Capital Product Partners (NASDAQ:CPLP) LP announced on Monday an agreement to buy 11 new ships that carry liquid natural gas (LNG) from Capital Maritime & Trading Corp and Capital GP LLC for $3.13 billion.
The international owner of ocean-going vessels said the addition of 11 latest generation two stroke LNG carriers to its fleet from 2023 to 2027, would make it the largest US publicly listed owner of two stroke LNG carriers and would increase its contracted revenues by 87% increase to $3.1 billion.
Capital Product Partners (NASDAQ:CPLP) will also have the right of first refusal on two ammonia carriers, two liquid CO2 carriers, future two-stroke LNG vessels, and charters from Capital Maritime.
The LP noted it will change its name to Capital New Energy Carriers LP to reflect its focus on LNG carriers and energy transition shipping and intends to convert into a corporation.
Capital Product Partners also said it plans to sell non-core container vessels in its portfolio.
It currently owns 22 vessels, including seven latest-generation LNG carrier vessels, 12 Neo-Panamax container vessels and three Panamax container vessels.
Units of Capital Product Partners rose 4% to $13.51 in midday trading on Monday.
Contact Sean at sean@proactiveinvestors.com