I would now turn the – hand over to your speaker today, Mr. Lazaridis. Please go ahead, sir.
Thank you, (Scott). Thank you all for joining us today. As a reminder, we will be referring to supporting slides available on our website as we go through today’s presentation.
Starting with Slide 1, I’m going to make some comparisons on today’s call between the second quarter of 2012 and the second quarter of 2011 as this is the most meaningful analogy in our business.
On July 23, 2012, our board of director declared a cost distribution of $0.2325 per common unit for the second quarter of 2012 in line with management’s annual distribution guidance.
The second quarter common unit cash distribution will be paid on August 15, 2012 to unit holders of record on August 7, 2012.
The partnership’s operating surplus for the quarter amounted to $16.9 million or $12.7 million adjusted for the payment of distributions to the Class B unit holders following the issuance of 15,555,554 Class B convertible preferred units during the second quarter.
Revenues for the second quarter include $1.1 million in profit sharing revenues generated primarily by three of our crude vessels as a good spot tanker market rebounded during the first half of the year.
The profit sharing arrangements in the charters of a number of our good vessels allow us to share the success of the base rate, on a 50/50 basis with our charters and are settled biannually.
I would also like to remind you that on May 14, 2012, we announced a very important transaction for the partnership as we agreed to issue $140 million of Class B units to a group of investors, including Kayne Anderson Capital Advisors, (Strong) Capital LLC, (inaudible) Partner, and the partnership sponsor, Capital Maritime.
The Class B units were apprised at $9 per unit and are convertible at any time into common units of the partnership on a one-for-one basis.