Thank you for standing by and welcome to the Capital Product Partners Fourth Quarter 2012 Financial Results Conference Call. We have with us 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) I must advise you that this conference is being recorded today,Thursday, January 31, 2013. 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 2013, 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 call over to your speaker today, Mr. Lazaridis. Please go ahead, sir.

Thank you, [inaudible], 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 fourth quarter of 2012 and the fourth quarter of 2011, as this is the most meaningful analogy in our business. On January 22, 2012, our Board of Directors declared a cash distribution of $0.2325 per common unit for the fourth quarter of 2012, in line with the managements annual distribution guidance. The fourth quarter common unit cash distribution will be paid on February 15, 2013 to unit holders of record of February 8, 2013. Our partnership’s operating surplus for the quarter amounted to 22.5 million or 19.2 million adjusted for the payment of distributions to the Class B unit holders, following the issuance of 15.6 million Class B convertible preferred units during the second quarter of 2012. As announced, on January 7, 2013, we acquired from our sponsor Capital Maritime and Trading Corp. two 8,000 TEU container vessels, with a three to seven year time charter employment to industry leader Maersk line. As consideration for the acquisition, the partnership contribute the VLCC Tankers of Alexander the Great and Achilleas. As a result of this transaction, we incurred a non-cash impairment charge of $43.2 million, which we will discuss shortly. In addition, we have extended the employment of M/T Amore Mio II with BP Singapore for floating storage at the gross rate of $17,500 per day, for a additional nine months, commencing from March of 2013, with a charter’s option to extend for an additional three months. Another tanker Arionas was also extended for another 12 months, at the same rate with our sponsor,…

(Operator instructions). Your first question comes from Jon Chappell of Evercore Capital. Jon Chappell – Evercore Partners: Thank you, good afternoon, Ioannis

Hi John, how are you? Jon Chappell – Evercore Partners: Very good, thanks. It's Evercore Partners as I'm sure you're aware. But so question on OSG. Thanks for the update on that. Just wanted to get a little bit more color on whether they're current with their payments or not. And also are these ships still operating for them as you go through the negotiation process?

They are current with their payments. You understand that since we are in discussions with OSG, we cannot say much. But on top of the statement that it's on the press release and what I mentioned in the conference call, I'm quite optimistic about the outcome of our discussions involving all these fleet vessels. But as you know, in every bankruptcy case, there are multiple contingencies in the bankruptcy court. So you have to bear with us on this. But so far as I mentioned, they have been current with their payments. Jon Chappell – Evercore Partners: I do have a bunch of follow ups, but I guess I'll let it go since you probably can't say very much. So you do a bunch of product tankers rolling off their existing contracts in 2013. As you mentioned, the spot markets have gotten a little bit better. And the contract markets firmed a little bit. How far in advance do you think you'd like to either extend those contracts or lock them into new charters to take advantage of the current strength given there's still some uncertainty in the total tanker market for this year?

I believe that the product tanker market, the fixture activity that we saw last year, 180 fixtures in total compared to 85 in 2011 shows that there is a reduced amount of uncertainty about the prospects and about the positive effect of the new refinery openings going ahead. We have nine medium rates tankers opening throughout 2013. One is in the first quarter, four in the second quarter, and four in the third quarter. Of those nine, seven are already with Capital Maritime. So gradually, we will make the announcements as these vessels come up for renewal. Jon Chappell – Evercore Partners: Are you seeing any interest from charters given that optimism in the broader market to either try to extend earlier than expected or maybe to take some of the vessels away from Capital?

As I said, there is increased charter interest. The question is the duration and the rate. And I think that both rates and durations have improved compared to at least the third quarter in 2011. So there is a positive sentiment in the product tanker industry. And most of our exposure in terms of upside going ahead is through these nine medium rates tankers that come up for renewal. But we will discuss up to the point that the vessels come up for renewal to be able to get the best terms for us. Jon Chappell – Evercore Partners: Okay, and then just one last quick one. The Amore II or the Amore Mio, on the floating storage to BP, how did you kind of balance putting that ship into a floating storage for a period of time versus trading opportunities versus the counter party? I mean having BP versus maybe having some of the other counter parties probably gives a little bit more comfort with the cash flow visibility from that ship.

The vessel was with BP and simply, they extended the charter. So the employment they wanted as floating storage, but we have a strong relationship with BP that we want to enhance. Jon Chappell – Evercore Partners: Okay, so you didn’t even think about putting that back on the trading market?

They wanted the vessels, so we're very happy that they extended. Jon Chappell – Evercore Partners: Great, okay, thanks Ioannis.

Thank you.

Thank you. Your next question comes from Justin Yagerman at Deutsche Bank. Justin Yagerman (Josh) – Deutsche Bank: Hey, good afternoon Ioannis. This is Josh [inaudible].

John, how are you? Justin Yagerman (Josh) – Deutsche Bank: Good, I guess I want to focus maybe a little bit on the crude tanker exposure. I guess you were painting a bit more of a rosy picture for product in containers. And you still have the three Suezmaxes, two of which are in charter to Capital Maritime. I guess, how do you think about those over the course of the year especially with your sponsor's container ships deliveries this year as well? I mean, should we be expecting maybe some more asset swaps and increased container exposure this year?

There's a number of questions in this one. To start with, over the four Suezmaxes that we have, two are charted with Capital Maritime. The other one is with BP, the Amore Mio. And the Amore Mio II is with PEMEX, so [inaudible]. So two of the vessels which Maritime just fixed in November at $24,000, so we have a few months ahead of us before we can think about the renewal. Same applies for the BP in the PEMEX vessels that in effect, they expire the first quarter of next year. So these vessels are fixed for a period of time, which effectively doesn’t be concerned about them today. It's a big premature. The situation with the containers is a different one. We have Capital Maritime. They can deliver us of a number of container vessels. We have mentioned that in our previous conference call three months ago. So that is a different proposition. And as I mentioned, also in the January call, we look at any acquisition that we may make on its merits and the criteria being whether it's a credit on the distributions. So I cannot say more than that. Justin Yagerman (Josh) – Deutsche Bank: Got it, I guess maybe moving to the product tanker sector. And with some of these ships opening up this year, I guess how do you view profit sharing? I mean we're seeing a lot of decent contracts out there with some solid floors and the ability to get upside above those floors. So is that something you consider? And how do you balance the kind of fixed rate versus profit shared over the next year or two?

I believe that there is good fundamentals in the product tanker market. If you look at the medium range tankers, if you look at the fleet growth in medium range tankers in 2012, that was less than 1%. At the same time, demand was in excess of 3%, 4%. And that is expected to be repeated this year because I think there's going to be a substantial number of non-deliveries again because of the financing situation primarily. So I think that there is good momentum for upward moving the product tanker rates. When it comes to our unit holders, MOP unit holders like visibility at the distant rates and I think that if you look at the current flows of this profit sharing charters that you will see we still are quite low. We're optimistic that this can improve. And subject to what the floor will be then, we can consider also profit sharing arrangements. Don’t forget that our arrangements with Capital Maritime also have profit sharing if the vessels are used on ice. Justin Yagerman (Josh) – Deutsche Bank: That's fair enough. And just also on product tankers, I guess you mentioned the massive slippage we saw in 2012. Do you have any sense of how much of that is just maybe order book over statement or just non-existent vessels versus actual owners pushing to delay deliveries?

I think that's a very good question and a very difficult one to answer because it's difficult to know how many of these vessels actually will never be delivered. But given that many of these product tanker outside in Korea, you expect many of the owners to simply not being able to take delivery. And to an extent, delaying or eventually postponing indefinitely these projects. I feel that the financing situation in the world is difficult. And many of these vessels to not get charters that can satisfy the levels of financing that owners would be comfortable with to go ahead with the projects. So I think there is a fair element of financial difficult that makes these projects difficult to come to the market. And I think that the financing market for many owners will remain quite difficult. Justin Yagerman (Josh) – Deutsche Bank: And just one more before I let you go. There is a slight increase in related party of liabilities. It's at $7 million or so. Is that just timing or should we expect those continued elevated levels?

No, it's just timing. And I think that most of that has been paid back since the end of the quarter. Justin Yagerman (Josh) – Deutsche Bank: Great, thank you for your time.

Thank you.

Thank you, your next question comes from Michael Webber at Wells Fargo. Michael Webber – Wells Fargo: Good morning, Guys, how are you?

Hi, Mike, how are you? Michael Webber – Wells Fargo: I'm good. You already touched on OSG. And I mean it's been out of the market for a while now, so I don’t think it's going to catch a whole lot of people by surprise. But I do want to kind of go back to Josh's question on the container ships. And I know you gave an answer there kind of the standard answer in terms of what you guys are looking at. But I mean, how would you prioritize container ships I guess against product tankers and crude tankers in terms of incremental growth from here I mean given what's apparent and what you're seeing in the market? I mean is it reasonable to think that container ships are going to be a pretty big avenue for growth for the distribution over the next two to three years?

Potentially yes, but it depends a lot on the merits of which transaction we may look at. There is a number of product tankers that are out there. But the charter rate, which we can fix may be at this level of the unit price are not as lucrative. So as I said, we look at every acquisition on its' merits and whether these acquisitions are accretive to the distribution. So at this point as I said before, we will judge each transaction on its' merits. And given the unit price, it’s not easy to have many active transactions that easily. Michael Webber – Wells Fargo: That makes sense. Just to follow up on that, is there any limit to what you guys could add just from a qualifying income perspective in terms of container ships? Have you guys had these conversations around that yet?

I think you know that we are in [inaudible], so that does not affect our distribution. Michael Webber – Wells Fargo: Not at this point, clarification. Around the product anchor market, you mentioned the market firming. But it really seems like the one year rates have moved and the three year rates still look pretty sticky. What do you kind of attribute that narrowing of that spread to? I mean do you think that's a reflection of maybe just a little trepidation in kind of a two to three year market? Or is that just a function of a lack of liquidity in those three year charters?

The majority of these vessels that have been fixed this year were for one year as you point out. And that has led to the one year rate moving up. Simply, owners don’t think that rates are high enough to fix for longer. That's why you see that there hasn’t been that much activity on the three year end. I think as the charters – and you see that they have a better [inaudible] product given the number of features. As charters become more optimistic about the market, they will fix for longer. And I think that the three year rate will get on stack as well. Michael Webber – Wells Fargo: Got you, all right, that's helpful. One more for me. I'll turn it over. As the tanker markets came in the last couple years, you guys lowered your reserves a bit to support the distribution, which seems pretty prudent. As we're starting to see an uplift in the product tanker market and as you guys are sourcing more growth opportunities kind of from non-traditional sources be it dry bulk or container ships, how do you think about starting to increase the reserves, the replacement reserves for your fleet as the market moves higher? Any balance that I guess potentially down the road increasing your distribution?

We were very pleased that the coverage of the distribution in the fourth quarter was 1.2 times. As we built coverage, we will again revisit our replacement CapEx as well as distribution. Michael Webber – Wells Fargo: Is there a systemic level you look at from a coverage perspective that you would kind of go back to initially looking might raising your reserves prior to moving the distribution?

It's a lot of things there. We would also like to lengthen the duration of our charters so the market is convinced about the sustainability of any potential increase the distribution. Michael Webber – Wells Fargo: Okay, thanks for the time.

Thank you.

Your next question comes from Paul Jacob of Raymond James. Thank you. Paul Jacob – Raymond James: Hey Ioannis.

Hi, Paul. How are you? Paul Jacob – Raymond James: Good, how are you doing?

Well, thank you. Paul Jacob – Raymond James: So the first question that I had, and you know, recognizing the fact that you can’t offer a lot of color on this, I’m still curious. How do you think internally when you’re doing risk assessments and forecasting about the risk associated with OSG? Do you discount those charters or are your forecasting a full run rate?

Look, as I mentioned when I gave you the 3.7 years remaining duration of charters, that’s for the purpose of the discussion, I excluded the OSG. I cannot say much more of how the discussions are going, but any contract with OSG while they’re in bankruptcy, that will be a very strong contract according to the bankruptcy laws. I can’t say much more on that. Paul Jacob – Raymond James: Okay. And then shifting over to the crude market, so when you think about global capacity and obviously the fact that you have higher production scaling up in the U.S. that’s leading to a surplus across the globe, do you see the situation where possibly we start to use this excess crude tanker capacity for fleet and crude storage? And if so, what do you think the timing on that sort of activity would be?

Crude storage for the past few months has not been very significant. It was back in the beginning of 2012 because of the Iranian situation, but I think what you have seen in – on the back of the improved production in the states is lower VLCC shipments through the years. We have mostly Suezmax now. We have only Suezmax now. The Suezmax fleet is one exposed to the [inaudible] and it’s also taking market share from our Suezmax from the West Africa to U.S. trade. So demand for Suezmax is expected to be a more or less close to the surplus Suezmax. So I think this is a more balanced market and hopefully this market as we have seen late in the fourth quarter will bounce back further. Paul Jacob – Raymond James: Okay. And then what would be your preference, you know, if you did decide to kind of lever a little bit more away from the crude side of the business towards other bulk or container vessels? I mean, would you prefer increasing your container capacity or would you be more [inaudible]?

Well, the bulk market today offers very few opportunities, especially given where the charter rates are. So I doubt that there’s going to be that much activity in the bulk carrier market. But as I said earlier, I think looking at [inaudible] and acquisition warrants merits whether tanker container or bulk. Paul Jacob – Raymond James: Okay. And then the last question, more of a housekeeping item I guess. When I look at your interest rates, and obviously you have the swaps coming due this year, how do you think about, you know, potentially fixing those rates and locking them in so you have the assurity of your interest expense going forward?

It’s a good question. I mean, from April 1st all will be floating and currently when we have a record low LIBOR rates, I think that it is an intention by several banks to maintain liquidity in the system. We will look at fixing the rates longer term subject to what we can shop them at. And I have to say that shop rates for 3 to 5 years has dropped quite heavily since. So it may be attractive. Paul Jacob – Raymond James: Okay. Thanks.

Thank you.

Thank you. (Operator Instructions). Your next question comes from Ken Hoexter, Bank of America/Merrill Lynch. Ken Hoexter (Wilson) – Bank of America/Merrill Lynch: Hey, good morning, guys. It’s actually Wilson sitting in for Ken.

Hi, Wilson. How are you? Ken Hoexter (Wilson) – Bank of America/Merrill Lynch: I’m doing good, Ioannis. I hope you are too. I have a question, I guess, more on the acquisition side. As you’re kind of talking about kind of difficult obtaining ship financing, obviously it relates back to the, I guess, conditions of the European financial institutions. I mean, have you seen anything kind of along the way of kind of banks wanting to offload their portfolios? And if you have, you know, what is your appetite for looking at such type of deals? I know that it hasn’t been that big of a topic but I was just curious to have your take on it.

There are opportunities like that, but they wouldn’t be appropriate for the Partnership, the ones, at least, we have seen to date. We have a strong balance sheet with the 39% net debt to cap and 53, 54% of Partner’s capital pluses. We would probably not go easily into levering it that big again soon. So we think that it’s important to look at the opportunities, but many of the opportunities that have come up from the banks to date, they wouldn’t be with projects that are suitable to the Partnership. Ken Hoexter (Wilson) – Bank of America/Merrill Lynch: Got it. And more of just thinking about the dropdown side, I mean, could you remind us, you know, are there [inaudible] up at the Capital Maritime that’s, you know, are kind of more in the line of what you’re thinking about and obviously, the vessel classes, you know, product tanker – just a quick update.

Well, Maritime has three deals, the [inaudible] is one, the Suezmax is one product and two small containers, two bulkers and it’s to take the delivery of five container vessels. That’s the profile, but there is many other vessels outside of Capital Maritime, so we’ll look at all of those when it comes to making an acquisition. But as I said earlier, every acquisition has to be judged on the back of how it is on the distributions. Ken Hoexter (Wilson) – Bank of America/Merrill Lynch: Thank you.