Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today
reported unaudited financial results for the third quarter (“Q3
2024”) and nine-months ended September 30, 2024.
I. PROFITABILITY AND LIQUIDITY
- Q3 2024 Net Income available to
common stockholders of $75.5 million ($0.63 per share).
- Q3 2024 Adjusted Net Income
available to common stockholders1 of $80.7 million ($0.68 per
share).
- Q3 2024 liquidity of $1,019.2
million2.
II. SALE AND PURCHASE ACTIVITY
Vessel Acquisitions
- Agreement for:
- the acquisition of
the 2011-built, 179,546 DWT capacity dry bulk vessel, Nord Magnes
(tbr. Magnes). Expected conclusion of the acquisition within
Q4 2024.
- the acquisition of
the 2014-built, 61,090 DWT capacity dry bulk vessel, Alwine
Oldendorff (tbr. Alwine). Expected conclusion of the
acquisition within Q4 2024.
- the acquisition of
the 2015-built, 61,090 DWT capacity dry bulk vessel, August
Oldendorff (tbr. August). Expected conclusion of the
acquisition by Q1 2025.
Vessel Disposals
- Conclusion of:
- the sale of the 2009-built, 58,018
DWT capacity dry bulk vessel, Oracle. Net sale proceeds after debt
repayment amounted to $4.0 million.
- the sale of the 2009-built, 58,090
DWT capacity dry bulk vessel, Titan I. Net sale proceeds after debt
repayment amounted to $10.8 million.
- Agreement for the
sale of the 2012-built, 37,019 DWT capacity dry bulk vessel,
Discovery (expected conclusion of the sale within Q4 2024).
Estimated net sale proceeds after debt prepayment of $7.7
million.
III. OWNED FLEET CHARTER UPDATE - FULLY EMPLOYED
CONTAINERSHIP FLEET3
- 100% and 94% of the
containership fleet4 fixed for 2024 and 2025, respectively.
- Contracted revenues
for the containership fleet of approximately $2.3 billion with a
TEU-weighted duration of 3.3 years5.
- Forward fixing of
seven containerships for a period ranging from 14 to 34 months with
incremental revenues of $166 million, since the Q2 2024 earnings
release.
- Entered into more
than 30 chartering agreements for the owned dry bulk fleet since
the Q2 2024 earnings release.
IV. DRY BULK OPERATING PLATFORM
- Costamare Bulkers
Inc. (“CBI”) has currently fixed a fleet of 56 dry bulk vessels on
period charters, consisting of:
- 34 Newcastlemax/
Capesize vessels
- 22 Kamsarmax/
Panamax vessels
- Majority of the
fixed fleet is on index linked charter-in agreements. More
specifically:
- 29 charters for
Newcastlemax/ Capesize vessels that are index linked.
- 11 charters for
Kamsarmax/ Panamax vessels that are index linked.
- Average remaining
tenor for the Newcastlemax/ Capesize and Kamsarmax period
chartered-in fleet of 12 and 7 months, respectively.
V. FULL PREPAYMENT OF UNSECURED BONDS
- Prepayment in full
of the €100 million aggregate principal amount of unsecured bonds
issued by its wholly owned subsidiary, Costamare Participations
Plc.
- Prepayment will be
made with cash on hand on November 25, 2024.
VI. NEW DEBT FINANCING
- Bilateral
commitments, subject to final documentation, from four European
financial institutions for the financing/ refinancing of the dry
bulk fleet. More specifically:
- Total amount of the
four bilateral facilities of up to approximately $352.1
million.
- Minimum tenor of 5
years.
- Improvement of
funding cost.
- Approximately $94.2
million available for the financing of future acquisitions for dry
bulk and container vessels until December 2025.
- No meaningful debt
maturities until 2027.
VII. LEASE FINANCING PLATFORM
- Controlling
interest in Neptune Maritime Leasing Limited (“NML”).
- Costamare equity
investment of up to $200 million.
- Company’s current
investment in NML of $123.3 million.
- Growing leasing
platform, with committed funding for 32 shipping assets and total
funding commitments exceeding $410 million, on the back of what we
believe is a healthy pipeline.
VIII. DIVIDEND ANNOUNCEMENTS
- On October 1, 2024,
the Company declared a dividend of $0.115 per share on the common
stock, which is payable on November 6, 2024, to holders of record
of common stock as of October 21, 2024.
- On October 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 and $0.546875 per share on the Series D Preferred
Stock which were all paid on October 15, 2024 to holders of record
as of October 11, 2024.
___________________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 $29.9 million, short term
investments in U.S. Treasury Bills amounting to $18.3 million and
$94.2 million of available undrawn funds from two hunting license
facilities as of September 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 October 31, 2024.
Mr. Gregory Zikos, Chief Financial
Officer of Costamare Inc., commented:
“During the third quarter of the year, the
Company generated Net Income of about $80 million. As of quarter
end, liquidity was above $1 billion.
In the containership sector, with idle vessels
of less than 1%, the fleet can still be considered as ‘fully
employed’. The market is split between the larger sizes which
remain in limited supply, and smaller vessels where the
availability of tonnage is greater. As the pool of bigger tonnage
is unable to meet demand, charter rates continue to evolve at firm
levels.
During the quarter we chartered 7 containerships
at healthy levels. The new charter agreements are expected to
generate incremental contracted revenues of above $165 million.
The containership fleet employment stands at
100% and 94% for 2024 and 2025, respectively. Total contracted
revenues amount to $2.3 billion with a remaining time charter
duration of 3.3 years.
On the dry bulk side, we progress with our
strategy to renew the owned fleet and increase its average size;
during the quarter we agreed to acquire two 2014 and 2015 built
Ultramax vessels and one 2011-built Capesize ship, while
progressing with the disposal of smaller tonnage.
CBI manages a fleet of 56 ships, the majority of
which are on index-linked charter-in agreements. We have a
long-term commitment to the sector, and we view the vessel-owning
and the trading platform as highly complementary activities.
Finally, with regards to Neptune Maritime
Leasing, the platform continues to grow with committed funding for
32 shipping assets, reflecting total funding commitments exceeding
$410 million on the back of a healthy pipeline.”
|
Financial Summary |
| |
|
|
|
|
|
|
|
| |
Nine-month period endedSeptember 30, |
|
Three-month period endedSeptember 30, |
|
(Expressed in thousands of U.S. dollars, except share and per share
data) |
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Voyage revenue |
$ |
1,011,968 |
|
|
$ |
1,406,695 |
|
|
$ |
397,256 |
|
|
$ |
459,040 |
|
| Voyage revenue – related
parties |
|
- |
|
|
$ |
111,128 |
|
|
|
- |
|
|
$ |
79,352 |
|
| Total voyage revenue |
$ |
1,011,968 |
|
|
$ |
1,517,823 |
|
|
$ |
397,256 |
|
|
$ |
538,392 |
|
| Accrued charter revenue
(1) |
$ |
4,515 |
|
|
$ |
(3,027 |
) |
|
$ |
3,984 |
|
|
$ |
(2,457 |
) |
| Amortization of time-charter
assumed |
$ |
(141 |
) |
|
$ |
(383 |
) |
|
$ |
(170 |
) |
|
$ |
(239 |
) |
| Total voyage revenue adjusted
on a cash basis (2) |
$ |
1,016,342 |
|
|
$ |
1,514,413 |
|
|
$ |
401,070 |
|
|
$ |
535,696 |
|
| Income from investments in
leaseback vessels |
$ |
4,591 |
|
|
$ |
17,668 |
|
|
$ |
3,114 |
|
|
$ |
6,249 |
|
| |
|
|
|
|
|
|
|
| Adjusted Net Income available
to common stockholders (3) |
$ |
169,024 |
|
|
$ |
247,348 |
|
|
$ |
53,931 |
|
|
$ |
80,722 |
|
| Weighted Average number of
shares |
|
121,059,768 |
|
|
|
119,129,429 |
|
|
|
118,107,881 |
|
|
|
119,577,920 |
|
| Adjusted Earnings per share
(3) |
$ |
1.40 |
|
|
$ |
2.08 |
|
|
$ |
0.46 |
|
|
$ |
0.68 |
|
| |
|
|
|
|
|
|
|
| Net Income |
$ |
276,344 |
|
|
$ |
284,418 |
|
|
$ |
60,086 |
|
|
$ |
78,871 |
|
| Net Income available to common
stockholders |
$ |
258,094 |
|
|
$ |
260,935 |
|
|
$ |
53,287 |
|
|
$ |
75,463 |
|
| Weighted Average number of
shares |
|
121,059,768 |
|
|
|
119,129,429 |
|
|
|
118,107,881 |
|
|
|
119,577,920 |
|
| Earnings per share |
$ |
2.13 |
|
|
$ |
2.19 |
|
|
$ |
0.45 |
|
|
$ |
0.63 |
|
(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 or
descending 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 nine-month
periods ended September 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
| |
|
Nine-month period endedSeptember 30, |
|
Three-month period endedSeptember 30, |
|
(Expressed in thousands of U.S. dollars, except share and per share
data) |
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
| |
|
|
|
|
|
|
|
|
|
| Net
Income |
$ |
276,344 |
|
$ |
284,418 |
|
$ |
60,086 |
|
$ |
78,871 |
|
| Earnings allocated to
Preferred Stock |
|
(23,302 |
) |
|
(18,566 |
) |
|
(7,854 |
) |
|
(5,288 |
) |
| Deemed dividend of Series E
Preferred Stock |
|
- |
|
|
(5,446 |
) |
|
- |
|
|
- |
|
| Non-Controlling Interest |
|
5,052 |
|
|
529 |
|
|
1,055 |
|
|
1,880 |
|
| Net Income available
to common stockholders |
|
258,094 |
|
|
260,935 |
|
|
53,287 |
|
|
75,463 |
|
| Accrued charter revenue |
|
4,515 |
|
|
(3,027 |
) |
|
3,984 |
|
|
(2,457 |
) |
| Deferred charter-in
expense |
|
- |
|
|
300 |
|
|
- |
|
|
(201 |
) |
| General and administrative
expenses - non-cash component |
|
4,294 |
|
|
6,508 |
|
|
1,440 |
|
|
2,352 |
|
| Amortization of time-charter
assumed |
|
(141 |
) |
|
(383 |
) |
|
(170 |
) |
|
(239 |
) |
| Realized gain on Euro/USD
forward contracts |
|
(536 |
) |
|
(787 |
) |
|
(301 |
) |
|
(299 |
) |
| Vessel’s impairment loss |
|
229 |
|
|
- |
|
|
229 |
|
|
- |
|
| Gain on sale of vessels,
net |
|
(118,046 |
) |
|
(3,348 |
) |
|
- |
|
|
(2,234 |
) |
| Loss on vessel held for
sale |
|
4,855 |
|
|
- |
|
|
4,855 |
|
|
- |
|
| (Gain) / Loss on sale of
vessels, net, by jointly owned companies with York Capital included
in equity gain on investments (1) |
|
493 |
|
|
- |
|
|
(1,572 |
) |
|
- |
|
| Non-recurring, non-cash
write-off of loan deferred financing costs |
|
1,439 |
|
|
405 |
|
|
- |
|
|
100 |
|
| (Gain) / Loss on derivative
instruments, excluding realized (gain) / loss on derivative
instruments (1) |
|
13,828 |
|
|
(16,384 |
) |
|
(7,821 |
) |
|
8,053 |
|
| Other non-cash items |
|
- |
|
|
3,129 |
|
|
- |
|
|
184 |
|
| Adjusted Net Income
available to common stockholders |
$ |
169,024 |
|
$ |
247,348 |
|
$ |
53,931 |
|
$ |
80,722 |
|
| Adjusted Earnings per
Share |
$ |
1.40 |
|
$ |
2.08 |
|
$ |
0.46 |
|
$ |
0.68 |
|
| Weighted average number of
shares |
|
121,059,768 |
|
|
119,129,429 |
|
|
118,107,881 |
|
|
119,577,920 |
|
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, vessel’s impairment loss, realized gain on Euro/USD
forward contracts, gain on sale of vessels, net , (gain)/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 September 30,
2024 compared to the three-month period ended September 30,
2023
During the three-month periods ended September
30, 2024 and 2023, we had an average of 105.2 and 111.1 vessels,
respectively, in our owned fleet. In addition, during the
three-month periods ended September 30, 2024 and 2023, through our
dry bulk operating platform Costamare Bulkers Inc. (“CBI”) we
chartered-in an average of 66.1 and 55.0 third party dry bulk
vessels, respectively. As of October 31, 2024, CBI charters-in 56
dry bulk vessels on period charters.
During the three-month period ended September
30, 2024, we took delivery of the secondhand dry bulk vessel
Frontier with a DWT of 181,415 and we sold the dry bulk vessels
Oracle and Titan I with an aggregate DWT of 116,108.
During the three-month period ended September
30, 2023, we acquired the secondhand dry bulk vessels Enna, Dorado
and Arya with an aggregate DWT of 417,241.
As of September 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 September 30,
2024 and 2023, our fleet ownership days totaled 9,680 and 10,222
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
|
|
|
Three-month period endedSeptember 30, |
|
Change |
|
PercentageChange |
|
(Expressed in millions of U.S. dollars, except percentages) |
|
2023 |
|
2024 |
|
|
| |
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
397.3 |
|
$ |
459.0 |
|
$ |
61.7 |
|
|
15.5 |
% |
| Voyage revenue – related
parties |
|
- |
|
|
79.4 |
|
|
79.4 |
|
|
n.m. |
| Total voyage
revenue |
$ |
397.3 |
|
$ |
538.4 |
|
|
141.1 |
|
|
35.5 |
% |
| Income from investments in
leaseback vessels |
|
3.1 |
|
|
6.2 |
|
|
3.1 |
|
|
100.0 |
% |
| Voyage expenses |
|
(84.8 |
) |
|
(93.3 |
) |
|
8.5 |
|
|
10.0 |
% |
| Charter-in hire expenses |
|
(87.7 |
) |
|
(212.9 |
) |
|
125.2 |
|
|
142.8 |
% |
| Voyage expenses – related
parties |
|
(3.6 |
) |
|
(6.4 |
) |
|
2.8 |
|
|
77.8 |
% |
| Vessels’ operating
expenses |
|
(63.5 |
) |
|
(60.3 |
) |
|
(3.2 |
) |
|
(5.0 |
%) |
| General and administrative
expenses |
|
(6.0 |
) |
|
(7.8 |
) |
|
1.8 |
|
|
30.0 |
% |
| Management and agency fees –
related parties |
|
(13.9 |
) |
|
(15.9 |
) |
|
2.0 |
|
|
14.4 |
% |
| General and administrative
expenses - non-cash component |
|
(1.4 |
) |
|
(2.3 |
) |
|
0.9 |
|
|
64.3 |
% |
| Amortization of dry-docking
and special survey costs |
|
(5.0 |
) |
|
(6.0 |
) |
|
1.0 |
|
|
20.0 |
% |
| Depreciation |
|
(42.2 |
) |
|
(41.5 |
) |
|
(0.7 |
) |
|
(1.7 |
%) |
| Gain on sale of vessels,
net |
|
- |
|
|
2.2 |
|
|
2.2 |
|
|
n.m. |
| Loss on vessel held for
sale |
|
(4.8 |
) |
|
- |
|
|
(4.8 |
) |
|
n.m. |
| Vessel’s impairment loss |
|
(0.2 |
) |
|
- |
|
|
(0.2 |
) |
|
n.m. |
| Foreign exchange gains /
(losses) |
|
(3.1 |
) |
|
3.6 |
|
|
6.7 |
|
|
n.m. |
| Interest income |
|
9.1 |
|
|
8.6 |
|
|
(0.5 |
) |
|
(5.5 |
%) |
| Interest and finance
costs |
|
(36.7 |
) |
|
(32.9 |
) |
|
(3.8 |
) |
|
(10.4 |
%) |
| Income / (loss) from equity
method investments |
|
1.8 |
|
|
- |
|
|
(1.8 |
) |
|
n.m. |
| Other |
|
1.9 |
|
|
0.2 |
|
|
(1.7 |
) |
|
(89.5 |
%) |
| Loss on derivative
instruments, net |
|
(0.2 |
) |
|
(1.0 |
) |
|
(0.8 |
) |
|
n.m. |
| Net
Income |
$ |
60.1 |
|
$ |
78.9 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Three-month period endedSeptember 30, |
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
2023 |
|
2024 |
|
Change |
|
PercentageChange |
| Total voyage revenue |
$ |
397.3 |
|
$ |
538.4 |
|
$ |
141.1 |
|
|
35.5 |
% |
| Accrued charter revenue |
|
4.0 |
|
|
(2.5 |
) |
|
(6.5 |
) |
|
n.m. |
| Amortization of time-charter
assumed |
|
(0.2 |
) |
|
(0.2 |
) |
|
- |
|
|
- |
|
| Total voyage revenue adjusted
on a cash basis (1) |
$ |
401.1 |
|
$ |
535.7 |
|
$ |
134.6 |
|
|
33.6 |
% |
| |
|
|
|
|
|
|
|
|
| |
|
Three-month period endedSeptember
30, |
|
|
|
|
| Vessels’ operational
data |
|
2023 |
|
2024 |
|
Change |
|
PercentageChange |
| Average number of vessels |
|
111.1 |
|
|
105.2 |
|
|
(5.9 |
) |
|
(5.3 |
%) |
| Ownership days |
|
10,222 |
|
|
9,680 |
|
|
(542 |
) |
|
(5.3 |
%) |
| Number of vessels under
dry-docking and special survey |
|
6 |
|
|
3 |
|
|
(3 |
) |
|
|
(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 35.5%, or
$141.1 million, to $538.4 million during the three-month period
ended September 30, 2024, from $397.3 million during the
three-month period ended September 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 one container vessel acquired during the fourth quarter
of 2023, 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 third quarter of 2024 compared to the third quarter of 2023 and
(iv) decreased fleet off-hire and idle days in the third quarter of
2024 compared to the third quarter of 2023; partly offset by
revenue not earned by one container vessel and three dry bulk
vessels sold during the second half of 2023 and nine dry bulk
vessels sold during the nine-month period ended September 30,
2024.
Total voyage revenue adjusted on a cash basis
(which eliminates non-cash “Accrued charter revenue”) increased by
33.6%, or $134.6 million, to $535.7 million during the three-month
period ended September 30, 2024, from $401.1 million during the
three-month period ended September 30, 2023. Accrued charter
revenue for the three-month periods ended September 30, 2024 and
2023 was a negative amount of $2.5 million and a positive amount of
$4.0 million, respectively.
Income from investments in leaseback vessels
Income from investments in leaseback vessels was
$6.2 million and $3.1 million for the three-month periods ended
September 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 September 30, 2024 compared to the three-month period ended
September 30, 2023. NML acquires, owns and bareboat charters out
vessels through its wholly-owned subsidiaries.
Voyage Expenses
Voyage expenses were $93.3 million and $84.8
million for the three-month periods ended September 30, 2024 and
2023, respectively. 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 $212.9 million and
$87.7 million for the three-month periods ended September 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 $6.4
million and $3.6 million for the three-month periods ended
September 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 $0.4 million, in the aggregate, for the three-month
periods ended September 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 $60.3 million and $63.5
million during the three-month periods ended September 30, 2024 and
2023, respectively. Daily vessels’ operating expenses were $6,227
and $6,212 for the three-month periods ended September 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 $7.8
million and $6.0 million during the three-month periods ended
September 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 $10.9 million and $11.2 million during the
three-month periods ended September 30, 2024 and 2023,
respectively. The amounts charged by our related party managers
include amounts paid to third party managers of $2.3 million and
$3.7 million for the three-month periods ended September 30, 2024
and 2023, respectively. Furthermore, during the three-month periods
ended September 30, 2024 and 2023, agency fees of $5.0 million and
$2.7 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 September 30, 2024
amounted to $2.3 million, representing the value of the shares
issued to a related service provider on September 30, 2024. General
and administrative expenses - non-cash component for the
three-month period ended September 30, 2023 amounted to $1.4
million, representing the value of the shares issued to a related
service provider on September 29, 2023.
Amortization of Dry-Docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs was $6.0 million and $5.0 million during the
three-month periods ended September 30, 2024 and 2023,
respectively. During the three-month period ended September 30,
2024, three vessels underwent and completed their dry-docking and
special survey. During the three-month period ended September 30,
2023, 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.
Depreciation
Depreciation expense for the three-month periods
ended September 30, 2024 and 2023 was $41.5 million and $42.2
million, respectively.
Gain on Sale of Vessels, net
During the three-month period ended September
30, 2024, we recorded a gain of $2.2 million from the sale of the
dry bulk vessel Titan I. Furthermore, the dry bulk vessel Oracle,
which was classified as a vessel held for sale as of June 30, 2024,
was delivered to her new owners. No vessels were sold during the
three-month period ended September 30, 2023.
Loss on Vessel Held for Sale
We did not record any loss on any vessels held
for sale during the three-month period ended September 30, 2024.
During the three-month period ended September 30, 2023, we recorded
a loss on vessel held for sale of $4.8 million representing the
expected loss from the sale of the container vessel Oakland during
the next twelve-month period.
Vessel’s Impairment Loss
During the three-month period ended September
30, 2024, no impairment loss was recorded. During the three-month
period ended September 30, 2023, we recorded an impairment loss in
relation to one of our dry bulk vessels in the amount of $0.2
million.
Interest Income
Interest income amounted to $8.6 million and
$9.1 million for the three-month periods ended September 30, 2024
and 2023, respectively.
Interest and Finance Costs
Interest and finance costs were $32.9 million
and $36.7 million during the three-month periods ended September
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 September
30, 2024, compared to the three-month period ended September 30,
2023.
Income / (Loss) from Equity Method
Investments
Income/(loss) from equity method investments for
the three-month period ended September 30, 2024, was nil (compared
to income of $1.8 million for the three-month period ended
September 30, 2023) representing our share in the jointly owned
companies set up pursuant to the Framework Deed. As of September
30, 2024 and 2023, two and three companies, respectively, were
jointly owned pursuant to the Framework Deed out of which none and
one company, respectively, owned container vessels.
Loss on Derivative Instruments, net
As of September 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 September 30, 2024, the fair value of
these instruments, in aggregate, amounted to a net asset of $44.1
million. During the three-month period ended September 30, 2024, a
net loss of $21.8 million has been included in OCI and a net loss
of $1.0 million has been included in Loss on Derivative
Instruments, net.
Cash FlowsThree-month periods ended
September 30, 2024 and 2023
| Condensed cash
flows |
Three-month period endedSeptember 30, |
|
(Expressed in millions of U.S. dollars) |
|
2023 |
|
|
|
2024 |
|
| Net Cash Provided by Operating
Activities |
$ |
74.8 |
|
|
$ |
123.7 |
|
| Net Cash Provided by / (Used
in) Investing Activities |
$ |
(1.6 |
) |
|
$ |
9.1 |
|
| Net Cash Used in Financing
Activities |
$ |
(42.8 |
) |
|
$ |
(229.7 |
) |
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended September 30, 2024, increased by
$48.9 million to $123.7 million, from $74.8 million for the
three-month period ended September 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 cash from operations during the three-month period
ended September 30, 2024 compared to the three-month period ended
September 30, 2023, the decrease in interest payments (including
interest rate derivatives net receipts) during the three-month
period ended September 30, 2024 compared to the three-month period
ended September 30, 2023 and the decreased dry-docking and special
survey costs during the three-month period ended September 30, 2024
compared to the three-month period ended September 30, 2023.
Net Cash Provided by / (Used in)
Investing Activities
Net cash provided by investing activities was
$9.1 million in the three-month period ended September 30, 2024,
which mainly consisted of (i) proceeds we received from the sale of
the dry bulk vessels Oracle and Titan I and (ii) net proceeds for
the investments into which NML entered; partly offset by (i) the
settlement payment for the acquisition of the secondhand dry bulk
vessel Frontier, (ii) the advance payment for the acquisition of
the secondhand dry bulk vessel Nord Magnes (tbr. Magnes) and
(iii) payments for upgrades for certain of our container and dry
bulk vessels.
Net cash used in investing activities was $1.6
million in the three-month period ended September 30, 2023, which
mainly consisted of (i) payments for the acquisition of the
secondhand dry bulk vessels Enna, Dorado and Arya, (ii) payments
for upgrades for certain of our container and dry bulk vessels and
(iii) net payments for investments into which NML entered; partly
offset by the proceeds we received from the maturity of our
short-term investments in US Treasury Bills.
Net Cash Used in Financing
Activities
Net cash used in financing activities was $229.7
million in the three-month period ended September 30, 2024, which
mainly consisted of (i) $96.3 million net payments relating to our
debt financing agreements and finance lease liability agreement
(including proceeds of $21.6 million we received from one existing
debt financing agreement), (ii) $116.0 million we paid, in
aggregate, for the full redemption of our 8.875% Series E
Cumulative Redeemable Perpetual Preferred Stock (“Series E
Preferred Stock”), (iii) $11.2 million we paid for dividends to
holders of our common stock for the second quarter of 2024 and (iv)
$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”) and $2.2 million we paid for dividends
to holders of our 8.75% Series D Cumulative Redeemable Perpetual
Preferred Stock (“Series D Preferred Stock”) for the period from
April 15, 2024 to July 14, 2024.
Net cash used in financing activities was $42.8
million in the three-month period ended September 30, 2023, which
mainly consisted of (i) $3.0 million net payments relating to our
debt financing agreements and finance lease liability agreement
(including proceeds of $82.4 million we received from three debt
financing agreements), (ii) $28.8 million we paid for the
re-purchase of 2.8 million of our common shares, (iii) $9.5 million
we paid for dividends to holders of our common stock for the second
quarter of 2023 and (iv) $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 April 15, 2023 to July 14,
2023.
Results of Operations
Nine-month period ended September 30,
2024 compared to the nine-month period ended September 30,
2023
During the nine-month periods ended September
30, 2024 and 2023, we had an average of 105.9 and 111.3 vessels,
respectively, in our owned fleet. In addition, during the
nine-month periods ended September 30, 2024 and 2023, through CBI
we chartered-in an average of 60.8 and 36.3 third-party dry bulk
vessels, respectively. As of October 31, 2024, CBI has chartered-in
56 dry bulk vessels on period charters.
During the nine-month period ended September 30,
2024, we took delivery of the secondhand dry bulk vessels Miracle,
Prosper and Frontier with an aggregate DWT of 541,953 and we sold
the dry bulk vessels Manzanillo, Progress, Konstantinos, Merida,
Alliance, Pegasus, Adventure, Oracle and Titan I with an aggregate
DWT capacity of 396,014.
During the nine-month period ended September 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 nine-month period ended
September 30, 2023, we acquired the secondhand dry bulk vessels
Enna, Dorado and Arya with an aggregate DWT of 417,241 and 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 September 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 nine-month periods ended September 30,
2024 and 2023, our fleet ownership days totaled 29,028 and 30,385
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
|
(Expressed in millions of U.S. dollars, except
percentages) |
|
Nine-month periodended September
30, |
|
Change |
|
PercentageChange |
| |
2023 |
|
2024 |
|
|
| |
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
1,012.0 |
|
$ |
1,406.7 |
|
$ |
394.7 |
|
|
39.0 |
% |
| Voyage revenue –
related parties |
|
- |
|
|
111.1 |
|
|
111.1 |
|
|
n.m. |
| Total
voyage revenue |
|
1,012.0 |
|
|
1,517.8 |
|
|
505.8 |
|
|
50.0 |
% |
| Income from
investments in lease back vessels |
|
4.6 |
|
|
17.7 |
|
|
13.1 |
|
|
n.m. |
| Voyage
expenses |
|
(185.9 |
) |
|
(277.8 |
) |
|
91.9 |
|
|
49.4 |
% |
| Charter-in hire
expenses |
|
(174.7 |
) |
|
(521.4 |
) |
|
346.7 |
|
|
198.5 |
% |
| Voyage expenses –
related parties |
|
(10.3 |
) |
|
(14.7 |
) |
|
4.4 |
|
|
42.7 |
% |
| Vessels’ operating
expenses |
|
(194.1 |
) |
|
(180.5 |
) |
|
(13.6 |
) |
|
(7.0 |
%) |
| General and
administrative expenses |
|
(14.5 |
) |
|
(18.7 |
) |
|
4.2 |
|
|
29.0 |
% |
| Management and
agency fees – related parties |
|
(43.9 |
) |
|
(45.3 |
) |
|
1.4 |
|
|
3.2 |
% |
| General and
administrative expenses – non-cash component |
|
(4.3 |
) |
|
(6.5 |
) |
|
2.2 |
|
|
51.2 |
% |
| Amortization of
dry-docking and special survey costs |
|
(14.5 |
) |
|
(17.3 |
) |
|
2.8 |
|
|
19.3 |
% |
| Depreciation |
|
(124.5 |
) |
|
(122.5 |
) |
|
(2.0 |
) |
|
(1.6 |
%) |
| Gain on sale of
vessels, net |
|
118.0 |
|
|
3.3 |
|
|
(114.7 |
) |
|
n.m. |
| Loss on vessel
held for sale |
|
(4.8 |
) |
|
- |
|
|
(4.8 |
) |
|
n.m. |
| Vessel’s
impairment loss |
|
(0.2 |
) |
|
- |
|
|
(0.2 |
) |
|
n.m. |
| Foreign exchange
gains / (losses) |
|
(1.3 |
) |
|
0.9 |
|
|
2.2 |
|
|
n.m. |
| Interest
income |
|
25.5 |
|
|
26.2 |
|
|
0.7 |
|
|
2.7 |
% |
| Interest and
finance costs |
|
(110.0 |
) |
|
(99.9 |
) |
|
(10.1 |
) |
|
(9.2 |
%) |
| Income from equity
method investments |
|
0.7 |
|
|
- |
|
|
(0.7 |
) |
|
n.m. |
| Other |
|
5.7 |
|
|
2.3 |
|
|
(3.4 |
) |
|
(59.6 |
%) |
| Gain /(Loss) on
derivative instruments, net |
|
(7.2 |
) |
|
20.8 |
|
|
28.0 |
|
|
n.m. |
| Net
Income |
$ |
276.3 |
|
$ |
284.4 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
Nine-month periodended September
30, |
|
Change |
|
PercentageChange |
| |
2023 |
|
2024 |
|
|
| Total voyage
revenue |
$ |
1,012.0 |
|
$ |
1,517.8 |
|
$ |
505.8 |
|
|
50.0 |
% |
| Accrued charter
revenue |
|
4.5 |
|
|
(3.0 |
) |
|
(7.5 |
) |
|
n.m. |
| Amortization of
time-charter assumed |
|
(0.1 |
) |
|
(0.4 |
) |
|
(0.3 |
) |
|
n.m. |
| Total voyage
revenue adjusted on a cash basis (1) |
$ |
1,016.4 |
|
$ |
1,514.4 |
|
$ |
498.0 |
|
|
49.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Vessels’
operational data |
|
Nine-month periodended September 30, |
|
|
Change |
|
PercentageChange |
| |
|
2023 |
|
2024 |
|
|
| Average number of
vessels |
|
111.3 |
|
|
105.9 |
|
|
(5.4 |
) |
|
(4.9 |
%) |
| Ownership days |
|
30,385 |
|
|
29,028 |
|
|
(1,357 |
) |
|
(4.5 |
%) |
| Number of vessels
under dry-docking and special survey |
|
18 |
|
|
9 |
|
|
(9 |
) |
|
|
|
(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 50.0%, or
$505.8 million, to $1,517.8 million during the nine-month period
ended September 30, 2024, from $1,012.0 million during the
nine-month period ended September 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 two dry bulk vessels acquired during the
nine-month period ended September 30, 2024, (iv) decreased fleet
off-hire and idle days in the nine-month period ended September 30,
2024 compared to the nine-month period ended September 30, 2023;
partly offset by revenue not earned by one container vessel and six
dry bulk vessels sold during the year ended 2023 and nine dry bulk
vessels sold during the nine-month period ended September 30,
2024.
Total voyage revenue adjusted on a cash basis
(which eliminates non-cash “Accrued charter revenue”) increased by
49.0%, or $498.0 million, to $1,514.4 million during the nine-month
period ended September 30, 2024, from $1,016.4 million during the
nine-month period ended September 30, 2023. Accrued charter revenue
for the nine-month periods ended September 30, 2024 and 2023 was a
negative amount of $3.0 million and a positive amount of $4.5
million, respectively.
Income from investments in leaseback vessels
Income from investments in leaseback vessels was
$17.7 million and $4.6 million for the nine-month periods ended
September 30, 2024 and 2023, respectively. Increased income from
investments in leaseback vessels, period over period, is
attributable to (i) the income earned from NML’s operations for the
entire nine-month period ended September 30, 2024 (in 2023, we
earned income from NML’s operations starting from the second
quarter of 2023) and (ii) the increased volume of NML’s operations
during the nine-month period ended September 30, 2024 compared to
the nine-month period ended September 30, 2023. NML acquires, owns
and bareboat charters out vessels through its wholly-owned
subsidiaries.
Voyage Expenses
Voyage expenses were $277.8 million and $185.9
million for the nine-month periods ended September 30, 2024 and
2023, respectively. Voyage expenses increased, period over period,
mainly due to CBI’s increased volume of operations during the
nine-month period ended September 30, 2024 compared to the
nine-month period ended September 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 $521.4 million and
$174.7 million for the nine-month periods ended September 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 $14.7
million and $10.3 million for the nine-month periods ended
September 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 $1.1
million and $1.0 million, in the aggregate, for the nine-month
periods ended September 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 $180.5 million and
$194.1 million during the nine-month periods ended September 30,
2024 and 2023, respectively. Daily vessels’ operating expenses were
$6,220 and $6,388 for the nine-month periods ended September 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 $18.7
million and $14.5 million during the nine-month periods ended
September 30, 2024 and 2023, respectively, and include amounts of
$2.0 million and $2.0 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 $32.9 million and $32.8 million during the nine-month
periods ended September 30, 2024 and 2023, respectively. The
amounts charged by our related party managers include amounts paid
to third party managers of $8.3 million and $10.7 million for the
nine-month periods ended September 30, 2024 and 2023, respectively.
Furthermore, during the nine-month periods ended September 30, 2024
and 2023, agency fees of $12.4 million and $11.1 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 nine-month period ended September 30, 2024
amounted to $6.5 million, representing the value of the shares
issued to a related service provider on March 29, 2024, June 28,
2024 and September 30, 2024. General and administrative expenses –
non-cash component for the nine-month period ended September 30,
2023 amounted to $4.3 million, representing the value of the shares
issued to a related service provider on March 30, 2023, June 30,
2023 and September 29, 2023.
Amortization of Dry-Docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs was $17.3 million and $14.5 million during the
nine-month periods ended September 30, 2024 and 2023, respectively.
During the nine-month period ended September 30, 2024, nine vessels
underwent and completed their dry-docking and special survey.
During the nine-month period ended September 30, 2023, 17 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.
Depreciation
Depreciation expense for the nine-month periods
ended September 30, 2024 and 2023 was $122.5 million and $124.5
million, respectively.
Gain on Sale of Vessels, net
During the nine-month period ended September 30,
2024, we recorded a net gain of $3.3 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, (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), (iv) the sale of the dry bulk vessel Oracle which was
classified as a vessel held for sale as of June 30, 2024 and (v)
the sale of the dry bulk vessel Titan I. During the nine-month
period ended September 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)”.
Loss on Vessel Held for Sale
We did not record any loss on any vessels held
for sale during the nine-month period ended September 30, 2024.
During the nine-month period ended September 30, 2023, we recorded
a loss on a vessel held for sale of $4.8 million, representing the
expected loss from the sale of the container vessel Oakland during
the next twelve-month period.
Vessel’s Impairment Loss
During the nine-month period ended September 30,
2024, no impairment loss was recorded. During the nine-month period
ended September 30, 2023, we recorded an impairment loss in
relation to one of our dry-bulk vessels in the amount of $0.2
million.
Interest Income
Interest income amounted to $26.2 million and
$25.5 million for the nine-month periods ended September 30, 2024
and 2023, respectively.
Interest and Finance Costs
Interest and finance costs were $99.9 million
and $110.0 million during the nine-month periods ended September
30, 2024 and 2023, respectively. The decrease is mainly
attributable to the decreased interest expense due to lower average
loan balance during the nine-month period ended September 30, 2024,
compared to the nine-month period ended September 30, 2023.
Income /(Loss) from Equity Method
Investments
Income/(loss) from equity method investments for
the nine-month period ended September 30, 2024, was nil (income of
$0.7 million for the nine-month period ended September 30, 2023)
representing our share in jointly owned companies set up pursuant
to the Framework Deed. During the nine-month period ended September
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 September 30, 2024 and 2023 two and three
companies, respectively, were jointly owned pursuant to the
Framework Deed out of which none and one company, respectively,
owned container vessels.
Gain / (Loss) on Derivative Instruments, net
As of September 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 September 30, 2024, the fair value of
these instruments, in aggregate, amounted to a net asset of $44.1
million. During the nine-month period ended September 30, 2024, a
net loss of $16.2 million has been included in OCI and a net gain
of $20.8 million has been included in Gain / (Loss) on Derivative
Instruments, net.
Cash FlowsNine-month periods ended
September 30, 2024 and 2023
| Condensed cash
flows |
Nine-month period endedSeptember 30, |
|
(Expressed in millions of U.S. dollars) |
|
2023 |
|
|
|
2024 |
|
| Net Cash Provided by Operating
Activities |
$ |
178.5 |
|
|
$ |
408.8 |
|
| Net Cash Provided by / (Used
in) Investing Activities |
$ |
112.4 |
|
|
$ |
(8.8 |
) |
| Net Cash Used in Financing
Activities |
$ |
(295.8 |
) |
|
$ |
(348.5 |
) |
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the nine-month period ended September 30, 2024, increased by
$230.3 million to $408.8 million, from $178.5 million for the
nine-month period ended September 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 cash from operations during the nine-month period
ended September 30, 2024 compared to the nine-month period ended
September 30, 2023, the decrease in interest payments (including
interest derivatives net receipts) during the nine-month period
ended September 30, 2024 compared to the nine-month period ended
September 30, 2023 and the decreased dry-docking and special survey
costs during the nine-month period ended September 30, 2024
compared to the nine-month period ended September 30, 2023.
Net Cash Provided by / (Used in)
Investing Activities
Net cash used in investing activities was $8.8
million in the nine-month period ended September 30, 2024, which
mainly consisted of (i) a settlement payment for the delivery of
the secondhand dry bulk vessel Miracle, (ii) payments for the
acquisition of the secondhand dry bulk vessels Prosper and
Frontier, (iii) an advance payment for the acquisition of the
secondhand dry bulk vessel Nord Magnes (tbr. Magnes), (iv)
payments for upgrades for certain of our container and dry bulk
vessels and (v) net payments for investments into which NML
entered; partly offset by proceeds we received from the sale of the
dry bulk vessels Manzanillo, Progress, Konstantinos, Merida,
Alliance, Pegasus, Adventure, Oracle and Titan I.
Net cash provided by investing activities was
$112.4 million in the nine-month period ended September 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 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, payments for the acquisition of the
secondhand dry bulk vessels Enna, Dorado and Arya and payments for
net investments into which NML entered.
Net Cash Used in Financing
Activities
Net cash used in financing activities was $348.5
million in the nine-month period ended September 30, 2024, which
mainly consisted of (i) $178.6 million net payments relating to our
debt financing agreements and finance lease liability agreement
(including proceeds of $167.4 million we received from 10 debt
financing agreements), (ii) $116.0 million we paid, in aggregate,
for the full redemption of our Series E Preferred Stock, (iii)
$29.9 million we paid for dividends to holders of our common stock
for the fourth quarter of 2023 and the first quarter of 2024 and
the second quarter of 2024 and (iv) $2.8 million we paid for
dividends to holders of our Series B Preferred Stock, $6.3 million
we paid for dividends to holders of our Series C Preferred Stock,
$6.6 million we paid for dividends to holders of our Series D
Preferred Stock for the period from October 15, 2023 to January 14,
2024, January 15, 2024 to April 14, 2024 and April 15, 2024 to July
14, 2024 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 $295.8
million in the nine-month period ended September 30, 2023, which
mainly consisted of (i) $168.0 million net payments relating to our
debt financing agreements and finance lease liability agreement
(including proceeds of $564.2 million we received from seven debt
financing agreements), (ii) $60.0 million we paid for the
re-purchase of 6.3 million of our common shares, (iii) $29.8
million we paid for dividends to holders of our common stock for
the fourth quarter of 2022, the first quarter of 2023 and the
second quarter of 2023 and (iv) $2.8 million we paid for dividends
to holders of our Series B Preferred Stock, $6.3 million we paid
for dividends to holders of our Series C Preferred Stock, $6.6
million we paid for dividends to holders of our Series D Preferred
Stock and $7.6 million we paid for dividends to holders of our
Series E Preferred Stock for the period from October 15, 2022 to
January 14, 2023, January 15, 2023 to April 14, 2023 and April 15,
2023 to July 14, 2023.
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of September 30, 2024, we had Cash and cash
equivalents (including restricted cash) of $876.6 million, $18.3
million invested in short-dated US Treasury Bills (short-term
investments) and $29.9 million margin deposits in relation to our
FFAs and bunker swaps. Furthermore, as of September 30, 2024, our
liquidity stood at approximately $1,019.2 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) $94.2
million of available undrawn funds from two hunting license
facilities.
Debt-free vessels
As of October 31, 2024, the following vessels were free of
debt.
Unencumbered Vessels (Refer to
Fleet list for full details)
|
Vessel Name |
YearBuilt |
|
TEU / DWT Capacity |
|
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 |
Conference Call details:
On Friday, November 1, 2024 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 November 8, 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:
8837868.
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 39 owned dry bulk vessels
with a total capacity of approximately 3,054,000 DWT (including
three vessels we have agreed to acquire and 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., MonacoTel: (+377) 93 25 09 40Email:
ir@costamare.com
Containership Fleet List
The table below provides additional information,
as of October 31, 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 |
YearBuilt |
Capacity(TEU) |
Current DailyCharter 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 |
TAMPA I |
ZIM/(*) |
2000 |
6,648 |
45,000/(*) |
July 2025 / June 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/ April 2028(16) |
|
45 |
PORTO GERMENO |
Maersk |
2002 |
5,570 |
28,822 |
June 2026 |
|
46 |
LEONIDIO |
Maersk |
2014 |
4,957 |
17,000 |
October 2026(17) |
|
47 |
KYPARISSIA |
Maersk |
2014 |
4,957 |
17,000 |
October 2026(18) |
|
48 |
MEGALOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(19) |
|
49 |
MARATHOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(19) |
|
50 |
GIALOVA |
(*) |
2009 |
4,578 |
(*) |
March 2026 |
|
51 |
DYROS |
Maersk |
2008 |
4,578 |
35,500 |
April 2027(20) |
|
52 |
NORFOLK |
(*)/(*) |
2009 |
4,259 |
(*)/(*) |
May 2025/ March 2028(21) |
|
53 |
VULPECULA |
ZIM |
2010 |
4,258 |
Please refer to note 22 |
May 2028(22) |
|
54 |
VOLANS |
(*) |
2010 |
4,258 |
(*) |
July 2027 |
|
55 |
VIRGO |
Maersk |
2009 |
4,258 |
35,500 |
April 2027(23) |
|
56 |
VELA |
ZIM |
2009 |
4,258 |
Please refer to note 24 |
April 2028(24) |
|
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 |
21,000 |
March 2026(25) |
|
61 |
LAKONIA |
COSCO |
2004 |
2,586 |
23,500 |
February 2027(26) |
|
62 |
SCORPIUS |
Hapag Lloyd |
2007 |
2,572 |
16,500 |
February 2026 |
|
63 |
ETOILE |
(*) |
2005 |
2,556 |
(*) |
June 2026 |
|
64 |
AREOPOLIS |
COSCO |
2000 |
2,474 |
23,500 |
March 2027(27) |
|
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 |
|
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) |
Tampa I 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) |
Glen Canyon is currently chartered to ZIM at a daily rate of
$62,500 until June 2025 (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. |
| (17) |
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. |
| (18) |
Kyparissia is currently chartered at a daily rate of $14,200 until
November 24, 2024. From such date and until the expiration of the
charter the new daily rate will be $17,000. |
| (19) |
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. |
| (20) |
Dyros is currently chartered to Maersk at a daily rate of $17,500
until April 15, 2025. Following the aforementioned date, the new
daily rate will be $35,500 for a period of 24 to 26 months. |
| (21) |
Norfolk is currently chartered until March 2025 (earliest
redelivery) - May 2025 (latest redelivery). Upon redelivery of the
vessel from its current charterer, the vessel will commence a new
charter with a leading liner company until March 2028 (earliest
redelivery) - May 2028 (latest redelivery) at an undisclosed
rate. |
| (22) |
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. |
| (23) |
Virgo is currently chartered to Maersk at a daily rate of $21,500
until April 15, 2025. Following the aforementioned date, the new
daily rate will be $35,500 for a period of 24 to 26 months. |
| (24) |
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. |
| (25) |
Polar Brasil is currently chartered at a daily rate of $19,700
until April 27, 2025. From such date and until the expiration of
the charter the new daily rate will be $21,000. Charterer has the
option to extend the current time charter for two additional
one-year periods at a daily rate of $21,000. |
| (26) |
Lakonia is currently chartered to COSCO at a daily rate of $26,500
until March 24, 2025. Following the aforementioned date, the new
daily rate will be $23,500 for a period of 23 to 25 months. |
| (27) |
Areopolis is currently chartered to COSCO at a daily rate of
$26,500 until April 3, 2025. Following the aforementioned date, the
new daily rate will be $23,500 for a period of 23 to 25
months. |
| |
|
| (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
October 31, 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 |
NORD MAGNES (tbr. MAGNES)(i) |
2011 |
179,546 |
|
6 |
ENNA |
2011 |
175,975 |
|
7 |
AEOLIAN |
2012 |
83,478 |
|
8 |
GRENETA |
2010 |
82,166 |
|
9 |
HYDRUS |
2011 |
81,601 |
|
10 |
PHOENIX |
2012 |
81,569 |
|
11 |
BUILDER |
2012 |
81,541 |
|
12 |
FARMER |
2012 |
81,541 |
|
13 |
SAUVAN |
2010 |
79,700 |
|
14 |
ROSE |
2008 |
76,619 |
|
15 |
MERCHIA |
2015 |
63,585 |
|
16 |
DAWN |
2018 |
63,561 |
|
17 |
SEABIRD |
2016 |
63,553 |
|
18 |
ORION |
2015 |
63,473 |
|
19 |
DAMON |
2012 |
63,301 |
|
20 |
ARYA |
2013 |
61,424 |
|
21 |
ALWINE OLDENDORFF (tbr. ALWINE) (i) |
2014 |
61,090 |
|
22 |
AUGUST OLDENDORFF (tbr. AUGUST) (i) |
2015 |
61,090 |
|
23 |
ATHENA |
2012 |
58,018 |
|
24 |
ERACLE |
2012 |
58,018 |
|
25 |
PYTHIAS |
2010 |
58,018 |
|
26 |
NORMA |
2010 |
58,018 |
|
27 |
CURACAO |
2011 |
57,937 |
|
28 |
URUGUAY |
2011 |
57,937 |
|
29 |
SERENA |
2010 |
57,266 |
|
30 |
LIBRA |
2010 |
56,701 |
|
31 |
CLARA |
2008 |
56,557 |
|
32 |
BERMONDI |
2009 |
55,469 |
|
33 |
VERITY |
2012 |
37,163 |
|
34 |
PARITY |
2012 |
37,152 |
|
35 |
ACUITY |
2011 |
37,152 |
|
36 |
EQUITY |
2013 |
37,071 |
|
37 |
DISCOVERY (ii) |
2012 |
37,019 |
|
38 |
BERNIS |
2011 |
35,995 |
|
39 |
RESOURCE |
2010 |
31,775 |
(i) Denotes vessel that we have agreed to acquire.(ii) Denotes
vessel that we have agreed to
sell.
|
Consolidated Statements of Income |
| |
| |
|
Nine-months endedSeptember 30, |
|
Three-months endedSeptember 30, |
|
(Expressed in thousands of U.S. dollars, except share and per share
amounts) |
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
| |
|
|
|
|
|
|
|
|
| |
|
(Unaudited) |
|
(Unaudited) |
|
REVENUES: |
|
|
|
|
|
|
|
|
| Voyage revenue |
$ |
1,011,968 |
|
$ |
1,406,695 |
|
$ |
397,256 |
|
$ |
459,040 |
|
| Voyage revenue – related
parties |
|
- |
|
|
111,128 |
|
|
- |
|
|
79,352 |
|
| Total voyage
revenue |
|
1,011,968 |
|
|
1,517,823 |
|
|
397,256 |
|
|
538,392 |
|
| Income from investments in
leaseback vessels |
|
4,591 |
|
|
17,668 |
|
|
3,114 |
|
|
6,249 |
|
| Total
revenues |
$ |
1,016,559 |
|
$ |
1,535,491 |
|
$ |
400,370 |
|
$ |
544,641 |
|
| |
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
| Voyage expenses |
|
(185,851 |
) |
|
(277,791 |
) |
|
(84,840 |
) |
|
(93,348 |
) |
| Charter-in hire expenses |
|
(174,670 |
) |
|
(521,431 |
) |
|
(87,709 |
) |
|
(212,874 |
) |
| Voyage expenses – related
parties |
|
(10,262 |
) |
|
(14,701 |
) |
|
(3,626 |
) |
|
(6,425 |
) |
| Vessels’ operating
expenses |
|
(194,110 |
) |
|
(180,545 |
) |
|
(63,503 |
) |
|
(60,277 |
) |
| General and administrative
expenses |
|
(14,459 |
) |
|
(18,698 |
) |
|
(5,984 |
) |
|
(7,762 |
) |
| Management and agency fees –
related parties |
|
(43,950 |
) |
|
(45,279 |
) |
|
(13,889 |
) |
|
(15,936 |
) |
| General and administrative
expenses – non-cash component |
|
(4,294 |
) |
|
(6,508 |
) |
|
(1,440 |
) |
|
(2,352 |
) |
| Amortization of dry-docking
and special survey costs |
|
(14,472 |
) |
|
(17,307 |
) |
|
(5,015 |
) |
|
(6,043 |
) |
| Depreciation |
|
(124,566 |
) |
|
(122,529 |
) |
|
(42,155 |
) |
|
(41,485 |
) |
| Gain on sale of vessels,
net |
|
118,046 |
|
|
3,348 |
|
|
- |
|
|
2,234 |
|
| Loss on asset held for
sale |
|
(4,855 |
) |
|
- |
|
|
(4,855 |
) |
|
- |
|
| Vessel’s impairment loss |
|
(229 |
) |
|
- |
|
|
(229 |
) |
|
- |
|
| Foreign exchange gains /
losses |
|
(1,284 |
) |
|
974 |
|
|
(3,113 |
) |
|
3,628 |
|
| Operating
income |
$ |
361,603 |
|
$ |
335,024 |
|
$ |
84,012 |
|
$ |
104,001 |
|
| |
|
|
|
|
|
|
|
|
| OTHER INCOME /
(EXPENSES): |
|
|
|
|
|
|
|
|
| Interest income |
$ |
25,544 |
|
$ |
26,196 |
|
$ |
9,173 |
|
$ |
8,629 |
|
| Interest and finance
costs |
|
(110,023 |
) |
|
(99,897 |
) |
|
(36,686 |
) |
|
(32,911 |
) |
| Income / (loss) from equity
method investments |
|
689 |
|
|
19 |
|
|
1,826 |
|
|
(23 |
) |
| Other |
|
5,710 |
|
|
2,285 |
|
|
1,954 |
|
|
168 |
|
| Gain / (Loss) on derivative
instruments, net |
|
(7,179 |
) |
|
20,791 |
|
|
(193 |
) |
|
(993 |
) |
| Total other expenses,
net |
$ |
(85,259 |
) |
$ |
(50,606 |
) |
$ |
(23,926 |
) |
$ |
(25,130 |
) |
| Net
Income |
$ |
276,344 |
|
$ |
284,418 |
|
$ |
60,086 |
|
$ |
78,871 |
|
| Earnings allocated to
Preferred Stock |
|
(23,302 |
) |
|
(18,566 |
) |
|
(7,854 |
) |
|
(5,288 |
) |
| Deemed dividend to Series E
Preferred Stock |
|
- |
|
|
(5,446 |
) |
|
- |
|
|
- |
|
| Net Gain attributable to the
non-controlling interest |
|
5,052 |
|
|
529 |
|
|
1,055 |
|
|
1,880 |
|
| Net Income available
to common stockholders |
$ |
258,094 |
|
$ |
260,935 |
|
$ |
53,287 |
|
$ |
75,463 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Earnings per common share,
basic and diluted |
$ |
2.13 |
|
$ |
2.19 |
|
$ |
0.45 |
|
$ |
0.63 |
|
| Weighted average number of
shares, basic and diluted |
|
121,059,768 |
|
|
119,129,429 |
|
|
118,107,881 |
|
|
119,577,920 |
|
|
|
|
COSTAMARE INC.Consolidated Balance
Sheets |
| |
| (Expressed in thousands of
U.S. dollars) |
|
As of December 31, 2023 |
|
As of September 30, 2024 |
| ASSETS |
|
(Audited) |
|
(Unaudited) |
| CURRENT
ASSETS: |
|
|
|
|
|
Cash and cash equivalents |
$ |
745,544 |
|
$ |
798,751 |
|
| Restricted cash |
|
10,645 |
|
|
10,390 |
|
| Margin deposits |
|
13,748 |
|
|
29,948 |
|
| Short-term investments |
|
17,492 |
|
|
18,284 |
|
| Investment in leaseback vessels,
current |
|
27,362 |
|
|
28,066 |
|
| Net investment in sales type
lease (Vessels), current |
|
22,620 |
|
|
21,091 |
|
| Accounts receivable |
|
50,684 |
|
|
61,770 |
|
| Inventories |
|
61,266 |
|
|
61,488 |
|
| Due from related parties |
|
4,119 |
|
|
11,641 |
|
| Fair value of derivatives |
|
33,310 |
|
|
35,725 |
|
| Insurance claims
receivable |
|
18,458 |
|
|
11,346 |
|
| Vessels held for sale |
|
40,307 |
|
|
- |
|
| Time-charter assumed |
|
405 |
|
|
197 |
|
| Accrued charter revenue |
|
9,752 |
|
|
9,399 |
|
| Prepayments and other |
|
61,949 |
|
|
62,617 |
|
| Total current
assets |
$ |
1,117,661 |
|
$ |
1,160,713 |
|
| FIXED ASSETS,
NET: |
|
|
|
|
| Vessels and advances, net |
|
3,446,797 |
|
|
3,360,263 |
|
| Total fixed assets,
net |
$ |
3,446,797 |
|
$ |
3,360,263 |
|
| NON-CURRENT
ASSETS: |
|
|
|
|
| Equity method investments |
$ |
552 |
|
$ |
81 |
|
| Investment in leaseback
vessels, non-current |
|
191,674 |
|
|
219,136 |
|
| Deferred charges, net |
|
72,801 |
|
|
73,398 |
|
| Finance leases, right-of-use
assets (Vessels) |
|
39,211 |
|
|
38,168 |
|
| Net investment in sales type
lease (Vessels), non-current |
|
19,482 |
|
|
6,392 |
|
| Operating leases, right-of-use
assets |
|
284,398 |
|
|
286,906 |
|
| Accounts receivable,
non-current |
|
5,586 |
|
|
3,611 |
|
| Due from related parties,
non-current |
|
- |
|
|
1,875 |
|
| Restricted cash |
|
69,015 |
|
|
67,481 |
|
| Fair value of derivatives,
non-current |
|
28,639 |
|
|
21,604 |
|
| Accrued charter revenue,
non-current |
|
10,937 |
|
|
4,626 |
|
| Time-charter assumed,
non-current |
|
269 |
|
|
122 |
|
| Total
assets |
$ |
5,287,022 |
|
$ |
5,244,376 |
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
| CURRENT
LIABILITIES: |
|
|
|
|
| Current portion of long-term
debt |
$ |
347,027 |
|
$ |
317,386 |
|
| Finance lease liability |
|
2,684 |
|
|
24,565 |
|
| Operating lease liabilities,
current portion |
|
160,993 |
|
|
180,298 |
|
| Accounts payable |
|
46,769 |
|
|
65,892 |
|
| Due to related parties |
|
3,172 |
|
|
4,218 |
|
| Accrued liabilities |
|
39,521 |
|
|
34,795 |
|
| Unearned revenue |
|
52,177 |
|
|
51,779 |
|
| Fair value of derivatives |
|
3,050 |
|
|
9,951 |
|
| Other current liabilities |
|
7,377 |
|
|
15,721 |
|
| Total current
liabilities |
$ |
662,770 |
|
$ |
704,605 |
|
| NON-CURRENT
LIABILITIES |
|
|
|
|
| Long-term debt, net of current
portion |
$ |
1,999,193 |
|
$ |
1,857,325 |
|
| Finance lease liability, net
of current portion |
|
23,877 |
|
|
- |
|
| Operating lease liabilities,
non-current portion |
|
114,063 |
|
|
98,865 |
|
| Fair value of derivatives, net
of current portion |
|
11,194 |
|
|
3,250 |
|
| Unearned revenue, net of
current portion |
|
27,352 |
|
|
17,289 |
|
| Other non-current
liabilities |
|
9,184 |
|
|
17,537 |
|
| Total non-current
liabilities |
$ |
2,184,863 |
|
$ |
1,994,266 |
|
| COMMITMENTS AND
CONTINGENCIES |
|
- |
|
|
- |
|
| Temporary equity –
Redeemable non-controlling interest in subsidiary |
$ |
629 |
|
$ |
(2,407 |
) |
| STOCKHOLDERS’
EQUITY: |
|
|
|
|
| Preferred stock |
$ |
- |
|
$ |
- |
|
| Common stock |
|
13 |
|
|
13 |
|
| Treasury stock |
|
(120,095 |
) |
|
(120,095 |
) |
| Additional paid-in
capital |
|
1,435,294 |
|
|
1,341,777 |
|
| Retained earnings |
|
1,045,932 |
|
|
1,263,640 |
|
| Accumulated other
comprehensive income |
|
21,387 |
|
|
5,211 |
|
| Total Costamare Inc.
stockholders’ equity |
$ |
2,382,531 |
|
$ |
2,490,546 |
|
| Non-controlling interest |
|
56,229 |
|
|
57,366 |
|
| Total stockholders’
equity |
|
2,438,760 |
|
|
2,547,912 |
|
| Total liabilities and
stockholders’ equity |
$ |
5,287,022 |
|
$ |
5,244,376 |
|
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