Costamare posts larger than expected profit for the second quarter

COSTAMARE-Hyundai-Navarino

Costamare reported unaudited financial results for the second quarter and six-months ended June 30, 2016.

  • Voyage revenues adjusted on a cash basis of $117.9 million and $237.7 million for the three and six-months ended June 30, 2016, respectively.
  • Adjusted EBITDA of $83.9 million and $169.2 million for the three and six-months ended June 30, 2016, respectively.
  • Adjusted Net income available to common stockholders of $31.9 million or $0.42 per share and $64.0 million or $0.85 per share for the three and six-months ended June 30, 2016, respectively.

New Business Developments

A. New financing transactions

  • In May 2016, we entered into a $39.0 million, 5 year loan facility with a leading US financial institution. The facility will be secured with a first priority mortgage on the 2010-built 8,531TEU Navarino.
  • In June 2016, we entered into a loan agreement with a leading European financial institution for the financing of the first two 11,000 TEU vessels on order which were acquired pursuant to our joint venture with York. The facility is for an amount of up to $88 million and will be payable in five years. The proceeds are expected to finance the remaining yard instalments for each of the two vessels.

B. Re-financing of an existing facility

  • In July 2016, we finalized the re-financing of our credit facility secured with the 2013-built 8,827 TEU MSC Athens and MSC Athos containerships as collateral, with a Chinese financial institution. The new financing, which is for a total of approximately $152 million, is under the structure of a sale and leaseback transaction.

C. Newbuild vessel deliveries

  • On May 3, 2016 and June 13, 2016, we accepted delivery of the 14,424TEU containerships Triton and Titan, two containerships acquired pursuant to our joint venture with York that are subject to sale and leaseback transactions with Chinese financial institutions. The vessels commenced their 10year time charters with Evergreen. Costamare holds a 40% interest in the entities that own each vessel.

D. New charter agreements

  • The Company entered into the following charter arrangements:
    • Agreed to extend the charters of the 4,890 TEU containerships Oakland Express, Halifax Express and Singapore Express, built in 2000, with Hapag-Lloyd for a period expiring at the charterer’s option during the period from November 2016 through June 2017, starting from September 8, 2016, October 25, 2016 and July 14, 2016, respectively, at a daily rate of $6,300.
    •  Agreed to extend the charter of the 2004-built, 4,992 TEU containership Zim Piraeus with Zim for a period of 5 to 8 months starting from August 1, 2016 at a daily rate of $5,350.
    • Agreed to extend the charter of the 1992-built, 3,351 TEU containership Marina with Evergreen for a period expiring at the charterer’s option during the period from June 10, 2016 through November 30, 2016, at a daily rate of $6,000.
    • Agreed to charter the 1998-built, 3,842 TEU containership Itea with ACL for a period of 70 to 75 days starting from June 30, 2016, at a daily rate of $6,250.
    • Agreed to charter the 2000-built, 1,645 TEU containership Neapolis with Evergreen for a period of 6 to 9 months starting from July 11, 2016, at a daily rate of $6,900.
    • Agreed to charter the 1996-built, 1,504 TEU containership Prosper with Evergreen for a period of 3 to 6 months starting from May 15, 2016, at a daily rate of $6,600.
  • Agreed to extend the charters of the 4,890 TEU containerships Oakland Express, Halifax Express and Singapore Express, built in 2000, with Hapag-Lloyd for a period expiring at the charterer’s option during the period from November 2016 through June 2017, starting from September 8, 2016, October 25, 2016 and July 14, 2016, respectively, at a daily rate of $6,300.
  •  Agreed to extend the charter of the 2004-built, 4,992 TEU containership Zim Piraeus with Zim for a period of 5 to 8 months starting from August 1, 2016 at a daily rate of $5,350.
  • Agreed to extend the charter of the 1992-built, 3,351 TEU containership Marina with Evergreen for a period expiring at the charterer’s option during the period from June 10, 2016 through November 30, 2016, at a daily rate of $6,000.
  • Agreed to charter the 1998-built, 3,842 TEU containership Itea with ACL for a period of 70 to 75 days starting from June 30, 2016, at a daily rate of $6,250.
  • Agreed to charter the 2000-built, 1,645 TEU containership Neapolis with Evergreen for a period of 6 to 9 months starting from July 11, 2016, at a daily rate of $6,900.
  • Agreed to charter the 1996-built, 1,504 TEU containership Prosper with Evergreen for a period of 3 to 6 months starting from May 15, 2016, at a daily rate of $6,600.

E. Dividend announcements

  • On July 6, 2016, we declared a dividend for the second quarter ended June 30, 2016, of $0.29 per share on our common stock, payable on August 17, 2016, to stockholders of record on August 3, 2016.
  • On July 6, 2016, 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 15, 2016 to holders of record on July 14, 2016.

F. New dividend reinvestment plan

  • On July 6, 2016, we implemented a dividend reinvestment plan (the “plan”). The plan offers holders of Company common stock the opportunity to purchase additional shares by having their cash dividends automatically reinvested in Company common stock. Participation in the plan is optional, and shareholders who decide not to participate in the plan will continue to receive cash dividends, as declared and paid in the usual manner.

Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:

“During the second quarter the Company continued to deliver solid and profitable results.

Regarding new financings, we have secured funding for our first two 11,000 TEU new buildings, minimizing our remaining capital commitments and we have entered into new debt transactions financing debt free and refinancing existing assets at competitive terms.

On the chartering side, we continue to employ our vessels at favorable rates despite adverse market conditions, having chartered in total eight ships opening during the last three months.

Regarding our new building program, we have accepted delivery, as per schedule, of the first two out of the five 14,000 TEU vessels, which have commenced their 10-year charter.

Finally, we implemented a dividend reinvestment plan available to all common stock holders. As long term committed shareholders, members of the founding family, currently controlling an interest of about 65% in the aggregate, have each decided to reinvest in full the second quarter cash dividend.

In a challenging market environment our main goal is to preserve liquidity and strengthen our balance sheet. Going forward, the Board will continue reviewing our dividend policy based on market conditions and our liquidity requirements.”

tble

LEAVE A COMMENT

×

Comments are closed.