I am doing equity research on this drop down MLP: Capital Product LP (Ticker is CPLP)
They operate a diversified fleet of:
– 14 container ships with one more being delivered in June for a total DWT of 1.4M and total Teu capacity of around 120k but all are on long-term charters.
– 1 bull carrier with DWT of 180k on spot prices
– And 6 LNG carriers with one being delivered in the next couple weeks for a total DWT of 570K and total CBM capacity of 1.2M CBM all on long term charters.
The question here is that i am making a worst case scenario, where, after the charters expire, all of the ships are scrapped.
Of course this depends on steel prices, but with a total deadweight tonnage of 1.8 million how much do you think this can be scrapped for?
Also DWT of course does not equal scrappable weight, but i can’t figure out where to get gross tonnage or empty ship weight.
I found a 2021 figure of all ship demolitions during the year being scrapped for a value of 2.7B or a per DWT of around 102.73 or a total value for this fleet of 185M?
Can i get some help?
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