Thank you for standing by and welcome to the Capital Product Partners Fourth Quarter 2014 Financial Results Conference Call. We have with us Mr. Petros Christodoulou, Chief Executive Officer and Chief Financial Officer; Mr. Jerry Kalogiratos, Chief Operating Officer. At this time all participants are in a listen-only mode. [Operator Instructions] I must advise you that this conference is being recorded today. The statements in today’s conference call, that are not historical facts, including our expectations regarding developments in the markets, our expected charter coverage ratio for 2014 and 2015 and expectations regarding our quarterly distribution may be forward-looking statements as 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 over to your speaker today. Please go ahead, sir.

Thank you, Lisa, 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. On January 23, 2015, our Board of Directors declared a cash distribution of $0.2325 per common unit for the fourth quarter of 2014, in line with management’s annual distribution guidance. The fourth quarter common unit cash distribution will be paid on February 13, 2015, to unit holders of record on February 6, 2015. The Partnership’s operating surplus for the quarter amounted to $32.1 million, which is $2.9 million higher than the $29.2 million of the fourth quarter of 2013. Common Unit coverage for the fourth quarter 2014 improved to 1.2 times. During the quarter the MTS generated $0.6 million in profit share as a result of the strong corporate environment for Suezmax tankers marking the reemergence of profit sharing in our trading operations. We are also pleased to announce that the Partnership has secured long term employment for a number of vessels as increased rate from part of the acquisition front. As previously announced, we have agreed to charter our the MTS trading for a period of three years, $26,500 per day, and the MT Arionas who are sponsor of Capital Maritime for 14 months at $15,000 per day, up from the previous charter was again at $14,250 per day. Earlier this month we also secured long term employment for an additional quarter tankers, namely we have six CMP and MP [ph] to Petrobras for three years at $16,400 per day, up from previous charters at $14,750; and the M/T Agisilaos and M/T Arionas [ph] to CMTC for three years at $15,600 per day, these vessels come off previous charters of $14,950 and $14,850 per day respectively. As…

Thank you. [Operator Instructions] Your first question today comes from the line of Ben Nolan of Stifel. Please go ahead.

Thank you. My first question relates really to the traces back to the year - coming off charters in the near term and then there was the one that you put on a three year contract in December. Is the thinking pretty similar with respect to those other three vessels, should we - do you feel that the long term market is strong enough at the moment such that you can't put those vessels into the market on a long term basis and get a rate that needs serve your threshold levels?

Well, indeed we see the continued spot strengthen the Suezmax’s market. We are expecting to get the right period charters with the right time and then obviously we're trying to secure the best rate going forward. That's a developing story which we would expect to fix in the first quarter.

Okay, perfect. And then my next question relates to sorting to the distributions but also to the debt. You guys have yet or did not so far increase the level of the distributions but I know that there is a credit facility that is up for renewal in 2016, first of all, are you - what is the status or how are you thinking about financing and refinancing debt and does that at all impact how you are thinking about the potential of increasing distribution?

Okay, as you have correctly said we have some of our facility start one more type quickly in Q1 2016, one year from now. And as we have communicated already for the market we have rate in advance trying to refinance these facilities, we are in advanced stages of this planning, I would expect - I can only tell you that you should see some interesting decision in the first quarter right ahead of time.

I see. And maybe in color that you can maybe provide with respect to what we should be thinking about in terms of annual amortization and debt, what number should we assume or are you guys assuming that your allocated source of repayment of debt has in terms of thinking how much cash flow is available?

Yes, we have at the moment four facilities that start to amortizing in Q1 2016. These are - we expect about $5.4 million in 2015, at the moment we have $98.5 in 2016 and much bigger number in 2017. If we do nothing unlike as I have said, we are addressing this way ahead of time, one year in advance, and we would expect to have made the payment in 2016 and 2017, not far off from the 2015 number.

Okay. So pretty substantial reduction and relative to what it currently is. Okay, that's very helpful. And my last question relates to the two containers that you guys have on contract with - which come off contract later this year and they have options, it's a little over $30,000 a day. When will they need to give you information or inform you they intend to whether or not they are going to exercise those options? And do you have any expectation as whether they would or not at this point?

Thank you. I'll ask Jerry Kalogiratos to take on.

Firstly we are committed - it ends on mid-November of this year and for the amendment end of August of this year. Next line of the charter has options to - two years of flexible options, at $31,500, then of $3,500 and then another one plus one, at $32,000, so a total of four years if you want the functionality. And they would have to give us notice, 70-days in advance [ph] firm period. That market has been improving as of late and we have seen twelve month fixtures taking place at just below the numbers that most line has auctioned at. And given also the very flexible structure that they offer, I think we will only know much closer to the actual due date, the multi-date as they are going to proceed. But indeed a very attractive structure for the charter and what we have an offer here.

Okay, great, that's very helpful Jerry, I really appreciate it. And that's it for my questions, thanks guys, nice quarter.

Thank you.

Thank you. Your next request comes from the line of Amit Mehrotra of Deutsche Bank. Please go ahead.

Thanks so much. So my first question is on the distribution surprisingly, you guys have been clear that there is an upward revision coming in April but I'm just trying to get a sense in what type of magnitude that version can be because it looks like your next three rollovers will actually be a little more accretive than the previous seven. So the question is will the distribution take into account sort of this perspective growth or do you envision relatively modest increase followed by maybe additional increases in subsequent quarters as the cash flow is realized?

Thank you Amit, you are right, we are a bit ahead of your time. This is an announcement and discussion we will be having in few months’ time. I would like you to appreciate that we do not want to add way to this discussion at this stage, we ask you renew all the metrics that you have get back to your mind in terms of what we can deliver and what we will deliver we'll announce in pretty much time.

Okay, alright, thought I'd try anyways. Just a second question, with respect to the dropdown opportunities and when you expect to make the decision on those rates and for strategies also, how you're thinking about financing, I mean should we think of it of those additional dropdown opportunities or mix of additional beyond debt and equity to the course of the year next year?

We start from - first things first, we have good options ahead of us but our first concern is to fix our currency, our common unit price which at the moment what we are doing, we're announcing and doing the operations by telling you entering into new period charters significantly better rate than before and also addressing the issue of refinancing our debt which is vis-à-vis two key items for us to fully to reach our operation and provide more transparency and visibility to our investors, and we believe that this is going to do wonders to our common unit price. After that then which - after we fix our currency we talk about growth.

Okay. And just last question, pro forma for the role overs for this year, can you just give us some indication on where you think the average remaining life of your contract is going to go to because obviously we do see some contraction this quarter which is perfectly explainable but once you're through these explorations do you think you would get back to the 9/10 year range?

Even I guessed somewhere in the reason between 8 to 9, we are revenue is up - this will be very much depending on how many of the charters exercise their options and how much through them we have to go further out to plus two plus three years, you need to get market. So - but I as a ballpark we should be in the 89% - 8 to 9 year range.

Okay, great. Thank you very much. Congrats on the good results.

Thank you.

Thank you. Your next question comes from the line of Dean Bram [ph] of Raymond James. Please go ahead.

Hi, good morning. Thanks for taking the question and congrats on the good quarter. I just asked one of the previous questions in a different way, is it fair what the charters that are coming up in 2015, is it fair to think of those as being kind of on average at 5% below market rate as in the last year they have come up on the market?

Let me ask Jerry to answer that.

Do you mean in compare to the fuel market?

Yes.

Well, the fuel market it does reflect towards an extent the current spot market but we also reflects expectations going forward, so while for example you have seen the one year period rate for MR product tankers move from below $14,000 at the end of the third quarter to more than $15,000 by end of January this year. For the same time spot earnings were averaging in excess of $25,000 per day. So it takes a while for a strong sport market performance to get flexible on these rates, especially for longer period rates. And what we fix with Petrobras on CMTC for three year and two year respectively, these are quite strong rates that we haven't seen for a while.

That's helpful. And just a broader longer term question, obviously the fundamentals are strong in the fourth quarter and 2015, as you think about where oil is now in the $45 to $50 range, just your color or thoughts from the medium term outlook through - over the next 12 to 18 months, if oil stays in that range what does that do the tanker market?

Well, there are two aspects to the product tanker market, one is what they describe which is what lower oil prices did for the product tanker market, mostly adversary timing margins, so we have great hiring, you have very high refining margin, a refining utilization in the fourth quarter and the second in December and January, a lot of product being moved around. It also helps with the trading as the content loads on the product means more storage and more inventory building and that indirectly boosts demand for product counters. It also means that traders can use their credit lines to move almost double the product volume that they moved before and give them more arbitrage opportunities, and all these was reflected in demand for product tankers. But at the same time the underlying demand from them remain as a big part of what you saw in terms of the performance of the product tanker market over the last few months was also driven by the refineries location, you have many of the new refineries and in the end there is some Gulf opening up right now as we speak. We have seen the boost in demand for LR IIs which - when drives demand for product tankers, or some of the LR IIs have been attracted to the crude tanker and in recent time made the product tanker market more tight. And secondly you have the increasing demand out of mostly Latin America, their demand growth is very strong and it hasn’t been only dependent on product size, and I think most of them expect that this year is also going to be driven by a lot by demand outrageous goals to Latin American countries; Mexico, Chile, Brazil. So I think the falling oil prices, that will be helpful, and helps the trading and early opportunities and more volumes in trading, but of course at the same time you have now in Q1 2016 you have - if you want the full impact of the product fundamentals.

Great, thank you for the color.

Thank you. Your next request comes from the line of Arey Rosa of Bank of America. Please go ahead.

Hi guys, congrats on the strong quarter. I wanted to ask about the supply picture, just - you know you noted that currently the order book is a bit low but I wanted to understand a little bit better what's really driving that and what's causing a deserved backlog in production there?

Hi, this is Jerry. Is the order book on the product side?

No, on the vessel side.

Sorry, on the product tankers or the Suezmax’s?

On the Suezmax.

On the Suezmax, the reason that the order book is - we expected the net fleet growth for Suezmax is very small. I think we'll find the analyst expect from negative growth to up to 1% for 2015. It's that firstly because the Suezmax market was at very low levels for couple of years, very few new orders were placed. Secondly it was a segment without many - real talking away because it was mostly written in the past by the West Africa, US East Coast trade and not lending expected that the West Africa, India, the continent match of the Atlantic and China trades that we pick up so much that will also boost the Suezmax market. And finally it's also because of the fact that many Suezmax’s order were placed but a couple of yards that never delivered, and I think even at the order book that you - the nominal order book that you will find today in many reports, I think many analyst would expect that only 40%, 50% of that will be delivered in time. Slippage for sewage market for 2014 was quite strong; it was more than 73%. So it was a variable market, it was some secure as we performed [ph], and also because the specific segment was not popular, so the order book is really small.

Okay, great, that's helpful. And then the other question I had was just on global growth, seeing some of the weakness, in kind of some of these developing markets, is there any risk that carries through at some point into where rates are? It sounds like you guys are pretty optimistic on the future for rates, obviously kind of short to medium term future but it seems like there is divergence obviously and how developing market countries are doing, is that a threat at all?

Well the proceeds slowdown and if you like the low oil price of oil quickly transfers wealth overtime for - from energy producing nations to energy importing nations. So that's going to be a tremendous boost for these economies, and overall for global economic growth, I mean the low oil is stand amount to a big cut in interest rates globally.

So it's fair to say that as long as oil prices stay low you guys are expecting rates to continue to improve?

Yes, that's another infinite process, at some point it will start tapering off but it's - we believe that the economic boost from such - from the impact of lower oil has not been fully discounted in the market, there is not only [ph] before the next two years.

Okay, great, that's helpful to hear. Thank you.

Thank you.

[Operator Instructions] Our next request comes from the line of Sunil Sibal of Global Hunter Securities. Please go ahead.

Hi guys, congratulations on a good quarter and thanks for taking my question. I'm just curious you know if you could address on the distribution coverage side, now that you've got good visibility into this strong recontracting market, if you could tell how should we think about what level of distribution coverage that you guys are comfortable with going forward.

Look, you have seen some consistency on our side, in the past we have talked about consistently being about 1.1 times, I cannot talk more about distribution like I said to Amit earlier, this is - the discussion will elaborate on in three months’ time. In the meantime we'll do what we can to totally derisk our operation with entering into period rates where we have openings and also refinancing our bank facilities and doing that way ahead of time. So we aim to - we respect the courteous sleep of our investors, we want to make sure that we did not create eyebrows on negative side and we are providing as much on - whether it's been possible to earnings. How that is translated into distribution we'll talk about in the next call.

Okay, that's helpful. And just one quick clarification on the timing, I think you guys have said previously that once you start receiving those new belts that's when you will take a call on the distribution timing, I think the first one of those gets delivered in March this year, so we would expect to see more clarity on the distribution strategy by the first quarter call, is that fair?

That’s exactly what we have said, we have been saying and we say it once again, yes.

Okay, that's all for me. Thanks guys.

Thank you.

Thank you. You now have a request from the line of Jon Chappell of Evercore ISI. Please go ahead.

Thank you. Just two quick questions; one on the crude, the VLCCs - I'm sorry, the Suezmax’s and their chartering optionality. You talked earlier in the Q&A session about thinking the charter rates are going to come up, they definitely have so far. We started all about the optionality and employing those vessels on the spot market. We already have 83% time short of coverage for this year, pretty much full coverage of the distribution and distribution increase, those markets are very strong, they are lot more volatile than the MR segment. So have you thought about more than diversified portfolio for the crude shifts and putting them on shorter turning point and the media term?

Thanks for the question. This gives us the opportunity to highlight one of our core assets we're seeing in MMC. We're not here to actively trade the market, and we have not operating in the stock market. We are here to provide period charters two of our vessels provide visibility. And as I have said before, we try do our investors quality of sleep. We have an excellent relationship with our sponsor which is a traditional - if you like spot operator, so a fore player in the market, and have been dreamed out [ph] for the past history of 75 years and they are to - in a very complimentary function to provide time charter rates that have for us for the MOP, and they take us for [ph]. As we see the sponsor is very supportive, we are doing every effort we can at the moment to reduce the number of vessels that we have with the sponsor from 13 at the end of Q3 to 10 now and as we have communicated in the past, we aim to go down to single digits, ultimately we want to keep our other sponsor cargo drive so that eventually we can lean on the sponsor when we need period rates if the time - when the time comes, let's say when market is shallow. So this is - the stock market exposure is not an exposure, although it may be tempting as you said but it's non-disclosure, we are structured and we give to play.

Okay, understood. Then the last one, just briefly, in two ships to Petrobras, I'm just curious are the issues specific to that company, tying up with that use at all, are there potential delays because of some of the things going out at Petrobras and if so or if not, what's the timing that you think that those contracts would actually begin?

Hi Jon, these are new contracts, they were just concluded and these are normal contracts with deliveries - with a late end that starts from February down to the end of April, I think we will deliver those receipts to Petrobras in April. As you noted we will have something similar to which nominate [ph], and the names that we gave you today are the most probable candidates but - otherwise it's quite a straightforward deal.

Okay, thanks Jerry, thanks Petros.

Thank you. [Operator Instructions] We do not have any further request gentlemen, please continue. We do not have any further questions.

Okay. I would like to take this opportunity to thank you all for listening to our earnings calls. And now I wish you a good day and good weekend coming up. Thank you.

Ladies and gentlemen that does conclude this conference for today. Thank you for participating. You may all disconnect.