Costamare Inc. reported unaudited financial results for the second quarter (“Q2 2023”) and six-months ended June 30, 2023.
I. PROFITABILITY AND LIQUIDITY
• Q2 2023 Net Income available to common stockholders of $63.2 million ($0.52 per share).
• Q2 2023 Adjusted Net Income available to common stockholders1 of $68.6 million ($0.56 per share).
• Q2 2023 liquidity of $1,059 million2.
II. SHARE REPURCHASE PROGRAM TO DATE
• Repurchase of 5,385,492 common shares, for a total consideration of $50.0 million, since the beginning of Q2 2023.
• Available funds remaining under the share repurchase program of $40.0 million for common shares and $150 million for preferred shares.
III. DRY BULK OPERATING PLATFORM
• Costamare Bulkers Inc. (“CBI”) has currently fixed a fleet of 56 dry bulk vessels on period charters, consisting of:
o 35 Newcastlemax/Capesize vessels
o 20 Kamsarmax/Panamax vessels
o 1 Ultramax vessel
• 53 of the chartered-in vessels have been delivered to CBI.
• Majority of the fixed fleet on index linked charter-in agreements.
IV. LEASE FINANCING PLATFORM
• Lead participation in Neptune Maritime Leasing Limited (“NML”).
• Equity investment of up to $200 million.
• Current Company’s investment to NML of $49.3 million.
• Outstanding lease financings granted by NML amount to $119.6 million.
V. NEW DEBT FINANCING
• Conclusion of the refinancing of existing indebtedness of two containerships and seven dry bulk vessels with two European financial institutions3. More specifically:
o Two bilateral loan facilities for a total amount of approximately up to $176 million.
o Of the $176 million, approximately $84 million remain available for the financing of future acquisitions for dry bulk vessels until December 2025.
o Drawn down amounts were used for prepayment of existing indebtedness.
o Improvement of funding cost and extension of maturity for all nine refinanced vessels.
VI. OWNED FLEET CHARTER UPDATE - FULLY EMPLOYED CONTAINERSHIP FLEET4 FOR THE YEAR AHEAD
• 99% and 87% of the containership fleet5 fixed for 2023 and 2024, respectively.
• Contracted revenues for the containership fleet of approximately $2.9 billion with a TEU- weighted duration of 3.9 years6.
• Entered into more than 50 chartering agreements for the owned dry bulk fleet since Q1 2023 earnings release.
VII. SALE AND PURCHASE ACTIVITY
• Agreement for the acquisition of two 2011-built Capesize bulk carriers. Vessels will be purchased with cash on hand and the acquisitions are expected to be concluded in Q3 2023.
• Agreement for the sale of the 1998-built, 2,472 TEU capacity containership, Monemvasia. The Company owns 49% equity interest in the company owning this containership with the remaining equity interest being owned by York Capital. Sale is expected to be concluded in Q3 2023, with an estimated capital gain of $1.7 million for the Company.
• Conclusion of the sale of the 2010-built, 37,302 DWT capacity dry-bulk vessel, Comity, resulting in a capital gain of $2.1 million.
• Conclusion of:
o the sale of our 49% equity interest in the company owning the 2018-built, 3,800 TEU capacity containership, Polar Argentina to York Capital,
o the acquisition of the 51% equity interest of York Capital in the company owning the 2018-built, 3,800 TEU capacity containership, Polar Brasil, resulting in the Company owning 100% of the relevant equity interest.
VIII. DIVIDEND ANNOUNCEMENTS
• On July 3, 2023, the Company declared a dividend of $0.115 per share on the common stock, which is payable on August 7, 2023, to holders of record of common stock as of July 20, 2023.
• On July 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 July 17, 2023 to holders of record as of July 14, 2023.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
“During the second quarter of the year, the Company generated Net Income of about $69 million. As of quarter end, liquidity was $1 billion.
In the containership sector, the charter market has been softening, although rates still remain at healthy levels. The orderbook, however, remains the principal threat to the market.
On the dry bulk side, our owned dry bulk vessels continue to trade on a spot basis while the trading platform has grown to a fleet of 56 ships. Having invested $200 million in the dry bulk operating platform, we have a long term commitment to the sector whose fundamentals we view positively.
Regarding Neptune Maritime Leasing, the platform has been steadily growing on a prudent basis, having concluded leasing transactions worth a total of $120 million, which are complemented by a heathy pipeline extending over the coming quarters.
Finally, during the quarter we proceeded with our share repurchase program and we bought $50 million worth of common shares highlighting our strong belief that the share price is heavily undervalued considering both the Company’s performance and prospects.”
