Costamare Inc. reported unaudited financial results for the second quarter and six-months ended June 30, 2017.
Voyage revenues adjusted on a cash basis of $102.2 million and $204.9 million for the three and six-months ended June 30, 2017, respectively.
Adjusted Net Income available to common stockholders of $20.6 million or $0.21 per share and $41.3 million or $0.44 per share for the three and six-months ended June 30, 2017, respectively.
New Business Developments
A. Vessel deliveries
On May 15, 2017 and May 18, 2017, we accepted delivery of the 2014-built 4,957 TEU containerships, Kyparissia and Leonidio, respectively. Both vessels are chartered to Maersk Line through Q4 2024.
On May 16, 2017, we accepted delivery of the 2005-built 7,471 TEU containership, Maersk Kowloon. On June 12, 2017, the vessel commenced its 5-year charter with Maersk Line.
On May 31, 2017, we accepted delivery of the 11,010 TEU containership Cape Artemisio, from the shipyard, which was acquired pursuant to our joint venture with York. The vessel commenced its charter in June 2017. Costamare holds a 49% interest in the entity that owns the vessel.
B. New financing transactions
In June 2017, we entered into two new financing agreements for the 2014-built 4,957 TEU containerships Leonidio and Kyparissia, with a Chinese financial institution.
We are currently in discussions for the financing of the 2005-built 7,471 TEU containership, Maersk Kowloon.
C. Follow-on Offering
On May 31, 2017, the Company completed a follow-on public offering of 13.5 million shares of its common stock at $7.10 per share, upsized from an initial 12.5 million shares. The gross proceeds from the offering before the underwriting discount and other offering expenses were approximately $95.85 million. Members of the Konstantakopoulos family, who in the aggregate own a majority of the common stock of the Company, purchased $10.0 million of shares in the offering. We plan to use the net proceeds of this offering for capital expenditures, including vessel acquisitions, and for other general corporate purposes, which may include repayments of indebtedness.
D. New charter agreements
The Company entered into the following charter agreements:
Agreed to extend the charter of the 1995-built, 1,162 TEU containership Zagora with MSC for a period of 11 to 13 months, starting from June 1, 2017, at a daily rate of $6,500.
Agreed to charter the 2001-built, 1,078 TEU containership Stadt Luebeck to Sea Consortium, for a period of 25 days to 90 days starting from April 8, 2017, at a daily rate of $6,500. Subsequently, agreed to extend the charter with Sea Consortium for a further period of 1 to 3 months, starting from May 6, 2017, at a daily rate of $6,800.
Agreed to extend the charter of the 2000-built, 2,474 TEU containership Areopolis with Evergreen for a period of 3 to 8 months, starting from July 21, 2017, at a daily rate of $8,300.
Agreed to extend the charter of the 2002-built, 4,132 TEU containership MSC Ulsan with MSC for a period up to August 20, 2017, starting from June 25, 2017, at a daily rate of $8,000.
Agreed to extend the charter of the 2000-built, 1,645 TEU containership Neapolis with Evergreen for a period of 3 to 8 months, starting from June 25, 2017, at a daily rate of $6,900.
Agreed to extend the charter of the 1998-built, 1,645 TEU containership Padma with Evergreen for a period of 4 to 8 months, starting from August 21, 2017, at a daily rate of $6,800.
E. Dividend announcements
On July 3, 2017, we declared a dividend for the second quarter ended June 30, 2017, of $0.10 per share on our common stock, payable on August 7, 2017, to stockholders of record on July 24, 2017.
On July 3, 2017, we declared a dividend of $0.476563 per share on our Series B Preferred Stock, a dividend of $0.531250 per share on our Series C Preferred Stock and a dividend of $0.546875 per share on our Series D Preferred Stock which were all paid on July 17, 2017 to holders of record on July 14, 2017.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
“During the second quarter the Company delivered solid results.
We recently accepted delivery of three second hand vessels, which have been chartered for periods ranging from 5 to 7 years. During the quarter we entered into debt financing agreements for two of them and we are into discussions regarding the debt finance of the third ship. As of today all of our new building program is fully funded with remaining equity commitments amounting to only US $ 2 million, due in 2018.
On the chartering side, we have no ships laid up. We continue to charter our vessels, having chartered in total 6 ships since the last quarter.
Finally, on the dividend and the Dividend Reinvestment Plan currently in place, members of the founding family, as has been the case since the inception of the plan, have decided to reinvest in full the second quarter cash dividends.
As mentioned in the past, our goal is to strengthen the Company and enhance long term shareholder value. In that respect, we are actively looking at new transactions selectively.”