Capital Product Partners L.P. (NASDAQ:CPLP) Q1 2024 Earnings Call Transcript

So, if you look at let’s say a financing of 75%, 80%, 85% on a vessel like that and then you break in and a decent even a single digit return on your equity, then you will find that the guys that will be ordering vessels in order to fulfill new requirements as they come up the replacement or inquiries related to new projects new projects, they will have let’s say a break even for one for single digit equity returns in the $90,000 to $95,000 per day area. So, this I think will kind of create a natural floor to the long-term market because this is going what to set the rate the long-term rate going forward that is the lowest common denominator in terms of cost of capital and if they order a new building for a new project. So, that’s a long way to say that we see that there’s going to be a floor in the in the middle of 90s for the long-term market and if our expectations with regard to vessel demand materialize that is we expect the demand for new projects if I did projects to be much more than the ordered ships plus of course the replacements of all the technology vessels then we can see a much tighter market which of course will be well above $100,000 that I hope that kind of gives you an indirect answer.

Unidentified Analyst: It does that’s helpful thank you. Most has already been covered but I also had a question more on the modeling side, could you provide some commentary on the remaining CapEx you had, outstanding for the LNG C’s as of the end of the quarter?

Jerry Kalogiratos: So, effectively, we have a remaining 9 LNG carriers, with three of these to come until July. So, May, June, July, in terms of the total CapEx let me give you a number offline, it should be around $2.5 billion but let me let me also drop me a line and happy to confirm the exact number.

Operator: Thank you, no further questions at this time. I’d like to hand it back over to Mr Jerry Kalogiratos, for the closing. Comment.

Jerry Kalogiratos: Great thank you Paul and thank you all for joining us today.

Operator: This concludes today’s conference and we disconnect your lines at this time thank you for your participation