Costamare reports strong Q1 earnings

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2034

Costamare reported unaudited financial results for the first quarter ended March 31, 2024.

I. PROFITABILITY AND LIQUIDITY

  • Q1 2024 Net Income available to common stockholders of $94.2 million ($0.79 per share).
  • Q1 2024 Adjusted Net Income available to common stockholders1 of $75.2 million ($0.63 per share).
  • Q1 2024 liquidity of $1,106.0 million2.

II. OWNED FLEET CHARTER UPDATE3 – FULLY EMPLOYED CONTAINERSHIP FLEET FOR THE YEAR AHEAD

  • 97% and 80% 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 3.4 years5.
  • Entered into more than 30 chartering agreements for the owned dry bulk fleet since Q4 2023 earnings release.

III. SALE AND PURCHASE ACTIVITY

Vessel Disposals

Conclusion of the sale of the following dry bulk vessels:

  • m/v Pegasus built in 2011 with a 56,726 DWT capacity.
  • m/v Merida built in 2012 with a 56,670 DWT capacity.
  • m/v Alliance built in 2012 with a 33,751 DWT capacity.
  • m/v Konstantinos built in 2012 with a 32,178 DWT capacity.

Net sale proceeds after debt repayment amounted to $26.2 million.

Agreement for the sale of the dry bulk vessel:

– m/v Adventure built in 2011 with a 33,755 DWT capacity (expected conclusion of sale within Q2 2024). Estimated net sale proceeds after debt prepayment of $7.1 million.

Vessel Acquisitions

  • Conclusion of the acquisition of the 2011-built, 180,643 DWT capacity dry bulk vessel, Miracle (ex. Iron Miracle).
  • Agreement for the acquisition of the 2012-built, 181,415 DWT capacity dry bulk vessel, Frontier Unity (tbr. Frontier) (expected conclusion within Q2 2024).
  • Agreement for the acquisition of the 2012-built, 179,895 DWT capacity dry bulk vessel, Lowlands Prosperity (tbr. Prosper) (expected conclusion within Q2 2024).

IV. DRY BULK OPERATING PLATFORM

Costamare Bulkers Inc. (“CBI”) has currently fixed a fleet of 54 dry bulk vessels on period charters, consisting of:

– 33 Newcastlemax/ Capesize vessels.

– 21 Kamsarmax vessels.

Majority of the fixed fleet is on index linked charter-in agreements, consisting of:

– 28 charters for Newcastlemax/ Capesize vessels that are index linked.

– 8 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.

V. 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 24 shipping assets as of the date of this press release, for a total amount of approximately $258 million, on the back of what we believe is a healthy pipeline.

VI. DIVIDEND ANNOUNCEMENTS

  • On April 2, 2024, the Company declared a dividend of $0.115 per share on the common stock, which was paid on May 6, 2024, to holders of record of common stock as of April 19, 2024.
  • On April 2, 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 April 15, 2024 to holders of record as of April 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 first quarter of the year, the Company generated Net Income of about $94 million. As of quarter end, liquidity was close to $1.1 billion.

In the containership sector, charter rates have seen significant improvement from the end of last year. Demolition has fallen to levels below what was experienced during the first quarter of 2023. Although cargo volumes have generally improved, the Red Sea disruption is the main reason for the improved charter market.

We have proactively secured employment for 97% and 80% of our containership fleet for 2024 and 2025, respectively, generating contracted revenues of $2.3 billion with a remaining time charter duration of 3.4 years.

On the dry bulk side, as part of our strategy to renew the fleet and increase its average size, we have agreed to acquire two more capesize vessels and accepted delivery of one similar-sized ship. In total, we have acquired five capesize vessels with an average age of about 12 and a half years and disposed of a total of 10 smaller sized ships with an average age of 14 years.

Our owned dry bulk vessels continue to trade on a spot basis, while the trading platform is commercially managing a fleet of 54 ships. As mentioned in the past, we have a long-term commitment to the dry bulk sector, which has been a strategic decision for us.

With regards to Neptune Maritime Leasing, the platform has been steadily growing, having concluded leasing transactions for 24 ships in total, on the back of a healthy pipeline extending over the coming quarters.”