Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today
reported unaudited financial results for the first quarter ended
March 31, 2023 (“Q1 2023”).
- PROFITABILITY AND LIQUIDITY
- Q1 2023 Net Income available to common stockholders of $141.6
million ($1.16 per share).
- Q1 2023 Adjusted Net Income available to common stockholders1
of $46.5 million ($0.38 per share).
- Q1 2023 liquidity of $1,076.0 million2.
- DRY BULK OPERATING PLATFORM
- First full operational quarter of Costamare Bulkers Inc.
(“CBI”).
- CBI has currently fixed a fleet of 51 dry bulk vessels on
period charters, consisting of:
- 31 Newcastlemax/Capesize vessels
- 19 Kamsarmax/Panamax vessels
- 1 Ultramax vessel
- 39 of the chartered-in vessels have been delivered to CBI.
- Majority of the fixed fleet on index linked charter-in
agreements.
- LEASE FINANCING PLATFORM
- Lead participation in Neptune Maritime Leasing Limited
(“Neptune Leasing”).
- Equity investment of up to $200 million.
- NEW DEBT FINANCING
- Refinancing of existing indebtedness of 7 containerships with
two European financial institutions. More specifically:
- Two bilateral loan facilities for a total amount of
approximately up to $95 million.
- One of the two loan facilities is on a commitment status basis
and subject to final documentation.
- Loan proceeds towards prepayment of existing indebtedness.
- Facilities’ tenors between five and six years.
- Improvement of funding cost and extension of maturity for all
seven refinanced vessels.
- OWNED FLEET CHARTER UPDATE - FULLY EMPLOYED
CONTAINERSHIP FLEET3 FOR THE YEAR
AHEAD
- 98% and 86% of the containership fleet4 fixed for 2023 and
2024, respectively.
- Contracted revenues for the containership fleet of
approximately $3.1 billion with a TEU-weighted duration of 4.1
years5.
- Entered into more than 60 chartering agreements for the owned
dry bulk fleet since Q4 2022 earnings release.
- SALE AND PURCHASE ACTIVITY
- Estimated combined net capital gain of $84.7 million in Q1
2023, from the sale or agreement to sell certain of our
vessels.
- Vessels which have been sold or are expected to be sold
include:
- Owned Containerships
- 2003-built, 6,644 TEU capacity, Maersk Kalamata (sold in
January 2023).
- 2000-built, 6,648 TEU capacity, Sealand Washington (sold in
February 2023).
- Owned Dry Bulk Vessels
- 2010-built, 32,300 DWT capacity, Miner (sold in March
2023).
- 2011-built, 35,112 DWT capacity, Taibo (sold in April
2023).
- 2010-built, 37,302 DWT capacity, Comity (expected to be sold in
Q2 2023).
- Joint Venture Containerships
- Agreed to concurrently:
- Sell our 49% equity interest in the company owning the
2018-built, 3,800 TEU capacity containership, Polar Argentina to
York Capital which holds the remaining 51% and
- Acquire the 51% equity interest of York Capital in the company
owning the 2018-built, 3,800 TEU capacity containership, Polar
Brasil.
- Both transfers are expected to be concluded in Q2 2023,
whereupon we will own 100% of the equity interest in the
ship-owning company of the containership Polar Brasil (compared to
the 49% previously owned in each of the abovementioned
vessels).
- DIVIDEND ANNOUNCEMENTS
- On April 3, 2023, the Company declared a dividend of $0.115 per
share on the common stock, which was paid on May 5, 2023, to
holders of record of common stock as of April 19, 2023.
- On April 3, 2023, the Company declared a dividend of $0.476563
per share on the Series B Preferred Stock, $0.531250 per share on
the Series C Preferred Stock, $0.546875 per share on the Series D
Preferred Stock and $0.554688 per share on the Series E Preferred
Stock, which were all paid on April 17, 2023 to holders of record
as of April 14, 2023.
- Available funds remaining under the share repurchase program of
approximately $90 million for common shares and $150 million for
preferred shares.
________________________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 $4.0 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”), short
term investments in U.S. Treasury Bills amounting to $76.7 million,
margin deposits relating to our FFAs of $12.6 million and $37.1
million of available undrawn funds from one hunting license
facility as of March 31, 2023.3 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,
including vessels owned by vessel owning-companies set-up pursuant
to the Framework Deed.5 As of May 15, 2023. Total contracted
revenues and TEU-weighted remaining time charter duration include
our ownership percentage for four vessels owned pursuant to the
Framework Deed.
Mr. Gregory Zikos, Chief Financial
Officer of Costamare Inc., commented:
“During the first quarter of the year, the
Company generated Net Income of $142 million. As of quarter end,
liquidity was above $1 billion.
In the containership market, charter rates are
on a rising trend with high demand across the board, while fixture
periods are increasing in duration. The orderbook, however, remains
the principal threat to the market.
We have covered nearly 100% of our containership
open days for 2023 and we have proactively arranged long term
employment on a forward basis for a number of containerships coming
off charter between 2023 and 2025 having secured for our fleet
contracted revenues of $3.1 billion with a TEU weighted duration of
4 years.
On the dry bulk side, our owned dry bulk vessels
continue to trade on the spot market while the trading platform has
been growing with a fleet of 51 ships already fixed under period
charters. Having agreed to invest up to $200 million, our goal is
to grow the dry bulk operating platform business on a prudent basis
and realize healthy returns for our shareholders.
Finally, during the quarter we became the
leading investor in Neptune Maritime Leasing Limited, a
growth-oriented maritime leasing platform, having agreed to invest
up to $200 million.
Considering current asset values, we believe the
Neptune Leasing investment is a favorable employment of the
Company’s increased liquidity. The new venture is synergetic to the
existing ship owning platform and is expected to further enhance
the strong relationships built over the last decades with
shipowners and commercial lenders in the ship financing
sector.”
Financial Summary
|
|
|
Three-month period ended March 31, |
(Expressed in thousands of U.S. dollars, except share and per share
data): |
|
2022 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage
revenue |
$268,010 |
|
$248,769 |
|
Accrued charter
revenue (1) |
$3,357 |
|
$(2,265 |
) |
Amortization of
time-charter assumed |
$49 |
|
$49 |
|
Voyage revenue
adjusted on a cash basis (2) |
$271,416 |
|
$246,553 |
|
|
|
|
|
|
Adjusted Net
Income available to common stockholders (3) |
$104,494 |
|
$46,533 |
|
Weighted Average
number of shares |
|
124,150,337 |
|
|
122,531,273 |
|
Adjusted Earnings
per share (3) |
$0.84 |
|
$0.38 |
|
|
|
|
|
Net Income |
$123,037 |
|
$148,864 |
|
Net Income
available to common stockholders |
$115,442 |
|
$141,560 |
|
Weighted Average
number of shares |
|
124,150,337 |
|
|
122,531,273 |
|
Earnings per
share |
$0.93 |
|
$1.16 |
|
|
|
|
|
|
(1) Accrued charter revenue represents the
difference between cash received during the period and revenue
recognized on a straight-line basis. In the early years of a
charter with escalating charter rates, voyage revenue will exceed
cash received during the period and during the last years of such
charter cash received will exceed revenue recognized on a
straight-line basis. The reverse is true for charters with
descending rates.(2) Voyage revenue adjusted on a cash basis
represents Voyage revenue after adjusting for non-cash “Accrued
charter revenue” recorded under charters with escalating charter
rates. However, Voyage revenue adjusted on a cash basis is not a
recognized measurement under U.S. GAAP. We believe that the
presentation of Voyage revenue adjusted on a cash basis is useful
to investors because it presents the charter revenue for the
relevant period based on the then current daily charter rates. The
increases or decreases in daily charter rates under our charter
party agreements of our fleet are described in the notes to the
“Fleet List” tables below.(3) Adjusted Net Income available to
common stockholders and Adjusted Earnings per Share are non-GAAP
measures. Refer to the reconciliation of Net Income to Adjusted Net
Income and Adjusted Earnings per Share.
Non-GAAP Measures
The Company reports its financial results in
accordance with U.S. GAAP. However, management believes that
certain non-GAAP financial measures used in managing the business
may provide users of these financial measures additional meaningful
comparisons between current results and results in prior operating
periods. Management believes that these non-GAAP financial measures
can provide additional meaningful reflection of underlying trends
of the business because they provide a comparison of historical
information that excludes certain items that impact the overall
comparability. Management also uses these non-GAAP financial
measures in making financial, operating and planning decisions and
in evaluating the Company’s performance. The tables below set out
supplemental financial data and corresponding reconciliations to
GAAP financial measures for the three-months ended March 31, 2023
and 2022. Non-GAAP financial measures should be viewed in addition
to, and not as an alternative for, voyage revenue or net income as
determined in accordance with GAAP. Non-GAAP financial measures
include (i) Voyage revenue adjusted on a cash basis (reconciled
above), (ii) Adjusted Net Income available to common stockholders
and (iii) Adjusted Earnings per Share.
Exhibit I Reconciliation of Net Income
to Adjusted Net Income available to common stockholders and
Adjusted Earnings per Share
|
|
Three-month period ended March 31, |
|
(Expressed in thousands of U.S. dollars, except share and per share
data) |
|
2022 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
123,037 |
|
$ |
148,864 |
|
|
Earnings allocated to
Preferred Stock |
|
(7,595 |
) |
|
(7,595 |
) |
|
Non-Controlling Interest |
|
- |
|
|
291 |
|
|
Net Income available
to common stockholders |
|
115,442 |
|
|
141,560 |
|
|
Accrued charter revenue |
|
3,357 |
|
|
(2,265 |
) |
|
General and administrative
expenses - non-cash component |
|
2,552 |
|
|
1,408 |
|
|
Amortization of Time charter
assumed |
|
49 |
|
|
49 |
|
|
Realized loss on Euro/USD
forward contracts |
|
331 |
|
|
48 |
|
|
Gain on sale of vessels,
net |
|
(17,798 |
) |
|
(89,068 |
) |
|
Loss on vessel held for
sale |
|
- |
|
|
2,350 |
|
|
Loss on vessel held for sale
by a jointly owned company with York included in equity loss on
investments |
|
- |
|
|
2,029 |
|
|
Non-recurring, non-cash
write-off of loan deferred financing costs |
|
634 |
|
|
974 |
|
|
Gain on derivative
instruments, excluding interest accrued (1) |
|
(73 |
) |
|
(10,552 |
) |
|
Adjusted Net Income
available to common stockholders |
$ |
104,494 |
|
$ |
46,533 |
|
|
Adjusted Earnings per
Share |
$ |
0.84 |
|
$ |
0.38 |
|
|
Weighted average number of
shares |
|
124,150,337 |
|
|
122,531,273 |
|
|
Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share represent Net Income
after earnings allocated to preferred stock and Non-Controlling
Interest, but before non-cash “Accrued charter revenue” recorded
under charters with escalating or descending charter rates,
amortization of time-charter assumed, realized loss on Euro/USD
forward contracts, gain on sale of vessels, net, loss on vessel
held for sale, loss on vessel held for sale by a jointly owned
company with York included in equity loss on investments,
non-recurring, non-cash write-off of loan deferred financing costs,
general and administrative expenses - non-cash component and
non-cash changes in fair value of derivatives. “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 March 31, 2023
compared to the three-month period ended March 31,
2022
During the three-month periods ended March 31,
2023 and 2022, we had an average of 112.7 and 117.4 vessels,
respectively, in our owned fleet. In addition, during the
three-month period ended March 31, 2023, through our dry-bulk
operating platform Costamare Bulkers Inc. (“CBI”) we chartered-in
an average of 10.9 third party dry-bulk vessels. As of May 15,
2023, CBI charters-in 39 dry-bulk vessels on period charters.
During the three-month period ended March 31,
2023, we sold the container vessels Maersk Kalamata and Sealand
Washington with an aggregate TEU capacity of 13,292 and the
dry-bulk vessel Miner with a DWT of 32,300. In the three-month
period ended March 31, 2022, we accepted delivery of the secondhand
container vessel Dyros with a TEU capacity of 4,578 and of the
secondhand dry bulk vessels Oracle, Libra and Norma with an
aggregate DWT of 172,717. Furthermore, in the three-month period
ended March 31, 2022, we sold the container vessel Messini, with a
TEU capacity of 2,458.
In March 2023, we entered into an agreement with
Neptune Maritime Leasing Limited (“NML”) pursuant to which we
agreed to invest in NML’s ship sale and leaseback business up
to $200 million in exchange for up to 40% of its ordinary shares
and up to 79.05% of its preferred shares. In addition, we
received a special ordinary share in NML which carries 75% of the
voting rights of the ordinary shares providing control over
NML. NML was established in 2021 to acquire, own and bareboat
charter out vessels through its wholly-owned subsidiaries. Up to
March 31, 2023, we have invested in NML the amount
of $11.1 million. As of March 31, 2023, NML is included
in our consolidated financial statements.
In the three-month periods ended March 31, 2023
and 2022, our fleet ownership days totaled 10,143 and 10,564 days,
respectively. Ownership days are one of the primary drivers of
voyage revenue and vessels’ operating expenses and represent the
aggregate number of days in a period during which each vessel in
our fleet is owned. Furthermore, during the three-month period
ended March 31, 2023, the days of the third-party vessels
chartered-in through CBI were 977.
Consolidated Financial Results and
Vessels’ Operational
Data(1)
(Expressed in millions of U.S. dollars, except
percentages) |
|
Three-month period ended March 31, |
|
|
|
|
|
2022 |
|
2023 |
|
Change |
|
PercentageChange |
|
|
|
|
|
|
|
|
|
Voyage
revenue |
$ |
268.0 |
$ |
248.8 |
$ |
(19.2) |
|
(7.2%) |
Voyage
expenses |
|
(8.6) |
|
(31.6) |
|
23.0 |
|
n.m. |
Charter-in hire
expenses |
|
- |
|
(12.4) |
|
12.4 |
|
n.m. |
Voyage expenses –
related parties |
|
(3.7) |
|
(3.2) |
|
(0.5) |
|
(13.5%) |
Vessels’ operating
expenses |
|
(65.7) |
|
(67.7) |
|
2.0 |
|
3.0% |
General and
administrative expenses |
|
(3.3) |
|
(4.4) |
|
1.1 |
|
33.3% |
Management and
agency fees – related parties |
|
(10.9) |
|
(15.2) |
|
4.3 |
|
39.4% |
General and
administrative expenses - non-cash component |
|
(2.6) |
|
(1.4) |
|
(1.2) |
|
(46.2%) |
Amortization of
dry-docking and special survey costs |
|
(2.7) |
|
(4.7) |
|
2.0 |
|
74.1% |
Depreciation |
|
(41.2) |
|
(41.1) |
|
(0.1) |
|
(0.2%) |
Gain on sale of
vessels, net |
|
17.8 |
|
89.1 |
|
71.3 |
|
n.m. |
Loss on vessel
held for sale |
|
- |
|
(2.4) |
|
2.4 |
|
n.m. |
Foreign exchange
gains |
|
0.1 |
|
1.3 |
|
1.2 |
|
n.m. |
Interest
income |
|
- |
|
6.7 |
|
6.7 |
|
n.m. |
Interest and
finance costs |
|
(25.1) |
|
(36.9) |
|
11.8 |
|
47.0% |
Income / (Loss)
from equity method investments |
|
0.3 |
|
(1.4) |
|
(1.7) |
|
n.m. |
Other |
|
0.5 |
|
2.6 |
|
2.1 |
|
n.m. |
Gain on derivative
instruments |
|
0.1 |
|
22.8 |
|
22.7 |
|
n.m. |
Net
Income |
$ |
123.0 |
$ |
148.9 |
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
Three-month period ended March 31, |
|
|
PercentageChange |
|
2022 |
|
2023 |
|
Change |
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
268.0 |
$ |
248.8 |
$ |
(19.2) |
(7.2%) |
|
Accrued charter revenue |
|
3.4 |
|
(2.3) |
|
(5.7) |
n.m |
. |
Amortization of time charter
assumed |
|
- |
|
- |
|
- |
n.m |
. |
Voyage revenue adjusted on a
cash basis (1) |
$ |
271.4 |
$ |
246.5 |
$ |
(24.9) |
(9.2%) |
|
|
|
|
|
|
|
Vessels’
operational data |
|
Three-month period ended March 31, |
|
Change |
PercentageChange |
|
|
|
2022 |
|
2023 |
|
|
|
|
Average number of vessels |
|
117.4 |
|
112.7 |
|
(4.7) |
(4.0%) |
|
Ownership days |
|
10,564 |
|
10,143 |
|
(421) |
(4.0%) |
|
Number of vessels under
dry-docking and special survey |
|
2 |
|
9 |
|
7 |
|
|
Segmental Financial Summary
Three-month period ended March 31, 2022 |
(Expressed in millions of U.S. dollars) |
Container vessels |
Dry bulk vessels |
Other |
Total |
|
|
|
|
|
Voyage revenue |
189.5 |
78.5 |
- |
268.0 |
Voyage expenses |
(2.1) |
(6.5) |
- |
(8.6) |
Voyage expenses – related parties |
(2.7) |
(1.0) |
- |
(3.7) |
Vessels’ operating expenses |
(41.7) |
(24.0) |
- |
(65.7) |
General and administrative expenses |
(2.2) |
(1.1) |
- |
(3.3) |
Management fees – related parties |
(6.8) |
(4.1) |
- |
(10.9) |
General and administrative expenses - non-cash component |
(1.6) |
(1.0) |
- |
(2.6) |
Amortization of dry-docking and special survey costs |
(2.6) |
(0.1) |
- |
(2.7) |
Depreciation |
(31.5) |
(9.7) |
- |
(41.2) |
Gain on sale of vessels, net |
17.8 |
- |
- |
17.8 |
Foreign exchange gains / (losses) |
0.2 |
(0.1) |
- |
0.1 |
Interest and finance costs |
(21.7) |
(3.4) |
- |
(25.1) |
Income from equity method investments |
- |
- |
0.3 |
0.3 |
Gain on derivative instruments |
- |
0.1 |
- |
0.1 |
Other |
0.4 |
0.1 |
- |
0.5 |
Net Income |
95.0 |
27.7 |
0.3 |
123.0 |
|
|
|
|
|
|
Three-month period ended March 31, 2023 |
(Expressed in millions of U.S. dollars) |
Container vessels |
Dry bulk vessels |
CBI |
Other |
Eliminations |
Total |
Voyage revenue |
195.7 |
|
34.1 |
|
19.0 |
|
- |
|
- |
|
248.8 |
|
Intersegment voyage revenue |
- |
|
1.7 |
|
- |
|
- |
|
(1.7 |
) |
- |
|
Voyage expenses |
(3.3 |
) |
(14.5 |
) |
(13.8 |
) |
- |
|
- |
|
(31.6 |
) |
Charter-in hire expenses |
- |
|
- |
|
(12.4 |
) |
- |
|
- |
|
(12.4 |
) |
Intersegment Charter-in hire expenses |
- |
|
- |
|
(1.7 |
) |
- |
|
1.7 |
|
- |
|
Voyage expenses – related parties |
(2.8 |
) |
(0.4 |
) |
- |
|
- |
|
- |
|
(3.2 |
) |
Vessels’ operating expenses |
(42.9 |
) |
(24.8 |
) |
- |
|
- |
|
- |
|
(67.7 |
) |
General and administrative expenses |
(1.5 |
) |
(0.9 |
) |
(2.0 |
) |
- |
|
- |
|
(4.4 |
) |
Management and agency fees – related parties |
(6.4 |
) |
(4.2 |
) |
(4.6 |
) |
- |
|
- |
|
(15.2 |
) |
General and administrative expenses - non-cash component |
(0.8 |
) |
(0.6 |
) |
- |
|
- |
|
- |
|
(1.4 |
) |
Amortization of dry-docking and special survey costs |
(3.8 |
) |
(0.9 |
) |
- |
|
- |
|
- |
|
(4.7 |
) |
Depreciation |
(31.2 |
) |
(9.9 |
) |
- |
|
- |
|
- |
|
(41.1 |
) |
Gain / (Loss) on sale of vessels |
92.8 |
|
(3.7 |
) |
- |
|
- |
|
- |
|
89.1 |
|
Loss on vessel held for sale |
- |
|
(2.4 |
) |
- |
|
- |
|
- |
|
(2.4 |
) |
Foreign exchange gains |
0.7 |
|
0.6 |
|
- |
|
- |
|
- |
|
1.3 |
|
Interest income |
3.7 |
|
2.4 |
|
0.6 |
|
- |
|
- |
|
6.7 |
|
Interest and finance costs |
(30.2 |
) |
(6.3 |
) |
(0.4 |
) |
- |
|
- |
|
(36.9 |
) |
Loss from equity method investments |
- |
|
- |
|
- |
|
(1.4 |
) |
- |
|
(1.4 |
) |
Other |
0.5 |
|
2.2 |
|
(0.1 |
) |
- |
|
- |
|
2.6 |
|
Gain on derivative instruments |
9.6 |
|
1.7 |
|
11.5 |
|
- |
|
- |
|
22.8 |
|
Net Income / (Loss) |
180.1 |
|
(25.9 |
) |
(3.9 |
) |
(1.4 |
) |
- |
|
148.9 |
|
(1) Voyage revenue adjusted on a cash basis is
not a recognized measurement under U.S. generally accepted
accounting principles (“GAAP”). Refer to “Consolidated Financial
Results and Vessels’ Operational Data” above for the reconciliation
of Voyage revenue adjusted on a cash basis.
Voyage Revenue
Voyage revenue decreased by 7.2%, or $19.2
million, to $248.8 million during the three-month period ended
March 31, 2023, from $268.0 million during the three-month period
ended March 31, 2022. The decrease is mainly attributable to (i)
decreased charter rates in certain of our dry-bulk vessels, (ii)
revenue not earned by four container vessels and one dry bulk
vessel sold during the year ended December 31, 2022, and two
container vessels and one dry bulk vessel sold during the first
quarter of 2023 and (iii) increased off-hire days in the first
quarter of 2023 compared to the first quarter of 2022; partly
off-set by increased charter rates in certain of our container
vessels and revenue earned by CBI.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”) decreased by 9.2%,
or $24.9 million, to $246.5 million during the three-month period
ended March 31, 2023, from $271.4 million during the three-month
period ended March 31, 2022. Accrued charter revenue for the
three-months period ended March 31, 2023 and 2022 was a negative
amount of $2.3 million and a positive amount of $3.4 million,
respectively.
Voyage Expenses
Voyage expenses were $31.6 million and $8.6
million for the three-month periods ended March 31, 2023 and 2022,
respectively. Voyage expenses increased, period over period,
partially due to the increased repositioning expenses of certain of
our owned dry-bulk vessels and to the operations of CBI which was
fully operational during the first quarter of 2023. Voyage expenses
mainly include (i) fuel consumption mainly related to dry bulk
vessels, (ii) third party commissions, (iii) port expenses and (iv)
canal tolls.
Charter-in Hire Expenses
Charter-in hire expenses were $12.4 million and
nil for the three-month periods ended March 31, 2023 and 2022,
respectively. Charter-in hire expenses are expenses relating to
chartering-in of third-party dry bulk vessels under time charter
agreements through CBI.
Voyage Expenses – related parties
Voyage expenses – related parties were $3.2
million and $3.7 million for the three-month periods ended March
31, 2023 and 2022, respectively. Voyage expenses – related parties
represent (i) fees of 1.25%, in the aggregate, on voyage revenues
earned by our owned fleet charged by a related manager and a
service provider and (ii) charter brokerage fees (in respect of our
container vessels) payable to two related charter brokerage
companies for an amount of approximately $0.3 million and $0.4
million, in the aggregate, for the three-month periods ended March
31, 2023 and 2022, respectively.
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include
the realized gain/(loss) under derivative contracts entered into in
relation to foreign currency exposure, were $67.7 million and $65.7
million during the three-month periods ended March 31, 2023 and
2022, respectively. Daily vessels’ operating expenses were $6,672
and $6,223 for the three-month periods ended March 31, 2023 and
2022, respectively. Daily operating expenses are calculated as
vessels’ operating expenses for the period over the ownership days
of the period.
General and Administrative Expenses
General and administrative expenses were $4.4
million and $3.3 million during the three-month periods ended March
31, 2023 and 2022, respectively, and include amounts of $0.67
million and $0.63 million, respectively, that were paid to a
related manager.
Management and Agency Fees – related parties
Management fees charged by our related party
managers were $10.6 million and $10.9 million during the
three-month periods ended March 31, 2023 and 2022, respectively.
Furthermore, during the three-month period ended March 31, 2023,
agency fees of $4.6 million, in aggregate, were charged by three
related agents 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 March 31, 2023 amounted
to $1.4 million, representing the value of the shares issued to a
related party manager on March 30, 2023. General and administrative
expenses - non-cash component for the three-month period ended
March 31, 2022 amounted to $2.6 million, representing the value of
the shares issued to a related party manager on March 30, 2022.
Amortization of Dry-Docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs was $4.7 million and $2.7 million during the
three-month periods ended March 31, 2023 and 2022, respectively.
During the three-month period ended March 31, 2023, six vessels
underwent and completed their dry-docking and special survey and
three vessels were in the process of completing their dry-docking
and special survey. During the three-month period ended March 31,
2022, one vessel underwent and completed her 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 March 31, 2023 and 2022 was $41.1 million and $41.2 million,
respectively.
Gain on Sale of Vessels, net
During the three-month period ended March 31,
2023, we recorded a net gain of $89.1 million from 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) and the sale of the dry-bulk vessel Miner. During the
three-month period ended March 31, 2022, we recorded a gain of
$17.8 million from the sale of the container vessel Messini, which
was classified as an asset held for sale as of December 31,
2021.
Loss on Vessels Held for Sale
During the three-month period ended March 31,
2023, the dry-bulk vessel Taibo was classified as a vessel held for
sale and we recorded a loss on vessel held for sale of
$2.4 million, which resulted from its estimated fair value
measurement less costs to sell. During the three-month period ended
March 31, 2022, the container vessels Sealand Washington, Maersk
Kalamata and the dry bulk vessel Thunder were classified as vessels
held for sale. Furthermore, as of March 31, 2022, the container
vessels Sealand Illinois, Sealand Michigan and York continued to be
classified as vessels held for sale (initially classified as
vessels held for sale as of December 31, 2021). No loss on vessels
held for sale was recorded during the first quarter of 2022 since
each vessel’s estimated fair value exceeded each vessel’s carrying
value.
Interest Income
Interest income amounted to $6.7 million and nil
for the three-month periods ended March 31, 2023 and 2022,
respectively.
Interest and Finance Costs
Interest and finance costs were $36.9 million
and $25.1 million during the three-month periods ended March 31,
2023 and 2022, respectively. The increase is mainly attributable to
the increased interest expense due to increased financing costs
during the three-month period ended March 31, 2023 compared to the
three-month period ended March 31, 2022.
Income / (Loss) from Equity Method
Investments
Loss from equity method investments for the
three-month period ended March 31, 2023 was $1.4 million (Income of
$0.3 million for the three-month period ended March 31, 2022)
representing our share of the loss in jointly owned companies set
up pursuant to the Framework Deed. As of March 31, 2023 and 2022
five and six companies, respectively, were jointly owned pursuant
to the Framework Deed out of which four and four companies,
respectively, owned container vessels.
Gain on Derivative Instruments
As of March 31, 2023, we hold 24 interest rate
derivatives and two cross currency rate swaps, all of which qualify
for hedge accounting. As a result, the change in the fair value of
each instrument is recorded in “Other Comprehensive Income”
(“OCI”). As of March 31, 2023, the fair value of these instruments,
in aggregate, amounted to a net asset of $25.9 million. During the
three-month period ended March 31, 2023, a loss of $20.7 million
has been included in OCI and a gain of $10.1 million has been
included in Gain on Derivative Instruments.
Furthermore, as of March 31, 2023, we hold a
series of Forward Freight Agreements (“FFAs”) and Bunker Swap
agreements, none of which qualify for hedge accounting. As a
result, the change in the fair value of such instruments is
recorded in the consolidated statements of income. As of March 31,
2023, the fair value of these instruments, in aggregate, amounted
to a net asset of $11.3 million. During the three-month period
ended March 31, 2023, a net gain of $11.5 million was included in
Gain on Derivative Instruments.
Cash FlowsThree-month periods ended
March 31, 2023 and 2022
Condensed cash
flows |
|
Three-month period ended March 31, |
(Expressed in millions of U.S. dollars) |
|
2022 |
|
|
2023 |
|
Net Cash Provided by Operating
Activities |
|
154.3 |
|
|
37.3 |
|
Net Cash Provided by / (Used
in) Investing Activities |
|
(46.8 |
) |
|
191.3 |
|
Net Cash Provided by / (Used
in) Financing Activities |
|
26.9 |
|
|
(94.6 |
) |
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended March 31, 2023, decreased by
$117.0 million to $37.3 million, from $154.3 million for the
three-month period ended March 31, 2022. The decrease is mainly
attributable to the decreased cash from operations of $24.9
million, by the increased payments for interest (including swap net
receipts) of $13.0 million during the three-month period ended
March 31, 2023 compared to the three-month period ended March 31,
2022, by the increased dry-docking and special survey costs of
$10.6 million during the three-month period ended March 31, 2023
compared to the three-month period ended March 31, 2022 and by the
unfavorable change in working capital position, excluding the
current portion of long-term debt and the accrued charter revenue
(representing the difference between cash received in that period
and revenue recognized on a straight-line basis) of $46.7
million.
Net Cash Provided by / (Used in)
Investing Activities
Net cash provided by investing activities was
$191.3 million in the three-month period ended March 31, 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 vessel Miner, (ii) the maturity of part of our
short-term investments in US Treasury Bills; partly off-set by
payments for the purchase of short-term investments in US Treasury
Bills and payments for upgrades for certain of our container and
dry bulk vessels.
Net cash used in investing activities was $46.8
million in the three-month period ended March 31, 2022, which
mainly consisted of (i) payments for the acquisition of two
secondhand dry bulk vessels, (ii) settlement payment for the
delivery of one secondhand dry bulk vessel, (iii) payment for the
purchase of short-term investments and (iv) payments for upgrades
for certain of our container and dry bulk vessels; partly off-set
by proceeds we received from the sale of the container vessel
Messini.
Net Cash Provided by / (Used in)
Financing Activities
Net cash used in financing activities was $94.6
million in the three-month period ended March 31, 2023, which
mainly consisted of (a) $74.2 million net payments relating to our
debt financing agreements (including proceeds of $322.8 million we
received from one debt financing agreement), (b) $10.3 million we
paid for dividends to holders of our common stock for the fourth
quarter of 2022 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 October 15,
2022 to January 14, 2023.
Net cash provided by financing activities was
$26.9 million in the three-month period ended March 31, 2022, which
mainly consisted of (a) $47.9 million net proceeds relating to our
debt financing agreements (including proceeds of $219.1 million we
received from our debt financing agreements), (b) $10.7 million we
paid for dividends to holders of our common stock for the fourth
quarter of 2021 and (c) $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 October 15, 2021 to January 14,
2022.
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of March 31, 2023, we had Cash and cash
equivalents (including restricted cash) of $945.6 million, $76.7
million invested in short-dated US Treasury Bills (Short-term
investments) and $12.6 million margin deposits in relation to our
FFAs. Furthermore, as of March 31, 2023, our liquidity stood at
$1,076.0 million including (a) our share of cash amounting to $4.0
million held in joint venture companies set up pursuant to the
Framework Deed and (b) $37.1 million of available undrawn funds
from one hunting license facility.
Debt-free vessels
As of May 15, 2023, the following vessels were free of debt.
Unencumbered Vessels (Refer to
Fleet list for full details)
Vessel Name |
|
YearBuilt |
|
TEU Capacity |
|
Containerships |
|
|
|
|
|
KURE |
|
1996 |
|
7,403 |
|
MAERSK KOWLOON |
|
2005 |
|
7,471 |
|
ETOILE |
|
2005 |
|
2,556 |
|
MICHIGAN |
|
2008 |
|
1,300 |
|
MONEMVASIA (*) |
|
1998 |
|
2,472 |
|
ARKADIA (*) |
|
2001 |
|
1,550 |
|
(*) Vessels acquired pursuant to the Framework Deed.
Conference Call details:
On Monday, May 15, 2023 at 8:30 a.m. EST,
Costamare’s management team will hold a conference call to discuss
the financial results. Participants should dial into the call 10
minutes before the scheduled time using the following numbers:
1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or
+1-412-317-9258 (from outside the US and the UK). Please quote
“Costamare”. A replay of the conference call will be available
until May 22, 2023. The United States replay number is
+1-877-344-7529; the standard international replay number is
+1-412-317-0088; and the access code required for the replay is:
6519880.
Live webcast: There will also
be a simultaneous live webcast over the Internet, through the
Costamare Inc. website (www.costamare.com). Participants to the
live webcast should register on the website approximately 10
minutes prior to the start of the webcast.
About Costamare Inc.
Costamare Inc. is one of the world’s leading
owners and providers of containerships and dry bulk vessels for
charter. The Company has 49 years of history in the international
shipping industry and a fleet of 71 containerships, with a total
capacity of approximately 524,000 TEU and 43 dry bulk vessels with
a total capacity of approximately 2,369,000 DWT (including one
vessel that 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.
Four of our containerships have been acquired pursuant to the
Framework Deed with York by vessel-owning joint venture companies
in which we hold a minority equity interest. The Company’s common
stock, Series B Preferred Stock, Series C Preferred Stock, Series D
Preferred Stock and Series E Preferred Stock trade on the New York
Stock Exchange under the symbols “CMRE”, “CMRE PR B”, “CMRE PR C”,
“CMRE PR D” and “CMRE PR E”, respectively.
Forward-Looking Statements
This earnings release contains “forward-looking
statements”. In some cases, you can identify these statements by
forward-looking words such as “believe”, “intend”, “anticipate”,
“estimate”, “project”, “forecast”, “plan”, “potential”, “may”,
“should”, “could”, “expect” and similar expressions. These
statements are not historical facts but instead represent only
Costamare’s belief regarding future results, many of which, by
their nature, are inherently uncertain and outside of Costamare’s
control. It is possible that actual results may differ, possibly
materially, from those anticipated in these forward-looking
statements. For a discussion of some of the risks and important
factors that could affect future results, see the discussion in the
Company’s Annual Report on Form 20-F (File No. 001-34934) under the
caption “Risk Factors”.
Company Contacts:Gregory Zikos – Chief
Financial Officer Konstantinos Tsakalidis – Business
DevelopmentCostamare Inc., MonacoTel: (+377) 93 25 09 40Email:
ir@costamare.com
Containership Fleet List
The table below provides additional information,
as of May 15, 2023, about our fleet of containerships, the vessels
acquired pursuant to the Framework Deed and those vessels subject
to sale and leaseback agreements. Each vessel is a cellular
containership, meaning it is a dedicated container vessel.
|
Vessel Name |
Charterer |
Year Built |
Capacity (TEU) |
Current Daily Charter
Rate(1)
(U.S. dollars) |
Expiration of
Charter(2) |
1 |
TRITON |
Evergreen |
2016 |
14,424 |
(*) |
March 2026 |
2 |
TITAN(ii) |
Evergreen |
2016 |
14,424 |
(*) |
April 2026 |
3 |
TALOS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
July 2026 |
4 |
TAURUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
5 |
THESEUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
6 |
YM TRIUMPH(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
May 2030 |
7 |
YM TRUTH(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
May 2030 |
8 |
YM TOTALITY(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
July 2030 |
9 |
YM TARGET(ii) |
Yang Ming |
2021 |
12,690 |
(*) |
November 2030 |
10 |
YM TIPTOP(ii) |
Yang Ming |
2021 |
12,690 |
(*) |
March 2031 |
11 |
CAPE AKRITAS |
MSC |
2016 |
11,010 |
33,000 |
August 2031 |
12 |
CAPE TAINARO |
MSC |
2017 |
11,010 |
33,000 |
April 2031 |
13 |
CAPE KORTIA |
MSC |
2017 |
11,010 |
33,000 |
August 2031 |
14 |
CAPE SOUNIO |
MSC |
2017 |
11,010 |
33,000 |
April 2031 |
15 |
CAPE ARTEMISIO |
Hapag Lloyd/(*) |
2017 |
11,010 |
36,650/(*) |
March 2030(3) |
16 |
ZIM SHANGHAI (ex. COSCO GUANGZHOU) |
ZIM |
2006 |
9,469 |
72,700 |
July 2025 |
17 |
ZIM YANTIAN (ex. COSCO NINGBO) |
ZIM |
2006 |
9,469 |
72,700 |
June 2025 |
18 |
YANTIAN |
COSCO |
2006 |
9,469 |
39,600 |
February 2024 |
19 |
COSCO HELLAS |
COSCO |
2006 |
9,469 |
39,600 |
February 2024 |
20 |
BEIJING |
COSCO |
2006 |
9,469 |
39,600 |
March 2024 |
21 |
MSC AZOV |
MSC |
2014 |
9,403 |
46,300 |
December 2026(4) |
22 |
MSC AMALFI |
MSC |
2014 |
9,403 |
46,300 |
March 2027(5) |
23 |
MSC AJACCIO |
MSC |
2014 |
9,403 |
46,300 |
February 2027(6) |
24 |
MSC ATHENS |
MSC |
2013 |
8,827 |
35,300 |
January 2026 |
25 |
MSC ATHOS |
MSC |
2013 |
8,827 |
35,300 |
February 2026 |
26 |
VALOR |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
April 2030(7) |
27 |
VALUE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
April 2030(8) |
28 |
VALIANT |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
June 2030(9) |
29 |
VALENCE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
July 2030(10) |
30 |
VANTAGE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
September 2030(11) |
31 |
NAVARINO |
MSC/(*) |
2010 |
8,531 |
31,000/(*) |
March 2029(12) |
32 |
MAERSK KLEVEN |
Maersk/MSC |
1996 |
8,044 |
23,500/41,500 |
July 2026(13) |
33 |
MAERSK KOTKA |
Maersk/MSC |
1996 |
8,044 |
25,000/41,500 |
July 2026(13) |
34 |
MAERSK KOWLOON |
Maersk |
2005 |
7,471 |
18,500 |
August 2025 |
35 |
KURE |
COSCO/MSC |
1996 |
7,403 |
31,000/41,500 |
June 2026(14) |
36 |
METHONI |
Maersk |
2003 |
6,724 |
46,500 |
August 2026 |
37 |
PORTO CHELI |
Maersk |
2001 |
6,712 |
30,075 |
June 2026 |
38 |
ZIM TAMPA |
ZIM |
2000 |
6,648 |
45,000 |
July 2025 |
39 |
ZIM VIETNAM (ex. MAERSK KOLKATA) |
ZIM |
2003 |
6,644 |
53,000 |
October 2025 |
40 |
ZIM AMERICA (ex. MAERSK KINGSTON) |
ZIM |
2003 |
6,644 |
53,000 |
October 2025 |
41 |
ARIES |
(*) |
2004 |
6,492 |
58,500 |
March 2026 |
42 |
ARGUS |
(*) |
2004 |
6,492 |
58,500 |
April 2026 |
43 |
PORTO KAGIO |
Maersk |
2002 |
5,908 |
28,822 |
June 2026 |
44 |
GLEN CANYON |
ZIM |
2006 |
5,642 |
62,500 |
June 2025 |
45 |
PORTO GERMENO |
Maersk |
2002 |
5,570 |
28,822 |
June 2026 |
46 |
LEONIDIO |
Maersk |
2014 |
4,957 |
14,200 |
December 2024(15) |
47 |
KYPARISSIA |
Maersk |
2014 |
4,957 |
14,200 |
November 2024(15) |
48 |
MEGALOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(16) |
49 |
MARATHOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(16) |
50 |
OAKLAND |
CMA CGM |
2000 |
4,890 |
21,000 |
June 2023 |
51 |
GIALOVA |
ZIM |
2009 |
4,578 |
25,500 |
April 2024 |
52 |
DYROS |
Maersk |
2008 |
4,578 |
22,750 |
January 2024 |
53 |
NORFOLK |
Maersk/(*) |
2009 |
4,259 |
30,000/(*) |
March 2025(17) |
54 |
VULPECULA |
ZIM |
2010 |
4,258 |
43,250(on average) |
May 2028(18) |
55 |
VOLANS |
ZIM |
2010 |
4,258 |
24,250 |
April 2024 |
56 |
VIRGO |
Maersk |
2009 |
4,258 |
30,200 |
February 2024 |
57 |
VELA |
ZIM |
2009 |
4,258 |
43,250(on average) |
April 2028(19) |
58 |
ANDROUSA |
(*) |
2010 |
4,256 |
(*) |
May 2024 |
59 |
NEOKASTRO |
CMA CGM |
2011 |
4,178 |
39,000 |
February 2027 |
60 |
ULSAN |
Maersk |
2002 |
4,132 |
34,730 |
January 2026 |
61 |
POLAR ARGENTINA(i)(ii)(iii) |
Maersk |
2018 |
3,800 |
19,700 |
October 2024(20) |
62 |
POLAR BRASIL(i)(ii) (iii) |
Maersk |
2018 |
3,800 |
19,700 |
January 2025(20) |
63 |
LAKONIA |
COSCO |
2004 |
2,586 |
26,500 |
March 2025 |
64 |
SCORPIUS |
Hapag Lloyd |
2007 |
2,572 |
17,750 |
June 2023 |
65 |
ETOILE |
(*)/(*) |
2005 |
2,556 |
(*)/(*) |
March 2026(21) |
66 |
AREOPOLIS |
COSCO |
2000 |
2,474 |
26,500 |
April 2025 |
67 |
MONEMVASIA(i) |
CMA CGM |
1998 |
2,472 |
17,300 |
June 2023 |
68 |
ARKADIA(i) |
Swire Shipping |
2001 |
1,550 |
14,250 |
February 2024 |
69 |
MICHIGAN |
MSC/(*) |
2008 |
1,300 |
18,700/(*) |
October 2025(22) |
70 |
TRADER |
(*)/(*) |
2008 |
1,300 |
(*)/(*) |
October 2026(23) |
71 |
LUEBECK |
MSC/(*) |
2001 |
1,078 |
15,000/(*) |
April 2026(24) |
(1) Daily charter rates are gross, unless stated
otherwise. Amounts set out for current daily charter rate are the
amounts contained in the charter contracts.(2) Charter terms and
expiration dates are based on the earliest date charters (unless
otherwise noted) could expire. (3) Cape Artemisio is currently
chartered to Hapag Lloyd at a daily rate of $36,650 until March 12,
2025, at the earliest. Upon redelivery of the vessel from Hapag
Lloyd the vessel will commence a new charter with a leading liner
company for a period of 60 to 64 months at an undisclosed rate.(4)
This charter rate will be earned by MSC Azov until December 2,
2023. From the aforementioned date until the expiry of the charter,
the daily rate will be $35,300.(5) This charter rate will be earned
by MSC Amalfi until March 16, 2024. From the aforementioned date
until the expiry of the charter, the daily rate will be $35,300.(6)
This charter rate will be earned by MSC Ajaccio until February 1,
2024. From the aforementioned date until the expiry of the charter,
the daily rate will be $35,300.(7) Valor is currently
chartered to Hapag Lloyd at a daily rate of $32,400 until April 3,
2025, at the earliest. Upon redelivery of the vessel from Hapag
Lloyd the vessel will commence a new charter with a leading liner
company for a period of 60 to 64 months at an undisclosed
rate.(8) Value is currently chartered to Hapag Lloyd at a
daily rate of $32,400 until April 25, 2025, at the earliest. Upon
redelivery of the vessel from Hapag Lloyd the vessel will commence
a new charter with a leading liner company for a period of 60 to 64
months at an undisclosed rate.(9) Valiant is currently
chartered to Hapag Lloyd at a daily rate of $32,400 until June 5,
2025, at the earliest. Upon redelivery of the vessel from Hapag
Lloyd the vessel will commence a new charter with a leading liner
company for a period of 60 to 64 months at an undisclosed
rate.(10) Valence is currently chartered to Hapag Lloyd at a
daily rate of $32,400 until July 3, 2025, at the earliest. Upon
redelivery of the vessel from Hapag Lloyd the vessel will commence
a new charter with a leading liner company for a period of 60 to 64
months at an undisclosed rate.(11) Vantage is currently
chartered to Hapag Lloyd at a daily rate of $32,400 until September
8, 2025, at the earliest. Upon redelivery of the vessel from Hapag
Lloyd the vessel will commence a new charter with a leading liner
company for a period of 60 to 64 months at an undisclosed
rate.(12) Navarino is currently chartered to MSC at a daily
rate of $31,000 until March 1, 2025, at the earliest. Upon
redelivery of the vessel from MSC the vessel will commence a new
charter with a leading liner company for a period of 48 to 52
months at an undisclosed rate.(13) The current daily rate of each
of Maersk Kleven and Maersk Kotka is a base rate of $17,000,
adjusted pursuant to the terms of a 50:50 profit/loss sharing
mechanism based on market conditions with a minimum charter rate of
$12,000 and a maximum charter rate of $25,000. Upon redelivery of
each vessel from Maersk between July 2023 and October 2023, each
vessel will commence a new charter with MSC for a period of 36 to
38 months at a fixed daily rate of $41,500.(14) Upon redelivery of
Kure from COSCO between June 2023 and July 2023, the vessel will
commence a new charter with MSC for a period of 36 to 38 months at
a daily rate of $41,500. Until then the daily charter rate will be
$31,000.(15) Charterer has the option to extend the current time
charter for an additional period of 12 to 24 months at a daily rate
of $17,000.(16) 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.(17) Norfolk is currently chartered to
Maersk at a daily rate of $30,000 until May 2023. Upon redelivery
of the vessel from Maersk the vessel will commence a new charter
with a leading liner company for a period of 22 to 24 months at an
undisclosed rate.(18) Vulpecula is currently chartered to ZIM
under a charterparty agreement which commenced in May 2023. The
tenor of the charter is for a period of 60 to 64 months at a daily
rate of $43,250, on average. For this charter, the daily rate will
be $99,000 for the first 12 month period, $91,250 for the second 12
month period, $10,000 for the third 12 month period and $8,000 for
the remaining duration of the charter.(19) Vela is currently
chartered to ZIM under a charterparty agreement which commenced in
April 2023. The tenor of the charter is for a period of 60 to 64
months at a daily rate of $43,250, on average. For this charter,
the daily rate will be $99,000 for the first 12 month period,
$91,250 for the second 12 month period, $10,000 for the third 12
month period and $8,000 for the remaining duration of the
charter.(20) Charterer has the option to extend the current time
charter for three additional one-year periods at a daily rate of
$21,000.(21) Etoile is currently chartered at an undisclosed
rate until June 2023, 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 36 to 39
months at an undisclosed rate.(22) Michigan is currently
chartered to MSC at a daily rate of $18,700 until October 2023, at
the earliest. Upon redelivery of the vessel from MSC the vessel
will commence a new charter with a leading liner company for a
period of 24 to 26 months at an undisclosed rate.(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.(24) Luebeck is currently chartered to MSC at
a daily rate of $15,000 until April 2024, at the earliest. Upon
redelivery of the vessel from MSC the vessel will commence a new
charter with a leading liner company for a period of 24 to 26
months at an undisclosed rate.
(i) Denotes vessels acquired pursuant to the
Framework Deed. The Company holds an equity interest of 49% in each
of the vessel-owning companies.(ii) Denotes vessels subject to a
sale and leaseback transaction.(iii) We have agreed to
concurrently, sell our 49% equity interest in the ship-owning
company of Polar Argentina to York Capital and acquire the 51%
equity interest in the ship-owning company of Polar Brasil
(currently we own 49%) from York Capital. Upon the conclusion of
these transactions in Q2 2023 we will own 100% of the equity
interest in the ship-owning company of Polar Brasil.
(*) Denotes charterer’s identity and/or current
daily charter rates and/or charter expiration dates, which are
treated as confidential.
Dry Bulk Vessel Fleet List
The table below provides information, as of May
15, 2023, about our fleet of dry bulk vessels.
|
Vessel Name |
Year Built |
Capacity (DWT) |
1 |
AEOLIAN |
2012 |
83,478 |
2 |
GRENETA |
2010 |
82,166 |
3 |
HYDRUS |
2011 |
81,601 |
4 |
PHOENIX |
2012 |
81,569 |
5 |
BUILDER |
2012 |
81,541 |
6 |
FARMER |
2012 |
81,541 |
7 |
SAUVAN |
2010 |
79,700 |
8 |
ROSE |
2008 |
76,619 |
9 |
MERCHIA |
2015 |
63,800 |
10 |
SEABIRD |
2016 |
63,553 |
11 |
DAWN |
2018 |
63,530 |
12 |
ORION |
2015 |
63,473 |
13 |
DAMON |
2012 |
63,227 |
14 |
TITAN I |
2009 |
58,090 |
15 |
ERACLE |
2012 |
58,018 |
16 |
PYTHIAS |
2010 |
58,018 |
17 |
NORMA |
2010 |
58,018 |
18 |
ORACLE |
2009 |
57,970 |
19 |
CURACAO |
2011 |
57,937 |
20 |
URUGUAY |
2011 |
57,937 |
21 |
ATHENA |
2012 |
57,809 |
22 |
SERENA |
2010 |
57,266 |
23 |
LIBRA |
2010 |
56,729 |
24 |
PEGASUS |
2011 |
56,726 |
25 |
MERIDA |
2012 |
56,670 |
26 |
CLARA |
2008 |
56,557 |
27 |
PEACE |
2006 |
55,709 |
28 |
PRIDE |
2006 |
55,705 |
29 |
BERMONDI |
2009 |
55,469 |
30 |
COMITY(i) |
2010 |
37,302 |
31 |
VERITY |
2012 |
37,163 |
32 |
PARITY |
2012 |
37,152 |
33 |
ACUITY |
2011 |
37,149 |
34 |
EQUITY |
2013 |
37,071 |
35 |
DISCOVERY |
2012 |
37,019 |
36 |
BERNIS |
2011 |
34,627 |
37 |
MANZANILLO |
2010 |
34,426 |
38 |
ADVENTURE |
2011 |
33,755 |
39 |
ALLIANCE |
2012 |
33,751 |
40 |
CETUS |
2010 |
32,527 |
41 |
PROGRESS |
2011 |
32,400 |
42 |
KONSTANTINOS |
2012 |
32,178 |
43 |
RESOURCE |
2010 |
31,776 |
(i) Denotes vessel that we have agreed to
sell.
Consolidated Statements of
Income
|
|
|
Three-months ended March 31, |
(Expressed in thousands of U.S. dollars, except share and per share
amounts) |
|
|
2022 |
|
|
2023 |
|
|
|
|
(Unaudited) |
REVENUES: |
|
|
|
|
|
Voyage revenue |
|
$ |
268,010 |
|
$ |
248,769 |
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
Voyage expenses |
|
|
(8,571 |
) |
|
(31,631 |
) |
Charter-in hire expenses |
|
|
- |
|
|
(12,405 |
) |
Voyage expenses – related
parties |
|
|
(3,745 |
) |
|
(3,211 |
) |
Vessels’ operating
expenses |
|
|
(65,747 |
) |
|
(67,674 |
) |
General and administrative
expenses |
|
|
(3,262 |
) |
|
(4,366 |
) |
Management and agency fees –
related parties |
|
|
(10,867 |
) |
|
(15,190 |
) |
General and administrative
expenses – non-cash component |
|
|
(2,552 |
) |
|
(1,408 |
) |
Amortization of dry-docking
and special survey costs |
|
|
(2,707 |
) |
|
(4,701 |
) |
Depreciation |
|
|
(41,150 |
) |
|
(41,144 |
) |
Gain on sale of vessels,
net |
|
|
17,798 |
|
|
89,068 |
|
Loss on vessel held for
sale |
|
|
- |
|
|
(2,350 |
) |
Foreign exchange gains |
|
|
110 |
|
|
1,269 |
|
Operating
income |
|
$ |
147,317 |
|
$ |
155,026 |
|
|
|
|
|
|
|
OTHER
EXPENSES: |
|
|
|
|
|
Interest income |
|
$ |
14 |
|
$ |
6,722 |
|
Interest and finance
costs |
|
|
(25,130 |
) |
|
(36,880 |
) |
Income / (loss) from equity
method investments |
|
|
288 |
|
|
(1,361 |
) |
Other |
|
|
475 |
|
|
2,566 |
|
Gain on derivative
instruments |
|
|
73 |
|
|
22,791 |
|
Total other
expenses |
|
$ |
(24,280 |
) |
$ |
(6,162 |
) |
Net
Income |
|
$ |
123,037 |
|
$ |
148,864 |
|
Earnings allocated to
Preferred Stock |
|
|
(7,595 |
) |
|
(7,595 |
) |
Net loss attributable to the
non-controlling interest |
|
|
- |
|
|
291 |
|
Net Income available
to common stockholders |
|
$ |
115,442 |
|
$ |
141,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share,
basic and diluted |
|
$ |
0.93 |
|
$ |
1.16 |
|
Weighted average number of
shares, basic and diluted |
|
|
124,150,337 |
|
|
122,531,273 |
|
COSTAMARE
INC.Consolidated Balance Sheets
(Expressed in thousands of
U.S. dollars) |
|
As of December 31, 2022 |
|
As of March 31, 2023 |
ASSETS |
|
(Audited) |
|
(Unaudited) |
CURRENT
ASSETS: |
|
|
|
|
Cash and cash
equivalents |
$ |
718,049 |
|
$ |
853,847 |
|
Restricted cash |
|
9,768 |
|
|
10,319 |
|
Margin deposits |
|
- |
|
|
12,579 |
|
Short-term investments |
|
120,014 |
|
|
76,707 |
|
Investment in leaseback
vessels |
|
- |
|
|
8,473 |
|
Accounts receivable |
|
26,943 |
|
|
25,272 |
|
Inventories |
|
28,039 |
|
|
41,039 |
|
Due from related parties |
|
3,838 |
|
|
1,255 |
|
Fair value of derivatives |
|
25,660 |
|
|
27,357 |
|
Insurance claims
receivable |
|
5,410 |
|
|
13,193 |
|
Asset held for sale |
|
55,195 |
|
|
9,888 |
|
Time charter assumed |
|
199 |
|
|
199 |
|
Accrued charter revenue |
|
10,885 |
|
|
10,973 |
|
Prepayments and other |
|
10,622 |
|
|
35,643 |
|
Total current
assets |
$ |
1,014,622 |
|
$ |
1,126,744 |
|
FIXED ASSETS,
NET: |
|
|
|
|
Vessels, net |
|
3,666,861 |
|
|
3,608,045 |
|
Total fixed assets,
net |
$ |
3,666,861 |
|
$ |
3,608,045 |
|
NON-CURRENT
ASSETS: |
|
|
|
|
Equity method investments |
$ |
20,971 |
|
$ |
19,610 |
|
Investment in leaseback
vessels, non-current |
|
- |
|
|
43,220 |
|
Deferred charges, net |
|
55,035 |
|
|
61,340 |
|
Operating leases, right-of-use
assets |
|
- |
|
|
90,987 |
|
Accounts receivable,
non-current |
|
5,261 |
|
|
5,161 |
|
Restricted cash |
|
83,741 |
|
|
81,418 |
|
Fair value of derivatives,
non-current |
|
37,643 |
|
|
29,095 |
|
Accrued charter revenue,
non-current |
|
11,627 |
|
|
14,592 |
|
Time charter assumed,
non-current |
|
468 |
|
|
419 |
|
Total
assets |
$ |
4,896,229 |
|
$ |
5,080,631 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current portion of long-term
debt |
$ |
320,114 |
|
$ |
338,335 |
|
Operating lease liabilities,
current portion |
|
- |
|
|
66,148 |
|
Accounts payable |
|
18,155 |
|
|
24,939 |
|
Due to related parties |
|
2,332 |
|
|
1,493 |
|
Accrued liabilities |
|
51,551 |
|
|
49,197 |
|
Unearned revenue |
|
25,227 |
|
|
33,152 |
|
Fair value of derivatives |
|
2,255 |
|
|
2,849 |
|
Other current liabilities |
|
3,456 |
|
|
3,774 |
|
Total current
liabilities |
$ |
423,090 |
|
$ |
519,887 |
|
NON-CURRENT
LIABILITIES |
|
|
|
|
Long-term debt, net of current
portion |
$ |
2,264,507 |
|
$ |
2,182,397 |
|
Operating lease liabilities,
non-current portion |
|
- |
|
|
24,839 |
|
Fair value of derivatives, net
of current portion |
|
13,655 |
|
|
12,719 |
|
Unearned revenue, net of
current portion |
|
34,540 |
|
|
33,536 |
|
Other non-current
liabilities |
|
- |
|
|
1,106 |
|
Total non-current
liabilities |
$ |
2,312,702 |
|
$ |
2,254,597 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
Temporary equity –
Redeemable non-controlling interest in subsidiary |
$ |
3,487 |
|
$ |
3,196 |
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
Preferred stock |
$ |
- |
|
$ |
- |
|
Common stock |
|
12 |
|
|
12 |
|
Treasury stock |
|
(60,095 |
) |
|
(60,095 |
) |
Additional paid-in
capital |
|
1,423,954 |
|
|
1,429,206 |
|
Retained earnings |
|
746,658 |
|
|
873,981 |
|
Accumulated other
comprehensive income |
|
46,421 |
|
|
25,715 |
|
Total Costamare Inc.
stockholders’ equity |
$ |
2,156,950 |
|
$ |
2,268,819 |
|
Non-controlling interest |
|
- |
|
|
34,132 |
|
Total stockholders’
equity |
|
2,156,950 |
|
|
2,302,951 |
|
Total liabilities and
stockholders’ equity |
$ |
4,896,229 |
|
$ |
5,080,631 |
|
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