Capital Product Partners, the owner of ocean-going vessels, has announced its second-quarter financial results, exceeding analysts’ expectations. The company’s shares experienced a 4% surge, reaching $15.67.
Impressive Revenue Growth
In the second quarter of this year, Capital Product Partners recorded a revenue of $88.5 million, reflecting a remarkable 20% increase compared to the same period last year. The figure also surpassed the $74 million revenue forecasted by analysts polled by FactSet.
Decline in Income
However, the company’s income for the quarter experienced a decline, amounting to $7.4 million or 36 cents per share. In the previous year, the income stood at $20.4 million or $1 per share. Analysts had anticipated higher earnings of $13.6 million or 73 cents per share.
Container Market Conditions
Capital Product Partners noted that the container market conditions during the first half of 2023 were relatively soft due to weaker trade volumes and reduced port congestion. Despite fluctuating freight rates, the company stated that they have generally returned to levels closer to historical averages. Additionally, vessel charter rates have exhibited divergent trends during this period.
Strong Financial Position
As of June 30, 2023, Capital Product Partners reported total cash amounting to $104.7 million, highlighting its strong financial position.