Capital Product Partners L.P. (NASDAQ:CPLP) Q2 2020 Earnings Conference Call - Final Transcript
Jul 31, 2020 • 09:00 am ET
quarter at 4.8 years.
Turning to Slide 3. Revenues for the quarter were $36.6 million compared to $27.4 million during the second quarter of 2019. The increase in revenue was primarily attributable to the increase in the size of our fleet and the increase in the average charter rate and by certain of our vessels. The increase in revenue was partly offset by the off-hire period incurred by two of our vessels, which completed their special survey within the quarter.
Total expenses for the quarter were $22.7 million compared to $15.3 million in the second quarter of 2019. Total vessel operating expenses during the second quarter amounted to $9 million compared to $6.5 million during the second quarter, again, of 2019. The increase in operating expenses was mainly due to the increase in the size of our fleet and the completion of the special surveys of two of our vessels within the second quarter of 2020.
Total expenses for the second quarter of 2020 also includes vessel depreciation and amortization of $10.5 million compared to $7.2 million in the second quarter of 2019. The increase in depreciation and amortization during the second quarter was mainly attributable to the increase in the size of our fleet, passing of special surveys for eight of our vessels and installation of scrubber systems on seven of our vessels during the second half of 2019 and the first half of 2020.
General and administrative expenses for the second quarter of 2020 amounted to $1.8 million as compared to $1 million in the second quarter of 2019. The increase is mainly attributable to noncash items associated with the equity incentive plan adopted in the third quarter of 2019.
The partnerships [Phonetic] recorded net income from continuing operations of $8.7 million compared with a net income from continuing operations of $8 million for the second quarter of 2019. This translates into $0.46 per common unit or $0.53 excluding the impact of the $1.4 million write-off of debt issuance costs related to our ICBC refinancing.
On Slide 4, you can see the details of our operating surplus calculations that determine the distributions to our unitholders compared to the previous quarter. Operating surplus is a non-GAAP financial measure, which is defined fully in our press release. We have generated approximately $25.5 million in cash from operations for the quarter before accounting for the capital reserve. We allocated $9.3 million to the capital reserve compared to $10.2 million in the previous quarter, reflecting the decrease in debt amortization costs as a result of the refinancing of the three 9,000 TEU container vessels. After adjusting for the capital reserve, the adjusted operating surplus amounted to $16.2 million, which translates into 8.5 times coverage in view of the new quarterly distribution of $0.10 per common unit.
On Slide 5, you can see the details of our balance sheet. As of the end of the second quarter, the partnership's capital amounted to $409.8 million, an increase of $3.1 million compared to $406.7 million