Thank you for standing by, and welcome to the Capital Product Partners' First Quarter 2020 Financial Results Conference Call. We have with us Mr. Jerry Kalogiratos, Chief Executive Officer of the company. [Operator Instructions]. I must advise you, the conference is being recorded today, the 6th of May 2020.The statements in today's conference call that are not historical facts, including, among other things, the expected financial performance of CPLP's business, CPLP's ability to pursue growth opportunities, CPLP's expectations or objectives regarding future distribution and market and charter rate expectations and in particular, the effects of COVID-19 on the market and on the financial condition and operations of CPLP and the container industry in general may be forward-looking statements, as such are defined in Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve risks and uncertainties that could cause our 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, Mr. Kalogiratos. Please go ahead, sir.

Thank you, Summer, 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. As previously announced, we concluded on March 27, 2019, the spin-off of the partnership's tanker fleet and subsequent merger with DSS Holdings, forming Diamond S Shipping. Accordingly, we'll present our financial results for the first quarter 2020 as well as comparative periods on a continuing operations basis, except where reference is made to discontinued operations.The partnership's net income from continuing operations for the first quarter was $6.7 million compared with a net income from continuing operations of $7.2 million for the first quarter of 2019. Our Board of Directors declared a cash distribution of $0.35 per common unit for the first quarter of 2020. The first quarter cash distribution will be paid on May 15 to common unitholders of record on May 9. As previously announced, we completed in the first quarter 2020 the acquisition of the 3 10,000 TEU containers with long-term charters to Hapag-Lloyd. Moreover, during the quarter, we retrofitted 2 more of our vessels with scrubbers, successfully completing our scrubber installation program. Upon completion of the installation of the scrubber and ballast water treatment systems as well as passing its special survey via Archimidis, our 8,000 TEU containership delivered to MSC to resume its long-term employment at an increased rate. As a result, the partnership's charter coverage for the remainder of 2020 and for 2021 stands at 90% and 73%, respectively, and correspondingly, the partnership's remaining charter durations stood at the end of the first quarter at 4.4 years.Turning to Slide 3. The revenues for the quarter were $33.7 million compared to $26.8 million during the first quarter of 2019. The increase in revenue is…

[Operator Instructions]. We will now take our first question. Please go ahead. Your line is now open.

This is Randy Giveans at Jefferies. How's it going?

All right and well. How are you?

I'm all right. All right. I guess, first and kind of foremost, looking at the upcoming maturities for Amazon -- and Amazon and Uruguay for charter extensions, do you have a time line or kind of rate assumptions for what you think you'll be doing with this?

Yes, that's, I guess, the -- probably the most important question at this point. As I said in my prepared remarks, the problem, Randy, is that it is very difficult to see where the market is going at this point. I mean, if you look at the chart that we have included in our presentation with regard to where charter rates are at the moment that we got off from Clarksons, you'll see that they seem unchanged, right, still in the -- somewhere in the mid-30s. And that's because it's very difficult to understand where the market is today.Earlier in this year, I think we were probably in the strongest market we have seen for 7 years. But I think the market changed dramatically in the course, really, of a couple of weeks as soon as Europe and U.S. went into a lockdown. I think before, as long as it was only a China issue, and it seemed that the outbreak will be contained there, there was less concern. But I think as soon as the rest of the world went to lockdown, then you see -- then that's when you saw operators taking emergency measures and started to rearrange their own tonnage and redeliver any surplus capacity that they can.I think that these type of abrupt changes we have seen in the past. And by now, I think the liners have a number of tools at their disposal, such as slower speeds, more port calls, longer services. And of course, we will see increased scrapping once scrap yards are open. But I do think that when it comes to our ships, which are these modern 9,000 TEU eco ships with high reefer and intake, these tend to be scarce, in any case, they keep [indiscernible] from operators. So I…

Got it. Okay. And then looks like the Archimidis slipped about 12 days [indiscernible]

Randy, sorry, I couldn't hear you very well. If you -- Randy, if you could please repeat. It was a -- I can hardly hear you.

Yes. I was saying it looks like the Archimidis slipped about 12 days into the second quarter. Are there any other off-hire days this quarter and any scrubber-related CapEx that's been pushed into the second quarter?

No. The -- other than the 12 days of the Archimidis, there's no other scheduled off-hire days for the fleet. It depends a bit on when the Amazon will go into drydock. Potentially, if it's being redelivered around the 10th of June, it is fair to assume that she will go directly into drydock, and that will be 15 to then 20 days stay. So as far as the -- any CapEx is concerned, there might be some incremental CapEx from the scrubber installation of the Archimidis into the second quarter, but it's going to be a very small number, I expect.

Perfect. All right. And then just quickly, your common units, they're yielding 16%. So any thoughts on selling the Cape Agamemnon, and then you can repurchase up to, what, 10% of your outstanding units?

Look, I think at this point, not too long ago, the -- our yield was 26%. It has -- it is now, as you say, still disappointing, but we have come a long way. It's an extremely volatile market. Let's see where we land. I think at this point, it is important to maintain liquidity, and then we discuss capital allocation once we have more visibility. But I think it's the prudent thing to do at this point is to wait until we have more visibility into what we fix for our 9,000 TEU ships and the Cape Agamemnon, and we take it from there.Now if there is a very good offer on the table and to sell the Cape, we would look at it. But I don't think it is on the cards today to -- or at least as long as these things going on to redeploy capital one way or another, bid to buy ships or to buy stock or increase the distribution.

And we will now take our next question. This comes from Liam Burke from B. Riley.

Liam Burke, B. Riley FBR. I know this is probably a longer-term understanding your priorities here, understanding the short-term -- or the near-term uncertainty in the open-endedness of the recovery of the liner trade. But when you're looking in the long term for CPLP, your acquisition strategy, is that the same once things get back to some semblance of normalcy?

Yes, absolutely. I don't think anything has changed. And the most important signal of that is that we paid our distribution. We delivered 1.6x coverage. As I said earlier on, even in this adverse environment, provided that there is a market, we should be able not only to sustain the distribution but continue to offer a very solid distribution coverage, maybe not the kind of coverage that we were expecting a few months back. But the business model is very much in place.And what I'm trying to say is that it's good to maintain liquidity as long as certainty is place. Let us see where we are in the next quarter or 2. But as soon as we have that type of visibility, I think we will continue on the same path. That is to rebuild and grow CPLP by acquiring assets with medium- to long-term charters attached. Large containers, Neo-Panamaxes, we do believe is an interesting segment. As we have said in the past, you can find longer-term employment. They continue to be quite attractive to liners. And they would fit very nicely with our existing fleet.Other type of assets, again, as long as the long-term charters are in place, we would look at those as well. But as I said, we are not rushing into any decisions with regard to capital allocation at this point.

And your next question comes from J. Mintzmyer from Value Investor.

Jerry, this is J. Mintzmyer with Value Investor's Edge. So I think Randy and Liam already asked some great questions about capital allocation. It sounds like we're not getting too many answers on those. When is -- when do you think we'll reassess that? Would that be maybe next quarter? Or do you think we might have to wait even until the end of the year for that sort of response?

I think it very much depends on the developments around COVID-19. I mean you have seen much larger companies than us stop providing forward guidance. So I think -- I mean, I'm sure you have come across interviews by heads of liner companies that they don't have -- that they clearly say they don't have visibility. So let us see where we are. And as I said, in a few months from now, I think it very much depends on how the current developments with regard to the easing of social restrictions is developing. So if this is a successful experiment and we don't see an uptick in COVID-19 issues and the resumption of economic activity, then I think or, of course, some sort of silver bullet like a vaccine or a medicine that would help everybody attain more visibility and resume economic activity. And hence, we will have also visibility with regard to our cash flows and the recharting of our ships. And then, of course, we can resume discussions. And once we can -- we have those data points and we can look at our share price, our distribution yield, what else we can do in terms of growth and we can discuss with our Board capital allocation. But I think at this point, the prudent thing to do is maintain liquidity and flexibility.

Yes, it certainly makes sense in this environment to try to stay as liquid as possible. It was good to see that the Korea Development Bank did provide a new credit line to Hyundai. So I think that's going to help you out at least on your charter side.Just one little question on that for you. Earlier, 52-week lows this year hit the low 5s, right? So very depressed share price. Does it perhaps make some sense to have a share repurchase program out there, even if you're not necessarily ready to use it today, just in case those sort of market craziness got revisited, say, something like a $30 million, $50 million program that you authorized with the Board, but maybe you don't necessarily want to use it yet, but just in case. Any thoughts on that?

It is. You make a good point, J. And I have said this in the past that it's -- that's one -- definitely one tool in the tool set. On the other hand, I think just saying that you will do a share repurchase and not doing it will, of course, bring other complaints. So I think that's something we will look at. Don't forget that the unit price was not for too long, around $5. And in the end, I think people were caught equally by surprise as to how this -- how quickly the markets dropped as well as how quickly the markets recovered. But I take your point, and that's something that we will consider in the future.

Final question from me. Tankers have been kind of a hot trade lately, maybe not today, but they've been kind of popular. And there's been some folks thinking mistakenly, right, not doing much diligence, thinking that CPLP, Capital Product Partners, is a tanker company. I think we had this conversation earlier about a potential name change. It just made more sense, maybe something like capital maritime partners or capital shipping partners or something like that. Might that be something on the docket to kind of remove this confusion from the market and make things a little bit more streamlined?

Of course, we will consider, hopefully, investors CPLP that retained their exposure in Diamond S after the spin-off were able to have their exposure in the tanker market, which is doing quite well. But we will, of course, look into this over the coming quarters.

[Operator Instructions]. And there are no further questions at this time. I'd now like to hand the call back to yourself, Mr. Kalogiratos.

Thank you all for joining us today.

Thank you. That does conclude our conference. Thank you for joining. You may now disconnect.