Thank you for standing by and welcome to the Capital Product Partners’ Second quarter 2013 Financial Results Conference Call. We have Mr. Ioannis Lazaridis, Chief Executive Officer and Chief Financial Officer of the Partnership. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. (Operator Instructions). And I must advise you this conference is being recorded today on Wednesday, July 31, 2013. The statements in today’s conference call that are not historical facts, including our expectations regarding the developments in the markets, our expected charter coverage ratio of 2013 and 2014, and expectations regarding our quarterly distribution may be forward-looking statements, such as defined in Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties that could cause the stated or forecasted results to be materially different from those anticipated. Unless required by law, we expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations to conform to actual results or otherwise. We assume no responsibility for the accuracy and completeness of the forward-looking statements. We make no prediction or statement about the performance of our common units. I would now like to hand the conference over to your speaker today, Mr. Lazaridis. Please go ahead, sir.

Thank you. And thank you all for joining us today. As a reminder, we will be referring to the supporting slides available on our website as we go through today’s presentation. Starting with slide one, I’m going to make some comparison on today’s call between the second quarter of 2013 and the second quarter of 2012, as this is the most meaningful analogy in our business. On July 22, 2013, our Board of Directors declared a cash distribution of $0.2325 per common unit for the second quarter of 2013, in line with the management’s annual distribution guidance. The second quarter common unit cash distribution will be paid on August 15, 2013 to unit holders of record on August 7. The partnership’s net income for the quarter was $39.3 million including a $32 million gain related to the sale to Deutsche Bank of the partnership’s claims against Overseas Shipholding Group and certain of OSG’s subsidiaries. The claims relate to the bankruptcy of OSG and the rejection by OSG of three long term bareboat charters of the Partnership’s product tanker vessels. The partnership operating surplus for the quarter amounted to $56.6 million or $19.3 million adjusted for the payment of distributions to the class B unit holders and excluding the $32 million in proceeds related to the sale of OSG claim. Common unit governance for the quarter excluding the gain from the sale of the claim stood at 1.2 times. We extended the employment of the M/T Avax and M/T Axios to our sponsor, Capital Maritime for an additional 12 months at an increased rate of $14,750 per day and fixed the M/T Akeraios also to our sponsor at an increased rate of $14,950 per day for 18 months. All transactions were previously earning $14,000 per day. As of the end of…

Thank you sir. (Operator Instructions). And your first question today comes from the line of Jon Chappell of Evercore Partners. Please go ahead. Jonathan Chappell – Evercore Partners: Thank you. Good afternoon Ioannis.

Hi Jon. Jonathan Chappell – Evercore Partners: So you mentioned a couple of times the five vessels that are expiring in 2013. I just had a couple of questions about those. First of all, four of them I’ve noticed are unchartered to Capital Maritime, so as you think about the reemployments of the ships have you thought about potentially diversifying the counter parties associated with those vessels?

As we have mentioned before that we look at every charter on its merits and in the past what has been on offer from Capital Maritime the Board and the cost committee found it’s more attractive for the Partnership. So we will judge its charter opportunity based on its individual merits. Jonathan Chappell – Evercore Partners: Okay. And then regarding the duration obviously the sentiment in the product tanker market has been improving, first half much stronger than expected. Are there longer duration contracts available for those vessels maybe three years in duration or would you kind of expect one year type duration, not like the one you just rechartered recently?

Look, on the one hand we have certainly seen in the market more of a tight from operators as well as oil majors to fix vessels for longer duration. On the other hand, though we still believe that the market is historically at the low level and we believe this is the fundamentals of the market, so our charter rate to date has been based on the rates that we see to stay on the shorter end of the period market. Jonathan Chappell – Evercore Partners: And then you know you obviously reiterated your commitment to the distribution and then mentioned potential for growth, clearly a lot of that growth could come from the upside in the product tanker market. But as you think about fleet growth initiatives, obviously you diversified in the containers recently. How is that going and when you think about your fleets additions, do you think that you would continue kind of diversify the container business or given what you just talked about the fundamentals of the product tankers, would you try to re-up on the product tanker side.

I think if you look at the last slide as I mentioned, we have said that there is many different factors that influence long term distribution growth and one of them is acquisitions. And a lot has to do with where we fix and for how long our product tanker vessels open up in the coming quarters. You know and we have said in the past that we are committed in growing the Partnership through acquisitions and we look for acquisitions that are accretive and enhance the distributable cash flow. We evaluate every acquisition. We depend on the conference committee approval and we also depend on the financing that is available. So each acquisition will be judged on its merits and we haven’t made any decisions of what to do next. Jonathan Chappell – Evercore Partners: Okay. And then final one, and then I will turn it over. If you were to go down the product tanker out there has clearly been a lot of noise mainly about the benefit of the newer vessels. Would you think that you know CPLP would look at new build ships in order to maybe gains on fuel efficiency if you were talking about or given the fact that the shipyards are basically booked into 2016, do you think second hand assets at this part of the cycle make more sense?

Look, certainly technology has developed and newer vessels perform better than the older vessels, and certainly the eco type characteristics of these vessels are attractive. Capital Maritime has been active a lot and the Partnership itself doesn’t have any new building commitments. We will see a very good market for second hand vessels as well, which perform well. Our vessels are very good consumption characteristics, speed consumption is very attractive, so we believe that looking ahead we’ll certainly look into the newer technologies, but at the same time when it comes to acquisitions overall I think that to date we have been very active in other segments and certainly what we will be looking is for acquisitions that add to our distributions above everything else. Jonathan Chappell – Evercore Partners: Okay, I Understood. Thank you, Ioannis.

Thank you.

Thank you. Your next question comes from the line of Michael Webber from Wells Fargo. Please go ahead. Michael Webber – Wells Fargo: Hey, Good morning Ioannis. How are you?

I am good, yourself? Michael Webber – Wells Fargo: I am good, I am good. I just wanted to follow up on Jon’s question around potential growth and you know it performed very well year-to-date almost kind of without a large kind of gross rate attached to it and see whether it’s kind of the direction you are heading and you guys are pretty patient in terms of letting that kind of develop. But when you kind of look out over the landscape and generally you’ve got the two containers ships two and three container ships that could be dropped from the parent and you are looking to charter more get more coverage on the product tanker side. Now what sort of timeframe do you kind of view that you know build out in terms of the visible growth ramp, in terms of the ability to really kind of come out say in three or six or nine months and then kind of put out a potential growth scenario for the units that could drive a lower yield kind of even be on rate that you are at right now.

Look, certainly the Partnership has been active in growing the size of its fleet over the past two years from the acquisition accrued to the entry to the containers. So as I mentioned earlier to Jon, we tried to describe in the last slide which are the important factors in determining distribution coverage and growth in the future. And I think second to that, as I mentioned, each acquisition that we will be looking at we will be looking at it on its merits no matter what segment we are talking about and I think that the opportunities ahead there are many but we haven’t made any decisions yet. Michael Webber – Wells Fargo: Yeah, that’s helpful. If you can kind of talk of I guess I have read about the product tanker space and you already talked about eco ships to begin with and we mentioned that the order book capacity being more or less absorbed in the Korean yards. Can you maybe talk a little bit about some of the capacity that may or may not kind of Korean affiliated Chinese yards and whether you know that scenario where you guys potentially look to grow either by CPLP or the parent?

Let me pass across to Jerry to give you a little bit of input on the ship yards first.

Hi, Mike. Michael Webber – Wells Fargo: Hi Jerry.

Product tanker shipyard capacity is more or less accounted for when you look at 2015 you have a capital of top tier shipyards and then another couple of medium tier shipyards in Korea. And you have now the STX capacity both in China and South Korea being removed at least for the time being as that shipyard does not have the ability to issue refund guarantees or take more orders. Michael Webber – Wells Fargo: All right.

And I think a number of key players will also avoid doing business with STX at least for a while until there is more visibility. So that’s a big advantage because that must have accounted for anywhere between 30 to 50 MRs capacity in the year. Now with regard to China that you mentioned there is only one shipyard that has been producing consistently acceptable product tankers that is Guangzhou, GSI. The thing is that we have looked at that shipyard as Capital Maritime and it is a shipyard that whose specifications are not necessarily up to par. So we wouldn’t expect that a lot of new capacity will be coming from China. Michael Webber – Wells Fargo: Got it, that’s helpful. And any, I guess a little bit more color around what you guys are looking at the parent level and potentially be added to that dropdown five point that’s already in place?

Look as I said, Ioannis here, we as a parent we have always tried to build at top spec yards, top spec vessels and we are very selective. But separate to that we are very excited about what’s going on in the product tanker market today with existing vessels because the vast majority of the vessels are vessels built more recently 2006, ‘07, ‘08, ‘09 and these vessels are very good characteristics. We have seen demand for these vessels going up. The U.S. export boom is helping towards that. You can see as I mentioned to you on the U.S. export slide that the bulk of the volume exported from the U.S. of refined products is with MRs. So mentally we are well positioned for that as our charterers effectively employ a number of our vessels in that area. I think that has helped a lot in terms of what we have seen in the market recently both in terms of number of features, the rates also duration which as I mentioned to you earlier more charterers want to fix for longer period than before. So that end I think that there is plenty of opportunity with our fleet. Our fleet is young, overall the age is below six years. Our specs speed consumption are very good, so we believe that there is plenty of opportunity as the market is improving to take advantage of that as well. Michael Webber – Wells Fargo: Got you. Great. One more for me and I will turn it over and just around the use of the OSG proceeds and I guess any thoughts on potentially moving where your reserves are at right now.

Look I think that if you look at OSG, certainly we are very happy with the cooperation we had with Deutsche Bank and having sold the claim there is upside to that claim because how much we receive is a combination of how much of the claim is allowed and the purchase price was $0.725. The claim in total is $54 million so if the full claim is allowed then that is subject to the court and they will take some time to determine that, then there is upside. So that end, we are very happy with that. I think at the same time if you look where our rates were and what they are with OSG and if you adjust for that money I think that –from this situation was certainly brought down to close to very little. So I think that this money we will use as we have said in the future potentially for growth. And certainly as you can see following our recent report, the cash in the balance sheet has gone up to $88 million. So we’re very happy with the whole development there. Michael Webber – Wells Fargo: Okay, all right. Thanks for the time guys.

Thank you.

Thank you. Your next question comes from the line of Ken Hoexter from Merrill Lynch. Please go ahead. Ken Hoexter – Bank of America Merrill Lynch: Hi, good morning. John, can you just talk in terms of that your finally seeing that supply demand spread work in your favor. In this kind of environment where have you seen rates move to in the past? Do we see a quick – do you expect a quick snapback in terms of rates or is this something as you got nearly $1000 over this period, you would expect kind of a gradual return offering certainly I guess 17,000, 18,000 level.

Let me pass it over to Jerry to start a little bit with the supply demand situation at first place.

Hi, Ken. No, it is interesting as you mentioned that we now see a more sustained good spot market, spot rates has been at reasonable levels for quite a while now. And I think what was very interesting in the second quarter and what we have seen in the third quarter so far is that earnings have not been only supported by the traditional routes as we have discussed before the ETA market or even the export charter of Eastern Suez, but now the U.S. Gulf exports are becoming a keen trade route which is affecting trade relation and of course vessel utilization. You know in 2009 exported out of – further volumes exported out of U.S. Gulf on product tankers was only 5% of the whole trade. Today and by the end of 2013, it’s expected to be more like 10%. So this has been the trade which has been important in the past but increasingly more important in the future. And as it helps spot rates to a closer to their historical averages and as operators as well as traders start becoming more profitable then it is easier to say how we can help period rates kind of move from existing levels closer to the historical averages. Today we have one year TC rates that’s 14.5 calling for an MR for a one year TC or around 15 or in excess of 15 for three year time charter. While then 10 year historical leverages I would like to remind you it’s closer to 19 for one year time charter out MR rate and around 18,000 for the three year. So there is potential to return just to the averages especially if the spot market continues to perform as it does today. Ken Hoexter – Bank of America Merrill Lynch: Great. So just following up on that. Do you see kind of a structural change going on with on the U.S. export side? Is this, how do you view this as changing your thoughts on ton mileage and vessel demand in terms of U.S. production?

It’s Ioannis again. I think what we have tried to describe in the presentation is two trends. Certainly it is a grass root change of what’s happening in the U.S. If you look at the margins of the U.S. Gulf and the Midwest refiners are making compared to the past they’re certainly better. So that is the shale oil boom is here to stay I believe. So that’s certainly good news. Also what is also very strong trend is the new refiners that are built out in this. And these are very high spec refineries that operate at better margins on the European or U.S. East Coast refineries. So this is the trend, these two trend will boost the ton mile demand. And most of 2012, I think 2013 is sustained and that’s positive for the period market activity. Ken Hoexter – Bank of America Merrill Lynch: But I guess is there a specific milestone using that period reaching to go to before you all fixed may be on longer terms?

I think we’ll decide for how long we fix when we see the fundamentals of the market at the time. But we have said before that unless it’s significantly north of 15,000 then we’ll not be fixing for much longer than a year. Ken Hoexter – Bank of America Merrill Lynch: Got it. And then just on more before I turn it over may be this is for Jerry. Can you talk about I guess some of the drivers of the 50% non-delivery rate in the product tanker sector, is that your delay is that cancellations, you have any more insight on that?

Hi, [Jose]. We have been using the same class of database now for a while and in order to be consistent we are still using the slippage. But if you ask me and if you actually go through the database and you look at the expected deliveries one by one you will find a number of vessels in there that either we suspect that have been cancelled or postponed or in certain cases they refer to much older orders that have never been confirmed and cancelled. So to give you an example you will find of course you might find the certain orders of on the back of Petrobras contracts in Brazilian shipyards which according to the press might have been cancelled. You might see a number of orders such as the Exelon which there is a question mark next to them. And of course there are certain chemical carriers and other type of vessels that might not necessarily be included in that order book. So I think there is a structural kind of bias and that’s why you are seeing that type of slippage but that means in reality that the real order book as opposed to nominal order book is a fraction of what we have today. Of course as we go deeper into 2013, 2014 deliveries I think the slippage should be falling as there are more confirmed deliveries more at prices that are more connected to the market today. But I think the slippage has very much to do with past orders or the orders that have been placed the shipyards with had to be a double track record. Ken Hoexter – Bank of America Merrill Lynch: Got it, I appreciate the time guys. Thanks.

Thank you.

Thank you. (Operator Instructions). And your next question comes from the line of Ben Nolan from Stifel. Please go ahead. Ben Nolan – Stifel Nicolaus: All right, great guys. And I do have a few questions for you. First of all, just a few modeling type questions. So on the new contracts that were announced in the quarter for the product tankers, it didn’t appear as though those contracts included profit sharing. Is that correct? And they may be along with that how do you think about profit sharing or with respect to the vessels that are coming off contract over the next few months how do you think about profit sharing relative to what you might have to give up in terms of a base rate.

Hi, Ben. Regarding your question, these vessels were expansion to existing once and these vessels had profit sharing based on IWL. So there is profit sharing for certain routes. Now when it comes to the future, if you look at what is on offer in the market today, I think our investors prefer to have the certainty of high base rate rather than a low base rate plus profit share, haven’t seen yet many profit share deals that provide an attractive base rate. Ben Nolan – Stifel Nicolaus: Okay. Now that’s very helpful. And then again sort of a modeling type question with respect to utilization I missed I know you said that there was a vessel that was dry docked in the quarter if you could repeat that and then also may give some sense of how much dry docking is on the table for then, rest of the year into 2014?

During the quarter we had the Alexandres II vessel that was given backdrop of before we redelivered this back to them and that was part of our agreement to Alexandres II is one of the three vessels that have employed 2018. This is the only vessel dry dock now we have to we will have itself. So that was approximately 25 days higher. We have three more vessels going on dry dock this year two sort and one MR that is in third and fourth quarter this year and we’ll see exactly when the MR will go. We have only one vessel going off on dry dock next year and that first second quarter Ben Nolan – Stifel Nicolaus: Wow that’s perfect. Thank you very much for that. And then two last question no one going backgrounds to the bankruptcy the sale of the bankruptcy claim just trying to think about what the ultimate settlement could be and to the extent that the OSG bonds currently trading at about of course those include accrued interests which the claim would not if the claim were $0.80 on the dollar would it be right to just take the difference and that you get and that could be the potential upside once it settles. Is that how that math works on that sort of thing? And then any idea on the timing of when the whole transaction will be closed with respect to final settlement?

No we have sold our claim we sold at so we’re out. Somebody else has the claim so that’s the price. What matters to how much we received is how much of the claim is allowed. The decision for that is not now it depends on the cost and I don’t have visibility for that Ben Nolan – Stifel Nicolaus: Okay. Okay. But if the claims were to settle at $0.80 you would effectively get the difference between the…

We have sold our claim Ben Nolan – Stifel Nicolaus: Okay

So we have sold we don’t have a dividend Ben Nolan – Stifel Nicolaus: Alright.

And how it settles it’s not something that will affect us from here on. Ben Nolan – Stifel Nicolaus: Okay. And then the last question I think I know the answer to this one but it’s something that comes up an awful lot and given that you guys are on both crude and product tanker assets you might have some color on. There are some thinking that the product tanker market materially outperform the crude tanker market over the course of May next year and the 2015. And there are have continually asking what sort of capacity to take a crude tanker to convert into a product tanker after may be occasionally Could you may be just talk to the practical logistics of that how much it would cost and how much it’s even feasible in the first place

Look we don’t have any and neither in the sponsor nor at the partnership level and our crude exposure is specific and all vessels are fixed but regarding this question This could be potential trade LR2s versus tankers or Panamax crude tankers for but given the physical restrictions of many ports this will not affect in a material way the MR product rate where we do all of our product under business. So if there is a trade in that it will probably larger product tankers not the MRs Ben Nolan – Stifel Nicolaus: Right, right. I guess my question was from a broader market perspective is if it’s a call it is purpose built to be crude tanker can it ever be converted into a crude tanker that adds capacity into product tanker and thus add capacity to the product tanker market

As I said we don’t have so we are not really specialist on that Ben Nolan – Stifel Nicolaus: Okay. Right Okay. Very good. Thank you.

Thanks a lot Ben

We have no further questions I would hand back the floor for closing remarks.

Well thank you very much everybody. We are always available to answer any further questions you may have. Thank you.