Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today
reported unaudited financial results for the second quarter (“Q2
2021”) and six-months ended June 30, 2021.
|
I. |
PROFITABILITY |
|
• |
Q2 2021 Net Income available to common stockholders of $82.8
million. |
|
• |
Q2 2021 Earnings per Share of $0.67. |
|
• |
Q2 2021 Adjusted Net Income available to common stockholders(1) of
$58.3 million. |
|
• |
Q2 2021 Adjusted Earnings per Share(1) of $0.47. |
|
II. |
SALE AND PURCHASE ACTIVITY |
|
• |
Agreed to acquire an additional 21 dry bulk vessels. |
|
• |
Total fleet of 37 committed dry bulk vessels, 14 of which have been
delivered. |
|
• |
Delivered the 1996-built, 1,504 TEU containership Prosper to her
new owners. The sale resulted in a capital gain of $1.7
million. |
|
III. |
NEW
CHARTER ARRANGEMENTS |
|
• |
10 new or extended container vessel charters since last quarter
including the forward fixture of the two 2006-built, 9,469 TEU
vessels Cosco Guangzhou and Cosco Ningbo for 3 years at a daily
rate of $72,700, with estimated delivery to the new charterer in
between the second and third quarters of 2022. The current daily
rate for these vessels is $30,900. |
|
• |
7 new dry bulk vessel charters. |
|
IV. |
NEW DEBT FINANCING AND CAPITAL STRUCTURE |
|
• |
New agreements for the financing of containerships since last
quarter for an aggregate amount of $261.6 million. |
|
• |
New agreements for the financing of dry bulk vessels since last
quarter for an aggregate amount of $389 million including two
hunting license bank facilities totaling $245 million. |
|
• |
New commitment in the form of a hunting license facility for the
financing of the acquisition of dry bulk vessels for an aggregate
amount of $150 million with a European financial institution, which
is subject to documentation. |
|
• |
Liquidity of $353.8 million as of the end of Q2 2021 (including our
share of cash amounting to $4.9 million held in companies co-owned
with York Capital), which coupled with the $210.8 million of
undrawn funds from the two recently signed hunting license bank
facilities amounts to $564.6 million. |
(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.
NEW BUSINESS DEVELOPMENTS
|
A. |
New charter agreements |
- The Company has chartered in total 10 containerships since our
previous quarterly earnings release. More specifically, the Company
agreed to:
- Charter the
2006-built, 9,469 TEU containerships Cosco Guangzhou and Cosco
Ningbo for a period of 36 to 39 months at charterers’ option,
commencing between the second and third quarters of 2022, each at a
daily rate of $72,700. Current daily rate is $30,900.
- Charter the
2003-built, 6,724 TEU containership MSC Methoni with Maersk for a
period of 56 to 60 months at charterers’ option, commencing between
September 2021 and December 2021, at a daily rate of $46,500.
Current daily rate is $29,000.
- Charter the
2011-built, 4,178 TEU containership Neokastro with CMA CGM for a
period of 60 to 63 months, commencing in the first quarter of 2022,
at a daily rate of $39,000. Current daily rate is $24,000.
- Charter the
2001-built, 6,712 TEU containership Porto Cheli with Maersk for a
period of 60 to 64 months at charterers’ option, starting from June
9, 2021, at a daily rate of $30,075.
- Charter the
2002-built, 5,908 TEU containership Porto Kagio with Maersk for a
period of 60 to 64 months at charterers’ option, starting from June
9, 2021, at a daily rate of $28,822.
- Charter the
2002-built, 5,570 TEU containership Porto Germeno with Maersk for a
period of 60 to 64 months at charterers’ option, starting from June
29, 2021, at a daily rate of $28,822.
- Extend the charter
of the 2002-built, 4,132 TEU containership Ulsan with Maersk for a
period starting from October 1, 2021 and expiring at charterers’
option during the period from January 20, 2026 to May 20, 2026, at
a daily rate of $34,730. Current daily rate is $12,000.
- Charter the
2001-built, 1,550 TEU containership Arkadia with China Navigation
for a period of 22 to 24 months at charterers’ option, starting
from July 5, 2021, at a daily rate of $21,500. Previous daily rate
was $8,650.
- Extend the charter
of the 2001-built, 1,078 TEU containership Luebeck with MSC for a
period starting from March 19, 2022 for a period of 24 to 26 months
at charterers’ option, at a daily rate of $15,000. Current daily
rate is $7,750.
- The Company has chartered in total 7 dry bulk vessels. More
specifically, the Company has:
- Chartered the
2012-built, 81,500 dwt dry bulk vessel Builder for a period
expiring between October 7, 2021 and January 5, 2022 at charterers’
option, at a daily rate of $25,000.
- Chartered the
2011-built, 56,700 dwt dry bulk vessel Pegasus for a period
expiring between September 25, 2021 and December 9, 2021 at
charterers’ option, at a daily rate of $26,150.
- Chartered the
2012-built, 58,000 dwt dry bulk vessel Eracle for a period expiring
between October 11, 2021 and December 25, 2021 at charterers’
option, at a daily rate of $30,000.
- Chartered the
2010-built, 79,700 dwt dry bulk vessel Sauvan for a period expiring
between October 17, 2021 and December 31, 2021 at charterers’
option, at a daily rate of $30,250.
- Chartered the
2011-built, 34,600 dwt dry bulk vessel Bernis for a period expiring
between November 17, 2021 and January 31, 2022 at charterers’
option, at a daily rate of $25,250.
- Chartered the
2006-built, 55,700 dwt dry bulk vessel Peace for a period expiring
between September 12, 2021 and September 17, 2021 at charterers’
option, at a daily rate of $28,000.
- Chartered the
2006-built, 55,700 dwt dry bulk vessel Pride for a period expiring
around the end of August 2021, at a daily rate of $31,000.
|
B. |
Dry Bulk Vessels Acquisitions |
- Since our previous
quarterly earnings release, we have taken delivery of the following
14 dry bulk vessels:
- m/v Builder,
2012-built, 81,500 dwt.
- m/v Sauvan,
2010-built, 79,700 dwt.
- m/v Seabird,
2016-built, 63,600 dwt.
- m/v Dawn,
2018-built, 63,500 dwt.
- m/v Eracle,
2012-built, 58,000 dwt.
- m/v Pegasus,
2011-built, 56,700 dwt.
- m/v Peace,
2006-built, 55,700 dwt.
- m/v Pride,
2006-built, 55,700 dwt.
- m/v Interlink
Verity, 2012-built, 37,200 dwt.
- m/v Acuity,
2011-built, 37,100 dwt.
- m/v Bernis,
2011-built, 34,600 dwt.
- m/v Manzanillo,
2010-built, 34,400 dwt.
- m/v Alliance,
2012-built, 33,800 dwt.
- m/v Adventure,
2011-built, 33,800 dwt.
- Furthermore, we
have agreed to acquire the following 23 dry bulk vessels until the
end of 2021:
- m/v Spring Aeolian
(tbr. Aeolian), 2012-built, 83,500 dwt.
- m/v Jaigarh (tbr.
Greneta), 2010-built, 82,200 dwt.
- m/v Pedhoulas
Farmer (tbr. Farmer), 2012-built, 81,500 dwt.
- m/v Imperial Rose
(tbr. Rose), 2008-built, 76,600 dwt.
- m/v Darya Lakshmi
(tbr. Bermondi), 2009-built, 55,500 dwt.
- m/v Bulk Titan
(tbr. Titan), 2009-built, 58,100 dwt.
- m/v Star Athena
(tbr. Athena), 2012-built, 58,000 dwt.
- m/v Bulk Curacao
(tbr. Curacao), 2011-built, 57,900 dwt.
- m/v Bulk Uruguay
(tbr. Uruguay), 2011-built, 57,900 dwt.
- m/v Viet Thuan
56-01 (tbr. Thunder), 2009-built, 57,300 dwt.
- m/v Serene Susannah
(tbr. Serena), 2010-built, 57,300 dwt.
- m/v Atlantic Merida
(tbr. Merida), 2012-built, 56,700 dwt.
- m/v Lara (tbr.
Clara), 2008-built, 56,600 dwt.
- m/v Interlink
Comity (tbr. Comity), 2010-built, 37,300 dwt.
- m/v Interlink
Parity (tbr. Parity), 2012-built, 37,200 dwt.
- m/v Interlink
Equity (tbr. Equity), 2013-built, 37,100 dwt.
- m/v N Discovery
(tbr. Discovery), 2012-built, 37,000 dwt.
- m/v Jia Tai (tbr.
Taibo), 2011-built, 35,100 dwt.
- m/v MS Charm (tbr.
Charm), 2010-built, 32,500 dwt.
- m/v Atlantic
Progress (tbr. Progress), 2011-built, 32,400 dwt.
- m/v Ming Yuan (tbr.
Miner), 2010-built, 32,300 dwt.
- m/v Konstantinos M
(tbr. Konstantinos), 2012-built, 32,200 dwt.
- m/v Great Resource
(tbr. Resource), 2010-built, 31,800 dwt.
|
C. |
New Financing Agreements |
- In June 2021, we
signed a loan facility agreement with a European financial
institution for an amount of $158.1 million, in order to refinance
the existing indebtedness of 8 containerships and finance the
acquisition of containerships Porto Kagio, Porto Cheli and Porto
Germeno. The new facility will be repayable over 5 years.
- In June 2021, we
signed a loan facility agreement with a leading European financial
institution for an amount of $79 million, in order to finance the
acquisition of containerships Androusa, Norfolk, CO Kobe (tbr.
Dyros) and Cosco Fukuyama (tbr. Gialova). The new facility will be
repayable over 4 years.
- In July 2021, we
signed a revolving loan facility agreement with a leading US
financial institution for an amount of $24.5 million. The new
facility will be repayable over 1 year.
- In July 2021, we
signed a loan facility agreement with a leading European financial
institution for an amount of $81.5 million, in order to finance the
acquisition of 8 dry bulk vessels. The facility will be repayable
over 5 years.
- In July 2021, we
signed a loan facility agreement with a leading European financial
institution for an amount of $62.5 million, in order to finance the
acquisition of 8 dry bulk vessels. The facility will be repayable
over 5 years.
- In July 2021, we
signed a hunting license loan facility 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
facility will be repayable over a period of 5 to 6 years.
- In July 2021, we
signed a hunting license loan facility agreement with a European
financial institution for an amount of up to $125 million for the
purposes of financing the acquisition cost of dry bulk vessels. The
facility will be repayable over a period of 5 years.
|
D. |
Dividend announcements |
- On July 1, 2021, we
declared a dividend for the quarter ended June 30, 2021, of $0.115
per share on our common stock, which will be paid on August 5,
2021, to stockholders of record of common stock as of July 20,
2021.
- On July 1, 2021, we
declared a dividend of $0.476563 per share on our Series B
Preferred Stock, a dividend of $0.531250 per share on our Series C
Preferred Stock, a dividend of $0.546875 per share on our Series D
Preferred Stock and a dividend of $0.554688 per share on our Series
E Preferred Stock, which were all paid on July 15, 2021 to holders
of record as of July 14, 2021.
Mr. Gregory Zikos, Chief Financial
Officer of Costamare Inc., commented:
“The container market rebound that began in the
second half of last year has continued into the first half of this
year, drawing strength from favorable supply and demand dynamics.
Strong consumer demand, low inventory levels, and supply chain
constraints have all contributed to record charter rates and longer
charter durations.
All our containerships chartered during the
quarter have been fixed at increasingly high levels of hire.
On the dry bulk side, we are pleased to report
the acquisition of 21 additional vessels, since we first announced
our entry into this sector. Our dry bulk fleet comprises of 37
vessels in total between 32,000 DWT and 85,000 DWT, with an average
age of 10 years. Up to now, 14 ships have been delivered, with the
rest of the fleet expected to be delivered by year-end.
The dry bulk acquisitions result from our
decision to invest in this liquid sector where supply is limited by
a low orderbook and demand is being driven by increased
infrastructure spending and commodity consumption.
Supported by contracted revenues of US$ 3.3
billion and an average time charter duration of more than four
years for our containership fleet, we have 15 containerships coming
off charter over the next 18 months and 37 dry bulk vessels
operating in the spot market, favorably positioning our company,
should the currently strong market conditions continue.”
Financial Summary
|
|
|
|
|
|
|
|
|
| |
|
Six-month period ended June 30, |
|
Three-month period ended June 30, |
|
|
(Expressed in thousands of U.S. dollars, except share and per share
data): |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Voyage revenue |
|
$ |
233,273 |
|
$ |
293,495 |
|
$ |
111,869 |
|
$ |
166,770 |
|
| Accrued charter revenue
(1) |
|
$ |
7,721 |
|
$ |
2,146 |
|
$ |
7,025 |
|
$ |
1,114 |
|
| Amortization of Time-charter
assumed |
|
$ |
95 |
|
$ |
(345 |
) |
$ |
47 |
|
$ |
(345 |
) |
| Voyage revenue adjusted on a
cash basis (2) |
|
$ |
241,089 |
|
$ |
295,296 |
|
$ |
118,941 |
|
$ |
167,539 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Net Income available
to common stockholders (3) |
|
$ |
64,265 |
|
$ |
96,262 |
|
$ |
31,705 |
|
$ |
58,275 |
|
| Weighted Average number of
shares |
|
|
119,927,560 |
|
|
122,615,427 |
|
|
120,319,180 |
|
|
122,844,260 |
|
| Adjusted Earnings per share
(3) |
|
$ |
0.54 |
|
$ |
0.79 |
|
$ |
0.26 |
|
$ |
0.47 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Income / (Loss) |
|
$ |
(43,447 |
) |
$ |
158,757 |
|
$ |
(76,223 |
) |
$ |
90,616 |
|
| Net Income / (Loss) available
to common stockholders |
|
$ |
(58,289 |
) |
$ |
143,309 |
|
$ |
(83,913 |
) |
$ |
82,762 |
|
| Weighted Average number of
shares |
|
|
119,927,560 |
|
|
122,615,427 |
|
|
120,319,180 |
|
|
122,844,260 |
|
| Earnings / (Losses) per
share |
|
$ |
(0.49 |
) |
$ |
1.17 |
|
$ |
(0.70 |
) |
$ |
0.67 |
|
(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.(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. generally accepted accounting
principles (“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 are
described in the notes to the “Fleet List” 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.
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 and the six-month periods
ended June 30, 2021 and 2020. Non-GAAP financial measures should be
viewed in addition to, and not as an alternative for, voyage
revenue or net income as determined in accordance with GAAP.
Non-GAAP financial measures include (i) Voyage revenue adjusted on
a cash basis (reconciled above), (ii) Adjusted Net Income available
to common stockholders and (iii) Adjusted Earnings per Share.
Exhibit I Reconciliation of Net Income
to Adjusted Net Income available to common stockholders and
Adjusted Earnings per Share
| |
|
Six-month period ended June
30, |
|
Three-month period ended June
30, |
|
(Expressed in thousands of U.S. dollars, except share and per share
data) |
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
| |
|
|
|
|
|
|
|
|
|
| Net Income /
(Loss) |
$ |
(43,447 |
) |
$ |
158,757 |
|
$ |
(76,223 |
) |
$ |
90,616 |
|
| Earnings allocated to
Preferred Stock |
|
(15,461 |
) |
|
(15,448 |
) |
|
(7,768 |
) |
|
(7,854 |
) |
| Gain on retirement of
Preferred Stock |
|
619 |
|
|
- |
|
|
78 |
|
|
- |
|
| Net Income / (Loss)
available to common stockholders |
|
(58,289 |
) |
|
143,309 |
|
|
(83,913 |
) |
|
82,762 |
|
| Accrued charter revenue |
|
7,721 |
|
|
2,146 |
|
|
7,025 |
|
|
1,114 |
|
| General and administrative
expenses - non-cash component |
|
1,508 |
|
|
3,207 |
|
|
832 |
|
|
1,768 |
|
| Amortization of Time charter
assumed |
|
95 |
|
|
(345 |
) |
|
47 |
|
|
(345 |
) |
| Realized gain on Euro/USD
forward contracts (1) |
|
(78 |
) |
|
(174 |
) |
|
(54 |
) |
|
(96 |
) |
| Vessels’ impairment loss |
|
31,577 |
|
|
- |
|
|
28,506 |
|
|
- |
|
| Gain on sale / disposals of
vessels, net |
|
(10 |
) |
|
(1,406 |
) |
|
- |
|
|
(1,666 |
) |
| Non-recurring, non-cash
write-off of loan deferred financing costs |
|
478 |
|
|
363 |
|
|
478 |
|
|
- |
|
| Loss on vessels held for
sale |
|
79,197 |
|
|
- |
|
|
78,965 |
|
|
- |
|
| (Gain) / loss on derivative
instruments, excluding interest accrued and realized on non-hedging
derivative instruments (1) |
|
2,066 |
|
|
1,012 |
|
|
(181 |
) |
|
(105 |
) |
| Fair value measurement /
Change in fair value of equity securities |
|
- |
|
|
(51,094 |
) |
|
- |
|
|
(25,157 |
) |
| Other non-recurring, non-cash
item |
|
- |
|
|
(756 |
) |
|
- |
|
|
- |
|
| Adjusted Net Income
available to common stockholders |
$ |
64,265 |
|
$ |
96,262 |
|
$ |
31,705 |
|
$ |
58,275 |
|
| Adjusted Earnings per
Share |
$ |
0.54 |
|
$ |
0.79 |
|
$ |
0.26 |
|
$ |
0.47 |
|
| Weighted average number of
shares |
|
119,927,560 |
|
|
122,615,427 |
|
|
120,319,180 |
|
|
122,844,260 |
|
Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share represent Net Income
after earnings allocated to preferred stock and gain on retirement
of preferred stock, but before non-cash “Accrued charter revenue”
recorded under charters with escalating charter rates, realized
gain on Euro/USD forward contracts, vessels’ impairment loss, gain
on sale / disposal of vessels, net, loss on vessels held for sale,
fair value measurement of equity securities / change in fair value
of equity securities, non-recurring, non-cash write-off of loan
deferred financing costs, general and administrative expenses -
non-cash component, non-cash changes in fair value of derivatives
and other non-recurring, non-cash items. “Accrued charter revenue”
is attributed to the timing difference between the revenue
recognition and the cash collection. However, Adjusted Net Income
available to common stockholders and Adjusted Earnings per Share
are not recognized measurements under U.S. GAAP. We believe that
the presentation of Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share are useful to
investors because they are frequently used by securities analysts,
investors and other interested parties in the evaluation of
companies in our industry. We also believe that Adjusted Net Income
available to common stockholders and Adjusted Earnings per Share
are useful in evaluating our ability to service additional debt and
make capital expenditures. In addition, we believe that Adjusted
Net Income available to common stockholders and Adjusted Earnings
per Share are useful in evaluating our operating performance and
liquidity position compared to that of other companies in our
industry because the calculation of Adjusted Net Income available
to common stockholders and Adjusted Earnings per Share generally
eliminates the effects of the accounting effects of capital
expenditures and acquisitions, certain hedging instruments and
other accounting treatments, items which may vary for different
companies for reasons unrelated to overall operating performance
and liquidity. In evaluating Adjusted Net Income available to
common stockholders and Adjusted Earnings per Share, you should be
aware that in the future we may incur expenses that are the same as
or similar to some of the adjustments in this presentation. Our
presentation of Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share should not be
construed as an inference that our future results will be
unaffected by unusual or non-recurring items.
(1) Items to consider for comparability include
gains and charges. Gains positively impacting Net Income available
to common stockholders are reflected as deductions to Adjusted Net
Income available to common stockholders. Charges negatively
impacting Net Income available to common stockholders are reflected
as increases to Adjusted Net Income available to common
stockholders.
Results of Operations
Three-month period ended June 30, 2021
compared to the three-month period ended June 30, 2020
During the three-month periods ended June 30,
2021 and 2020, we had an average of 71.5 and 60.0 vessels,
respectively, in our fleet.
In the three-month period ended June 30, 2021,
we accepted delivery of the newbuild container vessel YM Tiptop
with a TEU capacity of 12,690, the secondhand container vessels
Androusa, Norfolk, Porto Cheli, Porto Kagio and Porto Germeno with
an aggregate TEU capacity of 26,705 and we sold the container
vessel Prosper with a TEU capacity of 1,504.
Furthermore, in the three-month period ended
June 30, 2021, we acquired all of the equity interest of sixteen
companies (which owned or had committed to acquire dry bulk
vessels) owned by our Chairman and Chief Executive Officer,
Konstantinos Konstantakopoulos. We agreed to acquire these
companies from Mr. Konstantakopoulos at cost with no mark-up or
premium payable to Mr. Konstantakopoulos or his affiliated
entities. Mr. Konstantakopoulos will not receive a profit as a
result of the acquisition. Three of the dry bulk vessels that were
part of the acquisition, the Builder, Pegasus and Adventure (with
an aggregate DWT of 171,997), were delivered to us during the
three-month period ended June 30, 2021.
In the three-month periods ended June 30, 2021
and 2020, our fleet ownership days totaled 6,509 and 5,460 days,
respectively. Ownership days are one of the primary drivers of
voyage revenue and vessels’ operating expenses and represent the
aggregate number of days in a period during which each vessel in
our fleet is owned.
Consolidated Financial Results and
vessels’ operational data (1)
| (Expressed
in millions of U.S. dollars, |
|
Three-month period ended June 30, |
|
Change |
|
Percentage |
| except
percentages) |
|
2020 |
|
|
2021 |
|
|
|
Change |
| |
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
111.9 |
|
$ |
166.8 |
|
$ |
54.9 |
|
49.1 |
% |
| Voyage
expenses |
|
(1.6 |
) |
|
(2.0 |
) |
|
0.4 |
|
25.0 |
% |
| Voyage
expenses – related parties |
|
(1.5 |
) |
|
(2.4 |
) |
|
0.9 |
|
60.0 |
% |
| Vessels’
operating expenses |
|
(26.9 |
) |
|
(37.8 |
) |
|
10.9 |
|
40.5 |
% |
| General and
administrative expenses |
|
(2.4 |
) |
|
(1.7 |
) |
|
(0.7 |
) |
(29.2 |
%) |
| Management
fees – related parties |
|
(5.2 |
) |
|
(6.3 |
) |
|
1.1 |
|
21.2 |
% |
| General and
administrative expenses - non-cash component |
|
(0.8 |
) |
|
(1.8 |
) |
|
1.0 |
|
125.0 |
% |
| Amortization
of dry-docking and special survey costs |
|
(2.3 |
) |
|
(2.5 |
) |
|
0.2 |
|
8.7 |
% |
|
Depreciation |
|
(27.6 |
) |
|
(31.6 |
) |
|
4.0 |
|
14.5 |
% |
| Loss on
vessels held for sale |
|
(79.0 |
) |
|
- |
|
|
(79.0 |
) |
n.m. |
|
| Vessel’s
impairment loss |
|
(28.5 |
) |
|
- |
|
|
(28.5 |
) |
n.m. |
|
| Gain on sale
/ disposal of vessels |
|
- |
|
|
1.7 |
|
|
1.7 |
|
n.m. |
|
| Foreign
exchange losses |
|
(0.1 |
) |
|
- |
|
|
(0.1 |
) |
n.m. |
|
| Interest
income |
|
0.5 |
|
|
1.1 |
|
|
0.6 |
|
120.0 |
% |
| Interest and
finance costs |
|
(16.9 |
) |
|
(20.4 |
) |
|
3.5 |
|
20.7 |
% |
| Change in
fair value measurement of equity securities |
|
- |
|
|
25.1 |
|
|
25.1 |
|
n.m. |
|
| Income from
equity method investments |
|
4.1 |
|
|
1.0 |
|
|
(3.1 |
) |
(75.6 |
%) |
| Other |
|
(0.1 |
) |
|
1.3 |
|
|
1.4 |
|
n.m. |
|
| Gain on
derivative instruments |
|
0.2 |
|
|
0.1 |
|
|
(0.1 |
) |
(50.0 |
%) |
| Net
Income / (Loss) |
$ |
(76.2 |
) |
$ |
90.6 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (Expressed
in millions of U.S. dollars, |
|
Three-month
period ended June 30, |
|
|
|
Percentage |
| except
percentages) |
|
2020 |
|
2021 |
|
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
111.9 |
$ |
166.8 |
|
$ |
54.9 |
|
49.1 |
% |
| Accrued
charter revenue |
|
7.0 |
|
1.1 |
|
|
(5.9 |
) |
(84.3 |
%) |
| Amortization
of time charter assumed |
|
0.1 |
|
(0.3 |
) |
|
(0.4 |
) |
n.m. |
|
| Voyage
revenue adjusted on a cash basis (2) |
$ |
119.0 |
$ |
167.6 |
|
$ |
48.6 |
|
40.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
Three-month period ended June 30, |
|
|
|
Percentage |
|
2020 |
|
2021 |
|
Change |
|
Change |
| |
|
|
|
|
|
|
|
|
Average number of vessels |
60.0 |
|
71.5 |
|
11.5 |
|
19.2 |
% |
| Ownership
days |
5,460 |
|
6,509 |
|
1,049 |
|
19.2 |
% |
| Number of
vessels under dry-docking |
1 |
|
6 |
|
5 |
|
|
Segmental Financial Summary (1)
|
|
|
Three-month period ended June 30, 2021 |
|
|
Container vessels |
Dry bulk vessels |
Other |
Total |
|
|
|
|
|
|
|
Voyage revenue |
$ |
165.9 |
|
$ |
0.9 |
|
$ |
- |
$ |
166.8 |
|
|
Voyage expenses |
|
(1.9 |
) |
|
(0.1 |
) |
|
- |
|
(2.0 |
) |
|
Voyage expenses – related parties |
|
(2.4 |
) |
|
- |
|
|
- |
|
(2.4 |
) |
|
Vessels’ operating expenses |
|
(37.6 |
) |
|
(0.2 |
) |
|
- |
|
(37.8 |
) |
|
General and administrative expenses |
|
(1.7 |
) |
|
- |
|
|
- |
|
(1.7 |
) |
|
Management fees – related parties |
|
(6.3 |
) |
|
- |
|
|
- |
|
(6.3 |
) |
|
General and administrative expenses - non-cash component |
|
(1.8 |
) |
|
- |
|
|
- |
|
(1.8 |
) |
|
Amortization of dry-docking and special survey costs |
|
(2.5 |
) |
|
- |
|
|
- |
|
(2.5 |
) |
|
Depreciation |
|
(31.5 |
) |
|
(0.1 |
) |
|
- |
|
(31.6 |
) |
|
Gain on sale / disposal of vessels |
|
1.7 |
|
|
- |
|
|
- |
|
1.7 |
|
|
Interest income |
|
1.1 |
|
|
- |
|
|
- |
|
1.1 |
|
|
Interest and finance costs |
|
(20.4 |
) |
|
- |
|
|
- |
|
(20.4 |
) |
|
Change in fair value measurement of equity securities |
|
- |
|
|
- |
|
|
25.1 |
|
25.1 |
|
|
Income from equity method investments |
|
- |
|
|
- |
|
|
1.0 |
|
1.0 |
|
|
Other |
|
1.3 |
|
|
- |
|
|
- |
|
1.3 |
|
|
Gain on derivative instruments |
|
0.1 |
|
|
- |
|
|
- |
|
0.1 |
|
|
Net Income |
$ |
64.0 |
|
$ |
0.5 |
|
$ |
26.1 |
$ |
90.6 |
|
|
|
|
|
|
|
(1) The results of dry bulk vessels are included
from June 14, 2021. Prior to that, our results were attributable to
container vessels only.(2) Voyage revenue adjusted on a cash basis
is not a recognized measurement under U.S. generally accepted
accounting principles (“GAAP”). Refer to “Financial Summary” above
for the reconciliation of Voyage revenue adjusted on a cash
basis.
Voyage Revenue
Voyage revenue increased by 49.1%, or $54.9
million, to $166.8 million during the three-month period ended June
30, 2021, from $111.9 million during the three-month period ended
June 30, 2020. The increase is mainly attributable to (i) revenue
earned by five container vessels acquired during the third and
fourth quarter of 2020 and fifteen container vessels and three dry
bulk vessels acquired during the first half of 2021 and (ii) to
increased charter rates in certain of our container vessels; partly
off-set by revenue not earned by four container vessels sold during
the second half of 2020 and two container vessels sold during the
first half of 2021.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”) increased by 40.8%,
or $48.6 million, to $167.6 million during the three-month period
ended June 30, 2021, from $119.0 million during the three-month
period ended June 30, 2020. Accrued charter revenue for the
three-month periods ended June 30, 2021 and 2020 was a positive
amount of $1.1 million and $7.0 million, respectively.
Voyage Expenses
Voyage expenses were $2.0 million and $1.6
million for the three-month periods ended June 30, 2021 and 2020,
respectively. Voyage expenses mainly include (i) off-hire expenses
of our vessels, primarily related to fuel consumption and (ii)
third party commissions.
Voyage Expenses – related parties
Voyage expenses – related parties were $2.4
million and $1.5 million for the three-month periods ended June 30,
2021 and 2020, respectively. Voyage expenses – related parties
represent (i) fees of 1.25% in the aggregate on voyage revenues
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 $0.1 million, in the aggregate, for
the three-month periods ended June 30, 2021 and 2020,
respectively.
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include
the realized gain under derivative contracts entered into in
relation to foreign currency exposure, were $37.8 million and $26.9
million during the three-month periods ended June 30, 2021 and
2020, respectively. Daily vessels’ operating expenses were $5,811
and $4,925 for the three-month periods ended June 30, 2021 and
2020, 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 $1.7
million and $2.4 million during the three-month periods ended June
30, 2021 and 2020, respectively, and both include $0.63 million
paid to a related manager.
Management Fees – related parties
Management fees paid to our related party
managers were $6.3 million and $5.2 million during the three-month
periods ended June 30, 2021 and 2020, respectively.
General and Administrative Expenses - non-cash component
General and administrative expenses - non-cash
component for the three-month period ended June 30, 2021 amounted
to $1.8 million, representing the value of the shares issued to a
related party manager on June 30, 2021. General and administrative
expenses - non-cash component for the three-month period ended June
30, 2020 amounted to $0.8 million, representing the value of the
shares issued to a related party manager on June 30, 2020.
Amortization of Dry-Docking and Special Survey
Amortization of deferred dry-docking and special
survey costs was $2.5 million and $2.3 million during the
three-month periods ended June 30, 2021 and 2020, respectively.
During the three-month period ended June 30, 2021, five vessels
underwent and completed their special survey and one vessel was in
the process of completing its special survey. During the
three-month period ended June 30, 2020, one vessel underwent and
completed its special survey.
Depreciation
Depreciation expense for the three-month periods
ended June 30, 2021 and 2020 was $31.6 million and $27.6 million,
respectively.
Gain on Sale / Disposal of Vessels
During the three-month period ended June 30,
2021, we recorded a gain of $1.7 million from the sale of the
container vessel Prosper, which was classified as vessel held for
sale as at March 31, 2021.
Loss on Vessels Held for Sale
During the three-month period ended June 30,
2021, the container vessels Zim New York, and Zim Shanghai were
classified as vessels held for sale and the container vessel
Venetiko continues to be classified as vessel held for sale
(initially classified as vessel held for sale as of March 31,
2021). No loss on vessels held for sale was recorded during the
second quarter of 2021, since each vessel’s estimated market value
exceeded each vessel’s carrying value. During the three-month
period ended June 30, 2020, we recorded a loss of $78.7 million on
the container vessels Kokura, Kawasaki and Singapore Express that
were classified as vessels held for sale as at June 30, 2020, and
an additional loss of $0.3 million on the container vessel
Zagora that was classified as vessel held for sale as at December
31, 2019, representing the expected loss from their sale during the
next twelve-month period.
Vessels’ impairment loss
During the three-month period ended June 30,
2021, no impairment loss was recorded. During the three-month
period ended June 30, 2020, we recorded an impairment loss in
relation to two of our container vessels in the amount of $28.5
million, in the aggregate.
Interest Income
Interest income amounted to $1.1 million and
$0.5 million for the three-month periods ended June 30, 2021 and
2020, respectively.
Interest and Finance Costs
Interest and finance costs were $20.4 million
and $16.9 million during the three-month periods ended June 30,
2021 and 2020, respectively. The increase is mainly attributable to
the increased average loan balances during the three-month period
ended June 30, 2021 compared to the three-month period ended June
30, 2020; partly off-set by decreased financing cost during the
three-month period ended June 30, 2021 compared to the three-month
period ended June 30, 2020.
Change in Fair Value of Equity securities
Change in fair value of equity securities of
$25.1 million for the three-month period ended June 30, 2021,
represents the difference between the aggregate fair value of
1,221,800 ordinary shares of ZIM that we own as at June 30, 2021
compared to the fair value of such shares as of March 31, 2021. ZIM
completed its initial public offering and listing on the New York
Stock Exchange of its ordinary shares on January 27, 2021.
Income from Equity Method Investments
During the three-month period ended June 30,
2021, we recorded an income from equity method investments of $1.0
million representing our share of the income in jointly owned
companies pursuant to the Framework Deed dated May 15, 2013, as
amended and restated (the “Framework Deed”), with York. Since late
March 2021, we have held 100% of the equity interest in five
previously jointly owned companies with York, and since then these
five companies are consolidated in our consolidated financial
statements. As of June 30, 2021, six companies are jointly owned
with York (of which, five companies currently own container
vessels). During the three-month period ended June 30, 2020, we
recorded an income from equity method investments of $4.1 million
relating to investments under the Framework Deed.
Loss on Derivative Instruments
The fair value of our ten interest rate
derivative instruments and our two cross currency rate swaps which
were outstanding as of June 30, 2021 equates to the amount that
would be paid by us or to us should those instruments be
terminated. As of June 30, 2021, the fair value of these ten
interest rate derivative instruments and two cross currency rate
swaps, in aggregate, amounted to a liability of $11.7 million. The
change in the fair value of the interest rate derivative
instruments and cross currency rate swaps that qualified for hedge
accounting is recorded in “Other Comprehensive Income” (“OCI”) and
reclassified into earnings in the same period or periods during
which the hedged transaction affects earnings and is presented in
the same income statement line item as the earnings effect of the
hedged item while the change in the fair value of the interest rate
derivatives, representing hedge components excluded from the
assessment of effectiveness are recognized currently in earnings
and are presented in Gain/(Loss) on Derivative Instruments. The
change in the fair value of the interest rate derivative
instruments that did not qualify for hedge accounting is recorded
in Gain/(Loss) on Derivative Instruments. For the three-month
period ended June 30, 2021, a loss of $3.9 million has been
included in OCI and a loss of $0.1 million has been included in
Loss on derivative instruments in the consolidated statement of
income, resulting from the fair market value change of the interest
rate derivative instruments during the three-month period ended
June 30, 2021.
Cash Flows
Three-month periods ended June 30, 2021 and
2020
| Condensed cash
flows |
|
Three-month period ended June 30, |
|
(Expressed in millions of U.S. dollars) |
|
|
2020 |
|
|
|
2021 |
|
| Net Cash Provided by Operating
Activities |
|
$ |
71.5 |
|
|
$ |
104.0 |
|
| Net Cash Used in Investing
Activities |
|
$ |
(3.1 |
) |
|
$ |
(195.1 |
) |
| Net Cash Provided by / (Used
in) Financing Activities |
|
$ |
(104.7 |
) |
|
$ |
204.2 |
|
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended June 30, 2021, increased by $32.5
million to $104.0 million, from $71.5 million for the three-month
period ended June 30, 2020. The increase is mainly attributable to
increased cash from operations of $48.6 million, 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) of $10.3 million; partly off
by increased payments for interest (including swap payments) of
$2.4 million during the three-month period ended June 30, 2021
compared to the three-month period ended June 30, 2020 and by
increased special survey costs of $5.0 million during the
three-month period ended June 30, 2021 compared to the three-month
period ended June 30, 2020.
Net Cash Used in Investing Activities
Net cash used in investing activities was $195.1
million in the three-month period ended June 30, 2021, which mainly
consisted of (i) net payments for the acquisition of the 51% equity
interest in one company, previously jointly owned with York
pursuant to the Framework Deed, (ii) payments for the delivery of
one newbuild container vessel, four secondhand container vessels
and one dry bulk vessel, (iii) advance payments for the acquisition
of twelve secondhand dry bulk vessels and (iv) payments for
upgrades for certain of our vessels; partly off-set by proceeds we
received from the sale of one vessel.
Net cash used in investing activities was $3.1
million in the three-month period ended June 30, 2020, which mainly
consisted of payments for upgrades for certain of our container
vessels; partly off-set by return of capital we received from nine
entities jointly owned with York pursuant to the Framework Deed and
advance payments we received from the sale of two container vessels
that were classified as vessels held for sale as at June 30,
2020.
Net Cash Provided by / (Used in) Financing
Activities
Net cash provided by financing activities was
$204.2 million in the three-month period ended June 30, 2021, which
mainly consisted of (a) $227.8 million net proceeds relating to our
debt financing agreements (including proceeds we received from the
issuance of €100.0 million unsecured bond on the Athens Exchange),
(b) $9.4 million we paid for dividends to holders of our common
stock for the first quarter of 2021 and (c) $0.9 million we paid
for dividends to holders of our 7.625% Series B Cumulative
Redeemable Perpetual Preferred Stock (“Series B Preferred Stock”),
$2.1 million we paid for dividends to holders of our 8.500% Series
C Cumulative Redeemable Perpetual Preferred Stock (“Series C
Preferred Stock”), $2.2 million we paid for dividends to holders of
our 8.75% Series D Cumulative Redeemable Perpetual Preferred Stock
(“Series D Preferred Stock”) and $2.5 million we paid for dividends
to holders of our 8.875% Series E Cumulative Redeemable Perpetual
Preferred Stock (“Series E Preferred Stock”) for the period from
January 15, 2021 to April 14, 2021.
Net cash used in financing activities was $104.7
million in the three-month period ended June 30, 2020, which mainly
consisted of (a) $85.9 million net payments relating to our debt
financing agreements, (b) $9.1 million we paid for dividends to
holders of our common stock for the first quarter of 2020 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 January 15, 2020 to April 14, 2020.
Six-month period ended June 30, 2021
compared to the six-month period ended June 30, 2020
During the six-month periods ended June 30, 2021
and 2020, we had an average of 67.1 and 60.1 vessels, respectively,
in our fleet.
In the six-month period ended June 30, 2021, (i)
we accepted delivery of the newbuild container vessels YM Target
and YM Tiptop with an aggregate TEU capacity of 25,380, the
secondhand container vessels Aries, Argus, Glen Canyon, Androusa,
Norfolk, Porto Cheli, Porto Kagio and Porto Germeno with an
aggregate TEU capacity of 45,331 and we sold the container vessels
Halifax Express and Prosper with an aggregate TEU capacity of 6,394
and (ii) we acquired (a) the 75% equity interest of York Capital
Management in each of the 11,010 TEU container vessels Cape Kortia
and Cape Sounio and (b) the 51% equity interest of York Capital
Management in each of the 11,010 TEU container vessels Cape
Tainaro, Cape Artemisio and Cape Akritas and as a result we
obtained 100% of the equity interest in each of these five
vessels.
Furthermore, in the six-month period ended June
30, 2021, we acquired all of the equity interest of sixteen
companies (which owned or had committed to acquire dry bulk
vessels) owned by our Chairman and Chief Executive Officer,
Konstantinos Konstantakopoulos. We agreed to acquire these
companies from Mr. Konstantakopoulos at cost with no mark-up or
premium payable to Mr. Konstantakopoulos or his affiliated
entities. Mr. Konstantakopoulos will not receive a profit as a
result of the acquisition. Three of the dry bulk vessels that were
part of the acquisition, the Builder, Pegasus and Adventure (with
an aggregate DWT of 171,997), were delivered to us during the
six-month period ended June 30, 2021.
In the six-month period ended June 30, 2020, we
accepted delivery of the secondhand container vessel JPO Virgo with
a TEU capacity of 4,258 and we sold the container vessel Neapolis
with a TEU capacity of 1,645.
In the six-month periods ended June 30, 2021 and
2020, our fleet ownership days totaled 12,149 and 10,935 days,
respectively. Ownership days are one of the primary drivers of
voyage revenue and vessels’ operating expenses and represent the
aggregate number of days in a period during which each vessel in
our fleet is owned.
Consolidated Financial Results and
vessels’ operational data (1)
| |
|
|
| (Expressed
in millions of U.S. dollars, |
|
Six-month period ended June 30, |
|
|
|
|
Percentage |
| except
percentages) |
|
2020 |
|
|
2021 |
|
|
Change |
|
|
Change |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
233.3 |
|
$ |
293.5 |
|
$ |
60.2 |
|
|
25.8 |
% |
| Voyage
expenses |
|
(4.1 |
) |
|
(3.1 |
) |
|
(1.0 |
) |
|
(24.4 |
%) |
| Voyage
expenses – related parties |
|
(3.1 |
) |
|
(4.3 |
) |
|
1.2 |
|
|
38.7 |
% |
| Vessels’
operating expenses |
|
(54.8 |
) |
|
(69.6 |
) |
|
14.8 |
|
|
27.0 |
% |
| General and
administrative expenses |
|
(3.8 |
) |
|
(3.7 |
) |
|
(0.1 |
) |
|
(2.6 |
%) |
| Management
fees – related parties |
|
(10.5 |
) |
|
(11.8 |
) |
|
1.3 |
|
|
12.4 |
% |
| General and
administrative expenses - non-cash component |
|
(1.5 |
) |
|
(3.2 |
) |
|
1.7 |
|
|
113.3 |
% |
| Amortization
of dry-docking and special survey costs |
|
(4.5 |
) |
|
(4.8 |
) |
|
0.3 |
|
|
6.7 |
% |
|
Depreciation |
|
(55.7 |
) |
|
(58.7 |
) |
|
3.0 |
|
|
5.4 |
% |
| Gain on sale
/ disposal of vessels, net |
|
- |
|
|
1.4 |
|
|
1.4 |
|
|
n.m. |
|
| Loss on
vessels held for sale |
|
(79.2 |
) |
|
- |
|
|
(79.2 |
) |
|
n.m. |
|
| Vessels’
impairment loss |
|
(31.6 |
) |
|
- |
|
|
(31.6 |
) |
|
n.m. |
|
| Foreign
exchange gains / (losses) |
|
(0.2 |
) |
|
0.1 |
|
|
(0.3 |
) |
|
n.m. |
|
| Interest
income |
|
1.2 |
|
|
1.5 |
|
|
0.3 |
|
|
25.0 |
% |
| Interest and
finance costs |
|
(35.4 |
) |
|
(36.5 |
) |
|
1.1 |
|
|
3.1 |
% |
| Fair value
measurement of equity securities |
|
- |
|
|
51.1 |
|
|
51.1 |
|
|
n.m. |
|
| Income from
equity method investments |
|
8.2 |
|
|
5.0 |
|
|
(3.2 |
) |
|
(39.0 |
%) |
| Other |
|
0.4 |
|
|
2.9 |
|
|
2.5 |
|
|
n.m. |
|
| Loss on derivative instruments |
|
(2.1 |
) |
|
(1.0 |
) |
|
(1.1 |
) |
|
(52.4 |
%) |
| Net Income / (Loss) |
$ |
(43.4 |
) |
$ |
158.8 |
|
|
|
|
|
|
| (Expressed
in millions of U.S. dollars, |
|
Six-month period ended June 30, |
|
|
|
Percentage |
|
|
except percentages) |
|
2020 |
|
|
2021 |
|
|
Change |
|
Change |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Voyage
revenue |
$ |
233.3 |
|
$ |
293.5 |
|
$ |
60.2 |
|
25.8 |
% |
| Accrued
charter revenue |
|
7.7 |
|
|
2.1 |
|
|
(5.6 |
) |
(72.7 |
%) |
| Amortization
of time charter assumed |
|
0.1 |
|
|
(0.3 |
) |
|
(0.4 |
) |
n.m. |
|
| Voyage
revenue adjusted on a cash basis (2) |
$ |
241.1 |
|
$ |
295.3 |
|
$ |
54.2 |
|
22.5 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
Six-month period ended June 30, |
|
Percentage |
|
2020 |
|
2021 |
Change |
Change |
| |
|
|
|
|
|
|
Average number of vessels |
60.1 |
|
67.1 |
7.0 |
11.6 |
% |
| Ownership
days |
10,935 |
|
12,149 |
1,214 |
11.1 |
% |
| Number of
vessels under dry-docking |
7 |
|
9 |
2 |
|
Segmental Financial Summary (1)
|
|
|
|
|
Six-month period ended June 30, 2021 |
|
|
Container vessels |
Dry bulk vessels |
Other |
|
Total |
|
|
Voyage revenue |
$ |
292.6 |
|
$ |
0.9 |
|
$ |
- |
$ |
293.5 |
|
|
Voyage expenses |
|
(3.0 |
) |
|
(0.1 |
) |
|
- |
|
(3.1 |
) |
|
Voyage expenses – related parties |
|
(4.3 |
) |
|
- |
|
|
- |
|
(4.3 |
) |
|
Vessels’ operating expenses |
|
(69.4 |
) |
|
(0.2 |
) |
|
- |
|
(69.6 |
) |
|
General and administrative expenses |
|
(3.7 |
) |
|
- |
|
|
- |
|
(3.7 |
) |
|
Management fees – related parties |
|
(11.8 |
) |
|
- |
|
|
- |
|
(11.8 |
) |
|
General and administrative expenses - non-cash component |
|
(3.2 |
) |
|
- |
|
|
- |
|
(3.2 |
) |
|
Amortization of dry-docking and special survey costs |
|
(4.8 |
) |
|
- |
|
|
- |
|
(4.8 |
) |
|
Depreciation |
|
(58.6 |
) |
|
(0.1 |
) |
|
- |
|
(58.7 |
) |
|
Gain on sale / disposal of vessels |
|
1.4 |
|
|
- |
|
|
- |
|
1.4 |
|
|
Foreign exchange gains |
|
0.1 |
|
|
- |
|
|
- |
|
0.1 |
|
|
Interest income |
|
1.5 |
|
|
- |
|
|
- |
|
1.5 |
|
|
Interest and finance costs |
|
(36.5 |
) |
|
- |
|
|
- |
|
(36.5 |
) |
|
Fair value measurement of equity securities |
|
- |
|
|
- |
|
|
51.1 |
|
51.1 |
|
|
Income from equity method investments |
|
- |
|
|
- |
|
|
5.0 |
|
5.0 |
|
|
Other |
|
2.9 |
|
|
- |
|
|
- |
|
2.9 |
|
|
Loss on derivative instruments |
|
(1.0 |
) |
|
- |
|
|
- |
|
(1.0 |
) |
|
Net Income |
$ |
102.2 |
|
$ |
0.5 |
|
$ |
56.1 |
$ |
158.8 |
|
|
|
|
|
|
|
|
|
(1) The results of dry bulk vessels are included
from June 14, 2021. Prior to that, our results were attributable to
container vessels only.(2) Voyage revenue adjusted on a cash basis
is not a recognized measurement under U.S. generally accepted
accounting principles (“GAAP”). Refer to “Financial Summary” above
for the reconciliation of Voyage revenue adjusted on a cash
basis.
Voyage Revenue
Voyage revenue increased by 25.8%, or $60.2
million, to $293.5 million during the six-month period ended June
30, 2021, from $233.3 million during the six-month period ended
June 30, 2020. The increase is mainly attributable to (i) revenue
earned by five container vessels acquired during the second half of
2020, fifteen container vessels and three dry bulk vessels acquired
during the first half of 2021, (ii) to decreased idle days of our
fleet during the first half of 2021 compared to the first half of
2020, (iii) to increased charter rates in certain of our container
vessels during the first half of 2021 compared to the first half of
2020; partly off-set by revenue not earned by five container
vessels sold during the year ended December 31, 2020 and two
container vessels sold during the first half of 2021.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”), increased by 22.5%,
or $54.2 million, to $295.3 million during the six-month period
ended June 30, 2021, from $241.1 million during the six-month
period ended June 30, 2020. Accrued charter revenue for the
six-month periods ended June 30, 2021 and 2020 was a positive
amount of $2.1 million and $7.7 million, respectively.
Voyage Expenses
Voyage expenses were $3.1 million and $4.1
million for the six-month periods ended June 30, 2021 and 2020,
respectively. Voyage expenses mainly include (i) off-hire expenses
of our vessels, primarily related to fuel consumption and (ii)
third party commissions.
Voyage Expenses – related parties
Voyage expenses – related parties were $4.3
million and $3.1 million for the six-month periods ended June 30,
2021 and 2020, respectively. Voyage expenses – related parties
represent (i) fees of 1.25% in the aggregate on voyage revenues
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 $0.6 million and $0.2 million, in the aggregate, for
the six-month periods ended June 30, 2021 and 2020,
respectively.
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include
the realized gain under derivative contracts entered into in
relation to foreign currency exposure, were $69.6 million and $54.8
million during the six-month periods ended June 30, 2021 and 2020,
respectively. Daily vessels’ operating expenses were $5,729 and
$5,008 for the six-month periods ended June 30, 2021 and 2020,
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 $3.7
million and $3.8 million during the six-month periods ended June
30, 2021 and 2020, respectively, and both include $1.3 million paid
to a related manager.
Management Fees – related parties
Management fees paid to our related party
managers were $11.8 million and $10.5 million during the six-month
periods ended June 30, 2021 and 2020, respectively.
General and Administrative Expenses - non-cash component
General and administrative expenses - non-cash
component for the six-month period ended June 30, 2021 amounted to
$3.2 million, representing the value of the shares issued to a
related party manager on March 31, 2021 and on June 30, 2021.
General and administrative expenses - non-cash component for the
six-month period ended June 30, 2020 amounted to $1.5 million,
representing the value of the shares issued to a related party
manager on March 30, 2020 and June 30, 2020.
Amortization of Dry-Docking and Special Survey
Amortization of deferred dry-docking and special
survey costs was $4.8 million and $4.5 million during the six-month
periods ended June 30, 2021 and 2020, respectively. During the
six-month period ended June 30, 2021, eight vessels underwent and
completed their special survey and one vessel was in the process of
completing its special survey. During the six-month period ended
June 30, 2020, seven vessels underwent and completed their special
survey.
Depreciation
Depreciation expense for the six-month periods
ended June 30, 2021 and 2020 was $58.7 million and $55.7 million,
respectively.
Gain on Sale / Disposal of Vessels, net
During the six-month period ended June 30, 2021,
we recorded a net gain of $1.4 million from the sale of the
container vessels Prosper and Halifax Express (asset held for sale
as at December 31, 2020). During the six-month period ended June
30, 2020, we recorded a gain of $0.01 million from the sale of the
container vessel Neapolis which was classified as asset held for
sale as at December 31, 2019.
Loss on vessels held for sale
During the six-month period ended June 30, 2021,
the container vessels Venetiko, Zim New York and Zim Shanghai were
classified as vessels held for sale. No loss on vessels held for
sale was recorded during the six-month period ended June 30,
2021 since each vessel’s estimated market value exceeded each
vessel’s carrying value. During the six-month period ended June 30,
2020, we recorded a loss of $78.7 million on the container vessels
Kokura, Kawasaki and Singapore Express that were classified as
vessels held for sale as at June 30, 2020 and an additional loss of
$0.5 million on the container vessel Zagora that was
classified as vessel held for sale as at December 31, 2019,
representing the expected loss from their sale during the next
twelve-month period.
Vessels’ impairment loss
During the six-month period ended June 30, 2021
no impairment loss was recorded. During the six-month period ended
June 30, 2020, we recorded an impairment loss in relation to five
of our container vessels in the amount of $31.6 million, in the
aggregate.
Interest Income
Interest income amounted to $1.5 million and
$1.2 million for the six-month periods ended June 30, 2021 and
2020, respectively.
Interest and Finance Costs
Interest and finance costs were $36.5 million
and $35.4 million during the six-month periods ended June 30, 2021
and 2020, respectively. The increase is mainly attributable to the
increased average loan balances during the six-month period ended
June 30, 2021 compared to the six-month period ended June 30, 2020;
partly off-set by the decreased financing cost during the six-month
period ended June 30, 2021 compared to the six-month period ended
June 30, 2020.
Fair value measurement of equity securities
Fair value measurement of equity securities of
$51.1 million for the six-month period ended June 30, 2021,
represents the difference between the aggregate fair value of
1,221,800 ordinary shares of ZIM that we own as at June 30, 2021 of
$54.9 million compared to the book value of these shares of $3.8
million as of December 31, 2020. ZIM completed its initial public
offering and listing on the New York Stock Exchange of its ordinary
shares on January 27, 2021.
Income from Equity Method Investments
During the six-month period ended June 30, 2021,
we recorded an income from equity method investments of $5.0
million representing our share of the income in jointly owned
companies pursuant to the Framework Deed dated May 15, 2013, as
amended and restated (the “Framework Deed”), with York. Since late
March 2021, we have held 100% of the equity interest in five
previously jointly owned companies with York, and since then these
five companies are consolidated in our consolidated financial
statements. As of June 30, 2021, six companies are jointly owned
with York (of which, five companies currently own container
vessels). During the six-month period ended June 30, 2020, we
recorded an income from equity method investments of $8.2 million
relating to investments under the Framework Deed.
Loss on Derivative Instruments
The fair value of our ten interest rate
derivative instruments and our two cross currency rate swaps which
were outstanding as of June 30, 2021 equates to the amount that
would be paid by us or to us should those instruments be
terminated. As of June 30, 2021, the fair value of these twelve
interest rate derivative instruments, in aggregate, amounted to a
liability of $11.7 million. The change in the fair value of the
interest rate derivative instruments and cross currency rate swaps
that qualified for hedge accounting is recorded in “Other
Comprehensive Income” (“OCI”) and reclassified into earnings in the
same period or periods during which the hedged transaction affects
earnings and is presented in the same income statement line item as
the earnings effect of the hedged item while the change in the fair
value of the interest rate derivatives representing hedge
components excluded from the assessment of effectiveness are
recognized currently in earnings and are presented in Gain/(Loss)
on Derivative Instruments. The change in the fair value of the
interest rate derivative instruments that did not qualify for hedge
accounting is recorded in Gain/(Loss) on Derivative Instruments.
For the six-month period ended June 30, 2021, a loss of $1.0
million has been included in OCI and a loss of $0.2 million has
been included in Loss on derivative instruments in the consolidated
statement of income, resulting from the fair market value change of
the interest rate derivative instruments during the six-month
period ended June 30, 2021.
Cash Flows
Six-month periods ended June 30, 2021 and
2020
| Condensed cash
flows |
|
Six-month period ended June 30, |
|
(Expressed in millions of U.S. dollars) |
|
|
2020 |
|
|
|
2021 |
|
| Net Cash Provided by Operating
Activities |
|
$ |
139.2 |
|
|
$ |
175.2 |
|
| Net Cash Provided by / (Used
in) Investing Activities |
|
$ |
1.6 |
|
|
$ |
(281.5 |
) |
| Net Cash Provided by / (Used
in) Financing Activities |
|
$ |
(135.5 |
) |
|
$ |
263.3 |
|
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the six-month period ended June 30, 2021, increased by $36.0
million to $175.2 million, from $139.2 million for the six-month
period ended June 30, 2020. The increase is mainly attributable to
increased cash from operations of $54.2 million, 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) of $8.6 million; partly
off-set by increased payments for interest (including swap
payments) of $1.4 million during the six-month period ended June
30, 2021 compared to the six-month period ended June 30, 2020 and
by increased special survey costs of $2.4 million during the
six-month period ended June 30, 2021 compared to the six-month
period ended June 30, 2020.
Net Cash Provided by / (Used in) Investing
Activities
Net cash used in investing activities was $281.5
million in the six-month period ended June 30, 2021, which mainly
consisted of (i) net payments for the acquisition of the 75% equity
interest in two companies and of the 51% equity interest in three
companies, previously jointly owned with York pursuant to the
Framework Deed, (ii) payments for the delivery of two newbuild
container vessels, eight secondhand container vessels and one dry
bulk vessel, (iii) advance payments for the acquisition of two
secondhand container vessels and twelve secondhand dry bulk vessels
and (iv) payments for upgrades for certain of our vessels; partly
off-set by proceeds we received from the sale of two container
vessels.
Net cash provided by investing activities was
$1.6 million in the six-month period ended June 30, 2020, which
mainly consisted of return of capital we received from nine
entities jointly owned with York pursuant to the Framework Deed,
the proceeds we received from the sale of one container vessel and
advance payments we received from the sale of two container vessels
that were classified as vessels held for sale as at June 30, 2020;
partly off-set by payments for upgrades for certain of our
container vessels and payment for the acquisition of one container
secondhand vessel.
Net Cash Provided by / (Used in) Financing
Activities
Net cash provided by financing activities was
$263.3 million in the six-month period ended June 30, 2021, which
mainly consisted of (a) $309.4 million net proceeds relating to our
debt financing agreements (including proceeds we received from the
issuance of €100.0 million unsecured bond on the Athens Exchange),
(b) $18.6 million we paid for dividends to holders of our common
stock for the fourth quarter of 2020 and the first quarter of 2021
and (c) $1.9 million we paid for dividends to holders of our Series
B Preferred Stock, $4.2 million we paid for dividends to holders of
our Series C Preferred Stock, $4.4 million we paid for dividends to
holders of our Series D Preferred Stock and $5.1 million we paid
for dividends to holders of our Series E Preferred Stock for the
period from October 15, 2020 to January 14, 2021 and January 15,
2021 to April 14, 2021.
Net cash used in financing activities was $135.5
million in the six-month period ended June 30, 2020, which mainly
consisted of (a) $100.5 million net payments relating to our debt
financing agreements, (b) $15.8 million we paid for dividends to
holders of our common stock for the fourth quarter of 2019 and the
first quarter of 2020 and (c) $1.9 million we paid for dividends to
holders of our Series B Preferred Stock, $4.2 million we paid for
dividends to holders of our Series C Preferred Stock, $4.4 million
we paid for dividends to holders of our Series D Preferred Stock
and $5.1 million we paid for dividends to holders of our Series E
Preferred Stock for the period from October 15, 2019 to January 14,
2020 and January 15, 2020 to April 14, 2020.
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of June 30, 2021, we had a total cash
liquidity of $348.9 million, consisting of cash, cash equivalents
and restricted cash.
Debt-free vessels
As of July 28, 2021, the following vessels were free of
debt.
Unencumbered Vessels (Refer to
fleet list for full details)
|
Vessel Name |
|
YearBuilt |
|
TEU / DWTCapacity |
|
Containerships |
|
|
|
|
| ETOILE |
|
2005 |
|
2,556 |
| MICHIGAN |
|
2008 |
|
1,300 |
| ENSENADA (*) |
|
2001 |
|
5,576 |
| MONEMVASIA (*) |
|
1998 |
|
2,472 |
| ARKADIA (*) |
|
2001 |
|
1,550 |
| Dry Bulk
Vessels |
|
|
|
|
| SEABIRD |
|
2016 |
|
63,553 |
| |
|
|
|
|
(*) Vessels acquired pursuant to the Framework Deed with
York.
Risk Factor Update
The operation of dry bulk vessels entails certain unique
operational risks.
The operation of certain ship types, such as dry
bulk vessels, has certain unique risks. With a dry bulk vessel, the
cargo itself and its interaction with the ship can be a risk
factor. By their nature, dry bulk cargoes are often heavy, dense,
easily shifted, and react badly to water exposure. In addition, dry
bulk vessels are often subjected to battering treatment during
unloading operations with grabs, jackhammers (to pry encrusted
cargoes out of the hold), and small bulldozers. This treatment may
cause damage to the vessel. Vessels damaged due to treatment during
unloading procedures may be more susceptible to breach at sea.
Furthermore, any defects or flaws in the design of a dry bulk
vessel may contribute to vessel damage. Hull breaches in dry bulk
vessels may lead to the flooding of the vessels holds. If a dry
bulk vessel suffers flooding in its holds, the bulk cargo may
become so dense and waterlogged that its pressure may buckle the
vessel's bulkheads, leading to the loss of the vessel. If we are
unable to adequately maintain our vessels, we may be unable to
prevent these events.
Any of these circumstances or events could
negatively impact our business, financial condition, results of
operations and our ability to pay dividends, if any, in the future.
In addition, the loss of any of our dry bulk vessels could harm our
reputation as a safe and reliable vessel owner and operator.
Conference Call details:
On Wednesday, 28, 2021 at 8:30 a.m. EST,
Costamare’s management team will hold a conference call to discuss
the financial results. Participants should dial into the call 10
minutes before the scheduled time using the following numbers:
1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or
+1-412-317-9258 (from outside the US and the UK). Please quote
“Costamare”. A replay of the conference call will be available
until August 4, 2021. 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:
10159093.
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 for charter. The Company has
47 years of history in the international shipping industry and a
fleet of 81 containerships, with a total capacity of approximately
581,000 TEU (including two secondhand vessels that we have agreed
to acquire and two vessels that we have agreed to sell) and 37 dry
bulk vessels with a total capacity of approximately 1,910,000 DWT
(including 23 secondhand vessels that we have agreed to acquire).
Five of our containerships have been acquired pursuant to the
Framework Deed with York by vessel-owning joint venture entities 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
Fleet List
The tables below provide additional information,
as of July 28, 2021, about our fleet of containerships, including
the vessels that we have agreed to acquire, the vessels we have
agreed to sell, 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(ii) |
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 |
ZIM/MSC |
2016 |
11,010 |
34,750/33,000 |
July 2031(3) |
|
12 |
CAPE TAINARO |
MSC |
2017 |
11,010 |
33,000 |
April 2031 |
|
13 |
CAPE KORTIA |
ZIM/MSC |
2017 |
11,010 |
34,750/33,000 |
July 2031(3) |
|
14 |
CAPE SOUNIO |
MSC |
2017 |
11,010 |
33,000 |
April 2031 |
|
15 |
CAPE ARTEMISIO |
Hapag Lloyd |
2017 |
11,010 |
36,650 |
March 2025 |
|
16 |
COSCO GUANGZHOU |
COSCO/(*) |
2006 |
9,469 |
30,900/72,700 |
April 2025(4) |
|
17 |
COSCO NINGBO |
COSCO/(*) |
2006 |
9,469 |
30,900/72,700 |
April 2025(4) |
|
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(5) |
|
22 |
MSC AMALFI |
MSC |
2014 |
9,403 |
46,300 |
March 2027(6) |
|
23 |
MSC AJACCIO |
MSC |
2014 |
9,403 |
46,300 |
February 2027(7) |
|
24 |
MSC ATHENS(ii) |
MSC |
2013 |
8,827 |
45,300 |
January 2026(8) |
|
25 |
MSC ATHOS(ii) |
MSC |
2013 |
8,827 |
45,300 |
February 2026(9) |
|
26 |
VALOR |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
April 2025 |
|
27 |
VALUE |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
April 2025 |
|
28 |
VALIANT |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
June 2025 |
|
29 |
VALENCE |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
July 2025 |
|
30 |
VANTAGE |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
September 2025 |
|
31 |
NAVARINO |
MSC |
2010 |
8,531 |
31,000 |
January 2025 |
|
32 |
MAERSK KLEVEN |
Maersk |
1996 |
8,044 |
25,000 |
June 2023(10) |
|
33 |
MAERSK KOTKA |
Maersk |
1996 |
8,044 |
25,000 |
June 2023(11) |
|
34 |
MAERSK KOWLOON |
Maersk |
2005 |
7,471 |
16,000 |
June 2022 |
|
35 |
KURE |
COSCO |
1996 |
7,403 |
31,000 |
March 2023 |
|
36 |
MSC METHONI |
MSC/Maersk |
2003 |
6,724 |
29,000/46,500 |
May 2026(12) |
|
37 |
PORTO CHELI |
Maersk |
2001 |
6,712 |
30,075 |
June 2026 |
|
38 |
YORK |
Maersk |
2000 |
6,648 |
21,250 |
August 2022 |
|
39 |
KOBE |
RCL Feeder/ZIM |
2000 |
6,648 |
14,500/45,000 |
July 2025(13) |
|
40 |
SEALAND WASHINGTON |
Maersk |
2000 |
6,648 |
25,000 |
March 2022(14) |
|
41 |
SEALAND MICHIGAN |
Maersk |
2000 |
6,648 |
25,000 |
March 2022(14) |
|
42 |
SEALAND ILLINOIS |
Maersk |
2000 |
6,648 |
25,000 |
March 2022(14) |
|
43 |
MAERSK KOLKATA |
Maersk |
2003 |
6,644 |
25,000 |
March 2022(14) |
|
44 |
MAERSK KINGSTON |
Maersk |
2003 |
6,644 |
25,000 |
March 2022(14) |
|
45 |
MAERSK KALAMATA |
Maersk |
2003 |
6,644 |
25,000 |
March 2022(14) |
|
46 |
ARIES |
ONE |
2004 |
6,492 |
(*) |
December 2022 |
|
47 |
ARGUS |
ONE |
2004 |
6,492 |
(*) |
January 2023 |
|
48 |
VENETIKO(iii) |
(*) |
2003 |
5,928 |
(*) |
August 2021 |
|
49 |
PORTO KAGIO |
Maersk |
2002 |
5,908 |
28,822 |
June 2026 |
|
50 |
GLEN CANYON |
ONE |
2006 |
5,642 |
(*) |
January 2022 |
|
51 |
PORTO GERMENO |
Maersk |
2002 |
5,570 |
28,822 |
June 2026 |
|
52 |
ENSENADA(i), (iii) |
(*) |
2001 |
5,576 |
21,500 |
August 2021 |
|
53 |
ZIM NEW YORK |
ZIM |
2002 |
4,992 |
14,438 |
September 2021 (15) |
|
54 |
ZIM SHANGHAI |
ZIM |
2002 |
4,992 |
14,438 |
September 2021(15) |
|
55 |
LEONIDIO(ii) |
Maersk |
2014 |
4,957 |
14,200 |
December 2024 |
|
56 |
KYPARISSIA(ii) |
Maersk |
2014 |
4,957 |
14,200 |
November 2024 |
|
57 |
MEGALOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025 |
|
58 |
MARATHOPOLIS |
Maersk |
2013 |
4.957 |
13,500 |
July 2025 |
|
59 |
OAKLAND |
Maersk |
2000 |
4,890 |
24,500 |
March 2023 |
|
60 |
NORFOLK |
Maersk |
2009 |
4,259 |
30,000 |
May 2023 |
|
61 |
VULPECULA |
OOCL |
2010 |
4,258 |
22,700 |
February 2023 |
|
62 |
VOLANS |
ZIM |
2010 |
4,258 |
24,250 |
April 2024 |
|
63 |
VIRGO |
Maersk |
2009 |
4,258 |
30,200 |
February 2024 |
|
64 |
VELA |
OOCL |
2009 |
4,258 |
22,700 |
January 2023 |
|
65 |
ANDROUSA |
Maersk |
2010 |
4,256 |
22,750 |
May 2023 |
|
66 |
NEOKASTRO |
(*)/CMA CGM |
2011 |
4,178 |
(*)/ 39,000 |
January 2027(16) |
|
67 |
ULSAN |
Maersk |
2002 |
4,132 |
34,730 |
January 2026(17) |
|
68 |
POLAR ARGENTINA(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
October 2024 |
|
69 |
POLAR BRASIL(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
January 2025 |
|
70 |
LAKONIA |
COSCO |
2004 |
2,586 |
17,300 |
February 2022 |
|
71 |
SCORPIUS |
Pool / Hapag Lloyd |
2007 |
2,572 |
Pool participation/17,750 |
January 2023(18) |
|
72 |
ETOILE |
(*) |
2005 |
2,556 |
(*) |
February 2023 |
|
73 |
AREOPOLIS |
COSCO |
2000 |
2,474 |
17,300 |
March 2022 |
|
74 |
MONEMVASIA(i) |
Maersk |
1998 |
2,472 |
9,250 |
November 2021 |
|
75 |
MESSINI |
(*) |
1997 |
2,458 |
18,000 |
January 2022 |
|
76 |
ARKADIA(i) |
China Navigation |
2001 |
1,550 |
21,500 |
May 2023 |
|
77 |
MICHIGAN |
MSC |
2008 |
1,300 |
18,700 |
September 2023(19) |
|
78 |
TRADER |
(*) |
2008 |
1,300 |
(*) |
November 2021 |
|
79 |
LUEBECK |
MSC |
2001 |
1,078 |
15,000 |
March 2024(20) |
Containerships agreed to be acquired within
2021
|
|
Vessel Name |
Vessel Capacity (TEU) |
Year Built |
Charterer |
Agreed Daily Charter Rate (U.S. dollars) |
Charter Tenor |
|
1 |
COSCO FUKUYAMA (tbr. GIALOVA) |
4,578 |
2009 |
ZIM |
25,500 |
32 – 36 months from vessel’s delivery to the charterer |
|
2 |
CO KOBE (tbr. DYROS) |
4,578 |
2008 |
Maersk |
22,750 |
24.5 – 27.5 months from vessel’s delivery to the charterer |
|
(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 could expire. |
|
(3) |
Upon redelivery of each vessel from ZIM between August 2021 and
October 2021, each vessel will commence a charter for a period of
approximately 10 years, with MSC at a daily rate of $33,000. Until
then the daily charter rate of Cape Akritas and Cape Kortia will be
$34,750. |
|
(4) |
Upon redelivery of each vessel from COSCO between April 2022 and
June 2022, each vessel will commence a charter for a period of 36
to 39 months at a daily rate of $72,700. Until then the daily
charter rate of Cosco Guangzhou and Cosco Ningbo will be
$30,900. |
|
(5) |
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. |
|
(6) |
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. |
|
(7) |
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. |
|
(8) |
This charter rate will be earned by MSC Athens until January 29,
2023. From the aforementioned date until the expiry of the charter,
the daily rate will be $35,300. |
|
(9) |
This charter rate will be earned by MSC Athos until February 24,
2023. From the aforementioned date until the expiry of the charter,
the daily rate will be $35,300. |
|
(10) |
The daily rate of Maersk Kleven 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. |
|
(11) |
The daily rate of 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. |
|
(12) |
Upon redelivery of MSC Methoni from MSC (expected between September
2021 and November 2021), the vessel will commence a charter with
Maersk at a daily rate of $46,500. Until then the daily charter
rate will be $29,000. |
|
(13) |
Upon redelivery of Kobe from RCL Feeder (expected between August
2021 and November 2021), the vessel will commence a charter with
ZIM at a daily rate of $45,000. Until then the daily charter rate
will be $14,500. |
|
(14) |
The daily rate for Sealand Washington, Sealand Michigan, Sealand
Illinois, Maersk Kolkata, Maersk Kingston and Maersk Kalamata is a
base rate of $16,000, 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. |
|
(15) |
The amounts in the table reflect the current charter terms, giving
effect to our agreement with ZIM under its 2014 restructuring plan.
Based on this agreement, we have been granted charter extensions
and have been issued equity securities representing 1.2% of ZIM’s
equity at that time and approximately $8.2 million in interest
bearing notes maturing in 2023. In May 2020, the Company exercised
its option to extend the charters of ZIM New York and ZIM Shanghai
for a one year period at market rate plus $1,100 per day per vessel
while the notes remain outstanding. The rate for this sixth
optional year has been determined at $14,438 per day. In June 2021,
ZIM fully repaid the interest bearing notes and thus the employment
of the two vessels will be terminated under the terms of the 2014
restructuring agreement. |
|
(16) |
Upon redelivery of Neokastro from her current charterer (expected
between December 2021 and February 2022), the vessel will commence
a charter with CMA CGM at a daily rate of $39,000. Until then the
daily charter rate will be $24,000. |
|
(17) |
This charter rate will be earned by Ulsan from October 1, 2021.
Until then the daily charter rate will be $12,000. |
|
(18) |
Vessel will be participating in a Pool until August 31, 2021. From
September 1, 2021, its charter rate will be $17,750 per day, as per
its current employment with Hapag Lloyd. |
|
(19) |
This charter rate will be earned by Michigan from October 15, 2021.
Until then the daily charter rate will be $5,800. |
|
(20) |
This charter rate will be earned by Luebeck from March 19, 2022.
Until then the daily charter rate will be $7,750. |
|
|
|
|
(i) |
Denotes vessels acquired pursuant to the Framework Deed. The
Company holds an equity interest of 49% in each of the
vessel-owning entities. |
|
(ii) |
Denotes vessels subject to a sale and leaseback transaction. |
|
(iii) |
Denotes vessels that we have agreed to sell. |
|
|
|
|
(*) |
Denotes charterer’s identity and/or current daily charter rates
and/or charter expiration dates, which are treated as
confidential. |
The tables below provide additional information,
as of July 28, 2021, about our fleet of dry bulk vessels, including
the vessels that we have agreed to acquire.
|
|
Vessel Name |
Year Built |
Capacity (DWT) |
Current Daily Charter
Rate(1)
(U.S. dollars) |
Expiration of
Charter(2) |
|
1 |
BUILDER |
2012 |
81,541 |
25,000 |
October 2021 |
|
2 |
SAUVAN |
2010 |
79,699 |
30,250 |
October 2021 |
|
3 |
DAWN |
2018 |
63,530 |
10,500 |
December 2021(4) (5) |
|
4 |
SEABIRD |
2016 |
63,553 |
Preparations for Drydock |
|
5 |
ERACLE |
2012 |
58,018 |
30,000 |
October 2021 |
|
6 |
PEGASUS |
2011 |
56,726 |
26,150 |
September 2021 |
|
7 |
PEACE |
2006 |
55,709 |
28,000 |
September 2021 |
|
8 |
PRIDE |
2006 |
55,705 |
31,000 |
August 2021 |
|
9 |
INTERLINK VERITY |
2012 |
37,163 |
100% participation to the BHSI38 performance |
March 2022(3) (4) |
|
10 |
ACUITY |
2011 |
37,149 |
98.75% participation to the BHSI38 performance |
September 2021(3) (4) (5) |
|
11 |
BERNIS |
2011 |
34,627 |
25,250 |
November 2021 |
|
12 |
MANZANILLO |
2010 |
34,426 |
8,350 |
October 2021(4) (5) |
|
13 |
ADVENTURE |
2011 |
33,755 |
7,500 |
December 2021(4) (5) |
|
14 |
ALLIANCE |
2012 |
33,755 |
8,150 |
December 2021(4) (5) |
Dry Bulk vessels agreed to be acquired within
2021
|
|
Vessel Name |
Year Built |
Capacity (DWT) |
Current Daily Charter
Rate(1)
(U.S. dollars) |
Expiration of
Charter(2) |
|
1 |
SPRING AEOLIAN (tbr. AEOLIAN) |
2012 |
83,478 |
- |
- |
|
2 |
JAIGARH (tbr. GRENETA) |
2010 |
82,166 |
- |
- |
|
3 |
PEDHOULAS FARMER (tbr. FARMER) |
2012 |
81,541 |
- |
- |
|
4 |
IMPERIAL ROSE (tbr. ROSE) |
2008 |
76,619 |
- |
- |
|
5 |
BULK TITAN (tbr. TITAN) |
2009 |
58,090 |
- |
- |
|
6 |
STAR ATHENA (tbr. ATHENA) |
2012 |
58,018 |
- |
- |
|
7 |
BULK URUGUAY (tbr. URUGUAY) |
2011 |
57,937 |
- |
- |
|
8 |
BULK CURACAO (tbr. CURACAO) |
2011 |
57,937 |
- |
- |
|
9 |
VIET THUAN 56-01 (tbr. THUNDER) |
2009 |
57,334 |
- |
- |
|
10 |
SERENE SUSANNAH (tbr. SERENA) |
2010 |
57,266 |
- |
- |
|
11 |
ATLANTIC MERIDA (tbr. MERIDA) |
2012 |
56,670 |
|
|
|
12 |
LARA (tbr. CLARA) |
2008 |
56,557 |
- |
- |
|
13 |
DARYA LAKSHMI (tbr. BERMONDI) |
2009 |
55,469 |
- |
- |
|
14 |
INTERLINK COMITY (tbr. COMITY) |
2010 |
37,302 |
100% participation to the BHSI38 performance |
July 2022 (3) (4) |
|
15 |
INTERLINK PARITY (tbr. PARITY) |
2012 |
37,152 |
102% participation to the BSHI38 performance |
December 2022(3) |
|
16 |
INTERLINK EQUITY (tbr. EQUITY) |
2013 |
37,071 |
- |
- |
|
17 |
N DISCOVERY (tbr. DISCOVERY) |
2012 |
37,019 |
- |
- |
|
18 |
JIA TAI (tbr. TAIBO) |
2011 |
35,112 |
- |
- |
|
19 |
MS CHARM (tbr. CHARM) |
2010 |
32,527 |
91% participation to the BSHI38 performance |
February 2022(3) (4) |
|
20 |
ATLANTIC PROGRESS (tbr. PROGRESS) |
2011 |
32,400 |
- |
- |
|
21 |
MING YUAN (tbr. MINER) |
2010 |
32,300 |
- |
- |
|
22 |
KONSTANTINOS M (tbr. KONSTANTINOS) |
2012 |
32,178 |
19,500 |
September 2021(4) |
|
23 |
GREAT RESOURCE (tbr. RESOURCE) |
2010 |
31,776 |
- |
- |
|
(1) |
Daily charter rates are gross, unless stated otherwise. |
|
(2) |
Charter terms and expiration dates are based on the earliest date
charters (unless otherwise noted) could expire. |
|
(3) |
Gross daily charter rate linked to the Baltic Exchange Handysize
Index.( “BHSI38’’). |
|
(4) |
Vessels acquired/agreed to be acquired, with a time charter agreed
by the previous owners. |
|
(5) |
Latest redelivery date |
Consolidated Statements of
Income
| |
|
Six-months ended June 30, |
|
Three-months ended June 30, |
|
(Expressed in thousands of U.S. dollars, except share and per share
amounts) |
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
| |
|
Unaudited |
| |
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
| Voyage revenue |
$ |
233,273 |
|
$ |
293,495 |
|
$ |
111,869 |
|
$ |
166,770 |
|
| |
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
| Voyage expenses |
|
(4,071 |
) |
|
(3,071 |
) |
|
(1,553 |
) |
|
(2,030 |
) |
| Voyage expenses – related
parties |
|
(3,062 |
) |
|
(4,301 |
) |
|
(1,475 |
) |
|
(2,395 |
) |
| Vessels' operating
expenses |
|
(54,758 |
) |
|
(69,600 |
) |
|
(26,888 |
) |
|
(37,821 |
) |
| General and administrative
expenses |
|
(3,758 |
) |
|
(3,709 |
) |
|
(2,356 |
) |
|
(1,741 |
) |
| Management fees - related
parties |
|
(10,521 |
) |
|
(11,786 |
) |
|
(5,199 |
) |
|
(6,310 |
) |
| General and administrative
expenses - non-cash component |
|
(1,508 |
) |
|
(3,207 |
) |
|
(832 |
) |
|
(1,768 |
) |
| Amortization of dry-docking
and special survey costs |
|
(4,537 |
) |
|
(4,847 |
) |
|
(2,330 |
) |
|
(2,520 |
) |
| Depreciation |
|
(55,737 |
) |
|
(58,726 |
) |
|
(27,601 |
) |
|
(31,630 |
) |
| Gain on sale / disposal of
vessels, net |
|
10 |
|
|
1,406 |
|
|
- |
|
|
1,666 |
|
| Loss on vessels held for
sale |
|
(79,197 |
) |
|
- |
|
|
(78,965 |
) |
|
- |
|
| Vessels’ impairment loss |
|
(31,577 |
) |
|
- |
|
|
(28,506 |
) |
|
- |
|
| Foreign exchange gains /
(losses) |
|
(207 |
) |
|
146 |
|
|
(65 |
) |
|
(3 |
) |
| Operating income /
(loss) |
$ |
(15,650 |
) |
$ |
135,800 |
|
$ |
(63,901 |
) |
$ |
82,218 |
|
| |
|
|
|
|
|
|
|
|
| OTHER INCOME /
(EXPENSES): |
|
|
|
|
|
|
|
|
| Interest income |
$ |
1,087 |
|
$ |
1,489 |
|
$ |
440 |
|
$ |
1,122 |
|
| Interest and finance
costs |
|
(35,367 |
) |
|
(36,548 |
) |
|
(16,900 |
) |
|
(20,441 |
) |
| Income from equity method
investments |
|
8,241 |
|
|
4,951 |
|
|
4,077 |
|
|
960 |
|
| Fair value measurement /
Change in fair value of equity securities |
|
- |
|
|
51,094 |
|
|
- |
|
|
25,157 |
|
| Other |
|
308 |
|
|
2,983 |
|
|
(120 |
) |
|
1,495 |
|
| Gain / (Loss) on derivative
instruments |
|
(2,066 |
) |
|
(1,012 |
) |
|
181 |
|
|
105 |
|
| Total other
expenses |
$ |
(27,797 |
) |
$ |
22,957 |
|
$ |
(12,322 |
) |
$ |
8,398 |
|
| Net Income /
(Loss) |
$ |
(43,447 |
) |
$ |
158,757 |
|
$ |
(76,223 |
) |
$ |
90,616 |
|
| Earnings allocated to
Preferred Stock |
|
(15,461 |
) |
|
(15,448 |
) |
|
(7,768 |
) |
|
(7,854 |
) |
| Gain on retirement of
Preferred Stock |
|
619 |
|
|
- |
|
|
78 |
|
|
- |
|
| Net Income / (Loss)
available to common stockholders |
$ |
(58,289 |
) |
$ |
143,309 |
|
$ |
(83,913 |
) |
$ |
82,762 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Earnings / (Losses) per common
share, basic and diluted |
$ |
(0.49 |
) |
$ |
1.17 |
|
$ |
(0.70 |
) |
$ |
0.67 |
|
| Weighted average number of
shares, basic and diluted |
|
119,927,560 |
|
|
122,615,427 |
|
|
120,319,180 |
|
|
122,844,260 |
|
COSTAMARE
INC.Consolidated Balance Sheets
| |
|
As of December 31, |
|
As of June 30, |
|
(Expressed in thousands of U.S. dollars) |
|
2020 |
|
|
2021 |
|
| ASSETS |
|
(Audited) |
|
(Unaudited) |
| CURRENT
ASSETS: |
|
|
|
|
| Cash and cash
equivalents |
$ |
143,922 |
|
$ |
279,055 |
|
| Restricted cash |
|
4,998 |
|
|
6,980 |
|
| Accounts receivable |
|
8,249 |
|
|
7,063 |
|
| Inventories |
|
10,455 |
|
|
13,909 |
|
| Due from related parties |
|
1,623 |
|
|
535 |
|
| Fair value of derivatives |
|
460 |
|
|
- |
|
| Insurance claims
receivable |
|
883 |
|
|
804 |
|
| Asset held for sale |
|
12,416 |
|
|
61,389 |
|
| Time charter assumed |
|
191 |
|
|
198 |
|
| Investment in equity
securities |
|
- |
|
|
54,895 |
|
| Prepayments and other |
|
8,853 |
|
|
6,610 |
|
| Total current
assets |
$ |
192,050 |
|
$ |
431,438 |
|
| FIXED ASSETS,
NET: |
|
|
|
|
| Right-of-use assets |
$ |
199,098 |
|
$ |
195,233 |
|
| Vessels and advances, net |
|
2,450,510 |
|
|
3,169,135 |
|
| Total fixed assets,
net |
$ |
2,649,608 |
|
$ |
3,364,368 |
|
| NON-CURRENT
ASSETS: |
|
|
|
|
| Equity method investments |
$ |
78,227 |
|
$ |
27,154 |
|
| Deferred charges, net |
|
27,682 |
|
|
34,761 |
|
| Accounts receivable,
non-current |
|
3,896 |
|
|
3,326 |
|
| Restricted cash |
|
42,976 |
|
|
62,896 |
|
| Fair value of derivatives,
non-current |
|
- |
|
|
70 |
|
| Time charter assumed,
non-current |
|
839 |
|
|
767 |
|
| Debt securities, held to
maturity (Net of allowance for credit losses of $569 as of December
31, 2020) |
|
6,813 |
|
|
- |
|
| Other non-current assets |
|
8,425 |
|
|
3,418 |
|
| Total
assets |
$ |
3,010,516 |
|
$ |
3,928,198 |
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
| CURRENT
LIABILITIES: |
|
|
|
|
| Current portion of long-term
debt |
$ |
147,137 |
|
$ |
210,610 |
|
| Accounts payable |
|
7,582 |
|
|
14,360 |
|
| Due to related parties |
|
432 |
|
|
1,768 |
|
| Finance lease liabilities |
|
16,495 |
|
|
16,584 |
|
| Accrued liabilities |
|
17,621 |
|
|
20,142 |
|
| Unearned revenue |
|
11,893 |
|
|
11,824 |
|
| Fair value of derivatives |
|
3,440 |
|
|
8,686 |
|
| Other current liabilities |
|
2,374 |
|
|
56,818 |
|
| Total current
liabilities |
$ |
206,974 |
|
$ |
340,792 |
|
| NON-CURRENT
LIABILITIES |
|
|
|
|
| Long-term debt, net of current
portion |
$ |
1,305,076 |
|
$ |
1,968,401 |
|
| Finance lease liabilities, net
of current portion |
|
116,366 |
|
|
108,063 |
|
| Fair value of derivatives, net
of current portion |
|
3,653 |
|
|
3,483 |
|
| Unearned revenue, net of
current portion |
|
29,627 |
|
|
31,774 |
|
| Total non-current
liabilities |
$ |
1,454,722 |
|
$ |
2,111,721 |
|
| COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
| STOCKHOLDERS’
EQUITY: |
|
|
|
|
| Preferred stock |
$ |
- |
|
$ |
- |
|
| Common stock |
|
12 |
|
|
12 |
|
| Additional paid-in
capital |
|
1,366,486 |
|
|
1,375,559 |
|
| Retained earnings /
(Accumulated deficit) |
|
(9,721 |
) |
|
109,019 |
|
| Accumulated other
comprehensive loss |
|
(7,957 |
) |
|
(8,905 |
) |
| Total stockholders’
equity |
$ |
1,348,820 |
|
$ |
1,475,685 |
|
| Total liabilities and
stockholders’ equity |
$ |
3,010,516 |
|
$ |
3,928,198 |
|
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