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ATHENS, GREECE -- (Marketwire) -- 07/31/12 -- Capital Product Partners L.P. (the "Partnership") (NASDAQ: CPLP), an international owner of modern double-hull tankers, today released its financial results for the second quarter ended June 30, 2012.

The Partnership's net income for the quarter ended June 30, 2012, was $3.4 million. After taking into account the $4.2 million preferred interest in net income attributable to the preferred unit holders of 15,555,554 Class B Convertible Preferred Units (the "Class B Units"), which were issued during the second quarter of 2012, the result per limited partnership unit was a $0.01 loss, which is $0.06 lower than the $0.05 income per unit from the previous quarter ended March 31, 2012, and $0.39 lower than the $0.38 income per unit in the second quarter of 2011. Prior to taking into account the preferred interest in income attributable to the preferred unit holders, the result per limited partnership unit for the quarter ended June 30, 2012, was an income of $0.05. The Partnership's reported net income for the second quarter of 2011 included a $16.5 million gain from bargain purchase related to the purchase value of the M/V Cape Agamemnon ("Cape Agamemnon") as the net tangible assets acquired and liabilities assumed exceeded the purchase consideration.

Operating surplus for the quarter ended June 30, 2012, was $16.9 million, which is $0.6 million lower than the $17.5 million from the first quarter of 2012, and $11.2 million higher than the $5.7 million from the second quarter of 2011. The operating surplus adjusted for the payment of distributions to the Class B Unitholders was $12.7 million for the second quarter ended June 30, 2012. Operating surplus is a non-GAAP financial measure used by certain investors to measure the financial performance of the Partnership and other master limited partnerships. (Please refer to the section "Appendix A" at the end of the press release, for a reconciliation of this non-GAAP measure to net income).

Revenues for the second quarter of 2012 were $37.8 million, compared to $27.9 million in the second quarter of 2011. The Partnership's revenues mainly reflect the increased fleet size following the acquisition of Crude Carriers Corp. ("Crude Carriers") in September 2011, and include $1.1 million in profit sharing revenues earned primarily by three of our crude vessels, as the crude tanker spot rates that our charterers earned on these vessels were at levels higher than the base rate they are fixed at. The profit sharing arrangements in the charters of a number of our crude vessels allow us to share the excess over the base rate on a 50/50 basis with our charterers, and are settled biannually.

Total expenses for the second quarter of 2012 were $25.7 million compared to $21.1 million in the second quarter of 2011, primarily due to the higher operating expenses incurred as a result of the higher number of vessels in our fleet following the acquisition of Crude Carriers. The operating expenses for the second quarter of 2012 amounted to $11.2 million, including a $6.1 million charge by a subsidiary of our Sponsor, Capital Maritime & Trading Corp. ("Capital Maritime" or "CMTC"), for the commercial and technical management of our fleet under the terms of our management agreements, compared to $7.9 million in the second quarter of 2011. The total expenses for the second quarter of 2012 also include $12.0 million in depreciation, compared to $8.2 million in the second quarter of 2011, and are reduced by a $0.3 million gain related to the sale of the M/T Aristofanis to unrelated third parties. General and administrative expenses for the second quarter of 2012 amounted to $2.3 million, which includes a $1.0 million non-cash charge related to the Partnership's Omnibus Incentive Compensation Plan.