Capital Product Partners L.P. (NASDAQ:CPLP) Q2 2023 Earnings Call Transcript

The charterer in this specific case, they also wanted scrubber, which, of course, does not really change the energy efficiency of the vessel, but reduces SOx emissions. And effectively, what we have agreed, which is I think, more unique to this charter party than in others is that Hapag will pay part of these modifications. This is always a function — and without wanting to go into the confidential nature of the agreements, in the end, it’s a function of market conditions, the age of the vessel, so who is going to benefit most from these improvements and the duration of the charter. So, I don’t think there is one size fits all for this type of arrangements. But, as you know, it has been done — we have done it again with — in the past with HMM and scrubbers.

We, for example, in that case, financed the scrubber installation cost and we got an increased rate on our charters. So, it can work in many ways. And as I said, it depends on the number of things as to whether it will be the same for future deals.

Unidentified Analyst: Makes sense. Thanks for color. Regarding the dry-docking schedule, you did a couple of vessels during the second quarter and the Aristomenis in July. Do you have any additional special service scheduled for the remainder of the year?

Jerry Kalogiratos: No, there is none for this year.

Operator: Thank you. There are no further questions at this time. I’d like to hand the floor back over to Mr. Jerry Kalogiratos for any closing comments.

Jerry Kalogiratos: Thank you all for joining us today, and wishing you all a great weekend.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.