Costamare reported unaudited financial results for the second quarter (“Q2 2024”) and six-months ended June 30, 2024.
I. PROFITABILITY AND LIQUIDITY
Q2 2024 Net Income available to common stockholders of $91.3 million ($0.77 per share).
Q2 2024 Adjusted Net Income available to common stockholders1 of $91.4 million ($0.77 per share).
Q2 2024 liquidity of $1,118.3 million
II. FULL REDEMPTION OF 8.875% SERIES E CUMULATIVE REDEEMABLE PERPETUAL PREFERRED STOCK
- Full redemption with cash on hand on July 15, 2024.
- Annual cash flow savings of ca. $10.1 million.
III. OWNED FLEET CHARTER UPDATE3 – NEW CHARTER ARRANGEMENTS AND FULLY EMPLOYED CONTAINERSHIP FLEET FOR THE YEAR AHEAD
- 100% and 88% of the containership fleet4 fixed for 2024 and 2025, respectively.
- Contracted revenues for the containership fleet of approximately $2.4 billion with a TEU-weighted duration of 3.5 years5.
- New fixtures for seven containerships, six of them on a forward basis, for a period ranging from 24 to 36 months and with incremental contracted revenues of $224 million.
- Entered into more than 25 chartering agreements for our owned dry bulk fleet since Q1 2024 earnings release.
IV. SALE AND PURCHASE ACTIVITY Vessel Disposals
- Conclusion of the sale of the 2011-built, 33,755 DWT capacity dry bulk vessel, Adventure. - Net sale proceeds after debt repayment amounted to $7.1 million.
- Agreement for the sale of the 2009-built, 58,018 DWT capacity dry bulk vessel, Oracle (expected conclusion of the sale within Q3 2024). - Estimated net sale proceeds after debt prepayment of $4.0 million.
Vessel Acquisitions
- Conclusion of the acquisition of the 2012-built, 179,895 DWT capacity dry bulk vessel, Prosper (ex. Lowlands Prosperity).
- Conclusion of the acquisition of the 2012-built, 181,415 DWT capacity dry bulk vessel, Frontier (ex. Frontier Unity).
V. NEW DEBT FINANCING
- Refinancing of existing indebtedness of three dry bulk vessels with one European financial institution. More specifically:
- Total amount of approximately $15.8 million.
- Loan proceeds towards prepayment of existing indebtedness.
- Tenor of five years.
- Improvement of funding cost and extension of maturity for all three refinanced vessels.
VI. DRY BULK OPERATING PLATFORM
- Costamare Bulkers Inc. (“CBI”) has currently fixed a fleet of 54 dry bulk vessels on period charters, consisting of: - 32 Newcastlemax/ Capesize vessels. - 22 Kamsarmax vessels.
- Majority of the fixed fleet is on index linked charter-in agreements, consisting of: - 23 charters for Newcastlemax/ Capesize vessels that are index linked. - 10 charters for Kamsarmax vessels that are index linked.
- Average remaining tenor for the Newcastlemax/ Capesize and Kamsarmax chartered-in fleet of 12 and 6 months, respectively.
VII. LEASE FINANCING PLATFORM
- Controlling interest in Neptune Maritime Leasing Limited (“NML”).
- Company’s current investment in NML of $123.3 million.
- Growing leasing platform, having funded 25 shipping assets as of the date of this press release, for a total amount of approximately $285 million, on the back of what we believe is a healthy pipeline.
VIII. DIVIDEND ANNOUNCEMENTS
- On July 1, 2024, the Company declared a dividend of $0.115 per share on the common stock, which will be paid on August 6, 2024, to holders of record of common stock as of July 19, 2024.
- On July 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, $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, 2024 to holders of record as of July 12, 2024.
- Available funds remaining under the share repurchase program of approximately $30 million for common shares and $150 million for preferred shares.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented: “During the second quarter of the year, the Company generated Net Income of about $91 million. As of quarter end, liquidity was above $1.1 billion.
In the containership sector, continued vessel diversions around Africa and an early peak season, with higher than expected cargo demand, have resulted in charter rates remaining on an upward trajectory against a backdrop of short supply of prompt tonnage.
During the quarter, we chartered on a forward basis seven containerships for a minimum period of between 2 to 3 years. The new charter agreements are expected to generate incremental contracted revenues of above $220 million.
The containership fleet employment stands at 100% and 88% for 2024 and 2025, respectively, and total contracted revenues amount to $2.4 billion with a remaining time charter duration of 3.5 years.
On the dry bulk side, we progress with our strategy to renew the owned fleet and increase its average size having concluded the sale of one 2011-built Handysize and agreed the sale of one 2009-built Supramax vessel while simultaneously acquiring two 2012-built Capesize ships.
CBI, our dry bulk trading platform, is commercially managing a fleet of 54 ships, the majority of which are on index-linked charter in agreements. As mentioned in the past, we have a long-term commitment to the sector, which has been a strategic decision for us.
Finally, with regards to Neptune Maritime Leasing, the platform has been steadily growing, having currently funded 25 shipping assets for a total amount of approximately $285 million on the back of a healthy pipeline.”