Capital Product Partners L.P. (the "Partnership" or "CPLP") (NASDAQ:CPLP), an international diversified shipping partnership, today released
its financial results for the fourth quarter ended December 31, 2017 and announced the completed acquisition of the M/T ‘Aristaios', as well as the sale of the M/T ‘Aristotelis' and the acquisition of the M/T ‘Anikitos'.
The Partnership's net income for the quarter ended December 31, 2017 was $6.8 million, compared with $13.7 million for the fourth quarter of 2016 and $9.7 million for the previous quarter ended September 30, 2017. Net income for the quarter ended December 31, 2017 includes a non-cash impairment charge of $3.3 million from the sale of the M/T ‘Aristotelis'. After taking into account the preferred interest in net income attributable to the holders of the 12,983,333 Class B Convertible Preferred Units outstanding as of December 31, 2017 (the "Class B Units", and such holders the "Class B Unitholders"), and the interest attributable to the general partner, net income per common unit for the quarter ended December 31, 2017 was $0.03 or, before taking into account the impairment charge, $0.06, compared to $0.09 for the fourth quarter of 2016 and $0.05 for the previous quarter ended September 30, 2017.
Operating surplus prior to allocations to our capital reserve and distributions to the Class B Units for the quarter ended December 31, 2017 amounted to $30.3 million, compared to $34.0 million for the fourth quarter of 2016, and $30.3 million for the previous quarter ended September 30, 2017. We allocated $13.2 million to the capital reserve during the fourth quarter of 2017, which is $1.4 million less than the previous quarter. The decrease in the quarterly allocation to the capital reserve reflects the reduction in the overall level of our debt and the amortization payments under our credit facilities, following the partial prepayment and successful refinancing of substantially all of the Partnership's indebtedness in the fourth quarter of 2017. Operating surplus after the quarterly allocation to the capital reserve and distributions to the Class B Unitholders was $14.3 million for the fourth quarter of 2017. Operating surplus is a non-GAAP financial measure used by certain investors to measure the financial performance of the Partnership and other master limited partnerships. Please refer to "Appendix A" at the end of the press release for a reconciliation of this non-GAAP measure with net income.
Total revenues for the fourth quarter of 2017 reached $64.1 million corresponding to an increase of 2.7% compared to $62.4 million during the fourth quarter of 2016. The increase in total revenues was primarily a result of the higher number of voyage charters performed by our vessels compared to the fourth quarter of 2016 and the increase in the number of operating days in the fourth quarter of 2017 compared to the corresponding period in 2016, partially offset by lower charter rates earned by certain of our vessels during the fourth quarter of 2017, compared to the average charter rates earned during the corresponding period in 2016.
Voyage expenses for the fourth quarter of 2017 were $5.1 million compared to $2.7 million in the fourth quarter of 2016. The increase was mainly attributable to the increase in the number of voyage charters performed by certain of our vessels in the fourth quarter of 2017 compared to the same period in 2016.
Total expenses for the fourth quarter of 2017 were $51.4 million compared to $43.2 million in the fourth quarter of 2016. Total vessel operating expenses during the fourth quarter of 2017 amounted to $23.0 million, an increase of 12.7% compared to $20.4 million during the fourth quarter of 2016. The increase in operating expenses mainly reflects the increase in the number of vessels in our fleet incurring operating expenses, following the redelivery of the M/T ‘Aktoras' and M/T ‘Aiolos', which were previously employed on bareboat charters and the acquisition of M/T ‘Amor' in October 2016. Total expenses for the fourth quarter of 2017 include vessel depreciation and amortization of $18.4 million in line with the fourth quarter of 2016 and an impairment charge of $3.3 million in connection with the sale of the M/T ‘Aristotelis'. General and administrative expenses for the fourth quarter of 2017 were $1.7 million, compared to $1.8 million in the fourth quarter of 2016.
Total other expense, net for the fourth quarter of 2017 was $5.9 million compared to $5.4 million in the fourth quarter of 2016. Total other expense, net includes interest expense and finance costs of $6.1 million for the fourth quarter of 2017, compared to $6.2 million in the fourth quarter of 2016. The decrease primarily reflects the lower average amount of debt outstanding following the Partnership's refinancing and partial prepayment that was completed in the fourth quarter of 2017, partially offset by an increase in the LIBOR weighted average interest rate in the fourth quarter of 2017 compared to the corresponding period in 2016.
As of December 31, 2017, total partners' capital amounted to $933.4 million, an increase of $5.6 million compared to $927.8 million as of December 31, 2016. The increase primarily reflects net income for the year ended December 31, 2017 and the net proceeds from the issuance of common units under our at-the-market equity offering, partially offset by distributions declared and paid during the year ended 2017 of $51.6 million.
Total cash as of December 31, 2017 amounted to $81.3 million, of which restricted cash (under our credit facilities) amounted to $18.0 million.
As of December 31, 2017, the Partnership's total debt was $475.8 million, a decrease of $129.2 million compared to $605.0 million as of December 31, 2016 due to the partial prepayment of $116.2 million in connection with the refinancing of a majority of the Partnership's indebtedness during the fourth quarter of 2017 and scheduled loan principal payments during the first nine months of 2017.