Costamare Inc. reported unaudited financial results for the first quarter ended March 31, 2022 (“Q1 2022”).
I. RECORD PROFITABILITY IN A FIRST QUARTER SINCE NYSE LISTING
Q1 2022 Net Income available to common stockholders of $115.4 million ($0.93 per share) vs $60.5 million ($0.49 per share) in Q1 2021.
Q1 2022 Adjusted Net Income available to common stockholders1 of $104.5 million ($0.84 per share) vs $38.0 million ($0.31 per share) in Q1 2021.
Q1 2022 liquidity of $644 million2 vs $240 million in Q1 2021.
II. NEW CHARTER ARRANGEMENTS3 AND FULLY EMPLOYED CONTAINERSHIP FLEET FOR THE YEAR AHEAD
Containership fleet fully employed for the remainder of 2022.
More than 90% of the containership fleet4 is fixed for 2023.
Entered into a total of 49 chartering agreements for the dry bulk fleet since the beginning of 2022.
Selected fixtures are shown below:
- Charter of the 2012-built, 63,227 DWT dry bulk vessel Damon at a daily rate of $35,000 for a period of approximately one month.
- Charter of the 2010-built, 58,018 DWT dry bulk vessel Norma at a daily rate of $45,000 for a period of approximately 70 days.
- Charter of the 2010-built, 56,729 DWT dry bulk vessel Libra at a daily rate of $37,000 for a period between 50 and 120 days.
- Charter of the 2010-built, 32,527 DWT dry bulk vessel Cetus at a daily rate of $24,000 for a period of approximately one month.
III. SALE AND PURCHASE ACTIVITY
- Delivery of the 2010-built 58,018 DWT dry bulk vessel Norma (ex. Magda).
- Agreement for the sale of the 2009-built, 57,334 DWT dry bulk vessel Thunder. The sale is expected to be concluded in Q2 2022 and will result in an estimated capital gain of $3.6 million.
- Conclusion of the sale and delivery of the 1997-built, 2,458 TEU containership Messini, which resulted in a capital gain of $17.8 million.
IV. NEW DEBT FINANCING
New financing agreements for an amount of $160.5 million. More specifically:
In April 2022, we signed a hunting license loan agreement with a European financial institution for an amount of up to $120 million for the purposes of financing the acquisition cost of dry bulk vessels. The availability period of this facility expires in Q2 2023, an amount of $10.8 million has already been drawn down and the facility has a maximum tenor of five years following the expiration of the availability period.
In April 2022, we signed a loan agreement with a leading European financial institution for an amount of $40.5 million for the purposes of refinancing the existing indebtedness of four dry bulk vessels. The new facility has a tenor of four years, and will mature in April 2026.
V. DIVIDEND ANNOUNCEMENTS
On April 1, 2022, we declared a special dividend of $0.50 per share on our common stock and a dividend for the quarter ended March 31, 2022, of $0.115 per share on our common stock, both of which are due to be paid on May 5, 2022, to stockholders of record of common stock as of April 19, 2022.
On April 1, 2022, we declared a dividend of $0.476563 per share on our Series B Preferred Stock, $0.531250 per share on our Series C Preferred Stock, $0.546875 per share on our Series D Preferred Stock and $0.554688 per share on our Series E Preferred Stock, which were all paid on April 18, 2022 to holders of record as of April 14, 2022.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
“During the quarter the Company delivered strong results; revenues more than doubled to approx. $270 million and Net Income reached $115 million, compared to $60 million for the same period of last year. As of quarter end, liquidity stood at $640 million.
Fundamentals and strong charter rates for the container market remain unchanged; a commercially fully employed container fleet with no vessels available on short notice. Congestion shows no signs of easing, while recent events are in fact contributing to further increases.
In such an opportune market environment we have covered all of our containership open days for 2022 and we have ca. 95% coverage for 2023. Contracted revenues for the containership fleet in the water amount to $3.3 billion with a remaining time charter duration of 4.1 years.
On the dry bulk side, the market continues to be strong with smaller ships earning a premium to the larger ones, also benefiting from container spillover. Supply and demand dynamics remain healthy underpinned by a historically low orderbook.”