Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today
reported unaudited financial results for the second quarter (“Q2
2024”) and six-months ended June 30, 2024.
I. PROFITABILITY AND LIQUIDITY
- Q2 2024 Net Income available to
common stockholders of $91.3 million ($0.77 per share).
- Q2 2024 Adjusted Net Income
available to common stockholders1 of $91.4 million ($0.77 per
share).
- Q2 2024 liquidity of $1,118.3
million2.
II. FULL REDEMPTION OF
8.875% SERIES E CUMULATIVE REDEEMABLE PERPETUAL PREFERRED
STOCK
- Full redemption with cash on hand on July 15, 2024.
- Annual cash flow savings of ca. $10.1 million.
III. OWNED FLEET CHARTER
UPDATE3 - NEW CHARTER ARRANGEMENTS AND FULLY EMPLOYED CONTAINERSHIP
FLEET FOR THE YEAR AHEAD
- 100% and 88% of the containership fleet4 fixed for 2024 and
2025, respectively.
- Contracted revenues for the containership fleet of
approximately $2.4 billion with a TEU-weighted duration of 3.5
years5.
- New fixtures for seven containerships, six of them on a forward
basis, for a period ranging from 24 to 36 months and with
incremental contracted revenues of $224 million.
- Entered into more than 25 chartering agreements for our owned
dry bulk fleet since Q1 2024 earnings release.
IV. SALE AND PURCHASE
ACTIVITY Vessel Disposals
- Conclusion of the sale of the 2011-built, 33,755 DWT capacity
dry bulk vessel, Adventure.- Net sale proceeds after
debt repayment amounted to $7.1 million.
- Agreement for the sale of the 2009-built, 58,018 DWT capacity
dry bulk vessel, Oracle (expected conclusion of the sale within Q3
2024).- Estimated net sale proceeds after debt
prepayment of $4.0 million.
Vessel Acquisitions
- Conclusion of the acquisition of the 2012-built, 179,895 DWT
capacity dry bulk vessel, Prosper (ex. Lowlands Prosperity).
- Conclusion of the acquisition of the 2012-built, 181,415 DWT
capacity dry bulk vessel, Frontier (ex. Frontier Unity).
V. NEW DEBT
FINANCING
- Refinancing of existing indebtedness of three dry bulk vessels
with one European financial institution. More specifically:
- Total amount of approximately $15.8 million.
- Loan proceeds towards prepayment of existing indebtedness.
- Tenor of five years.
- Improvement of funding cost and extension of maturity for all
three refinanced vessels.
VI. DRY BULK OPERATING
PLATFORM
- Costamare Bulkers Inc. (“CBI”) has currently fixed a fleet of
54 dry bulk vessels on period charters, consisting of:-
32 Newcastlemax/ Capesize vessels.- 22 Kamsarmax
vessels.
- Majority of the fixed fleet is on index linked charter-in
agreements, consisting of:- 23 charters for
Newcastlemax/ Capesize vessels that are index linked.-
10 charters for Kamsarmax vessels that are index linked.
- Average remaining tenor for the Newcastlemax/ Capesize and
Kamsarmax chartered-in fleet of 12 and 6 months, respectively.
VII. LEASE FINANCING
PLATFORM
- Controlling interest in Neptune Maritime Leasing Limited
(“NML”).
- Company’s current investment in NML of $123.3 million.
- Growing leasing platform, having funded 25 shipping assets as
of the date of this press release, for a total amount of
approximately $285 million, on the back of what we believe is a
healthy pipeline.
VIII. DIVIDEND
ANNOUNCEMENTS
- On July 1, 2024, the Company
declared a dividend of $0.115 per share on the common stock, which
will be paid on August 6, 2024, to holders of record of common
stock as of July 19, 2024.
- On July 1, 2024, the Company
declared a dividend of $0.476563 per share on the Series B
Preferred Stock, $0.531250 per share on the Series C Preferred
Stock, $0.546875 per share on the Series D Preferred Stock and
$0.554688 per share on the Series E Preferred Stock, which were all
paid on July 15, 2024 to holders of record as of July 12,
2024.
- Available funds remaining under the share repurchase program of
approximately $30 million for common shares and $150 million for
preferred shares.
__________________
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 $0.1 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”),
margin deposits relating to our forward freight agreements (“FFAs”)
and bunker swaps of $10.8 million, short term investments in U.S.
Treasury Bills amounting to $18.0 million and $115.8 million of
available undrawn funds from two hunting license facilities as of
June 30, 2024.3 Please refer to the Containership Fleet List table
for additional information on vessel employment details for our
containership fleet.4 Calculated on a TEU basis.5 As of July 30,
2024.
Mr. Gregory Zikos, Chief Financial
Officer of Costamare Inc., commented:
“During the second quarter of the year, the Company generated
Net Income of about $91 million. As of quarter end, liquidity was
above $1.1 billion.
In the containership sector, continued vessel diversions around
Africa and an early peak season, with higher than expected cargo
demand, have resulted in charter rates remaining on an upward
trajectory against a backdrop of short supply of prompt
tonnage.
During the quarter, we chartered on a forward basis seven
containerships for a minimum period of between 2 to 3 years. The
new charter agreements are expected to generate incremental
contracted revenues of above $220 million.
The containership fleet employment stands at 100% and 88% for
2024 and 2025, respectively, and total contracted revenues amount
to $2.4 billion with a remaining time charter duration of 3.5
years.
On the dry bulk side, we progress with our strategy to renew the
owned fleet and increase its average size having concluded the sale
of one 2011-built Handysize and agreed the sale of one 2009-built
Supramax vessel while simultaneously acquiring two 2012-built
Capesize ships.
CBI, our dry bulk trading platform, is commercially managing a
fleet of 54 ships, the majority of which are on index-linked
charter in agreements. As mentioned in the past, we have a
long-term commitment to the sector, which has been a strategic
decision for us.
Finally, with regards to Neptune Maritime Leasing, the platform
has been steadily growing, having currently funded 25 shipping
assets for a total amount of approximately $285 million on the back
of a healthy pipeline.”
| |
|
Financial Summary |
| |
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|
|
|
|
|
|
|
|
| |
|
Six-month period ended June 30, |
|
Three-month period ended June 30, |
|
(Expressed in thousands of U.S. dollars, except share and per share
data) |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Voyage revenue |
|
$614,712 |
|
|
$947,655 |
|
|
$365,943 |
|
|
$477,483 |
|
| Voyage revenue – related
parties |
|
- |
|
|
31,776 |
|
|
- |
|
|
31,776 |
|
| Total voyage revenue |
|
$614,712 |
|
|
$979,431 |
|
|
$365,943 |
|
|
$509,259 |
|
| Accrued charter revenue
(1) |
|
$531 |
|
|
$(570 |
) |
|
$2,796 |
|
|
$(1,331 |
) |
| Amortization of time-charter
assumed |
|
$29 |
|
|
$(144 |
) |
|
$(20 |
) |
|
$(182 |
) |
| Total voyage revenue adjusted
on a cash basis (2) |
|
$615,272 |
|
|
$978,717 |
|
|
$368,719 |
|
|
$507,746 |
|
| Income from investments in
leaseback vessels |
|
$1,477 |
|
|
$11,419 |
|
|
$1,477 |
|
|
$6,161 |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted Net Income available
to common stockholders (3) |
|
$115,093 |
|
|
$166,626 |
|
|
$68,559 |
|
|
$91,383 |
|
| Weighted Average number of
shares |
|
122,560,175 |
|
|
118,902,719 |
|
|
122,588,759 |
|
|
119,176,547 |
|
| Adjusted Earnings per share
(3) |
|
$0.94 |
|
|
$1.40 |
|
|
$0.56 |
|
|
$0.77 |
|
| |
|
|
|
|
|
|
|
|
|
| Net Income |
|
$216,258 |
|
|
$205,547 |
|
|
$67,394 |
|
|
$102,875 |
|
| Net Income available to common
stockholders |
|
$204,807 |
|
|
$185,472 |
|
|
$63,246 |
|
|
$91,292 |
|
| Weighted Average number of
shares |
|
122,560,175 |
|
|
118,902,719 |
|
|
122,588,759 |
|
|
119,176,547 |
|
| Earnings per share |
|
$1.67 |
|
|
$1.56 |
|
|
$0.52 |
|
|
$0.77 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
(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) Total 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, Total voyage revenue adjusted on a cash basis is
not a recognized measurement under U.S. GAAP. We believe that the
presentation of Total 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, 2024 and 2023. 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
| |
|
Six-month period ended June 30, |
|
|
Three-month period ended June 30, |
| (Expressed in thousands of
U.S. dollars, except share and per share data) |
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
216,258 |
|
|
$ |
205,547 |
|
|
$ |
67,394 |
|
|
$ |
102,875 |
|
| Earnings allocated to
Preferred Stock |
|
(15,448 |
) |
|
|
(13,278 |
) |
|
|
(7,854 |
) |
|
|
(5,597 |
) |
| Deemed dividend of Series E
Preferred Stock |
|
- |
|
|
|
(5,446 |
) |
|
|
- |
|
|
|
(5,446 |
) |
| Non-Controlling Interest |
|
3,997 |
|
|
|
(1,351 |
) |
|
|
3,706 |
|
|
|
(540 |
) |
| Net Income available
to common stockholders |
|
204,807 |
|
|
|
185,472 |
|
|
|
63,246 |
|
|
|
91,292 |
|
| Accrued charter revenue |
|
531 |
|
|
|
(570 |
) |
|
|
2,796 |
|
|
|
(1,331 |
) |
| Deferred charter-in
expense |
|
- |
|
|
|
501 |
|
|
|
- |
|
|
|
501 |
|
| General and administrative
expenses - non-cash component |
|
2,854 |
|
|
|
4,156 |
|
|
|
1,446 |
|
|
|
2,458 |
|
| Amortization of time-charter
assumed |
|
29 |
|
|
|
(144 |
) |
|
|
(20 |
) |
|
|
(182 |
) |
| Realized gain on Euro/USD
forward contracts |
|
(235 |
) |
|
|
(488 |
) |
|
|
(283 |
) |
|
|
(49 |
) |
| Gain on sale of vessels,
net |
|
(118,046 |
) |
|
|
(3,422 |
) |
|
|
(31,328 |
) |
|
|
(2,429 |
) |
| Loss on vessel held for
sale |
|
- |
|
|
|
2,308 |
|
|
|
- |
|
|
|
2,308 |
|
| Loss on sale of vessels, net,
by jointly owned companies with York Capital included in equity
gain on investments |
|
2,065 |
|
|
|
- |
|
|
|
36 |
|
|
|
- |
|
| Non-recurring, non-cash
write-off of loan deferred financing costs |
|
1,439 |
|
|
|
305 |
|
|
|
465 |
|
|
|
123 |
|
| (Gain) / Loss on derivative
instruments, excluding realized (gain) / loss on derivative
instruments (1) |
|
21,649 |
|
|
|
(24,437 |
) |
|
|
32,201 |
|
|
|
(2,380 |
) |
| Other non-cash items |
|
- |
|
|
|
2,945 |
|
|
|
- |
|
|
|
1,072 |
|
| Adjusted Net Income
available to common stockholders |
$ |
115,093 |
|
|
$ |
166,626 |
|
|
$ |
68,559 |
|
|
$ |
91,383 |
|
| Adjusted Earnings per
Share |
$ |
0.94 |
|
|
$ |
1.40 |
|
|
$ |
0.56 |
|
|
$ |
0.77 |
|
| Weighted average number of
shares |
|
122,560,175 |
|
|
|
118,902,719 |
|
|
|
122,588,759 |
|
|
|
119,176,547 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share represent Net Income
after earnings allocated to preferred stock, deemed dividend of
Series E Preferred Stock and Non-Controlling Interest, but before
non-cash “Accrued charter revenue” recorded under charters with
escalating or descending charter rates, deferred charter-in
expense, amortization of time-charter assumed, loss on vessel held
for sale, realized gain on Euro/USD forward contracts, gain on sale
of vessels, net, loss on sale of vessels, net, by jointly owned
companies with York Capital included in equity gain 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 other non-cash items.
“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.
Results of Operations
Three-month period ended June 30, 2024
compared to the three-month period ended June 30, 2023
During the three-month periods ended June 30,
2024 and 2023, we had an average of 104.7 and 110.1 vessels,
respectively, in our owned fleet. In addition, during the
three-month periods ended June 30, 2024 and 2023, through our dry
bulk operating platform Costamare Bulkers Inc. (“CBI”) we
chartered-in an average of 59.2 and 42.5 third party dry bulk
vessels, respectively. As of July 30, 2024, CBI charters-in 54 dry
bulk vessels on period charters.
During the three-month period ended June 30,
2024, we took delivery of the dry bulk vessel Prosper with a DWT of
179,895 and we sold the dry bulk vessel Adventure with a DWT of
33,755.
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 in 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.
As of June 30, 2024, we
have invested in NML the amount of $123.3
million. NML has been included in our consolidated financial
statements since the second quarter of 2023.
In the three-month periods ended June 30, 2024
and 2023, our fleet ownership days totaled 9,528 and 10,020 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.
Consolidated Financial Results and
Vessels’ Operational
Data(1)
|
(Expressed in millions of U.S. dollars, |
|
|
Three-month period ended June 30, |
|
|
|
|
|
Percentage |
|
except percentages) |
|
|
2023 |
|
|
2024 |
|
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Voyage
revenue |
|
$ |
365.9 |
|
|
$ |
477.5 |
|
|
$ |
111.6 |
|
|
30.5% |
| Voyage revenue –
related parties |
|
|
- |
|
|
|
31.8 |
|
|
|
31.8 |
|
|
n.m. |
| Total
voyage revenue |
|
$ |
365.9 |
|
|
$ |
509.3 |
|
|
|
143.4 |
|
|
39.2% |
| Income from
investments in leaseback vessels |
|
|
1.5 |
|
|
|
6.2 |
|
|
|
4.7 |
|
|
n.m. |
| Voyage
expenses |
|
|
(69.4 |
) |
|
|
(89.1 |
) |
|
|
19.7 |
|
|
28.4% |
| Charter-in hire
expenses |
|
|
(74.6 |
) |
|
|
(164.2 |
) |
|
|
89.6 |
|
|
120.1% |
| Voyage expenses –
related parties |
|
|
(3.4 |
) |
|
|
(4.6 |
) |
|
|
1.2 |
|
|
35.3% |
| Vessels’ operating
expenses |
|
|
(62.9 |
) |
|
|
(60.6 |
) |
|
|
(2.3 |
) |
|
(3.7%) |
| General and
administrative expenses |
|
|
(4.1 |
) |
|
|
(5.7 |
) |
|
|
1.6 |
|
|
39.0% |
| Management and
agency fees – related parties |
|
|
(14.9 |
) |
|
|
(14.7 |
) |
|
|
(0.2 |
) |
|
(1.3%) |
| General and
administrative expenses - non-cash component |
|
|
(1.4 |
) |
|
|
(2.5 |
) |
|
|
1.1 |
|
|
78.6% |
| Amortization of
dry-docking and special survey costs |
|
|
(4.7 |
) |
|
|
(5.7 |
) |
|
|
1.0 |
|
|
21.3% |
| Depreciation |
|
|
(41.3 |
) |
|
|
(40.5 |
) |
|
|
(0.8 |
) |
|
(1.9%) |
| Gain on sale of
vessels, net |
|
|
31.3 |
|
|
|
2.4 |
|
|
|
(28.9 |
) |
|
(92.3%) |
| Loss on vessel
held for sale |
|
|
- |
|
|
|
(2.3 |
) |
|
|
2.3 |
|
|
n.m. |
| Foreign exchange
gains / (losses) |
|
|
0.6 |
|
|
|
(0.3 |
) |
|
|
(0.9 |
) |
|
n.m. |
| Interest
income |
|
|
9.7 |
|
|
|
9.2 |
|
|
|
(0.5 |
) |
|
(5.2%) |
| Interest and
finance costs |
|
|
(36.5 |
) |
|
|
(34.0 |
) |
|
|
(2.5 |
) |
|
(6.8%) |
| Income from equity
method investments |
|
|
0.2 |
|
|
|
- |
|
|
|
(0.2 |
) |
|
n.m. |
| Other |
|
|
1.2 |
|
|
|
1.6 |
|
|
|
0.4 |
|
|
33.3% |
| Loss on derivative
instruments, net |
|
|
(29.8 |
) |
|
|
(1.6 |
) |
|
|
(28.2 |
) |
|
(94.6%) |
| Net
Income |
|
$ |
67.4 |
|
|
$ |
102.9 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, |
|
|
Three-month period ended June 30, |
|
|
|
|
|
Percentage |
|
except percentages) |
|
|
2023 |
|
|
2024 |
|
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total voyage
revenue |
|
$ |
365.9 |
|
|
$ |
509.3 |
|
|
$ |
143.4 |
|
|
39.2% |
| Accrued charter
revenue |
|
|
2.8 |
|
|
|
(1.3 |
) |
|
|
(4.1 |
) |
|
n.m. |
| Amortization of
time-charter assumed |
|
|
- |
|
|
|
(0.2 |
) |
|
|
(0.2 |
) |
|
n.m. |
| Total voyage
revenue adjusted on a cash basis (1) |
|
$ |
368.7 |
|
|
$ |
507.8 |
|
|
$ |
139.1 |
|
|
37.7% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Vessels’
operational data |
|
|
Three-month period ended June 30, |
|
|
|
|
|
Percentage |
| |
|
|
2023 |
|
|
2024 |
|
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average number of vessels |
|
|
110.1 |
|
|
|
104.7 |
|
|
|
(5.4 |
) |
|
(4.9%) |
| Ownership days |
|
|
10,020 |
|
|
|
9,528 |
|
|
|
(492 |
) |
|
(4.9%) |
| Number of vessels under
dry-docking and special survey |
|
|
3 |
|
|
|
4 |
|
|
|
1 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total 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 Total voyage revenue adjusted on a cash basis.
Total Voyage Revenue
Total voyage revenue increased by 39.2%, or
$143.4 million, to $509.3 million during the three-month period
ended June 30, 2024, from $365.9 million during the three-month
period ended June 30, 2023. The increase is mainly attributable to
(i) increased revenue earned by CBI due to increased volume of its
operations period over period, (ii) revenue earned by two container
vessels acquired during the second and fourth quarter of 2023,
respectively, two dry bulk vessels acquired during the third
quarter of 2023, one dry bulk vessel acquired during the first
quarter of 2024 and one dry bulk vessel acquired during the second
quarter of 2024, (iii) increased charter rates in certain of our
dry bulk vessels in the second quarter of 2024 compared to the
second quarter of 2023, and (iv) decreased fleet off-hire and idle
days in the second quarter of 2024 compared to the second quarter
of 2023; partly offset by revenue not earned by one container
vessel and four dry bulk vessels sold during the year ended 2023
and seven dry bulk vessels sold during the first half of 2024.
Total voyage revenue adjusted on a cash basis
(which eliminates non-cash “Accrued charter revenue”) increased by
37.7%, or $139.1 million, to $507.8 million during the three-month
period ended June 30, 2024, from $368.7 million during the
three-month period ended June 30, 2023. Accrued charter revenue for
the three-month periods ended June 30, 2024 and 2023 was a negative
amount of $1.3 million and a positive amount of $2.8 million,
respectively.
Income from investments in leaseback vessels
Income from investments in leaseback vessels was
$6.2 million and $1.5 million for the three-month periods ended
June 30, 2024 and 2023, respectively. Income from investments in
leaseback vessels increased, period over period, due to the
increased volume of NML’s operations during the three-month period
ended June 30, 2024 compared to the three-month period ended June
30, 2023. NML acquires, owns and bareboat charters out vessels
through its wholly-owned subsidiaries.
Voyage Expenses
Voyage expenses were $89.1 million and $69.4
million for the three-month periods ended June 30, 2024 and 2023,
respectively. Voyage expenses increased, period over period, mainly
due to CBI’s increased volume of operations during the three-month
period ended June 30, 2024 compared to the three-month period ended
June 30, 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 $164.2 million and
$74.6 million for the three-month periods ended June 30, 2024 and
2023, 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 $4.6
million and $3.4 million for the three-month periods ended June 30,
2024 and 2023, 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, (ii) charter brokerage fees (in respect
of our container vessels) payable to two related charter brokerage
companies for an amount of approximately $0.4 million and $0.3
million, in the aggregate, for the three-month periods ended June
30, 2024 and 2023, respectively and (iii) address commission on
certain charter-out agreements payable to a related agent (since
the second quarter of 2024). This commission is subsequently paid
in full on a back-to-back basis by the related agent to its
respective third-party clients with no benefit for the related
agent.
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 $60.6 million and $62.9
million during the three-month periods ended June 30, 2024 and
2023, respectively. Daily vessels’ operating expenses were $6,361
and $6,281 for the three-month periods ended June 30, 2024 and
2023, 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 $5.7
million and $4.1 million during the three-month periods ended June
30, 2024 and 2023, 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 party
managers were $10.6 million and $11.0 million during the
three-month periods ended June 30, 2024 and 2023, respectively. The
amounts charged by our related party managers include amounts paid
to third party managers of $2.5 million and $3.5 million for the
three-month periods ended June 30, 2024 and 2023, respectively.
Furthermore, during the three-month periods ended June 30, 2024 and
2023, agency fees of $4.1 million and $3.9 million, in aggregate,
were charged by four and three related agents, respectively, 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, 2024 amounted
to $2.5 million, representing the value of the shares issued to a
related service provider on June 28, 2024. 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.
Amortization of Dry-Docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs was $5.7 million and $4.7 million during the
three-month periods ended June 30, 2024 and 2023, respectively.
During the three-month period ended June 30, 2024, three vessels
underwent and completed their dry-docking and special survey and
one vessel was in the process of completing her dry-docking and
special survey. 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.
Depreciation
Depreciation expense for the three-month periods
ended June 30, 2024 and 2023 was $40.5 million and $41.3 million,
respectively.
Gain on Sale of Vessels, net
During the three-month period ended June 30,
2024, we recorded a gain of $2.4 million from the sale of the dry
bulk vessel Adventure, which was classified as a vessel held for
sale as of March 31, 2024. 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 sale type lease (Vessels)”.
Loss on Vessels Held for Sale
During the three-month period ended June 30,
2024, we recorded a loss on vessels held for sale of $2.3 million
representing the expected loss from the sale of the dry bulk vessel
Oracle during the next twelve-month period.
Interest Income
Interest income amounted to $9.2 million and
$9.7 million for the three-month periods ended June 30, 2024 and
2023, respectively.
Interest and Finance Costs
Interest and finance costs were $34.0 million
and $36.5 million during the three-month periods ended June 30,
2024 and 2023, respectively. The decrease is mainly attributable to
the decreased interest expense due to a lower average loan balance
during the three-month period ended June 30, 2024, compared to the
three-month period ended June 30, 2023.
Income from Equity Method Investments
Income from equity method investments for the
three-month period ended June 30, 2024, was nil (compared to income
of $0.2 million for the three-month period ended June 30, 2023)
representing our share of the gain in the 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 in 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,
2024 and 2023, two and three companies, respectively, were jointly
owned pursuant to the Framework Deed out of which nil and two
companies, respectively, owned container vessels.
Loss on Derivative Instruments, net
As of June 30, 2024, 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, 2024, the fair value of these
instruments, in aggregate, amounted to a net asset of $70.9
million. During the three-month period ended June 30, 2024, a net
gain of $0.2 million has been included in OCI and a net loss of
$1.6 million has been included in Loss on Derivative Instruments,
net.
Cash FlowsThree-month periods ended
June 30, 2024 and 2023
| Condensed cash
flows |
|
Three-month period ended June 30, |
| (Expressed in millions of U.S.
dollars) |
|
2023 |
|
2024 |
|
Net Cash Provided by Operating Activities |
|
$ |
66.3 |
|
|
$ |
147.0 |
|
| Net Cash Used in Investing
Activities |
|
$ |
(77.2 |
) |
|
$ |
(52.5 |
) |
| Net Cash Used in Financing
Activities |
|
$ |
(158.4 |
) |
|
$ |
(90.8 |
) |
| |
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended June 30, 2024, increased by $80.7
million to $147.0 million, from $66.3 million for the three-month
period ended June 30, 2023. The increase is mainly attributable to
the favorable 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), the increased net
cash from operations during the three-month period ended June 30,
2024 compared to the three-month period ended June 30, 2023, the
decrease in interest payments (including interest derivatives net
receipts) during the three-month period ended June 30, 2024
compared to the three-month period ended June 30, 2023 and the
decreased dry-docking and special survey costs during the
three-month period ended June 30, 2024 compared to the three-month
period ended June 30, 2023.
Net Cash Used in Investing
Activities
Net cash used in investing activities was $52.5
million in the three-month period ended June 30, 2024, which mainly
consisted of (i) payment for the acquisition of the secondhand dry
bulk vessel Prosper, (ii) the advance payment for the acquisition
of the secondhand dry bulk vessel Frontier, (iii) payments for
upgrades for certain of our container and dry bulk vessels and (iv)
payments for net investments into which NML entered; partly off-set
by proceeds we received from the sale of the dry-bulk vessel
Adventure.
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 Used in Financing
Activities
Net cash used in financing activities was $90.8
million in the three-month period ended June 30, 2024, which mainly
consisted of (a) $72.6 million net payments relating to our debt
financing agreements and finance lease liability agreement
(including proceeds of $34.3 million we received from two debt
financing agreements), (b) $9.3 million we paid for dividends to
holders of our common stock for the first quarter of 2024 and (c)
$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, 2024 to April 14, 2024.
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 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,
2023 to April 14, 2023.
Results of Operations
Six-month period ended June 30, 2024
compared to the six-month period ended June 30, 2023
During the six-month periods ended June 30, 2024
and 2023, we had an average of 106.3 and 111.4 vessels,
respectively, in our owned fleet. In addition, during the six-month
periods ended June 30, 2024 and 2023, through CBI we chartered-in
an average of 58.1 and 26.8 third-party dry bulk vessels,
respectively. As of July 30, 2024, CBI has chartered-in 54 dry bulk
vessels on period charters.
During the six-month period ended June 30, 2024,
we took delivery of the dry bulk vessels Miracle and Prosper with
an aggregate DWT of 360,538 and we sold the dry bulk vessels
Manzanillo, Progress, Konstantinos, Merida, Alliance, Pegasus and
Adventure with an aggregate DWT capacity of 279,906.
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 in 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.
As of June 30, 2024, we
have invested in NML the amount of $123.3
million. NML has been included in our consolidated financial
statements since the second quarter of 2023.
In the six-month periods ended June 30, 2024 and
2023, our fleet ownership days totaled 19,348 and 20,163 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.
Consolidated Financial Results and
Vessels’ Operational Data(1)
|
(Expressed in millions of U.S. dollars, |
|
|
Six-month periodended June 30, |
|
|
|
|
|
Percentage |
|
except percentages) |
|
|
2023 |
|
|
2024 |
|
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Voyage
revenue |
$ |
614.7 |
|
|
$ |
947.7 |
|
|
$ |
333.0 |
|
|
54.2% |
| Voyage revenue –
related parties |
|
- |
|
|
|
31.8 |
|
|
|
31.8 |
|
|
n.m. |
| Total
voyage revenue |
|
614.7 |
|
|
|
979.5 |
|
|
|
364.8 |
|
|
59.3% |
| Income from
investments in lease back vessels |
|
1.5 |
|
|
|
11.4 |
|
|
|
9.9 |
|
|
n.m. |
| Voyage
expenses |
|
(101.0 |
) |
|
|
(184.4 |
) |
|
|
83.4 |
|
|
82.6% |
| Charter-in hire
expenses |
|
(87.0 |
) |
|
|
(308.6 |
) |
|
|
221.6 |
|
|
n.m. |
| Voyage expenses –
related parties |
|
(6.6 |
) |
|
|
(8.3 |
) |
|
|
1.7 |
|
|
25.8% |
| Vessels’ operating
expenses |
|
(130.6 |
) |
|
|
(120.3 |
) |
|
|
(10.3 |
) |
|
(7.9%) |
| General and
administrative expenses |
|
(8.5 |
) |
|
|
(10.9 |
) |
|
|
2.4 |
|
|
28.2% |
| Management and
agency fees – related parties |
|
(30.1 |
) |
|
|
(29.3 |
) |
|
|
(0.8 |
) |
|
(2.7%) |
| General and
administrative expenses – non-cash component |
|
(2.9 |
) |
|
|
(4.2 |
) |
|
|
1.3 |
|
|
44.8% |
| Amortization of
dry-docking and special survey costs |
|
(9.4 |
) |
|
|
(11.3 |
) |
|
|
1.9 |
|
|
20.2% |
| Depreciation |
|
(82.4 |
) |
|
|
(81.0 |
) |
|
|
(1.4 |
) |
|
(1.7%) |
| Gain on sale of
vessels, net |
|
118.0 |
|
|
|
3.4 |
|
|
|
(114.6 |
) |
|
n.m. |
| Loss on vessel
held for sale |
|
- |
|
|
|
(2.3 |
) |
|
|
(2.3 |
) |
|
n.m. |
| Foreign exchange
gains / (losses) |
|
1.8 |
|
|
|
(2.7 |
) |
|
|
(4.5 |
) |
|
n.m. |
| Interest
income |
|
16.4 |
|
|
|
17.6 |
|
|
|
1.2 |
|
|
7.3% |
| Interest and
finance costs |
|
(73.3 |
) |
|
|
(67.0 |
) |
|
|
(6.3 |
) |
|
(8.6%) |
| Loss from equity
method investments |
|
(1.1 |
) |
|
|
- |
|
|
|
(1.1 |
) |
|
n.m. |
| Other |
|
3.8 |
|
|
|
2.1 |
|
|
|
(1.7 |
) |
|
(44.7%) |
| Gain /(Loss) on
derivative instruments, net |
|
(7.0 |
) |
|
|
21.8 |
|
|
|
28.8 |
|
|
n.m. |
| Net
Income |
$ |
216.3 |
|
|
$ |
205.5 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, |
|
|
Six-month periodended June 30, |
|
|
|
|
|
Percentage |
|
except percentages) |
|
|
2023 |
|
|
2024 |
|
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total voyage
revenue |
$ |
614.7 |
|
|
$ |
979.5 |
|
|
$ |
364.8 |
|
|
59.3% |
| Accrued charter
revenue |
|
0.5 |
|
|
|
(0.6 |
) |
|
|
(1.1 |
) |
|
n.m. |
| Amortization of
time-charter assumed |
|
- |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
n.m. |
| Total voyage
revenue adjusted on a cash basis (1) |
$ |
615.2 |
|
|
$ |
978.8 |
|
|
$ |
363.6 |
|
|
59.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Vessels’
operational data |
|
|
Six-month periodended June 30, |
|
|
|
|
|
Percentage |
| |
|
|
2023 |
|
|
2024 |
|
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average number of vessels |
|
|
111.4 |
|
|
|
106.3 |
|
|
|
(5.1 |
) |
|
(4.6%) |
| Ownership days |
|
|
20,163 |
|
|
|
19,348 |
|
|
|
(815 |
) |
|
(4.0%) |
| Number of vessels under
dry-docking and special survey |
|
|
12 |
|
|
|
6 |
|
|
|
(6 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total 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 Total voyage revenue adjusted on a cash basis.
Total Voyage Revenue
Total voyage revenue increased by 59.3%, or
$364.8 million, to $979.5 million during the six-month period ended
June 30, 2024, from $614.7 million during the six-month period
ended June 30, 2023. The increase is mainly attributable to (i)
increased revenue earned by CBI due to the increased volume of its
operations period over period, (ii) increased charter rates in
certain of our owned container and dry bulk vessels and (iii)
revenue earned by two container vessels acquired during the second
and fourth quarter of 2023, respectively, two dry bulk vessels
acquired during the third quarter of 2023 and one dry bulk vessel
acquired during the second quarter of 2024, (iv) decreased fleet
off-hire and idle days in the first half of 2024 compared to the
first half of 2023; partly offset by revenue not earned by one
container vessel and six dry bulk vessels sold during the year
ended 2023 and seven dry bulk vessels sold during the first half of
2024.
Total voyage revenue adjusted on a cash basis
(which eliminates non-cash “Accrued charter revenue”) increased by
59.1%, or $363.6 million, to $978.8 million during the six-month
period ended June 30, 2024, from $615.2 million during the
six-month period ended June 30, 2023. Accrued charter revenue for
the six-month periods ended June 30, 2024 and 2023 was a negative
amount of $0.6 million and a positive amount of $0.5 million,
respectively.
Income from investments in leaseback vessels
Income from investments in leaseback vessels was
$11.4 million and $1.5 million for the six-month periods ended June
30, 2024 and 2023, respectively. Increased income from investments
in leaseback vessels, period over period, is attributable to the
income earned from NML’s operations for the entire first half of
2024 (in 2023, we earned income from NML’s operations starting from
the second quarter of 2023) along with the increased volume of
NML’s operations during the first half of 2024 compared to the
first half of 2023. NML acquires, owns and bareboat charters out
vessels through its wholly-owned subsidiaries.
Voyage Expenses
Voyage expenses were $184.4 million and $101.0
million for the six-month periods ended June 30, 2024 and 2023,
respectively. Voyage expenses increased, period over period, mainly
due to CBI’s increased volume of operations during the six-month
period ended June 30, 2024 compared to the six-month period ended
June 30, 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 $308.6 million and
$87.0 million for the six-month periods ended June 30, 2024 and
2023, 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 $8.3
million and $6.6 million for the six-month periods ended June 30,
2024 and 2023, 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, (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 $0.7
million, in the aggregate, for the six-month periods ended June 30,
2024 and 2023, respectively and (iii) address commissions on
certain charter-out agreements payable to a related agent (since
the second quarter of 2024). This commission is subsequently paid
in full on a back-to-back basis by the related agent to its
respective third-party clients with no benefit for the related
agent.
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 $120.3 million and
$130.6 million during the six-month periods ended June 30, 2024 and
2023, respectively. Daily vessels’ operating expenses were $6,216
and $6,478 for the six-month periods ended June 30, 2024 and 2023,
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 $10.9
million and $8.5 million during the six-month periods ended June
30, 2024 and 2023, 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 party
managers were $22.0 million and $21.7 million during the six-month
periods ended June 30, 2024 and 2023, respectively. The amounts
charged by our related party managers include amounts paid to third
party managers of $6.0 million and $7.0 million for the six-month
periods ended June 30, 2024 and 2023, respectively. Furthermore,
during the six-month periods ended June 30, 2024 and 2023, agency
fees of $7.3 million and $8.4 million, in aggregate, were charged
by four and three related agents, respectively, 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, 2024 amounted to
$4.2 million, representing the value of the shares issued to a
related service provider on March 29, 2024 and June 28, 2024.
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.
Amortization of Dry-Docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs was $11.3 million and $9.4 million during the
six-month periods ended June 30, 2024 and 2023, respectively.
During the six-month period ended June 30, 2024, five vessels
underwent and completed their dry-docking and special survey, and
one vessel was in the process of completing her dry-docking and
special survey. During the six-month period ended June 30, 2023, 10
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.
Depreciation
Depreciation expense for the six-month periods
ended June 30, 2024 and 2023 was $81.0 million and $82.4 million,
respectively.
Gain on Sale of Vessels, net
During the six-month period ended June 30, 2024,
we recorded a net gain of $3.4 million from (i) the sale of the dry
bulk vessels Manzanillo, Progress and Konstantinos, each of which
was classified as a vessel held for sale as of December 31, 2023,
(ii) the sale of the dry-bulk vessels Merida, Alliance and Pegasus
and (iii) the sale of the dry bulk vessel Adventure which was
classified as a vessel held for sale as of March 31, 2024
(initially classified as vessels held for sale as of December 31,
2023). 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 a 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 Sale type lease
(Vessels)”.
Vessels Held for Sale
During the six-month period ended June 30, 2024,
we recorded a loss on vessels held for sale of $2.3 million
representing the expected loss from the sale of the dry bulk vessel
Oracle during the next twelve-month period.
Interest Income
Interest income amounted to $17.6 million and
$16.4 million for the six-month periods ended June 30, 2024 and
2023, respectively.
Interest and Finance Costs
Interest and finance costs were $67.0 million
and $73.3 million during the six-month periods ended June 30, 2024
and 2023, respectively. The decrease is mainly attributable to the
decreased interest expense due to lower average loan balance during
the six-month period ended June 30, 2024, compared to the six-month
period ended June 30, 2023.
Loss from Equity Method Investments
Income from equity method investments for the
six-month period ended June 30, 2024, was $0.04 million (loss of
$1.1 million for the six-month period ended June 30, 2023)
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 in 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, 2024 and 2023 two and
three companies, respectively, were jointly owned pursuant to the
Framework Deed out of which nil and two companies, respectively,
owned container vessels.
Gain/ (Loss) on Derivative Instruments, net
As of June 30, 2024, 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, 2024, the fair value of these
instruments, in aggregate, amounted to a net asset of $70.9
million. During the six-month period ended June 30, 2024, a net
gain of $5.6 million has been included in OCI and a net gain of
$21.8 million has been included in Gain / (Loss) on Derivative
Instruments, net.
Cash FlowsSix-month periods ended June
30, 2024 and 2023
| Condensed cash
flows |
|
Six-month period ended June 30, |
| (Expressed in millions of U.S.
dollars) |
|
2023 |
|
2024 |
|
Net Cash Provided by Operating Activities |
|
$ |
103.6 |
|
|
$ |
285.0 |
|
| Net Cash Provided by / (Used
in) Investing Activities |
|
$ |
114.0 |
|
|
$ |
(18.0 |
) |
| Net Cash Used in Financing
Activities |
|
$ |
(253.0 |
) |
|
$ |
(118.8 |
) |
| |
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the six-month period ended June 30, 2024, increased by $181.4
million to $285.0 million, from $103.6 million for the six-month
period ended June 30, 2023. The increase is mainly attributable to
the favorable 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), the increased net
cash from operations during the six-month period ended June 30,
2024 compared to the six-month period ended June 30, 2023, the
decrease in interest payments (including interest derivatives net
receipts) during the six-month period ended June 30, 2024 compared
to the six-month period ended June 30, 2023 and the decreased
dry-docking and special survey costs during the six-month period
ended June 30, 2024 compared to the six-month period ended June 30,
2023.
Net Cash Provided by / (Used in)
Investing Activities
Net cash used in investing activities was $18.0
million in the six-month period ended June 30, 2024, which mainly
consisted of (i) a settlement payment for the delivery of the
secondhand dry bulk vessel Miracle, (ii) a payment for the
acquisition of the secondhand dry bulk vessel Prosper, (iii) an
advance payment for the acquisition of the secondhand dry bulk
vessel Frontier, (iv) payments for upgrades for certain of our
container and dry bulk vessels and (v) payments for net investments
into which NML entered; partly off-set by proceeds we received from
the sale of the dry-bulk vessels Manzanillo, Progress,
Konstantinos, Merida, Alliance, Pegasus and Adventure.
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
offset 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 Financing
Activities
Net cash used in financing activities was $118.8
million in the six-month period ended June 30, 2024, which mainly
consisted of (a) $82.3 million net payments relating to our debt
financing agreements and finance lease liability agreement
(including proceeds of $145.8 million we received from 10 debt
financing agreements), (b) $18.6 million we paid for dividends to
holders of our common stock for the fourth quarter of 2023 and the
first quarter of 2024 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, 2023 to January 14,
2024 and January 15, 2024 to April 14, 2024.
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.
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of June 30, 2024, we had Cash and cash
equivalents (including restricted cash) of $973.5 million, $18.0
million invested in short-dated US Treasury Bills (short-term
investments) and $10.8 million margin deposits in relation to our
FFAs and bunker swaps. Furthermore, as of June 30, 2024, our
liquidity stood at approximately $1,118.3 million including (a) our
share of cash amounting to $0.1 million held in joint venture
companies set up pursuant to the Framework Deed and (b) $115.8
million of available undrawn funds from two hunting license
facilities.
Debt-free vessels
As of July 30, 2024, the following vessels were free of
debt.
| |
|
|
Unencumbered Vessels (Refer to Fleet list for
full details) |
|
| |
|
| Vessel
Name |
|
YearBuilt |
|
|
TEU/DWTCapacity |
|
|
Containerships |
|
|
|
|
|
|
|
| KURE |
|
1996 |
|
|
7,403 |
|
|
| MAERSK
KOWLOON |
|
2005 |
|
|
7,471 |
|
|
| ETOILE |
|
2005 |
|
|
2,556 |
|
|
| MICHIGAN |
|
2008 |
|
|
1,300 |
|
|
| ARKADIA |
|
2001 |
|
|
1,550 |
|
|
| Dry Bulk
Vessels |
|
|
|
|
|
|
|
| PROSPER |
|
2012 |
|
|
179,895 |
|
|
| ORACLE |
|
2009 |
|
|
58,018 |
|
|
| |
|
|
|
|
|
|
|
Conference Call details:
On Wednesday, July 31, 2024 at 8:30 a.m. ET,
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 7, 2024. 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:
1199633.
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 50 years of history in the international
shipping industry and a fleet of 68 containerships, with a total
capacity of approximately 513,000 TEU and 38 owned dry bulk vessels
with a total capacity of approximately 2,830,000 DWT (including one
vessel we have agreed to sell). 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 and Series D Preferred Stock trade on the New York
Stock Exchange under the symbols “CMRE”, “CMRE PR B”, “CMRE PR C”
and “CMRE PR D”, 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., Monaco Tel: (+377) 93 25 09 40Email:
ir@costamare.com
Containership Fleet List
The table below provides additional information,
as of July 30, 2024, about our fleet of containerships, 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 ofCharter(2) |
|
1 |
TRITON |
Evergreen |
2016 |
14,424 |
(*) |
March 2026 |
|
2 |
TITAN(i) |
Evergreen |
2016 |
14,424 |
(*) |
April 2026 |
|
3 |
TALOS(i) |
Evergreen |
2016 |
14,424 |
(*) |
July 2026 |
|
4 |
TAURUS(i) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
|
5 |
THESEUS(i) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
|
6 |
YM TRIUMPH(i) |
Yang Ming |
2020 |
12,690 |
(*) |
May 2030 |
|
7 |
YM TRUTH(i) |
Yang Ming |
2020 |
12,690 |
(*) |
May 2030 |
|
8 |
YM TOTALITY(i) |
Yang Ming |
2020 |
12,690 |
(*) |
July 2030 |
|
9 |
YM TARGET(i) |
Yang Ming |
2021 |
12,690 |
(*) |
November 2030 |
|
10 |
YM TIPTOP(i) |
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/(*) |
May 2028(4) |
|
17 |
ZIM YANTIAN |
ZIM/(*) |
2006 |
9,469 |
72,700/(*) |
April 2028(5) |
|
18 |
YANTIAN |
COSCO/(*) |
2006 |
9,469 |
(*)/(*) |
May 2028(6) |
|
19 |
COSCO HELLAS |
COSCO/(*) |
2006 |
9,469 |
(*)/(*) |
August 2028(7) |
|
20 |
BEIJING |
COSCO/(*) |
2006 |
9,469 |
(*)/(*) |
July 2028(8) |
|
21 |
MSC AZOV |
MSC |
2014 |
9,403 |
35,300 |
December 2026 |
|
22 |
MSC AMALFI |
MSC |
2014 |
9,403 |
35,300 |
March 2027 |
|
23 |
MSC AJACCIO |
MSC |
2014 |
9,403 |
35,300 |
February 2027 |
|
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(9) |
|
27 |
VALUE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
April 2030(10) |
|
28 |
VALIANT |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
June 2030(11) |
|
29 |
VALENCE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
July 2030(12) |
|
30 |
VANTAGE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
September 2030(13) |
|
31 |
NAVARINO |
MSC/(*) |
2010 |
8,531 |
31,000/(*) |
March 2029(14) |
|
32 |
KLEVEN |
MSC |
1996 |
8,044 |
41,500 |
November 2026 |
|
33 |
KOTKA |
MSC |
1996 |
8,044 |
41,500 |
December 2026 |
|
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 / May 2028(15) |
|
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 |
17,000 |
October 2026(16) |
|
47 |
KYPARISSIA |
Maersk |
2014 |
4,957 |
17,000 |
October 2026(17) |
|
48 |
MEGALOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(18) |
|
49 |
MARATHOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(18) |
|
50 |
GIALOVA |
(*) |
2009 |
4,578 |
(*) |
March 2026 |
|
51 |
DYROS |
Maersk |
2008 |
4,578 |
17,500 |
February 2025 |
|
52 |
NORFOLK |
(*) |
2009 |
4,259 |
(*) |
March 2025 |
|
53 |
VULPECULA |
ZIM |
2010 |
4,258 |
Please refer to note 19 |
May 2028(19) |
|
54 |
VOLANS |
Hapag Lloyd/(*) |
2010 |
4,258 |
21,750/(*) |
August 2024 /May 2027 (20) |
|
55 |
VIRGO |
Maersk |
2009 |
4,258 |
21,500 |
March 2025 |
|
56 |
VELA |
ZIM |
2009 |
4,258 |
Please refer to note 21 |
April 2028(21) |
|
57 |
ANDROUSA |
(*) |
2010 |
4,256 |
(*) |
March 2026 |
|
58 |
NEOKASTRO |
CMA CGM |
2011 |
4,178 |
39,000 |
February 2027 |
|
59 |
ULSAN |
Maersk |
2002 |
4,132 |
34,730 |
January 2026 |
|
60 |
POLAR BRASIL (i) |
Maersk |
2018 |
3,800 |
19,700 |
January 2025(22) |
|
61 |
LAKONIA |
COSCO |
2004 |
2,586 |
26,500 |
March 2025 |
|
62 |
SCORPIUS |
Hapag Lloyd |
2007 |
2,572 |
16,500 |
February 2026 |
|
63 |
ETOILE |
(*) |
2005 |
2,556 |
(*) |
June 2026 |
|
64 |
AREOPOLIS |
COSCO |
2000 |
2,474 |
26,500 |
April 2025 |
|
65 |
ARKADIA |
Swire Shipping |
2001 |
1,550 |
13,000 |
March 2025 |
|
66 |
MICHIGAN |
(*) |
2008 |
1,300 |
(*) |
October 2025 |
|
67 |
TRADER |
(*)/(*) |
2008 |
1,300 |
(*)/(*) |
October 2026(23) |
|
68 |
LUEBECK |
(*) |
2001 |
1,078 |
(*) |
April 2026 |
|
(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) |
|
Zim Shanghai is currently chartered to ZIM at a daily rate of
$72,700 until July 1, 2025, at the earliest. Upon redelivery of the
vessel from ZIM, the vessel will commence a new charter with a
leading liner company for a period of 34 to 36 months at an
undisclosed rate. |
| (5) |
|
Zim Yantian is currently chartered to ZIM at a daily rate of
$72,700 until June 27, 2025, at the earliest. Upon redelivery of
the vessel from ZIM, the vessel will commence a new charter with a
leading liner company for a period of 34 to 36 months at an
undisclosed rate. |
| (6) |
|
Yantian is currently chartered to COSCO at an undisclosed rate
until May 1, 2026, at the earliest. Following the aforementioned
date, the vessel will be employed with a leading liner company for
a period of 24 to 26 months at an undisclosed rate. |
| (7) |
|
Cosco Hellas is currently chartered to COSCO at an undisclosed rate
until August 1, 2026, at the earliest. Following the aforementioned
date, the vessel will be employed with a leading liner company for
a period of 24 to 26 months at an undisclosed rate. |
| (8) |
|
Beijing is currently chartered to COSCO at an undisclosed rate
until July 1, 2026, at the earliest. Following the aforementioned
date, the vessel will be employed with a leading liner company for
a period of 24 to 26 months at an undisclosed rate. |
| (9) |
|
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. |
| (10) |
|
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. |
| (11) |
|
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. |
| (12) |
|
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. |
| (13) |
|
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. |
| (14) |
|
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. |
| (15) |
|
ZIM Tampa is currently chartered to ZIM at a daily rate of $45,000
until July 2025 (earliest redelivery) - August 2025 (latest
redelivery). Upon redelivery of the vessel from ZIM, the vessel
will commence a new charter with a leading liner company for a
period of 34 to 36 months at an undisclosed rate. |
| (16) |
|
Leonidio is currently chartered at a daily rate of $14,200 until
December 7, 2024. From such date and until the expiration of the
charter the new daily rate will be $17,000. |
| (17) |
|
Kyparissia is currently chartered at a daily rate of $14,200 until
November 11, 2024. From such date and until the expiration of the
charter the new daily rate will be $17,000. |
| (18) |
|
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. |
| (19) |
|
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. For this charter, the daily rate
is $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. |
| (20) |
|
Volans is currently chartered to Hapag Lloyd at a daily rate of
$45,000 until August 2024 (earliest redelivery) - September 2025
(latest redelivery). Upon redelivery of the vessel from ZIM, the
vessel will commence a new charter with a leading liner company for
a period of 34 to 36 months at an undisclosed rate. |
| (21) |
|
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. For this charter, the daily rate is
$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. |
| (22) |
|
Charterer has the option to extend the current time charter for
three additional one-year periods at a daily rate of $21,000. |
| (23) |
|
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. |
| |
|
|
|
(i) |
|
Denotes vessels subject to a sale and leaseback transaction. |
| |
|
|
(*) Denotes charterer’s identity
and/or current daily charter rates and/or charter expiration dates,
which are treated as confidential.
Owned Dry Bulk Vessel Fleet List
The tables below provide information, as of July
30, 2024 about our owned fleet of dry bulk vessels. Each vessel is
owned by one of our subsidiaries.
|
|
Vessel Name |
Year Built |
Capacity (DWT) |
|
|
1 |
FRONTIER |
2012 |
181,415 |
|
|
2 |
MIRACLE |
2011 |
180,643 |
|
|
3 |
PROSPER |
2012 |
179,895 |
|
|
4 |
DORADO |
2011 |
179,842 |
|
|
5 |
ENNA |
2011 |
175,975 |
|
|
6 |
AEOLIAN |
2012 |
83,478 |
|
|
7 |
GRENETA |
2010 |
82,166 |
|
|
8 |
HYDRUS |
2011 |
81,601 |
|
|
9 |
PHOENIX |
2012 |
81,569 |
|
|
10 |
BUILDER |
2012 |
81,541 |
|
|
11 |
FARMER |
2012 |
81,541 |
|
|
12 |
SAUVAN |
2010 |
79,700 |
|
|
13 |
ROSE |
2008 |
76,619 |
|
|
14 |
MERCHIA |
2015 |
63,585 |
|
|
15 |
DAWN |
2018 |
63,561 |
|
|
16 |
SEABIRD |
2016 |
63,553 |
|
|
17 |
ORION |
2015 |
63,473 |
|
|
18 |
DAMON |
2012 |
63,301 |
|
|
19 |
ARYA |
2013 |
61,424 |
|
|
20 |
TITAN I |
2009 |
58,090 |
|
|
21 |
ATHENA |
2012 |
58,018 |
|
|
22 |
ERACLE |
2012 |
58,018 |
|
|
23 |
PYTHIAS |
2010 |
58,018 |
|
|
24 |
NORMA |
2010 |
58,018 |
|
|
25 |
ORACLE(i) |
2009 |
58,018 |
|
|
26 |
CURACAO |
2011 |
57,937 |
|
|
27 |
URUGUAY |
2011 |
57,937 |
|
|
28 |
SERENA |
2010 |
57,266 |
|
|
29 |
LIBRA |
2010 |
56,701 |
|
|
30 |
CLARA |
2008 |
56,557 |
|
|
31 |
BERMONDI |
2009 |
55,469 |
|
|
32 |
VERITY |
2012 |
37,163 |
|
|
33 |
PARITY |
2012 |
37,152 |
|
|
34 |
ACUITY |
2011 |
37,152 |
|
|
35 |
EQUITY |
2013 |
37,071 |
|
|
36 |
DISCOVERY |
2012 |
37,019 |
|
|
37 |
BERNIS |
2011 |
35,995 |
|
|
38 |
RESOURCE |
2010 |
31,775 |
|
(i) Denotes vessel that we have agreed to sell.
| |
|
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) |
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Unaudited) |
|
|
(Unaudited) |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
614,712 |
|
|
$ |
947,655 |
|
|
$ |
365,943 |
|
|
$ |
477,483 |
|
| Voyage revenue – related
parties |
|
- |
|
|
|
31,776 |
|
|
|
- |
|
|
|
31,776 |
|
| Total voyage
revenue |
|
614,712 |
|
|
|
979,431 |
|
|
|
365,943 |
|
|
|
509,259 |
|
| Income from investments in
leaseback vessels |
|
1,477 |
|
|
|
11,419 |
|
|
|
1,477 |
|
|
|
6,161 |
|
| Total
revenues |
$ |
616,189 |
|
|
$ |
990,850 |
|
|
$ |
367,420 |
|
|
$ |
515,420 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
| Voyage expenses |
|
(101,011 |
) |
|
|
(184,443 |
) |
|
|
(69,380 |
) |
|
|
(89,086 |
) |
| Charter-in hire expenses |
|
(86,961 |
) |
|
|
(308,557 |
) |
|
|
(74,556 |
) |
|
|
(164,208 |
) |
| Voyage expenses – related
parties |
|
(6,636 |
) |
|
|
(8,276 |
) |
|
|
(3,425 |
) |
|
|
(4,642 |
) |
| Vessels’ operating
expenses |
|
(130,607 |
) |
|
|
(120,268 |
) |
|
|
(62,933 |
) |
|
|
(60,611 |
) |
| General and administrative
expenses |
|
(8,475 |
) |
|
|
(10,936 |
) |
|
|
(4,109 |
) |
|
|
(5,743 |
) |
| Management and agency fees –
related parties |
|
(30,061 |
) |
|
|
(29,343 |
) |
|
|
(14,871 |
) |
|
|
(14,696 |
) |
| General and administrative
expenses – non-cash component |
|
(2,854 |
) |
|
|
(4,156 |
) |
|
|
(1,446 |
) |
|
|
(2,458 |
) |
| Amortization of dry-docking
and special survey costs |
|
(9,457 |
) |
|
|
(11,264 |
) |
|
|
(4,756 |
) |
|
|
(5,652 |
) |
| Depreciation |
|
(82,411 |
) |
|
|
(81,044 |
) |
|
|
(41,267 |
) |
|
|
(40,543 |
) |
| Gain on sale of vessels,
net |
|
118,046 |
|
|
|
3,422 |
|
|
|
31,328 |
|
|
|
2,429 |
|
| Loss on asset held for
sale |
|
- |
|
|
|
(2,308 |
) |
|
|
- |
|
|
|
(2,308 |
) |
| Foreign exchange gains /
losses |
|
1,829 |
|
|
|
(2,654 |
) |
|
|
560 |
|
|
|
(276 |
) |
| Operating
income |
$ |
277,591 |
|
|
$ |
231,023 |
|
|
$ |
122,565 |
|
|
$ |
127,626 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| OTHER INCOME
/ (EXPENSES): |
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
$ |
16,371 |
|
|
$ |
17,567 |
|
|
$ |
9,649 |
|
|
$ |
9,254 |
|
| Interest and finance
costs |
|
(73,337 |
) |
|
|
(66,986 |
) |
|
|
(36,457 |
) |
|
|
(34,036 |
) |
| Income / (loss) from equity
method investments |
|
(1,137 |
) |
|
|
42 |
|
|
|
224 |
|
|
|
2 |
|
| Other |
|
3,756 |
|
|
|
2,117 |
|
|
|
1,190 |
|
|
|
1,583 |
|
| Gain / (Loss) on derivative
instruments, net |
|
(6,986 |
) |
|
|
21,784 |
|
|
|
(29,777 |
) |
|
|
(1,554 |
) |
| Total other
expenses, net |
$ |
(61,333 |
) |
|
$ |
(25,476 |
) |
|
$ |
(55,171 |
) |
|
$ |
(24,751 |
) |
| Net
Income |
$ |
216,258 |
|
|
$ |
205,547 |
|
|
$ |
67,394 |
|
|
$ |
102,875 |
|
| Earnings allocated to
Preferred Stock |
|
(15,448 |
) |
|
|
(13,278 |
) |
|
|
(7,854 |
) |
|
|
(5,597 |
) |
| Deemed dividend to Series E
Preferred Stock |
|
- |
|
|
|
(5,446 |
) |
|
|
- |
|
|
|
(5,446 |
) |
| Net Gain / (Loss) attributable
to the non-controlling interest |
|
3,997 |
|
|
|
(1,351 |
) |
|
|
3,706 |
|
|
|
(540 |
) |
| Net Income available
to common stockholders |
$ |
204,807 |
|
|
$ |
185,472 |
|
|
$ |
63,246 |
|
|
$ |
91,292 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Earnings per common share,
basic and diluted |
$ |
1.67 |
|
|
$ |
1.56 |
|
|
$ |
0.52 |
|
|
$ |
0.77 |
|
| Weighted average number of
shares, basic and diluted |
|
122,560,175 |
|
|
|
118,902,719 |
|
|
|
122,588,759 |
|
|
|
119,176,547 |
|
| |
| COSTAMARE
INC.Consolidated Balance Sheets |
| |
| (Expressed in thousands of U.S. dollars) |
|
As of December
31,
2023 |
|
|
As of June 30,
2024 |
| ASSETS |
|
(Audited) |
|
|
(Unaudited) |
| CURRENT
ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
745,544 |
|
|
$ |
894,915 |
|
| Restricted cash |
|
10,645 |
|
|
|
7,528 |
|
| Margin deposits |
|
13,748 |
|
|
|
10,840 |
|
| Short-term investments |
|
17,492 |
|
|
|
18,037 |
|
| Investment in leaseback vessels,
current |
|
27,362 |
|
|
|
31,526 |
|
| Net investment in sales type
lease (Vessels), current |
|
22,620 |
|
|
|
27,217 |
|
| Accounts receivable |
|
50,684 |
|
|
|
65,682 |
|
| Inventories |
|
61,266 |
|
|
|
54,219 |
|
| Due from related parties |
|
4,119 |
|
|
|
18,918 |
|
| Fair value of derivatives |
|
33,310 |
|
|
|
51,785 |
|
| Insurance claims
receivable |
|
18,458 |
|
|
|
18,949 |
|
| Vessels held for sale |
|
40,307 |
|
|
|
12,250 |
|
| Time-charter assumed |
|
405 |
|
|
|
198 |
|
| Accrued charter revenue |
|
9,752 |
|
|
|
9,255 |
|
| Prepayments and other |
|
61,949 |
|
|
|
59,425 |
|
| Total current
assets |
$ |
1,117,661 |
|
|
$ |
1,280,744 |
|
| FIXED ASSETS,
NET: |
|
|
|
|
|
| Vessels and advances, net |
|
3,446,797 |
|
|
|
3,378,200 |
|
| Total fixed assets,
net |
$ |
3,446,797 |
|
|
$ |
3,378,200 |
|
| NON-CURRENT
ASSETS: |
|
|
|
|
|
| Equity method investments |
$ |
552 |
|
|
$ |
104 |
|
| Investment in leaseback
vessels, non-current |
|
191,674 |
|
|
|
225,428 |
|
| Deferred charges, net |
|
72,801 |
|
|
|
72,109 |
|
| Finance leases, right-of-use
assets (Vessels) |
|
39,211 |
|
|
|
38,518 |
|
| Net investment in sales type
lease (Vessels), non-current |
|
19,482 |
|
|
|
6,141 |
|
| Operating leases, right-of-use
assets |
|
284,398 |
|
|
|
236,911 |
|
| Accounts receivable,
non-current |
|
5,586 |
|
|
|
5,486 |
|
| Restricted cash |
|
69,015 |
|
|
|
71,038 |
|
| Fair value of derivatives,
non-current |
|
28,639 |
|
|
|
34,199 |
|
| Accrued charter revenue,
non-current |
|
10,937 |
|
|
|
6,580 |
|
| Time-charter assumed,
non-current |
|
269 |
|
|
|
171 |
|
| Total
assets |
$ |
5,287,022 |
|
|
$ |
5,355,629 |
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
| CURRENT
LIABILITIES: |
|
|
|
|
|
| Current portion of long-term
debt |
$ |
347,027 |
|
|
$ |
338,729 |
|
| Finance lease liability |
|
2,684 |
|
|
|
25,244 |
|
| Operating lease liabilities,
current portion |
|
160,993 |
|
|
|
151,782 |
|
| Accounts payable |
|
46,769 |
|
|
|
61,278 |
|
| Due to related parties |
|
3,172 |
|
|
|
1,779 |
|
| Accrued liabilities |
|
39,521 |
|
|
|
35,128 |
|
| Unearned revenue |
|
52,177 |
|
|
|
52,399 |
|
| Fair value of derivatives |
|
3,050 |
|
|
|
5,088 |
|
| Series E preferred shares |
|
- |
|
|
|
116,523 |
|
| Other current liabilities |
|
7,377 |
|
|
|
9,207 |
|
| Total current
liabilities |
$ |
662,770 |
|
|
$ |
797,157 |
|
| NON-CURRENT
LIABILITIES |
|
|
|
|
|
| Long-term debt, net of current
portion |
$ |
1,999,193 |
|
|
$ |
1,925,154 |
|
| Finance lease liability, net
of current portion |
|
23,877 |
|
|
|
- |
|
| Operating lease liabilities,
non-current portion |
|
114,063 |
|
|
|
79,559 |
|
| Fair value of derivatives, net
of current portion |
|
11,194 |
|
|
|
9,977 |
|
| Unearned revenue, net of
current portion |
|
27,352 |
|
|
|
21,140 |
|
| Other non-current
liabilities |
|
9,184 |
|
|
|
19,252 |
|
| Total non-current
liabilities |
$ |
2,184,863 |
|
|
$ |
2,055,082 |
|
| COMMITMENTS AND
CONTINGENCIES |
|
- |
|
|
|
- |
|
| Temporary equity –
Redeemable non-controlling interest in subsidiary |
$ |
629 |
|
|
$ |
352 |
|
| STOCKHOLDERS’
EQUITY: |
|
|
|
|
|
| Preferred stock |
$ |
- |
|
|
$ |
- |
|
| Common stock |
|
13 |
|
|
|
13 |
|
| Treasury stock |
|
(120,095 |
) |
|
|
(120,095 |
) |
| Additional paid-in
capital |
|
1,435,294 |
|
|
|
1,336,899 |
|
| Retained earnings |
|
1,045,932 |
|
|
|
1,201,857 |
|
| Accumulated other
comprehensive income |
|
21,387 |
|
|
|
27,011 |
|
| Total Costamare Inc.
stockholders’ equity |
$ |
2,382,531 |
|
|
$ |
2,445,685 |
|
| Non-controlling interest |
|
56,229 |
|
|
|
57,353 |
|
| Total stockholders’
equity |
|
2,438,760 |
|
|
|
2,503,038 |
|
| Total liabilities and
stockholders’ equity |
$ |
5,287,022 |
|
|
$ |
5,355,629 |
|
Costamare (NYSE:CMRE)
Historical Stock Chart
From Jul 2024 to Jul 2024
Costamare (NYSE:CMRE)
Historical Stock Chart
From Jul 2023 to Jul 2024
