Costamare Inc. reported unaudited financial results for the first quarter ended March 31, 2023 (“Q1 2023”).
PROFITABILITY AND LIQUIDITY
Q1 2023 Net Income available to common stockholders of $141.6 million ($1.16 per share).
Q1 2023 Adjusted Net Income available to common stockholders1 of $46.5 million ($0.38 per share).
Q1 2023 liquidity of $1,076.0 million2.
DRY BULK OPERATING PLATFORM
First full operational quarter of Costamare Bulkers Inc. (“CBI”).
CBI has currently fixed a fleet of 51 dry bulk vessels on period charters, consisting of:
31 Newcastlemax/Capesize vessels
19 Kamsarmax/Panamax vessels
1 Ultramax vessel
39 of the chartered-in vessels have been delivered to CBI.
Majority of the fixed fleet on index linked charter-in agreements.
LEASE FINANCING PLATFORM
Lead participation in Neptune Maritime Leasing Limited (“Neptune Leasing”).
Equity investment of up to $200 million.
NEW DEBT FINANCING
Refinancing of existing indebtedness of 7 containerships with two European financial institutions. More specifically:
Two bilateral loan facilities for a total amount of approximately up to $95 million.
One of the two loan facilities is on a commitment status basis and subject to final documentation.
Loan proceeds towards prepayment of existing indebtedness.
Facilities’ tenors between five and six years.
Improvement of funding cost and extension of maturity for all seven refinanced vessels.
OWNED FLEET CHARTER UPDATE - FULLY EMPLOYED CONTAINERSHIP FLEET3 FOR THE YEAR AHEAD
98% and 86% of the containership fleet4 fixed for 2023 and 2024, respectively.
Contracted revenues for the containership fleet of approximately $3.1 billion with a TEU-weighted duration of 4.1 years5.
Entered into more than 60 chartering agreements for the owned dry bulk fleet since Q4 2022 earnings release.
SALE AND PURCHASE ACTIVITY
Estimated combined net capital gain of $84.7 million in Q1 2023, from the sale or agreement to sell certain of our vessels.
Vessels which have been sold or are expected to be sold include:
Owned Containerships
2003-built, 6,644 TEU capacity, Maersk Kalamata (sold in January 2023).
2000-built, 6,648 TEU capacity, Sealand Washington (sold in February 2023).
Owned Dry Bulk Vessels
2010-built, 32,300 DWT capacity, Miner (sold in March 2023).
2011-built, 35,112 DWT capacity, Taibo (sold in April 2023).
2010-built, 37,302 DWT capacity, Comity (expected to be sold in Q2 2023).
Joint Venture Containerships
Agreed to concurrently:
Sell our 49% equity interest in the company owning the 2018-built, 3,800 TEU capacity containership, Polar Argentina to York Capital which holds the remaining 51% and
Acquire the 51% equity interest of York Capital in the company owning the 2018-built, 3,800 TEU capacity containership, Polar Brasil.
Both transfers are expected to be concluded in Q2 2023, whereupon we will own 100% of the equity interest in the ship-owning company of the containership Polar Brasil (compared to the 49% previously owned in each of the abovementioned vessels).
DIVIDEND ANNOUNCEMENTS
On April 3, 2023, the Company declared a dividend of $0.115 per share on the common stock, which was paid on May 5, 2023, to holders of record of common stock as of April 19, 2023.
On April 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 April 17, 2023 to holders of record as of April 14, 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:
“During the first quarter of the year, the Company generated Net Income of $142 million. As of quarter end, liquidity was above $1 billion.
In the containership market, charter rates are on a rising trend with high demand across the board, while fixture periods are increasing in duration. The orderbook, however, remains the principal threat to the market.
We have covered nearly 100% of our containership open days 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 having secured for our fleet contracted revenues of $3.1 billion with a TEU weighted duration of 4 years.
On the dry bulk side, our owned dry bulk vessels continue to trade on the spot market while the trading platform has been growing with a fleet of 51 ships already fixed under period charters. Having agreed to invest up to $200 million, our goal is to grow the dry bulk operating platform business on a prudent basis and realize healthy returns for our shareholders.
Finally, during the quarter we became the leading investor in Neptune Maritime Leasing Limited, a growth-oriented maritime leasing platform, having agreed to invest up to $200 million.
Considering current asset values, we believe the Neptune Leasing investment is a favorable employment of the Company’s increased liquidity. The new venture is synergetic to the existing ship owning platform and is expected to further enhance the strong relationships built over the last decades with shipowners and commercial lenders in the ship financing sector.”
