Costamare Inc. reported unaudited financial results for the fourth quarter (Q4 2022) and year ended December 31, 2022.
I. RECORD PROFITABILITY FOR YEAR ENDED 2022
2022 Net Income available to common stockholders of $523.9 million ($4.26 per share) vs $404.1 million ($3.28 per share) in 2021.
2022 Adjusted Net Income available to common stockholders1 of $405.3 million ($3.30 per share) vs $289.9 million ($2.36 per share) in 2021.
Q4 2022 Net Income available to common stockholders of $186.7 million ($1.53 per share) vs $153.4 million ($1.24 per share) in Q4 2021.
Q4 2022 Adjusted Net Income available to common stockholders1 of $74.8 million ($0.61 per share) vs $112.1 million ($0.91 per share) in Q4 2021.
2022 Year-end liquidity of $973.2 million2 vs $552.3 million3 in 2021 Year-end.
II. DRY BULK OPERATING PLATFORM
Setup of a new venture under Costamare Bulkers Inc. (CBI), which is fully consolidated with the Company.
CBI will charter-in/out dry bulk vessels, enter into contracts of affreightment, forward freight agreements and may also utilize hedging solutions.
CBI has currently fixed a fleet of 14 Newcastlemax/Capesize bulk carriers and a fleet of 9 Kamsarmax/Panamax bulk carriers.
III. NEW DEBT FINANCING
New financing agreements totaling approximately $558 million in aggregate and extension of maturity of a bilateral loan facility. More specifically:
Refinancing of existing indebtedness of 10 containerships, secured by long term contracted cash flows:
Bilateral loan facility for a total amount of approximately $323 million.
Loan proceeds used for prepayment of existing indebtedness and general corporate purposes.
Seven year tenor.
Significant improvement of funding cost, and extension of maturity for eight out of the ten refinanced vessels.
Refinancing of existing indebtedness of two containerships, secured by long term contracted cash flows:
Bilateral loan facility for a total amount of $85 million.
Loan proceeds used for prepayment of existing indebtedness and general corporate purposes.
Eight year tenor.
Five year extension of original loan maturity for the two refinanced vessels.
Refinancing of existing indebtedness of nine dry bulk carriers:
Bilateral hunting license loan facility for a total amount of $120 million.
Approximately $83 million drawn for the refinancing of the original indebtedness.
Six year tenor.
Refinancing of existing indebtedness of three dry bulk carriers:
Bilateral loan facility for a total amount of $30 million.
Loan proceeds of $30 million used for prepayment of existing indebtedness.
Six year tenor.
Extension of the original maturity until Q1 2029, of a bilateral loan facility (outstanding indebtedness of approximately $127 million) secured by two containerships with long term contracted cash flows.
IV. OWNED FLEET CHARTER UPDATE - FULLY EMPLOYED CONTAINERSHIP FLEET4 FOR THE YEAR AHEAD
96% and 85% of the containership fleet5 fixed for 2023 and 2024, respectively.
Contracted revenues for the containership fleet of approximately $3.2 billion with a TEU-weighted duration of 4.2 years6.
Entered into a total of 38 chartering agreements for the owned dry bulk fleet since Q3 2022 earnings release.
V. SALE AND PURCHASE ACTIVITY
Conclusion of the sale of the 2003-built, 6,644 TEU capacity containership, Maersk Kalamata in January 2023, resulting in an estimated capital gain of $48.5 million in Q1 2023.
VI. DIVIDEND ANNOUNCEMENTS
On January 3, 2023, the Company declared a dividend of $0.115 per share on the common stock, which was paid on February 7, 2023, to holders of record of common stock as of January 20, 2023.
On January 3, 2023, 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 January 17, 2023 to holders of record as of January 13, 2023.
Available funds remaining under the share repurchase program of approximately $90 million for common shares and $150 million for preferred shares.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
2022 has been a record year for Costamare. With a fleet of 117 vessels, including 45 dry bulk ships, the Company generated Net Income of above $523 million. As of the end of the year liquidity stood at around $970 million.
On the containerships side, 2022 was a unique year with the first half drawing upon favorable market conditions with strong demand and logistical disruptions continuing to impact the sector, while during the second half charter rates and asset values normalized as a result of reduced cargo demand and the return of capacity previously tied up by congestion.
We chartered a total of 16 secondhand containerships during the year, which added incremental contracted revenues of more than $550 million. Total contracted revenues amount to $3.2 billion with a weighted average remaining time charter duration of about 4.2 years.
We are above 95% covered for 2023 and we have proactively arranged long term employment on a forward basis for a number of containerships coming off charter between 2023 and 2025. At the same time, we are in the process of disposing of some older tonnage at prices fixed during a tight market environment.
On the dry bulk side, the new dry bulk operating platform previously announced commenced operations during the quarter. With an equity commitment of up to $200 million our goal is to grow the business on a prudent basis realizing healthy returns for our shareholders.
On the back of our increased liquidity and container charter coverage, we are actively pursuing new investment opportunities in the shipping sector that have the potential to provide enhanced returns at acceptable risk levels.
