Costamare reported unaudited financial results for the second quarter (“Q2 2022”) and six-months ended June 30, 2022.
I. RECORD PROFITABILITY IN A SECOND QUARTER SINCE NYSE LISTING
Q2 2022 Net Income available to common stockholders of $114.1 million ($0.92 per share) vs $82.8 million ($0.67 per share) in Q2 2021.
Q2 2022 Adjusted Net Income available to common stockholders1 of $118.6 million ($0.95 per share) vs $58.3 million ($0.47 per share) in Q2 2021.
Q2 2022 liquidity of $854.1 million2 vs $564.6 million in Q2 2021.
II. CLOSING OF $500 MILLION SYNDICATED LOAN FACILITY
Refinancing of existing indebtedness of 17 vessels, secured by long term contracted cash flows, with a tenor of 5 years.
Additional liquidity raised of approximately $200 million.
Participation of 12 U.S., European and Asian financing institutions, most of which represent new financing relationships.
Significant reduction of funding cost, and extension of repayment schedule for 16 out of the 17 refinanced vessels.
III. SHARE REPURCHASE PROGRAM TO DATE
Repurchase of 4,736,702 common shares (representing 3.8% of total common shares) at an average price of $12.67 per share, for a total consideration of approximately $60 million.
Available funds remaining under the share repurchase program of approximately $90 million for common shares and $150 million for preferred shares.
IV. NEW CHARTER ARRANGEMENTS AND FULLY EMPLOYED CONTAINERSHIP FLEET3 FOR THE YEAR AHEAD
Containership fleet fully employed for the remainder of 2022.
More than 95% of the containership fleet4 is fixed for 2023.
Forward fixing of two 2004-built, 6,492 TEU containerships, Aries and Argus, for a minimum tenor of 3 years at a daily rate of $58,500.
Entered into a total of 27 chartering agreements for the dry bulk fleet since Q1 2022 earnings release.
V. SALE AND PURCHASE ACTIVITY
Conclusion of the sale of the 2009-built, 57,334 DWT dry bulk vessel Thunder, resulting in a capital gain of $3.5 million.
VI. DIVIDEND ANNOUNCEMENTS
On July 1, 2022, the Company declared a dividend of $0.115 per share on the common stock, which will be paid on August 8, 2022, to holders of record of common stock as of July 21, 2022.
On July 1, 2022, the Company declared a dividend of $0.476563 per share on the Series B Preferred Stock, $0.531250 per share on the Series C Preferred Stock, $0.546875 per share on the Series D Preferred Stock and $0.554688 per share on the Series E Preferred Stock, which were all paid on July 15, 2022 to holders of record as of July 14, 2022.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
“During the second quarter revenues reached approx. $290 million and Adjusted Net Income more than doubled to $119 million, compared to $58 million for the same period last year. As of quarter end, cash balances stood at around $700 million and total liquidity, including undrawn credit lines, was above $850 million.
Over the last months we executed on our previously announced share buy-back program, buying $60 million worth of common shares. At the same time, we concluded a 5-year syndicated loan facility of $500 million, proactively refinancing the indebtedness of 16 vessels and significantly reducing our cost of funding at competitive terms.
Regarding the market, congestion and pressured supply chains remain challenging as we enter the second half of the year. On the container market, asset values and charter rates remain at healthy and historically high levels, as also evidenced by our latest fixtures.
On the dry bulk market, rates have recently been under pressure but still remain at profitable levels, especially for owners who entered the market the year before. We view any potential softening of asset values as a compelling buying opportunity as we feel comfortable with the long-term supply and demand dynamics of the sector.
On the back of our increased liquidity, we are actively evaluating new investment opportunities in the shipping sector that have the potential to provide enhanced returns at acceptable risk levels.”
