Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today
reported unaudited financial results for the second quarter (“Q2
2023”) and six-months ended June 30, 2023.
- 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.
- 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.
- DRY BULK OPERATING PLATFORM
- Costamare Bulkers Inc. (“CBI”) has currently fixed a fleet
of 56 dry bulk vessels on period charters, consisting of:
- 35 Newcastlemax/Capesize vessels
- 20 Kamsarmax/Panamax vessels
- 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.
- 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.
- 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:
- Two bilateral loan facilities for a total amount of
approximately up to $176 million.
- Of the $176 million, approximately $84 million remain available
for the financing of future acquisitions for dry bulk vessels until
December 2025.
- Drawn down amounts were used for prepayment of existing
indebtedness.
- Improvement of funding cost and extension of maturity for all
nine refinanced vessels.
- 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.
- 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:
- the sale of our 49% equity interest
in the company owning the 2018-built, 3,800 TEU capacity
containership, Polar Argentina to York Capital,
- 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.
- 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.
______________________________________________
1 Adjusted Net Income available to common
stockholders and respective per share figures are non-GAAP measures
and should not be used in isolation or as substitutes for
Costamare’s financial results presented in accordance with U.S.
generally accepted accounting principles (“GAAP”). For the
definition and reconciliation of these measures to the most
directly comparable financial measure calculated and presented in
accordance with GAAP, please refer to Exhibit I.2 Including our
share of cash amounting to $3.1 million held by vessel owning
companies set-up pursuant to the Framework Deed dated May 15, 2013,
as amended and restated from time to time (the “Framework Deed”),
between the Company and York Capital Management Global Advisors LLC
and an affiliated fund (collectively, “York Capital”), short term
investments in U.S. Treasury Bills amounting to $148.0 million,
margin deposits relating to our forward freight agreements (“FFAs”)
of $47.5 million and $84.2 million of available undrawn funds from
one hunting license facility as of June 30, 2023.3 One of the two
bilateral facilities was on a commitment status basis and subject
to final documentation in May 2023, at the time of our first
quarter results.4 Please refer to the Containership Fleet List
table for additional information on vessel employment details for
our containership fleet.5 Calculated on a TEU basis, including one
vessel owned by a vessel owning company set-up pursuant to the
Framework Deed and excluding vessel Monemvasia that we have agreed
to sell in Q3 2023.6 As of July 27, 2023. Total contracted revenues
and TEU-weighted remaining time charter duration include our
ownership percentage for one vessel owned pursuant to the Framework
Deed and exclude vessel Monemvasia that we have agreed to sell in
Q3 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.”
Financial Summary |
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Six-month period endedJune 30, |
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Three-month period endedJune 30, |
(Expressed in thousands of
U.S. dollars,except share and per share data) |
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2022 |
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2023 |
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2022 |
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2023 |
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Voyage revenue |
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$558,937 |
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$614,712 |
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$290,927 |
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$365,943 |
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Income from investments in
leaseback vessels |
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- |
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$1,477 |
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- |
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$1,477 |
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Accrued charter revenue
(1) |
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$5,069 |
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$531 |
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$1,712 |
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$2,796 |
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Amortization of time-charter
assumed |
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$98 |
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$29 |
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$49 |
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($20 |
) |
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Voyage revenue adjusted on a
cash basis (2) |
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$564,104 |
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$615,272 |
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$292,688 |
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$368,719 |
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Adjusted Net Income available
to common stockholders (3) |
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$223,058 |
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$115,093 |
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$118,563 |
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$68,559 |
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Weighted Average number of
shares |
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124,228,628 |
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122,560,175 |
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124,306,059 |
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122,588,759 |
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Adjusted Earnings per share
(3) |
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$1.80 |
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$0.94 |
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$0.95 |
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$0.56 |
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Net Income |
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$245,024 |
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$216,258 |
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$121,987 |
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$67,394 |
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Net Income available to common
stockholders |
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$229,576 |
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$204,807 |
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$114,133 |
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$63,246 |
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Weighted Average number of
shares |
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124,228,628 |
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122,560,175 |
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124,306,059 |
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122,588,759 |
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Earnings per share |
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$1.85 |
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$1.67 |
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$0.92 |
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$0.52 |
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(1) Accrued charter revenue represents the
difference between cash received during the period and revenue
recognized on a straight-line basis. In the early years of a
charter with escalating charter rates, voyage revenue will exceed
cash received during the period and during the last years of such
charter cash received will exceed revenue recognized on a
straight-line basis. The reverse is true for charters with
descending rates.(2) Voyage revenue adjusted on a cash basis
represents Voyage revenue after adjusting for non-cash “Accrued
charter revenue” recorded under charters with escalating charter
rates. However, Voyage revenue adjusted on a cash basis is not a
recognized measurement under U.S. GAAP. We believe that the
presentation of Voyage revenue adjusted on a cash basis is useful
to investors because it presents the charter revenue for the
relevant period based on the then current daily charter rates. The
increases or decreases in daily charter rates under our charter
party agreements of our fleet are described in the notes to the
“Fleet List” tables below.(3) Adjusted Net Income available to
common stockholders and Adjusted Earnings per Share are non-GAAP
measures. Refer to the reconciliation of Net Income to Adjusted Net
Income and Adjusted Earnings per Share.
Non-GAAP Measures
The Company reports its financial results in
accordance with U.S. GAAP. However, management believes that
certain non-GAAP financial measures used in managing the business
may provide users of these financial measures additional meaningful
comparisons between current results and results in prior operating
periods. Management believes that these non-GAAP financial measures
can provide additional meaningful reflection of underlying trends
of the business because they provide a comparison of historical
information that excludes certain items that impact the overall
comparability. Management also uses these non-GAAP financial
measures in making financial, operating and planning decisions and
in evaluating the Company’s performance. The tables below set out
supplemental financial data and corresponding reconciliations to
GAAP financial measures for the three-month and the six-month
periods ended June 30, 2023 and 2022. Non-GAAP financial measures
should be viewed in addition to, and not as an alternative for,
voyage revenue or net income as determined in accordance with GAAP.
Non-GAAP financial measures include (i) Voyage revenue adjusted on
a cash basis (reconciled above), (ii) Adjusted Net Income available
to common stockholders and (iii) Adjusted Earnings per Share.
Exhibit I Reconciliation of Net Income
to Adjusted Net Income available to common stockholders and
Adjusted Earnings per Share
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Six-month period ended June
30, |
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Three-month period ended June
30, |
(Expressed in thousands of U.S. dollars,except share and per share
data) |
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2022 |
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2023 |
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2022 |
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2023 |
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Net
Income |
$ |
245,024 |
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$ |
216,258 |
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$ |
121,987 |
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$ |
67,394 |
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Earnings allocated to
Preferred Stock |
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(15,448 |
) |
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(15,448 |
) |
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(7,854 |
) |
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(7,854 |
) |
Non-Controlling Interest |
|
- |
|
|
3,997 |
|
|
- |
|
|
3,706 |
|
Net Income available
to common stockholders |
|
229,576 |
|
|
204,807 |
|
|
114,133 |
|
|
63,246 |
|
Accrued charter revenue |
|
5,069 |
|
|
531 |
|
|
1,712 |
|
|
2,796 |
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General and administrative
expenses - non-cash component |
|
4,360 |
|
|
2,854 |
|
|
1,808 |
|
|
1,446 |
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Amortization of Time charter
assumed |
|
98 |
|
|
29 |
|
|
49 |
|
|
(20 |
) |
Realized (gain) / loss on
Euro/USD forward contracts (1) |
|
950 |
|
|
(235 |
) |
|
619 |
|
|
(283 |
) |
Gain on sale of vessels,
net |
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(21,250 |
) |
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(118,046 |
) |
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(3,452 |
) |
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(31,328 |
) |
Loss on sale of vessel by a
jointly owned company with York Capital included in equity loss on
investments |
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- |
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2,065 |
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- |
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36 |
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Non-recurring, non-cash
write-off of loan deferred financing costs |
|
2,339 |
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|
1,439 |
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1,705 |
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|
465 |
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(Gain) / Loss on derivative
instruments, excluding realized (gain)/loss on derivative
instruments |
|
910 |
|
|
21,649 |
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|
983 |
|
|
32,201 |
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Non-recurring payments for
loan cancellation fees |
|
1,006 |
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- |
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|
1,006 |
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- |
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Adjusted Net Income
available to common stockholders |
$ |
223,058 |
|
$ |
115,093 |
|
$ |
118,563 |
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$ |
68,559 |
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Adjusted Earnings per
Share |
$ |
1.80 |
|
$ |
0.94 |
|
$ |
0.95 |
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$ |
0.56 |
|
Weighted average number of
shares |
|
124,228,628 |
|
|
122,560,175 |
|
|
124,306,059 |
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|
122,588,759 |
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|
Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share represent Net Income
after earnings allocated to preferred stock and Non-Controlling
Interest, but before non-cash “Accrued charter revenue” recorded
under charters with escalating or descending charter rates,
amortization of time-charter assumed, realized (gain)/loss on
Euro/USD forward contracts, gain on sale of vessels, net, loss on
sale of vessel by a jointly owned company with York Capital
included in equity loss on investments, non-recurring, non-cash
write-off of loan deferred financing costs, general and
administrative expenses - non-cash component, (gain)/loss on
derivative instruments, excluding realized (gain)/loss on
derivative instruments and non-recurring payments for loan
cancellation fees. “Accrued charter revenue” is attributed to the
timing difference between the revenue recognition and the cash
collection. However, Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share are not recognized
measurements under U.S. GAAP. We believe that the presentation of
Adjusted Net Income available to common stockholders and Adjusted
Earnings per Share are useful to investors because they are
frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in our industry.
We also believe that Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share are useful in
evaluating our ability to service additional debt and make capital
expenditures. In addition, we believe that Adjusted Net Income
available to common stockholders and Adjusted Earnings per Share
are useful in evaluating our operating performance and liquidity
position compared to that of other companies in our industry
because the calculation of Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share generally eliminates
the effects of the accounting effects of capital expenditures and
acquisitions, certain hedging instruments and other accounting
treatments, items which may vary for different companies for
reasons unrelated to overall operating performance and liquidity.
In evaluating Adjusted Net Income available to common stockholders
and Adjusted Earnings per Share, you should be aware that in the
future we may incur expenses that are the same as or similar to
some of the adjustments in this presentation. Our presentation of
Adjusted Net Income available to common stockholders and Adjusted
Earnings per Share should not be construed as an inference that our
future results will be unaffected by unusual or non-recurring
items.
(1) Items to consider for comparability include
gains and charges. Gains positively impacting Net Income available
to common stockholders are reflected as deductions to Adjusted Net
Income available to common stockholders. Charges negatively
impacting Net Income available to common stockholders are reflected
as increases to Adjusted Net Income available to common
stockholders.
Exhibit II Selected Segmental Financial
Information and Reconciliation of Net Income/(Loss) per segment to
Net Income/(Loss) per segment adjusted for (gain)/loss on
derivative instruments, excluding realized (gain)/loss on
derivative instruments.
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For the
six-month period ended June 30, 2023 |
(Expressed in thousands of
U.S. dollars) |
Container vessels |
Dry bulk vessels |
CBI |
NML |
Other |
Intersegment Eliminations |
Total |
|
Total assets - June 30, 2023 |
3,240,823 |
724,177 |
|
508,833 |
|
98,280 |
738,859 |
|
(2,718 |
) |
5,308,254 |
|
Voyage revenue |
406,917 |
74,347 |
|
133,448 |
|
- |
- |
|
- |
|
614,712 |
|
Intersegment voyage revenue |
- |
3,079 |
|
- |
|
- |
- |
|
(3,079 |
) |
- |
|
Income from investment in leaseback vessels |
- |
- |
|
- |
|
1,477 |
- |
|
- |
|
1,477 |
|
Net Income / (Loss) |
306,067 |
(31,715 |
) |
(57,516 |
) |
571 |
(1,149 |
) |
- |
|
216,258 |
|
(Gain)/Loss on derivative instruments, excluding realized
(gain)/loss on derivative instruments |
959 |
3,076 |
|
17,614 |
|
- |
- |
|
- |
|
21,649 |
|
Net Income / (Loss) adjusted for (gain)/loss on derivative
instruments, excluding realized (gain)/loss on derivative
instruments |
307,026 |
(28,639 |
) |
(39,902 |
) |
571 |
(1,149 |
) |
- |
|
237,907 |
|
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For the six-month period ended June 30, 2022 |
(Expressed in thousands of U.S. dollars) |
Container vessels |
Dry bulk vessels |
Other |
Total |
Total assets - June 30,
2022 |
3,955,353 |
774,774 |
29,483 |
4,759,610 |
Voyage
revenue |
380,260 |
178,677 |
- |
558,937 |
Net Income |
168,559 |
75,689 |
776 |
245,024 |
(Gain)/Loss on derivative instruments, excluding realized
(gain)/loss on derivative instruments |
633 |
277 |
- |
910 |
Net Income / (Loss) adjusted for (gain)/loss on derivative
instruments, excluding realized (gain)/loss on derivative
instruments |
169,192 |
75,966 |
776 |
245,934 |
|
For the three-month period ended June 30,
2023 |
|
(Expressed in thousands of
U.S. dollars) |
Container vessels |
Dry bulk vessels |
CBI |
NML |
Other |
Intersegment Eliminations |
Total |
Total assets - June 30, 2023 |
3,240,823 |
724,177 |
|
508,833 |
|
98,280 |
738,859 |
(2,718 |
) |
5,308,254 |
Voyage revenue |
211,250 |
40,225 |
|
114,468 |
|
- |
- |
- |
|
365,943 |
Intersegment voyage revenue |
- |
1,375 |
|
- |
|
- |
- |
(1,375 |
) |
- |
Income from investment in leaseback vessels |
- |
- |
|
- |
|
1,477 |
- |
- |
|
1,477 |
Net Income / (Loss) |
125,967 |
(5,722 |
) |
(53,635 |
) |
571 |
213 |
- |
|
67,394 |
(Gain)/Loss on derivative instruments, excluding realized
(gain)/loss on derivative instruments |
1,400 |
1,940 |
|
28,861 |
|
- |
- |
- |
|
32,201 |
Net Income / (Loss) adjusted for (gain)/loss on derivative
instruments, excluding realized (gain)/loss on derivative
instruments |
127,367 |
(3,782 |
) |
(24,774 |
) |
571 |
213 |
- |
|
99,595 |
|
For the three-month period ended June 30,
2022 |
(Expressed in thousands of U.S. dollars) |
Container vessels |
Dry bulk vessels |
Other |
Total |
Total assets - June 30, 2022 |
3,955,353 |
774,774 |
29,483 |
4,759,610 |
Voyage revenue |
190,783 |
100,144 |
- |
290,927 |
Net Income |
73,476 |
48,023 |
488 |
121,987 |
(Gain)/Loss on derivative instruments, excluding realized
(gain)/loss on derivative instruments |
638 |
345 |
- |
983 |
Net Income / (Loss) adjusted for (gain)/loss on derivative
instruments, excluding realized (gain)/loss on derivative
instruments |
74,114 |
48,368 |
488 |
122,970 |
|
“Net Income / (Loss) adjusted for (gain)/loss on
derivative instruments, excluding realized (gain)/loss on
derivative instruments” represents Net Income before “(gain)/loss
on derivative instruments, excluding realized (gain)/loss on
derivative instruments”. “Net Income / (Loss) adjusted for
(gain)/loss on derivative instruments, excluding realized
(gain)/loss on derivative instruments” is not a recognized
measurement under U.S. GAAP. We believe that the presentation of
“Net Income / (Loss) adjusted for (gain)/loss on derivative
instruments, excluding realized (gain)/loss on derivative
instruments” is useful because it provides investors with a measure
of the operating results unaffected by volatility in the value of
our currently held derivative instruments.
Results of Operations
Three-month period ended June 30, 2023
compared to the three-month period ended June 30, 2022
During the three-month periods ended June 30,
2023 and 2022, we had an average of 110.1 and 117.7 vessels,
respectively, in our owned fleet. In addition, during the
three-month period ended June 30, 2023, through our dry-bulk
operating platform Costamare Bulkers Inc. (“CBI”) we chartered-in
an average of 42.5 third-party dry-bulk vessels. As of July 27,
2023, CBI has chartered-in 56 dry-bulk vessels on period
charters.
During the three-month period ended June 30,
2023, we (i) sold our 49% equity interest in the company owning the
2018-built, 3,800 TEU capacity containership, Polar Argentina to
York Capital and (ii) acquired the 51% equity interest of York
Capital of the 2018-built, 3,800 TEU capacity containership, Polar
Brasil and as a result we obtained 100% of the equity interest in
the vessel. Furthermore, during the three-month period ended June
30, 2023, we sold the dry-bulk vessels Taibo and Comity with an
aggregate DWT of 72,414.
In the three-month period ended June 30, 2022,
we sold the dry bulk vessel Thunder with DWT of 57,334.
In March 2023, we entered into an agreement with
Neptune Maritime Leasing Limited (“NML”) and its shareholders
pursuant to which we agreed to invest in NML’s ship sale and
leaseback business up to $200 million in exchange for up to
40% of its ordinary shares and up to 79.05% of its preferred
shares. In addition, we received a special ordinary share in
NML which carries 75% of the voting rights of the ordinary
shares providing control over NML. NML was established in 2021
to acquire and bareboat charter out vessels through wholly-owned
subsidiaries. Up to June 30, 2023, we
have invested in NML the amount of $37.8
million. During the three-month period ended June 30, 2023,
NML is included in our consolidated financial statements.
In the three-month periods ended June 30, 2023
and 2022, our fleet ownership days totaled 10,020 and 10,715 days,
respectively. Ownership days are one of the primary drivers of
voyage revenue and vessels’ operating expenses and represent the
aggregate number of days in a period during which each vessel in
our fleet is owned. Furthermore, during the three-month period
ended June 30, 2023, the days of the third-party vessels
chartered-in through CBI were 3,866.
Consolidated Financial Results and
Vessels’ Operational
Data(1)
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(Expressed in millions of U.S. dollars, except percentages) |
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Three-month period endedJune 30, |
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Change |
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PercentageChange |
|
2022 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage
revenue |
$ |
290.9 |
|
$ |
365.9 |
|
$ |
75.0 |
|
|
25.8% |
|
Income from
investments in leaseback vessels |
|
- |
|
|
1.5 |
|
|
1.5 |
|
|
n.m. |
|
Voyage
expenses |
|
(11.3) |
|
|
(69.4) |
|
|
58.1 |
|
|
n.m. |
|
Charter-in hire
expenses |
|
- |
|
|
(74.6) |
|
|
74.6 |
|
|
n.m. |
|
Voyage expenses –
related parties |
|
(4.0) |
|
|
(3.4) |
|
|
(0.6) |
|
|
(15.0%) |
|
Vessels’ operating
expenses |
|
(67.6) |
|
|
(62.9) |
|
|
(4.7) |
|
|
(7.0%) |
|
General and
administrative expenses |
|
(3.5) |
|
|
(4.1) |
|
|
0.6 |
|
|
17.1% |
|
Management and
agency fees – related parties |
|
(11.0) |
|
|
(14.9) |
|
|
3.9 |
|
|
35.5% |
|
General and
administrative expenses - non-cash component |
|
(1.8) |
|
|
(1.4) |
|
|
(0.4) |
|
|
(22.2%) |
|
Amortization of
dry-docking and special survey costs |
|
(2.9) |
|
|
(4.7) |
|
|
1.8 |
|
|
62.1% |
|
Depreciation |
|
(41.3) |
|
|
(41.3) |
|
|
- |
|
|
n.m. |
|
Gain on sale of
vessels, net |
|
3.5 |
|
|
31.3 |
|
|
27.8 |
|
|
n.m. |
|
Foreign exchange
gains |
|
0.3 |
|
|
0.6 |
|
|
0.3 |
|
|
100.0% |
|
Interest
income |
|
0.1 |
|
|
9.7 |
|
|
9.6 |
|
|
n.m. |
|
Interest and
finance costs |
|
(30.1) |
|
|
(36.5) |
|
|
6.4 |
|
|
21.3% |
|
Income from equity
method investments |
|
0.5 |
|
|
0.2 |
|
|
(0.3) |
|
|
(60.0%) |
|
Other |
|
1.2 |
|
|
1.2 |
|
|
- |
|
|
n.m. |
|
Loss on derivative
instruments, net |
|
(1.0) |
|
|
(29.8) |
|
|
28.8 |
|
|
n.m. |
|
Net
Income |
$ |
122.0 |
|
$ |
67.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
Three-month period endedJune 30, |
|
|
Change |
|
|
PercentageChange |
|
|
2022 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
|
$ |
290.9 |
|
$ |
365.9 |
|
$ |
75.0 |
|
|
25.8% |
|
|
|
Accrued charter revenue |
|
|
1.7 |
|
|
2.8 |
|
|
1.1 |
|
|
64.7% |
|
|
|
Amortization of time charter
assumed |
|
|
- |
|
|
- |
|
|
- |
|
|
n.m. |
|
|
|
Voyage revenue adjusted on a
cash basis (1) |
|
$ |
292.6 |
|
$ |
368.7 |
|
$ |
76.1 |
|
|
26.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
|
Three-month period endedJune 30, |
|
|
|
|
|
PercentageChange |
|
|
|
|
|
2022 |
|
|
|
2023 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of vessels |
|
117.7 |
|
|
110.1 |
|
|
(7.6) |
|
|
(6.5%) |
|
|
|
|
Ownership days |
|
10,715 |
|
|
10,020 |
|
|
(695) |
|
|
(6.5%) |
|
|
|
|
Number of vessels under
dry-docking and special survey |
|
10 |
|
|
3 |
|
|
(7) |
|
|
|
|
|
|
|
(1) Voyage revenue adjusted on a cash basis is
not a recognized measurement under U.S. generally accepted
accounting principles (“GAAP”). Refer to “Consolidated Financial
Results and Vessels’ Operational Data” above for the reconciliation
of Voyage revenue adjusted on a cash basis.
Voyage Revenue
Voyage revenue increased by 25.8%, or $75.0
million, to $365.9 million during the three-month period ended June
30, 2023, from $290.9 million during the three-month period ended
June 30, 2022. The increase is mainly attributable to (i) revenue
earned by CBI, which was fully operational in the second quarter of
2023 and (ii) increased charter rates in certain of our container
vessels; partly off-set by decreased charter rates in certain of
our dry bulk vessels and by revenue not earned by five container
vessels and four dry bulk vessels sold during 2022 and the first
half of 2023.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”) increased by 26.0%,
or $76.1 million, to $368.7 million during the three-month period
ended June 30, 2023, from $292.6 million during the three-month
period ended June 30, 2022. Accrued charter revenue for the
three-month periods ended June 30, 2023 and 2022 was a positive
amount of $2.8 million and $1.7 million, respectively.
Income from investments in leaseback vessels
Income from investments in leaseback vessels was
$1.5 million for the three-month period ended June 30, 2023. Income
from investments in leaseback vessels was earned from NML’s
operations during the second quarter of 2023. NML acquires, owns
and bareboat charters out vessels through its wholly-owned
subsidiaries. NML is included in our consolidated financial
statements.
Voyage Expenses
Voyage expenses were $69.4 million and $11.3
million for the three-month periods ended June 30, 2023 and 2022,
respectively. Voyage expenses increased, period over period, mainly
due to the operations of CBI which is fully operational since the
first quarter of 2023. Voyage expenses mainly include (i) fuel
consumption mainly related to dry bulk vessels, (ii) third-party
commissions, (iii) port expenses and (iv) canal tolls.
Charter-in Hire Expenses
Charter-in hire expenses were $74.6 million and
nil for the three-month periods ended June 30, 2023 and 2022,
respectively. Charter-in hire expenses are expenses relating to
chartering-in of third-party dry bulk vessels under charter
agreements through CBI.
Voyage Expenses – related parties
Voyage expenses – related parties were $3.4
million and $4.0 million for the three-month periods ended June 30,
2023 and 2022, respectively. Voyage expenses – related parties
represent (i) fees of 1.25%, in the aggregate, on voyage revenues
earned by our owned fleet charged by a related manager and a
related service provider and (ii) charter brokerage fees (in
respect of our container vessels) payable to two related charter
brokerage companies for an amount of approximately $0.3 million and
$0.4 million, in the aggregate, for the three-month periods ended
June 30, 2023 and 2022, respectively.
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include
the realized gain/(loss) under derivative contracts entered into in
relation to foreign currency exposure, were $62.9 million and $67.6
million during the three-month periods ended June 30, 2023 and
2022, respectively. Daily vessels’ operating expenses were $6,281
and $6,309 for the three-month periods ended June 30, 2023 and
2022, respectively. Daily operating expenses are calculated as
vessels’ operating expenses for the period over the ownership days
of the period.
General and Administrative Expenses
General and administrative expenses were $4.1
million and $3.5 million during the three-month periods ended June
30, 2023 and 2022, respectively, and include amounts of $0.67
million and $0.67 million, respectively, that were paid to a
related service provider.
Management and Agency Fees – related parties
Management fees charged by our related managers
were $11.0 million and $11.0 million during the three-month periods
ended June 30, 2023 and 2022, respectively. Furthermore, during the
three-month period ended June 30, 2023, agency fees of $3.9
million, in aggregate, were charged by three related agency
companies in connection with the operations of CBI.
General and Administrative Expenses - non-cash
component
General and administrative expenses - non-cash
component for the three-month period ended June 30, 2023 amounted
to $1.4 million, representing the value of the shares issued to a
related service provider on June 30, 2023. General and
administrative expenses - non-cash component for the three-month
period ended June 30, 2022 amounted to $1.8 million, representing
the value of the shares issued to a related service provider on
June 30, 2022.
Amortization of Dry-Docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs was $4.7 million and $2.9 million during the
three-month periods ended June 30, 2023 and 2022, respectively.
During the three-month period ended June 30, 2023, one vessel
underwent and completed her dry-docking and special survey and two
vessels were in the process of completing their dry-docking and
special survey. During the three-month period ended June 30, 2022,
seven vessels underwent and completed their dry-docking and special
survey and three vessels were in the process of completing their
dry-docking and special survey.
Depreciation
Depreciation expense for the three-month periods
ended June 30, 2023 and 2022 was $41.3 million and $41.3 million,
respectively.
Gain on Sale of Vessels, net
During the three-month period ended June 30,
2023, we recorded an aggregate net gain of $31.3 million from (i)
the sale of the dry-bulk vessel Taibo, which was classified as
vessel held for sale as of March 31, 2023, (ii) the sale of the
dry-bulk vessel Comity and (iii) the result of the accounting
classification of the container vessels Vela and Vulpecula as “Net
investment in sales type lease (Vessels)”. During the three-month
period ended June 30, 2022, we recorded a gain of $3.5 million from
the sale of the dry-bulk vessel Thunder, which was classified as
vessel held for sale during the first quarter of 2022.
Interest Income
Interest income amounted to $9.7 million and
$0.1 million for the three-month periods ended June 30, 2023 and
2022, respectively.
Interest and Finance Costs
Interest and finance costs were $36.5 million
and $30.1 million during the three-month periods ended June 30,
2023 and 2022, respectively. The increase is mainly attributable to
the increased interest expense due to increased financing costs
during the three-month period ended June 30, 2023 compared to the
three-month period ended June 30, 2022.
Income from Equity Method Investments
Income from equity method investments for the
three-month period ended June 30, 2023 was $0.2 million (Income of
$0.5 million for the three-month period ended June 30, 2022)
representing our share of the gain in jointly owned companies set
up pursuant to the Framework Deed. During the three-month period
ended June 30, 2023, we (i) sold our 49% equity interest in the
company owning the 2018-built, 3,800 TEU capacity containership,
Polar Argentina to York Capital and (ii) acquired the 51% equity
interest of York Capital of the 2018-built, 3,800 TEU capacity
containership Polar Brasil and as a result we obtained 100% of the
equity interest in the vessel. As of June 30, 2023 and 2022 three
and six companies, respectively, were jointly owned pursuant to the
Framework Deed out of which two and four companies, respectively,
owned container vessels.
Loss on Derivative Instruments, net
As of June 30, 2023, we hold derivative
financial instruments that qualify for hedge accounting and
derivative financial instruments that do not qualify for hedge
accounting. The change in the fair value of each derivative
instrument that qualifies for hedge accounting is recorded in
“Other Comprehensive Income” (“OCI”). The change in the fair value
of each derivative instrument that does not qualify for hedge
accounting is recorded in the consolidated statements of
income.
As of June 30, 2023, the fair value of these
instruments, in aggregate, amounted to a net asset of $40.0
million. During the three-month period ended June 30, 2023, a net
gain of $13.1 million has been included in OCI and a net loss of
$29.8 million has been included in Loss on Derivative Instruments,
net.
Cash
FlowsThree-month periods ended June 30, 2023 and
2022
Condensed cash
flows |
|
Three-month period ended June 30, |
(Expressed in millions of U.S. dollars) |
|
|
2022 |
|
|
2023 |
|
Net Cash Provided by Operating
Activities |
|
$ |
161.1 |
|
$ |
66.3 |
|
Net Cash Provided by / (Used
in) Investing Activities |
|
$ |
24.9 |
|
$ |
(77.2 |
) |
Net Cash Provided by / (Used
in) Financing Activities |
|
$ |
14.0 |
|
$ |
(158.4 |
) |
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended June 30, 2023, decreased by $94.8
million to $66.3 million, from $161.1 million for the three-month
period ended June 30, 2022. The decrease is mainly attributable to
the unfavorable change in working capital position, excluding the
current portion of long-term debt and the accrued charter revenue
(representing the difference between cash received in that period
and revenue recognized on a straight-line basis) of $58.4 million,
by the increased payments for interest (including swap net
receipts) of $9.4 million during the three-month period ended June
30, 2023 compared to the three-month period ended June 30, 2022;
partly offset by the increased cash from operations of $77.5
million, mainly due to revenue earned by CBI, which was fully
operational in the second quarter of 2023 and by the decreased
dry-docking and special survey costs of $9.8 million during the
three-month period ended June 30, 2023 compared to the three-month
period ended June 30, 2022.
Net Cash Provided by / (Used in)
Investing Activities
Net cash used in investing activities was $77.2
million in the three-month period ended June 30, 2023, which mainly
consisted of (i) payments for the purchase of short-term
investments in US Treasury Bills, (ii) payments for upgrades for
certain of our container and dry bulk vessels, (iii) an advance
payment for the acquisition of one secondhand dry bulk vessel and
(iv) payments for net investments into which NML entered; partly
offset by the proceeds we received from the sale of the dry bulk
vessels Taibo and Comity and the maturity of part of our short-term
investments in US Treasury Bills.
Net cash provided by investing activities was
$24.9 million in the three-month period ended June 30, 2022, which
mainly consisted of proceeds we received from (i) the sale of the
dry bulk vessel Thunder and (ii) the maturity of short-term
investments in US Treasury Bills; partly off-set by payments (i)
for upgrades for certain of our container and dry bulk vessels and
(ii) for the purchase of short-term investments in US Treasury
Bills.
Net Cash Provided by / (Used in)
Financing Activities
Net cash used in financing activities was $158.4
million in the three-month period ended June 30, 2023, which mainly
consisted of (a) $90.8 million net payments relating to our debt
financing agreements (including proceeds of $158.9 million we
received from three debt financing agreements), (b) $31.2 million
we paid for the re-purchase of 3.5 million of our common shares,
(c) $10.0 million we paid for dividends to holders of our common
stock for the first quarter of 2023 and (d) $0.9 million we paid
for dividends to holders of our 7.625% Series B Cumulative
Redeemable Perpetual Preferred Stock (“Series B Preferred Stock”),
$2.1 million we paid for dividends to holders of our 8.500% Series
C Cumulative Redeemable Perpetual Preferred Stock (“Series C
Preferred Stock”), $2.2 million we paid for dividends to holders of
our 8.75% Series D Cumulative Redeemable Perpetual Preferred Stock
(“Series D Preferred Stock”) and $2.5 million we paid for dividends
to holders of our 8.875% Series E Cumulative Redeemable Perpetual
Preferred Stock (“Series E Preferred Stock”) for the period from
January 15, 2023 to April 14, 2023.
Net cash provided by financing activities was
$14.0 million in the three-month period ended June 30, 2022, which
mainly consisted of (a) $143.5 million net proceeds relating to our
debt financing agreements (including proceeds of $551.3 million we
received from our debt financing agreements), (b) $52.4 million we
paid for the re-purchase of 4.1 million of our common shares, (c)
$57.5 million we paid for dividends to holders of our common stock
for the first quarter of 2022 (including a special dividend to
holders of our common stock of $46.7 million) and (d) $0.9 million
we paid for dividends to holders of our Series B Preferred Stock,
$2.1 million we paid for dividends to holders of our Series C
Preferred Stock, $2.2 million we paid for dividends to holders of
our Series D Preferred Stock and $2.5 million we paid for dividends
to holders of our Series E Preferred Stock for the period from
January 15, 2022 to April 14, 2022.
Results of Operations
Six-month period ended June 30, 2023
compared to the six-month period ended June 30, 2022
During the six-month periods ended June 30, 2023
and 2022, we had an average of 111.4 and 117.6 vessels,
respectively, in our owned fleet. In addition, during the six-month
period ended June 30, 2023, through CBI we chartered-in an average
of 26.8 third-party dry-bulk vessels. As of July 27, 2023, CBI has
chartered-in 56 dry-bulk vessels on period charters.
During the six-month period ended June 30, 2023,
we (i) sold our 49% equity interest in the company owning the
2018-built, 3,800 TEU capacity containership, Polar Argentina to
York Capital and (ii) acquired the 51% equity interest of York
Capital of the 2018-built, 3,800 TEU capacity containership Polar
Brasil and as a result we obtained 100% of the equity interest in
the vessel. Furthermore, during the six-month period ended June 30,
2023, we sold the container vessels Maersk Kalamata and Sealand
Washington with an aggregate TEU capacity of 13,292 and the
dry-bulk vessels Miner, Taibo and Comity with an aggregate DWT of
104,714.
During the six-month period ended June 30, 2022,
we accepted delivery of (i) the secondhand container vessel Dyros
with a TEU capacity of 4,578 and (ii) the secondhand dry bulk
vessels Oracle, Libra and Norma with an aggregate DWT of 172,717.
Furthermore, in the six-month period ended June 30, 2022, we sold
the container vessel Messini, with a TEU capacity of 2,458, and the
dry bulk vessel Thunder, with DWT of 57,334.
In March 2023, we entered into an agreement with
NML and its shareholders pursuant to which we agreed to invest in
NML’s ship sale and leaseback business up to $200 million in
exchange for up to 40% of its ordinary shares and up to 79.05% of
its preferred shares. In addition, we received a special
ordinary share in NML which carries 75% of the voting rights of the
ordinary shares providing control over NML. NML was
established in 2021 to acquire and bareboat charter out vessels
through wholly-owned subsidiaries. Up to June 30, 2023, we
have invested in NML the amount of $37.8
million. NML is included in our consolidated financial
statements.
In the six-month periods ended June 30, 2023 and
2022, our fleet ownership days totaled 20,163 and 21,279 days,
respectively. Ownership days are one of the primary drivers of
voyage revenue and vessels’ operating expenses and represent the
aggregate number of days in a period during which each vessel in
our fleet is owned. Furthermore, during the six-month period ended
June 30, 2023, the days of the third-party vessels chartered-in
through CBI were 4,843.
Consolidated Financial Results and
Vessels’ Operational
Data(1)
(Expressed in millions of U.S. dollars, except percentages) |
|
Six-month period ended June
30, |
|
|
Change |
|
PercentageChange |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
558.9 |
|
$ |
|
614.7 |
|
$ |
55.8 |
|
10.0% |
|
Income from investments in
lease back vessels |
|
- |
|
|
|
1.5 |
|
|
1.5 |
|
n.m. |
|
Voyage expenses |
|
(19.8) |
|
|
|
(101.0) |
|
|
81.2 |
|
n.m. |
|
Charter-in hire expenses |
|
- |
|
|
|
(87.0) |
|
|
87.0 |
|
n.m. |
|
Voyage expenses – related
parties |
|
(7.7) |
|
|
|
(6.6) |
|
|
(1.1) |
|
(14.3%) |
|
Vessels’ operating
expenses |
|
(133.4) |
|
|
|
(130.6) |
|
|
(2.8) |
|
(2.1%) |
|
General and administrative
expenses |
|
(6.7) |
|
|
|
(8.5) |
|
|
1.8 |
|
26.9% |
|
Management and agency fees –
related parties |
|
(21.9) |
|
|
|
(30.1) |
|
|
8.2 |
|
37.4% |
|
General and administrative
expenses – non-cash component |
|
(4.4) |
|
|
|
(2.9) |
|
|
(1.5) |
|
(34.1%) |
|
Amortization of dry-docking
and special survey costs |
|
(5.6) |
|
|
|
(9.4) |
|
|
3.8 |
|
67.9% |
|
Depreciation |
|
(82.5) |
|
|
|
(82.4) |
|
|
(0.1) |
|
(0.1%) |
|
Gain on sale of vessels,
net |
|
21.3 |
|
|
|
118.0 |
|
|
96.7 |
|
n.m. |
|
Foreign exchange gains |
|
0.4 |
|
|
|
1.8 |
|
|
1.4 |
|
n.m. |
|
Interest income |
|
0.1 |
|
|
|
16.4 |
|
|
16.3 |
|
n.m. |
|
Interest and finance
costs |
|
(55.2) |
|
|
|
(73.3) |
|
|
18.1 |
|
32.8% |
|
Income / (Loss) from equity
method investments |
|
0.8 |
|
|
|
(1.1) |
|
|
(1.9) |
|
n.m. |
|
Other |
|
1.6 |
|
|
|
3.8 |
|
|
2.2 |
|
n.m. |
|
Loss on derivative
instruments, net |
|
(0.9) |
|
|
|
(7.0) |
|
|
(6.1) |
|
n.m. |
|
Net
Income |
$ |
245.0 |
|
$ |
|
216.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
Six-month period ended June
30, |
|
|
Change |
|
PercentageChange |
|
|
|
|
|
2022 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
558.9 |
|
$ |
|
614.7 |
|
$ |
55.8 |
|
10.0% |
|
|
|
Accrued charter revenue |
|
5.1 |
|
|
|
0.5 |
|
|
(4.6) |
|
(90.2%) |
|
|
|
Amortization of time charter
assumed |
|
0.1 |
|
|
|
- |
|
|
(0.1) |
|
(100.0%) |
|
|
|
Voyage revenue adjusted on a
cash basis (1) |
$ |
564.1 |
|
$ |
|
615.2 |
|
$ |
51.1 |
|
9.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessels’ operational
data |
|
Six-month period ended June
30, |
|
|
|
|
PercentageChange |
|
|
|
|
|
2022 |
|
|
|
2023 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of vessels |
|
117.6 |
|
|
|
111.4 |
|
|
(6.2) |
|
(5.3%) |
|
|
|
Ownership days |
|
21,279 |
|
|
|
20,163 |
|
|
(1,116) |
|
(5.2%) |
|
|
|
Number of vessels under
dry-docking and special survey |
|
12 |
|
|
|
12 |
|
|
- |
|
|
|
|
|
(1) Voyage revenue adjusted on a cash basis is
not a recognized measurement under U.S. generally accepted
accounting principles (“GAAP”). Refer to “Consolidated Financial
Results and Vessels’ Operational Data” above for the reconciliation
of Voyage revenue adjusted on a cash basis.
Voyage Revenue
Voyage revenue increased by 10.0%, or $55.8
million, to $614.7 million during the six-month period ended June
30, 2023, from $558.9 million during the six-month period ended
June 30, 2022. The increase is mainly attributable to (i) revenue
earned by CBI, which was fully operational in the first half of
2023 and (ii) increased charter rates in certain of our container
vessels; partly off-set by decreased charter rates in certain of
our dry bulk vessels, by revenue not earned by six container
vessels and four dry bulk vessels sold during 2022 and the first
half of 2023 and increased off-hire days in the first half of 2023
compared to the first half of 2022.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”) increased by 9.1%,
or $51.1 million, to $615.2 million during the six-month period
ended June 30, 2023, from $564.1 million during the six-month
period ended June 30, 2022. Accrued charter revenue for the
six-month periods ended June 30, 2023 and 2022 was a positive
amount of $0.5 million and $5.1 million, respectively.
Income from investments in leaseback vessels
Income from investments in leaseback vessels was
$1.5 million for the six-month period ended June 30, 2023. Income
from investments in leaseback vessels was earned from NML’s
operations during the second quarter of 2023. NML acquires, owns
and bareboat charters out vessels through its wholly-owned
subsidiaries. NML is included in our consolidated financial
statements.
Voyage Expenses
Voyage expenses were $101.0 million and $19.8
million for the six-month periods ended June 30, 2023 and 2022,
respectively. Voyage expenses increased, period over period, mainly
due to the operations of CBI which was fully operational during the
six-month period ended June 30, 2023 and to the increased
repositioning expenses of certain of our owned dry-bulk vessels
during the first quarter of 2023. Voyage expenses mainly include
(i) fuel consumption mainly related to dry bulk vessels, (ii)
third-party commissions, (iii) port expenses and (iv) canal
tolls.
Charter-in Hire Expenses
Charter-in hire expenses were $87.0 million and
nil for the six-month periods ended June 30, 2023 and 2022,
respectively. Charter-in hire expenses are expenses relating to
chartering-in of third-party dry bulk vessels under charter
agreements through CBI.
Voyage Expenses – related parties
Voyage expenses – related parties were $6.6
million and $7.7 million for the six-month periods ended June 30,
2023 and 2022, respectively. Voyage expenses – related parties
represent (i) fees of 1.25%, in the aggregate, on voyage revenues
earned by our owned fleet charged by a related manager and a
related service provider and (ii) charter brokerage fees (in
respect of our container vessels) payable to two related charter
brokerage companies for an amount of approximately $0.7 million and
$0.8 million, in the aggregate, for the six-month periods ended
June 30, 2023 and 2022, respectively.
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include
the realized gain/(loss) under derivative contracts entered into in
relation to foreign currency exposure, were $130.6 million and
$133.4 million during the six-month periods ended June 30, 2023 and
2022, respectively. Daily vessels’ operating expenses were $6,478
and $6,267 for the six-month periods ended June 30, 2023 and 2022,
respectively. Daily operating expenses are calculated as vessels’
operating expenses for the period over the ownership days of the
period.
General and Administrative Expenses
General and administrative expenses were $8.5
million and $6.7 million during the six-month periods ended June
30, 2023 and 2022, respectively, and include amounts of $1.3
million and $1.3 million, respectively, that were paid to a related
service provider.
Management and Agency Fees – related parties
Management fees charged by our related managers
were $21.7 million and $21.9 million during the six-month periods
ended June 30, 2023 and 2022, respectively. Furthermore, during the
six-month period ended June 30, 2023, agency fees of $8.4 million,
in aggregate, were charged by three related agency companies in
connection with the operations of CBI.
General and Administrative Expenses – non-cash
component
General and administrative expenses – non-cash
component for the six-month period ended June 30, 2023 amounted to
$2.9 million, representing the value of the shares issued to a
related service provider on March 30, 2023 and June 30, 2023.
General and administrative expenses – non-cash component for the
six-month period ended June 30, 2022 amounted to $4.4 million,
representing the value of the shares issued to a related service
provider on March 30, 2022 and June 30, 2022.
Amortization of Dry-Docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs was $9.4 million and $5.6 million during the six-month
periods ended June 30, 2023 and 2022, respectively. During the
six-month period ended June 30, 2023, ten vessels underwent and
completed their dry-docking and special survey and two vessels were
in the process of completing their dry-docking and special survey.
During the six-month period ended June 30, 2022, nine vessels
underwent and completed their dry-docking and special survey and
three vessels were in the process of completing their dry-docking
and special survey.
Depreciation
Depreciation expense for the six-month periods
ended June 30, 2023 and 2022 was $82.4 million and $82.5 million,
respectively.
Gain on Sale of Vessels, net
During the six-month period ended June 30, 2023,
we recorded an aggregate net gain of $118.0 million from (i) the
sale of the container vessels Maersk Kalamata and Sealand
Washington, which were classified as vessels held for sale as of
December 31, 2022 (initially classified as vessels held for sale as
of March 31, 2022), (ii) the sale of the dry-bulk vessel Taibo,
which was classified as vessel held for sale as of March 31, 2023,
(iii) the sale of the dry-bulk vessels Miner and Comity and (iv)
the result of the accounting classification of the container
vessels Vela and Vulpecula as “Net investment in sales type lease
(Vessels)”. During the six-month period ended June 30, 2022, we
recorded an aggregate gain of $21.3 million from the sale of the
container vessel Messini (vessel classified as held for sale during
the fourth quarter of 2021) and the dry-bulk vessel Thunder (vessel
classified as held for sale during the first quarter of 2022).
Interest Income
Interest income amounted to $16.4 million and
$0.1 million for the six-month periods ended June 30, 2023 and
2022, respectively.
Interest and Finance Costs
Interest and finance costs were $73.3 million
and $55.2 million during the six-month periods ended June 30, 2023
and 2022, respectively. The increase is mainly attributable to the
increased interest expense due to increased financing costs during
the six-month period ended June 30, 2023 compared to the six-month
period ended June 30, 2022.
Income / (Loss) from Equity Method
Investments
Loss from equity method investments for the
six-month period ended June 30, 2023 was $1.1 million (Income of
$0.8 million for the six-month period ended June 30, 2022)
representing our share of the loss in jointly owned companies set
up pursuant to the Framework Deed. During the six-month period
ended June 30, 2023, we (i) sold our 49% equity interest in the
company owning the 2018-built, 3,800 TEU capacity containership,
Polar Argentina to York Capital and (ii) acquired the 51% equity
interest of York Capital of the 2018-built, 3,800 TEU capacity
containership Polar Brasil and as a result we obtained 100% of the
equity interest in the vessel. As of June 30, 2023 and 2022 three
and six companies, respectively, were jointly owned pursuant to the
Framework Deed out of which two and four companies, respectively,
owned container vessels.
Loss on Derivative Instruments, net
As of June 30, 2023, we hold derivative
financial instruments that qualify for hedge accounting and
derivative financial instruments that do not qualify for hedge
accounting. The change in the fair value of each derivative
instrument that qualifies for hedge accounting is recorded in
“Other Comprehensive Income” (“OCI”). The change in the fair value
of each derivative instrument that does not qualify for hedge
accounting is recorded in the consolidated statements of
income.
As of June 30, 2023, the fair value of these
instruments, in aggregate, amounted to a net asset of $40.0
million. During the six-month period ended June 30, 2023, a net
loss of $7.6 million has been included in OCI and a loss of $7.0
million has been included in Loss on Derivative Instruments,
net.
Cash FlowsSix-month periods ended June
30, 2023 and 2022
Condensed cash
flows |
|
Six-month period ended June 30, |
(Expressed in millions of U.S. dollars) |
|
|
2022 |
|
|
|
2023 |
|
Net Cash Provided by Operating
Activities |
|
$ |
315.4 |
|
|
$ |
103.6 |
|
Net Cash Provided by / (Used
in) Investing Activities |
|
$ |
(21.9 |
) |
|
$ |
114.0 |
|
Net Cash Provided by / (Used
in) Financing Activities |
|
$ |
40.9 |
|
|
$ |
(253.0 |
) |
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the six-month period ended June 30, 2023, decreased by $211.8
million to $103.6 million, from $315.4 million for the six-month
period ended June 30, 2022. The decrease is mainly attributable to
the unfavorable change in working capital position, excluding the
current portion of long-term debt and the accrued charter revenue
(representing the difference between cash received in that period
and revenue recognized on a straight-line basis) of $105.0 million,
by the increased payments for interest (including swap net
receipts) of $22.0 million during the six-month period ended June
30, 2023 compared to the six-month period ended June 30, 2022 and
by the increased dry-docking and special survey costs of $0.8
million during the six-month period ended June 30, 2023 compared to
the six-month period ended June 30, 2022; partly offset by the
increased cash from operations of $52.6 million, mainly due to
revenue earned by CBI, which was fully operational in the first
half of 2023.
Net Cash Provided by / (Used in)
Investing Activities
Net cash provided by investing activities was
$114.0 million in the six-month period ended June 30, 2023, which
mainly consisted of proceeds we received from (i) the sale of the
container vessels Sealand Washington and Maersk Kalamata and the
dry bulk vessels Miner, Taibo and Comity and (ii) the maturity of
part of our short-term investments in US Treasury Bills; partly
off-set by payments for the purchase of short-term investments in
US Treasury Bills, payments for upgrades for certain of our
container and dry bulk vessels, an advance payment for the
acquisition of one secondhand dry bulk vessel and payments for net
investments into which NML entered.
Net cash used in investing activities was $21.9
million in the six-month period ended June 30, 2022, which mainly
consisted of (i) payments for the acquisition of two secondhand dry
bulk vessels, (ii) settlement payment for the delivery of one
secondhand dry bulk vessel, (iii) payment for the purchase of
short-term investments in US Treasury Bills and (iv) payments for
upgrades for certain of our container and dry bulk vessels; partly
off-set by proceeds we received from (i) the sale of the container
vessel Messini and the dry bulk vessel Thunder and (ii) the
maturity of short-term investments in US Treasury Bills.
Net Cash Provided by / (Used in)
Financing Activities
Net cash used in financing activities was $253.0
million in the six-month period ended June 30, 2023, which mainly
consisted of (a) $165.0 million net payments relating to our debt
financing agreements (including proceeds of $481.8 million we
received from four debt financing agreements), (b) $31.2 million we
paid for the re-purchase of 3.5 million of our common shares, (c)
$20.3 million we paid for dividends to holders of our common stock
for the fourth quarter of 2022 and the first quarter of 2023 and
(d) $1.9 million we paid for dividends to holders of our Series B
Preferred Stock, $4.2 million we paid for dividends to holders of
our Series C Preferred Stock, $4.4 million we paid for dividends to
holders of our Series D Preferred Stock and $5.1 million we paid
for dividends to holders of our Series E Preferred Stock for the
period from October 15, 2022 to January 14, 2023 and January 15,
2023 to April 14, 2023.
Net cash provided by financing activities was
$40.9 million in the six-month period ended June 30, 2022, which
mainly consisted of (a) $191.4 million net proceeds relating to our
debt financing agreements (including proceeds of $770.4 million we
received from our debt financing agreements), (b) $68.2 million we
paid for dividends to holders of our common stock for the fourth
quarter of 2021 and the first quarter of 2022 (including a special
dividend paid to holders of our common stock of $46.7 million for
the first quarter of 2022) and (c) $1.9 million we paid for
dividends to holders of our Series B Preferred Stock, $4.2 million
we paid for dividends to holders of our Series C Preferred Stock,
$4.4 million we paid for dividends to holders of our Series D
Preferred Stock and $5.1 million we paid for dividends to holders
of our Series E Preferred Stock for the period from October 15,
2021 to January 14, 2022 and January 15, 2022 to April 14,
2022.
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of June 30, 2023, we had Cash and cash
equivalents (including restricted cash) of $776.2 million, $148.0
million invested in short-dated US Treasury Bills (Short-term
investments) and $47.5 million margin deposits in relation to our
FFAs. Furthermore, as of June 30, 2023, our liquidity stood at
$1,059.0 million including (a) our share of cash amounting to $3.1
million held in joint venture companies set up pursuant to the
Framework Deed and (b) $84.2 million of available undrawn funds
from one hunting license facility.
Debt-free vessels
As of July 27, 2023, the following vessels were free of
debt.
Unencumbered Vessels (Refer to
Fleet list for full details)
Vessel
Name |
|
|
YearBuilt |
|
TEU Capacity |
|
Containerships |
|
|
|
|
|
|
|
KURE |
|
1996 |
|
|
7,403 |
|
|
MAERSK
KOWLOON |
|
2005 |
|
|
7,471 |
|
|
ETOILE |
|
2005 |
|
|
2,556 |
|
|
MICHIGAN |
|
2008 |
|
|
1,300 |
|
|
MONEMVASIA
(*) |
|
1998 |
|
|
2,472 |
|
|
ARKADIA (*) |
|
2001 |
|
|
1,550 |
|
|
(*) Vessels acquired pursuant to the Framework Deed.
Conference Call details:
On Friday, July 28, 2023 at 8:30 a.m. EST,
Costamare’s management team will hold a conference call to discuss
the financial results. Participants should dial into the call 10
minutes before the scheduled time using the following numbers:
1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or
+1-412-317-9258 (from outside the US and the UK). Please quote
“Costamare”. A replay of the conference call will be available
until August 4, 2023. The United States replay number is
+1-877-344-7529; the standard international replay number is
+1-412-317-0088; and the access code required for the replay is:
9454158.
Live webcast: There will also
be a simultaneous live webcast over the Internet, through the
Costamare Inc. website (www.costamare.com). Participants to the
live webcast should register on the website approximately 10
minutes prior to the start of the webcast.
About Costamare Inc.
Costamare Inc. is one of the world’s leading
owners and providers of containerships and dry bulk vessels for
charter. The Company has 49 years of history in the international
shipping industry and a fleet of 70 containerships, with a total
capacity of approximately 520,000 TEU and 44 dry bulk vessels with
a total capacity of approximately 2,687,000 DWT (including two
secondhand vessels that we have agreed to acquire). The Company
also has a dry bulk operating platform which charters in/out dry
bulk vessels, enters into contracts of affreightment, forward
freight agreements and may also utilize hedging solutions. The
Company participates in a leasing business that provides financing
to third-party owners. The Company’s common stock, Series B
Preferred Stock, Series C Preferred Stock, Series D Preferred Stock
and Series E Preferred Stock trade on the New York Stock Exchange
under the symbols “CMRE”, “CMRE PR B”, “CMRE PR C”, “CMRE PR D” and
“CMRE PR E”, respectively.
Forward-Looking Statements
This earnings release contains “forward-looking
statements”. In some cases, you can identify these statements by
forward-looking words such as “believe”, “intend”, “anticipate”,
“estimate”, “project”, “forecast”, “plan”, “potential”, “may”,
“should”, “could”, “expect” and similar expressions. These
statements are not historical facts but instead represent only
Costamare’s belief regarding future results, many of which, by
their nature, are inherently uncertain and outside of Costamare’s
control. It is possible that actual results may differ, possibly
materially, from those anticipated in these forward-looking
statements. For a discussion of some of the risks and important
factors that could affect future results, see the discussion in the
Company’s Annual Report on Form 20-F (File No. 001-34934) under the
caption “Risk Factors”.
Company Contacts:
Gregory Zikos – Chief Financial Officer Konstantinos Tsakalidis
– Business Development
Costamare Inc., MonacoTel: (+377) 93 25 09 40Email:
ir@costamare.com
Containership Fleet List
The table below provides additional information,
as of July 27, 2023, about our fleet of containerships, the vessels
acquired pursuant to the Framework Deed and those vessels subject
to sale and leaseback agreements. Each vessel is a cellular
containership, meaning it is a dedicated container vessel.
|
Vessel Name |
Charterer |
Year Built |
Capacity (TEU) |
Current Daily Charter
Rate(1)
(U.S. dollars) |
Expiration of
Charter(2) |
1 |
TRITON |
Evergreen |
2016 |
14,424 |
(*) |
March 2026 |
2 |
TITAN(ii) |
Evergreen |
2016 |
14,424 |
(*) |
April 2026 |
3 |
TALOS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
July 2026 |
4 |
TAURUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
5 |
THESEUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
6 |
YM TRIUMPH(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
May 2030 |
7 |
YM TRUTH(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
May 2030 |
8 |
YM TOTALITY(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
July 2030 |
9 |
YM TARGET(ii) |
Yang Ming |
2021 |
12,690 |
(*) |
November 2030 |
10 |
YM TIPTOP(ii) |
Yang Ming |
2021 |
12,690 |
(*) |
March 2031 |
11 |
CAPE AKRITAS |
MSC |
2016 |
11,010 |
33,000 |
August 2031 |
12 |
CAPE TAINARO |
MSC |
2017 |
11,010 |
33,000 |
April 2031 |
13 |
CAPE KORTIA |
MSC |
2017 |
11,010 |
33,000 |
August 2031 |
14 |
CAPE SOUNIO |
MSC |
2017 |
11,010 |
33,000 |
April 2031 |
15 |
CAPE ARTEMISIO |
Hapag Lloyd/(*) |
2017 |
11,010 |
36,650/(*) |
March 2030(3) |
16 |
ZIM SHANGHAI |
ZIM |
2006 |
9,469 |
72,700 |
July 2025 |
17 |
ZIM YANTIAN |
ZIM |
2006 |
9,469 |
72,700 |
June 2025 |
18 |
YANTIAN |
COSCO |
2006 |
9,469 |
39,600 |
February 2024 |
19 |
COSCO HELLAS |
COSCO |
2006 |
9,469 |
39,600 |
February 2024 |
20 |
BEIJING |
COSCO |
2006 |
9,469 |
39,600 |
March 2024 |
21 |
MSC AZOV |
MSC |
2014 |
9,403 |
46,300 |
December 2026(4) |
22 |
MSC AMALFI |
MSC |
2014 |
9,403 |
46,300 |
March 2027(5) |
23 |
MSC AJACCIO |
MSC |
2014 |
9,403 |
46,300 |
February 2027(6) |
24 |
MSC ATHENS |
MSC |
2013 |
8,827 |
35,300 |
January 2026 |
25 |
MSC ATHOS |
MSC |
2013 |
8,827 |
35,300 |
February 2026 |
26 |
VALOR |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
April 2030(7) |
27 |
VALUE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
April 2030(8) |
28 |
VALIANT |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
June 2030(9) |
29 |
VALENCE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
July 2030(10) |
30 |
VANTAGE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
September 2030(11) |
31 |
NAVARINO |
MSC/(*) |
2010 |
8,531 |
31,000/(*) |
March 2029(12) |
32 |
MAERSK KLEVEN |
Maersk/MSC |
1996 |
8,044 |
25,000/41,500 |
September 2026(13) |
33 |
MAERSK KOTKA |
Maersk/MSC |
1996 |
8,044 |
25,000/41,500 |
September 2026(13) |
34 |
MAERSK KOWLOON |
Maersk |
2005 |
7,471 |
18,500 |
August 2025 |
35 |
KURE |
MSC |
1996 |
7,403 |
41,500 |
July 2026 |
36 |
METHONI |
Maersk |
2003 |
6,724 |
46,500 |
August 2026 |
37 |
PORTO CHELI |
Maersk |
2001 |
6,712 |
30,075 |
June 2026 |
38 |
ZIM TAMPA |
ZIM |
2000 |
6,648 |
45,000 |
July 2025 |
39 |
ZIM VIETNAM |
ZIM |
2003 |
6,644 |
53,000 |
October 2025 |
40 |
ZIM AMERICA |
ZIM |
2003 |
6,644 |
53,000 |
October 2025 |
41 |
ARIES |
(*) |
2004 |
6,492 |
58,500 |
March 2026 |
42 |
ARGUS |
(*) |
2004 |
6,492 |
58,500 |
April 2026 |
43 |
PORTO KAGIO |
Maersk |
2002 |
5,908 |
28,822 |
June 2026 |
44 |
GLEN CANYON |
ZIM |
2006 |
5,642 |
62,500 |
June 2025 |
45 |
PORTO GERMENO |
Maersk |
2002 |
5,570 |
28,822 |
June 2026 |
46 |
LEONIDIO |
Maersk |
2014 |
4,957 |
14,200 |
December 2024(14) |
47 |
KYPARISSIA |
Maersk |
2014 |
4,957 |
14,200 |
November 2024(14) |
48 |
MEGALOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(15) |
49 |
MARATHOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(15) |
50 |
OAKLAND |
CMA CGM |
2000 |
4,890 |
21,000 |
August 2023 |
51 |
GIALOVA |
ZIM |
2009 |
4,578 |
25,500 |
April 2024 |
52 |
DYROS |
Maersk |
2008 |
4,578 |
22,750 |
January 2024 |
53 |
NORFOLK |
(*) |
2009 |
4,259 |
(*) |
March 2025 |
54 |
VULPECULA |
ZIM |
2010 |
4,258 |
43,250(on average) |
May 2028(16) |
55 |
VOLANS |
Hapag Lloyd |
2010 |
4,258 |
21,750 |
June 2024(17) |
56 |
VIRGO |
Maersk |
2009 |
4,258 |
30,200 |
February 2024 |
57 |
VELA |
ZIM |
2009 |
4,258 |
43,250(on average) |
April 2028(18) |
58 |
ANDROUSA |
(*) |
2010 |
4,256 |
(*) |
May 2024 |
59 |
NEOKASTRO |
CMA CGM |
2011 |
4,178 |
39,000 |
February 2027 |
60 |
ULSAN |
Maersk |
2002 |
4,132 |
34,730 |
January 2026 |
61 |
POLAR BRASIL (ii) |
Maersk |
2018 |
3,800 |
19,700 |
January 2025(19) |
62 |
LAKONIA |
COSCO |
2004 |
2,586 |
26,500 |
March 2025 |
63 |
SCORPIUS |
Hapag Lloyd |
2007 |
2,572 |
17,750 |
May 2024 |
64 |
ETOILE |
(*) |
2005 |
2,556 |
(*) |
June 2026 |
65 |
AREOPOLIS |
COSCO |
2000 |
2,474 |
26,500 |
April 2025 |
66 |
MONEMVASIA(i) (iii) |
- |
1998 |
2,472 |
- |
Vessel scheduled to be sold |
67 |
ARKADIA(i) |
Swire Shipping |
2001 |
1,550 |
14,250 |
February 2024 |
68 |
MICHIGAN |
MSC/(*) |
2008 |
1,300 |
18,700/(*) |
October 2025(20) |
69 |
TRADER |
(*)/(*) |
2008 |
1,300 |
(*)/(*) |
October 2026(21) |
70 |
LUEBECK |
MSC/(*) |
2001 |
1,078 |
15,000/(*) |
April 2026(22) |
(1) |
Daily charter rates are gross, unless stated otherwise. Amounts set
out for current daily charter rate are the amounts contained in the
charter contracts. |
(2) |
Charter terms and expiration
dates are based on the earliest date charters (unless otherwise
noted) could expire. |
(3) |
Cape Artemisio is currently
chartered to Hapag Lloyd at a daily rate of $36,650 until March 12,
2025, at the earliest. Upon redelivery of the vessel from Hapag
Lloyd, the vessel will commence a new charter with a leading liner
company for a period of 60 to 64 months at an undisclosed
rate. |
(4) |
This charter rate will be earned
by MSC Azov until December 2, 2023. From the aforementioned date
until the expiry of the charter, the daily rate will be
$35,300. |
(5) |
This charter rate will be earned
by MSC Amalfi until March 16, 2024. From the aforementioned date
until the expiry of the charter, the daily rate will be
$35,300. |
(6) |
This charter rate will be earned
by MSC Ajaccio until February 1, 2024. From the aforementioned date
until the expiry of the charter, the daily rate will be
$35,300. |
(7) |
Valor is currently chartered to
Hapag Lloyd at a daily rate of $32,400 until April 3, 2025, at the
earliest. Upon redelivery of the vessel from Hapag Lloyd, the
vessel will commence a new charter with a leading liner company for
a period of 60 to 64 months at an undisclosed rate. |
(8) |
Value is currently chartered to
Hapag Lloyd at a daily rate of $32,400 until April 25, 2025, at the
earliest. Upon redelivery of the vessel from Hapag Lloyd, the
vessel will commence a new charter with a leading liner company for
a period of 60 to 64 months at an undisclosed rate. |
(9) |
Valiant is currently chartered to
Hapag Lloyd at a daily rate of $32,400 until June 5, 2025, at the
earliest. Upon redelivery of the vessel from Hapag Lloyd, the
vessel will commence a new charter with a leading liner company for
a period of 60 to 64 months at an undisclosed rate. |
(10) |
Valence is currently chartered to
Hapag Lloyd at a daily rate of $32,400 until July 3, 2025, at the
earliest. Upon redelivery of the vessel from Hapag Lloyd, the
vessel will commence a new charter with a leading liner company for
a period of 60 to 64 months at an undisclosed rate. |
(11) |
Vantage is currently chartered to
Hapag Lloyd at a daily rate of $32,400 until September 8, 2025, at
the earliest. Upon redelivery of the vessel from Hapag Lloyd, the
vessel will commence a new charter with a leading liner company for
a period of 60 to 64 months at an undisclosed rate. |
(12) |
Navarino is currently chartered
to MSC at a daily rate of $31,000 until March 1, 2025, at the
earliest. Upon redelivery of the vessel from MSC, the vessel will
commence a new charter with a leading liner company for a period of
48 to 52 months at an undisclosed rate. |
(13) |
Upon redelivery of each vessel
from Maersk between September 2023 and October 2023, each vessel
will commence a new charter with MSC for a period of 36 to 38
months at a fixed daily rate of $41,500. |
(14) |
Charterer has the option to
extend the current time charter for an additional period of 12 to
24 months at a daily rate of $17,000. |
(15) |
Charterer has the option to
extend the current time charter for an additional period of
approximately 24 months at a daily rate of $14,500. |
(16) |
Vulpecula is currently chartered
to ZIM under a charterparty agreement which commenced in May 2023.
The tenor of the charter is for a period of 60 to 64 months at a
daily rate of $43,250, on average. For this charter, the daily rate
will be $99,000 for the first 12 month period, $91,250 for the
second 12 month period, $10,000 for the third 12 month period and
$8,000 for the remaining duration of the charter. |
(17) |
This charter shall commence
around the end of July 2023. |
(18) |
Vela is currently chartered to
ZIM under a charterparty agreement which commenced in April 2023.
The tenor of the charter is for a period of 60 to 64 months at a
daily rate of $43,250, on average. For this charter, the daily rate
will be $99,000 for the first 12 month period, $91,250 for the
second 12 month period, $10,000 for the third 12 month period and
$8,000 for the remaining duration of the charter. |
(19) |
Charterer has the option to
extend the current time charter for three additional one-year
periods at a daily rate of $21,000. |
(20) |
Michigan is currently chartered
to MSC at a daily rate of $18,700 until October 2023, at the
earliest. Upon redelivery of the vessel from MSC, the vessel will
commence a new charter with a leading liner company for a period of
24 to 26 months at an undisclosed rate. |
(21) |
Trader is currently chartered at
an undisclosed rate until October 1, 2024, at the earliest. Upon
redelivery of the vessel from its current charterer, the vessel
will commence a new charter with a leading liner company for a
period of 24 to 26 months at an undisclosed rate. |
(22) |
Luebeck is currently chartered to MSC at a daily rate of $15,000
until April 2024, at the earliest. Upon redelivery of the vessel
from MSC, the vessel will commence a new charter with a leading
liner company for a period of 24 to 26 months at an undisclosed
rate. |
(i) |
Denotes vessels acquired pursuant to the Framework Deed. The
Company holds an equity interest of 49% in each of the
vessel-owning companies. |
(ii) |
Denotes vessels subject to a sale and leaseback transaction. |
(iii) |
Denotes vessel we have agreed to sell. |
|
|
(*) |
Denotes charterer’s identity and/or current daily charter rates
and/or charter expiration dates, which are treated as
confidential. |
Dry Bulk Vessel Fleet List
The tables below provide information, as of July
27, 2023 about our fleet of dry bulk vessels, including the vessels
that we have agreed to acquire.
|
Vessel Name |
Year Built |
Capacity (DWT) |
|
1 |
AEOLIAN |
2012 |
83,478 |
|
2 |
GRENETA |
2010 |
82,166 |
|
3 |
HYDRUS |
2011 |
81,601 |
|
4 |
PHOENIX |
2012 |
81,569 |
|
5 |
BUILDER |
2012 |
81,541 |
|
6 |
FARMER |
2012 |
81,541 |
|
7 |
SAUVAN |
2010 |
79,700 |
|
8 |
ROSE |
2008 |
76,619 |
|
9 |
MERCHIA |
2015 |
63,800 |
|
10 |
SEABIRD |
2016 |
63,553 |
|
11 |
DAWN |
2018 |
63,530 |
|
12 |
ORION |
2015 |
63,473 |
|
13 |
DAMON |
2012 |
63,227 |
|
14 |
TITAN I |
2009 |
58,090 |
|
15 |
ERACLE |
2012 |
58,018 |
|
16 |
PYTHIAS |
2010 |
58,018 |
|
17 |
NORMA |
2010 |
58,018 |
|
18 |
ORACLE |
2009 |
57,970 |
|
19 |
CURACAO |
2011 |
57,937 |
|
20 |
URUGUAY |
2011 |
57,937 |
|
21 |
ATHENA |
2012 |
57,809 |
|
22 |
SERENA |
2010 |
57,266 |
|
23 |
LIBRA |
2010 |
56,729 |
|
24 |
PEGASUS |
2011 |
56,726 |
|
25 |
MERIDA |
2012 |
56,670 |
|
26 |
CLARA |
2008 |
56,557 |
|
27 |
PEACE |
2006 |
55,709 |
|
28 |
PRIDE |
2006 |
55,705 |
|
29 |
BERMONDI |
2009 |
55,469 |
|
30 |
VERITY |
2012 |
37,163 |
|
31 |
PARITY |
2012 |
37,152 |
|
32 |
ACUITY |
2011 |
37,149 |
|
33 |
EQUITY |
2013 |
37,071 |
|
34 |
DISCOVERY |
2012 |
37,019 |
|
35 |
BERNIS |
2011 |
34,627 |
|
36 |
MANZANILLO |
2010 |
34,426 |
|
37 |
ADVENTURE |
2011 |
33,755 |
|
38 |
ALLIANCE |
2012 |
33,751 |
|
39 |
CETUS |
2010 |
32,527 |
|
40 |
PROGRESS |
2011 |
32,400 |
|
41 |
KONSTANTINOS |
2012 |
32,178 |
|
42 |
RESOURCE |
2010 |
31,776 |
|
Dry Bulk Vessels agreed to be acquired within Q3
2023
|
Vessel Name |
Year Built |
Capacity (DWT) |
|
1 |
AQUARANGE (tbr. DORADO) |
2011 |
179,842 |
|
2 |
AQUAENNA (tbr. ENNA) |
2011 |
175,975 |
|
Consolidated Statements of Income |
|
|
|
Six-months ended June 30, |
|
Three-months ended June 30, |
(Expressed in thousands of U.S. dollars,except share and per share
amounts) |
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
REVENUES: |
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
558,937 |
|
$ |
614,712 |
|
$ |
290,927 |
|
$ |
365,943 |
|
Income from investments in
leaseback vessels |
|
- |
|
|
1,477 |
|
|
- |
|
|
1,477 |
|
Total
revenues |
$ |
558,937 |
|
$ |
616,189 |
|
$ |
290,927 |
|
$ |
367,420 |
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
Voyage expenses |
|
(19,833 |
) |
|
(101,011 |
) |
|
(11,262 |
) |
|
(69,380 |
) |
Charter-in hire expenses |
|
- |
|
|
(86,961 |
) |
|
- |
|
|
(74,556 |
) |
Voyage expenses – related
parties |
|
(7,740 |
) |
|
(6,636 |
) |
|
(3,995 |
) |
|
(3,425 |
) |
Vessels’ operating
expenses |
|
(133,351 |
) |
|
(130,607 |
) |
|
(67,604 |
) |
|
(62,933 |
) |
General and administrative
expenses |
|
(6,725 |
) |
|
(8,475 |
) |
|
(3,463 |
) |
|
(4,109 |
) |
Management and agency fees –
related parties |
|
(21,892 |
) |
|
(30,061 |
) |
|
(11,025 |
) |
|
(14,871 |
) |
General and administrative
expenses – non-cash component |
|
(4,360 |
) |
|
(2,854 |
) |
|
(1,808 |
) |
|
(1,446 |
) |
Amortization of dry-docking
and special survey costs |
|
(5,646 |
) |
|
(9,457 |
) |
|
(2,939 |
) |
|
(4,756 |
) |
Depreciation |
|
(82,476 |
) |
|
(82,411 |
) |
|
(41,326 |
) |
|
(41,267 |
) |
Gain on sale of vessels,
net |
|
21,250 |
|
|
118,046 |
|
|
3,452 |
|
|
31,328 |
|
Foreign exchange gains |
|
387 |
|
|
1,829 |
|
|
277 |
|
|
560 |
|
Operating
income |
$ |
298,551 |
|
$ |
277,591 |
|
$ |
151,234 |
|
$ |
122,565 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME /
(EXPENSES): |
|
|
|
|
|
|
|
|
Interest income |
$ |
138 |
|
$ |
16,371 |
|
$ |
124 |
|
$ |
9,649 |
|
Interest and finance
costs |
|
(55,211 |
) |
|
(73,337 |
) |
|
(30,081 |
) |
|
(36,457 |
) |
Income / (loss) from equity
method investments |
|
776 |
|
|
(1,137 |
) |
|
488 |
|
|
224 |
|
Other |
|
1,680 |
|
|
3,756 |
|
|
1,205 |
|
|
1,190 |
|
Loss on derivative
instruments, net |
|
(910 |
) |
|
(6,986 |
) |
|
(983 |
) |
|
(29,777 |
) |
Total other
expenses |
$ |
(53,527 |
) |
$ |
(61,333 |
) |
$ |
(29,247 |
) |
$ |
(55,171 |
) |
Net
Income |
$ |
245,024 |
|
$ |
216,258 |
|
$ |
121,987 |
|
$ |
67,394 |
|
Earnings allocated to
Preferred Stock |
|
(15,448 |
) |
|
(15,448 |
) |
|
(7,854 |
) |
|
(7,854 |
) |
Net loss attributable to the
non-controlling interest |
|
- |
|
|
3,997 |
|
|
- |
|
|
3,706 |
|
Net Income available
to common stockholders |
$ |
229,576 |
|
$ |
204,807 |
|
$ |
114,133 |
|
$ |
63,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share,
basic and diluted |
$ |
1.85 |
|
$ |
1.67 |
|
$ |
0.92 |
|
$ |
0.52 |
|
Weighted average number of
shares, basic and diluted |
|
124,228,628 |
|
|
122,560,175 |
|
|
124,306,059 |
|
|
122,588,759 |
|
COSTAMARE INC.Consolidated Balance Sheets |
|
(Expressed in thousands of U.S. dollars) |
|
As of December 31, 2022 |
|
As of June 30, 2023 |
ASSETS |
|
(Audited) |
|
(Unaudited) |
CURRENT
ASSETS: |
|
|
|
|
Cash and cash equivalents |
$ |
718,049 |
|
$ |
682,732 |
|
Restricted cash |
|
9,768 |
|
|
10,189 |
|
Margin deposits |
|
- |
|
|
47,531 |
|
Short-term investments |
|
120,014 |
|
|
147,986 |
|
Investment in leaseback
vessels, current |
|
- |
|
|
12,522 |
|
Net investment in sales type
lease (Vessels), current |
|
- |
|
|
14,150 |
|
Accounts receivable |
|
26,943 |
|
|
41,843 |
|
Inventories |
|
28,039 |
|
|
54,436 |
|
Due from related parties |
|
3,838 |
|
|
1,331 |
|
Fair value of derivatives |
|
25,660 |
|
|
32,244 |
|
Insurance claims
receivable |
|
5,410 |
|
|
14,459 |
|
Vessels held for sale |
|
55,195 |
|
|
- |
|
Time charter assumed |
|
199 |
|
|
199 |
|
Accrued charter revenue |
|
10,885 |
|
|
10,158 |
|
Prepayments and other |
|
10,622 |
|
|
42,560 |
|
Total current
assets |
$ |
1,014,622 |
|
$ |
1,112,340 |
|
FIXED ASSETS,
NET: |
|
|
|
|
Vessels and advances, net |
|
3,666,861 |
|
|
3,539,869 |
|
Total fixed assets,
net |
$ |
3,666,861 |
|
$ |
3,539,869 |
|
NON-CURRENT
ASSETS: |
|
|
|
|
Equity method investments |
$ |
20,971 |
|
$ |
8,984 |
|
Investment in leaseback
vessels, non-current |
|
- |
|
|
68,247 |
|
Deferred charges, net |
|
55,035 |
|
|
63,271 |
|
Finance leases, right-of-use
assets (Vessels) |
|
- |
|
|
39,916 |
|
Net investment in sales type
lease (Vessels), non-current |
|
- |
|
|
33,358 |
|
Operating leases, right-of-use
assets |
|
- |
|
|
301,801 |
|
Accounts receivable,
non-current |
|
5,261 |
|
|
5,111 |
|
Restricted cash |
|
83,741 |
|
|
83,312 |
|
Fair value of derivatives,
non-current |
|
37,643 |
|
|
39,167 |
|
Accrued charter revenue,
non-current |
|
11,627 |
|
|
12,509 |
|
Time charter assumed,
non-current |
|
468 |
|
|
369 |
|
Total
assets |
$ |
4,896,229 |
|
$ |
5,308,254 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current portion of long-term
debt |
$ |
320,114 |
|
$ |
331,622 |
|
Finance lease liability |
|
- |
|
|
2,592 |
|
Operating lease liabilities,
current portion |
|
- |
|
|
165,954 |
|
Accounts payable |
|
18,155 |
|
|
37,377 |
|
Due to related parties |
|
2,332 |
|
|
2,415 |
|
Accrued liabilities |
|
51,551 |
|
|
43,306 |
|
Unearned revenue |
|
25,227 |
|
|
52,362 |
|
Fair value of derivatives |
|
2,255 |
|
|
20,139 |
|
Other current liabilities |
|
3,456 |
|
|
5,369 |
|
Total current
liabilities |
$ |
423,090 |
|
$ |
661,136 |
|
NON-CURRENT
LIABILITIES |
|
|
|
|
Long-term debt, net of current
portion |
$ |
2,264,507 |
|
$ |
2,099,584 |
|
Finance lease liability, net
of current portion |
|
- |
|
|
25,244 |
|
Operating lease liabilities,
non-current portion |
|
- |
|
|
135,847 |
|
Fair value of derivatives, net
of current portion |
|
13,655 |
|
|
11,322 |
|
Unearned revenue, net of
current portion |
|
34,540 |
|
|
31,342 |
|
Other non-current
liabilities |
|
- |
|
|
2,422 |
|
Total non-current
liabilities |
$ |
2,312,702 |
|
$ |
2,305,761 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
Temporary equity –
Redeemable non-controlling interest in subsidiary |
$ |
3,487 |
|
$ |
(827 |
) |
STOCKHOLDERS’
EQUITY: |
|
|
|
|
Preferred stock |
$ |
- |
|
$ |
- |
|
Common stock |
|
12 |
|
|
12 |
|
Treasury stock |
|
(60,095 |
) |
|
(91,256 |
) |
Additional paid-in
capital |
|
1,423,954 |
|
|
1,431,762 |
|
Retained earnings |
|
746,658 |
|
|
923,188 |
|
Accumulated other
comprehensive income |
|
46,421 |
|
|
38,855 |
|
Total Costamare Inc.
stockholders’ equity |
$ |
2,156,950 |
|
$ |
2,302,561 |
|
Non-controlling interest |
|
- |
|
|
39,623 |
|
Total stockholders’
equity |
|
2,156,950 |
|
|
2,342,184 |
|
Total liabilities and
stockholders’ equity |
$ |
4,896,229 |
|
$ |
5,308,254 |
|
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