- There has been another quarter pass since Capital Product Partners reduced their distributions by a massive 71%.
- The recovery in operating conditions has even surprised their management, who have also flagged the possibility of future distribution growth.
- Even though this seems encouraging, investors should keep their expectations modest as uncertainties are still rife.
- These include their structurally lumpy capital expenditure and resulting free cash flow, plus if operating conditions can improve so quickly, then the opposite can happen once again.
- Given this situation, I continue believing that a neutral rating is appropriate.
For further details see:
Capital Product Partners: Improving Conditions But Keep Expectations Modest