maintain and build on our ability to meet rigorous industry and regulatory
safety standards. We believe that in order for us to be successful in growing
our business, we will need to maintain our vessel safety record and build on
our high level of customer service and support. Our Manager, Capital Ship Management,
has a strong record of vessel safety and compliance with rigorous health, safety
and environmental protection standards, and is also committed to providing our
customers with a high level of customer service and support.