Costamare reported unaudited financial results for the third quarter and nine-months ended September 30, 2024.
I. PROFITABILITY AND LIQUIDITY
- Q3 2024 Net Income available to common stockholders of $75.5 million ($0.63 per share).
- Q3 2024 Adjusted Net Income available to common stockholders1 of $80.7 million ($0.68 per share).
- Q3 2024 liquidity of $1,019.2 million2.
II. SALE AND PURCHASE ACTIVITY
Vessel Acquisitions
- Agreement for:
- the acquisition of the 2011-built, 179,546 DWT capacity dry bulk vessel, Nord Magnes (tbr. Magnes). Expected conclusion of the acquisition within Q4 2024.
- the acquisition of the 2014-built, 61,090 DWT capacity dry bulk vessel, Alwine Oldendorff (tbr. Alwine). Expected conclusion of the acquisition within Q4 2024.
- the acquisition of the 2015-built, 61,090 DWT capacity dry bulk vessel, August Oldendorff (tbr. August). Expected conclusion of the acquisition by Q1 2025.
Vessel Disposals
- Conclusion of:
- the sale of the 2009-built, 58,018 DWT capacity dry bulk vessel, Oracle. Net sale proceeds after debt repayment amounted to $4.0 million.
- the sale of the 2009-built, 58,090 DWT capacity dry bulk vessel, Titan I. Net sale proceeds after debt repayment amounted to $10.8 million.
- Agreement for the sale of the 2012-built, 37,019 DWT capacity dry bulk vessel, Discovery (expected conclusion of the sale within Q4 2024). Estimated net sale proceeds after debt prepayment of $7.7 million.
III. OWNED FLEET CHARTER UPDATE – FULLY EMPLOYED CONTAINERSHIP FLEET3
- 100% and 94% of the containership fleet4 fixed for 2024 and 2025, respectively.
- Contracted revenues for the containership fleet of approximately $2.3 billion with a TEU-weighted duration of 3.3 years5.
- Forward fixing of seven containerships for a period ranging from 14 to 34 months with incremental revenues of $166 million, since the Q2 2024 earnings release.
- Entered into more than 30 chartering agreements for the owned dry bulk fleet since the Q2 2024 earnings release.
IV. DRY BULK OPERATING PLATFORM
- Costamare Bulkers Inc. (“CBI”) has currently fixed a fleet of 56 dry bulk vessels on period charters, consisting of:
- 34 Newcastlemax/ Capesize vessels
- 22 Kamsarmax/ Panamax vessels
- Majority of the fixed fleet is on index linked charter-in agreements. More specifically:
- 29 charters for Newcastlemax/ Capesize vessels that are index linked.
- 11 charters for Kamsarmax/ Panamax vessels that are index linked.
- Average remaining tenor for the Newcastlemax/ Capesize and Kamsarmax period chartered-in fleet of 12 and 7 months, respectively.
V. FULL PREPAYMENT OF UNSECURED BONDS
- Prepayment in full of the €100 million aggregate principal amount of unsecured bonds issued by its wholly owned subsidiary, Costamare Participations Plc.
- Prepayment will be made with cash on hand on November 25, 2024.
VI. NEW DEBT FINANCING
- Bilateral commitments, subject to final documentation, from four European financial institutions for the financing/ refinancing of the dry bulk fleet. More specifically:
- Total amount of the four bilateral facilities of up to approximately $352.1 million.
- Minimum tenor of 5 years.
- Improvement of funding cost.
- Approximately $94.2 million available for the financing of future acquisitions for dry bulk and container vessels until December 2025.
- No meaningful debt maturities until 2027.
VII. LEASE FINANCING PLATFORM
- Controlling interest in Neptune Maritime Leasing Limited (“NML”).
- Costamare equity investment of up to $200 million.
- Company’s current investment in NML of $123.3 million.
- Growing leasing platform, with committed funding for 32 shipping assets and total funding commitments exceeding $410 million, on the back of what we believe is a healthy pipeline.
VIII. DIVIDEND ANNOUNCEMENTS
- On October 1, 2024, the Company declared a dividend of $0.115 per share on the common stock, which is payable on November 6, 2024, to holders of record of common stock as of October 21, 2024.
- On October 1, 2024, 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 and $0.546875 per share on the Series D Preferred Stock which were all paid on October 15, 2024 to holders of record as of October 11, 2024.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
“During the third quarter of the year, the Company generated Net Income of about $80 million. As of quarter end, liquidity was above $1 billion. In the containership sector, with idle vessels of less than 1%, the fleet can still be considered as ‘fully employed’. The market is split between the larger sizes which remain in limited supply, and smaller vessels where the availability of tonnage is greater. As the pool of bigger tonnage is unable to meet demand, charter rates continue to evolve at firm levels. During the quarter we chartered 7 containerships at healthy levels. The new charter agreements are expected to generate incremental contracted revenues of above $165 million. The containership fleet employment stands at 100% and 94% for 2024 and 2025, respectively. Total contracted revenues amount to $2.3 billion with a remaining time charter duration of 3.3 years. On the dry bulk side, we progress with our strategy to renew the owned fleet and increase its average size; during the quarter we agreed to acquire two 2014 and 2015 built Ultramax vessels and one 2011-built Capesize ship, while progressing with the disposal of smaller tonnage. CBI manages a fleet of 56 ships, the majority of which are on index-linked charter-in agreements. We have a long-term commitment to the sector, and we view the vessel-owning and the trading platform as highly complementary activities. Finally, with regards to Neptune Maritime Leasing, the platform continues to grow with committed funding for 32 shipping assets, reflecting total funding commitments exceeding $410 million on the back of a healthy pipeline.”