Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today
reported unaudited financial results for the third quarter (“Q3
2023”) and nine-months ended September 30, 2023.
I. PROFITABILITY
AND LIQUIDITY
- Q3 2023 Net Income
available to common stockholders of $53.3 million ($0.45 per
share).
- Q3 2023 Adjusted
Net Income available to common stockholders1 of $53.9 million
($0.46 per share).
- Q3 2023 liquidity
of $996.9 million2.
II. SHARE
REPURCHASE PROGRAM TO DATE
- Repurchase of
882,316 common shares, for a total consideration of $10 million,
since our Q2 2023 earnings press release.
- Available funds
remaining under the share repurchase program of $30 million for
common shares and $150 million for preferred shares.
III. DRY BULK
OPERATING PLATFORM
- Costamare Bulkers
Inc. (“CBI”) has currently fixed a fleet of 59 dry bulk vessels on
period charters, consisting of:
- 37
Newcastlemax/Capesize vessels
- 22
Kamsarmax/Panamax vessels
- All the
chartered-in vessels have been delivered to CBI.
- Majority of the
fixed fleet is on index linked charter-in agreements. More
specifically:
- 34
Newcastlemax/Capesize vessels with an average tenor of 1.1
years.
- 14
Kamsarmax/Panamax vessels with an average tenor of 0.4 years.
IV. LEASE FINANCING
PLATFORM
- Controlling
interest in Neptune Maritime Leasing Limited (“NML”).
- Costamare equity
investment of up to $200 million.
- Company’s current
investment in NML of $73.7 million.
- Growing leasing
platform, having funded 17 shipping assets, up to now, on the back
of what we believe is a healthy pipeline.
V. NEW DEBT
FINANCING
- Financing of the
acquisition of two dry bulk vessels through an existing hunting
license facility with a European financial institution. Total
amount drawn of approximately $27.5 million.
- New commitment in
the form of a hunting license facility for the financing of the
acquisition of containerships and dry bulk vessels for an aggregate
amount of up to $60 million with a European financial institution,
which is on a commitment status basis and subject to final
documentation.
- Approximately
$144.2 million available for the financing of future acquisitions
for dry bulk and container vessels until December 20253.
- No meaningful debt
maturities until 2026.
VI. OWNED FLEET
CHARTER UPDATE - FULLY EMPLOYED CONTAINERSHIP
FLEET4
- 100%, 87% and 73%
of the containership fleet5 fixed for 2023, 2024 and 2025,
respectively.
- Contracted revenues
for the containership fleet of approximately $2.7 billion with a
TEU-weighted duration of 3.7 years6.
- Entered into more
than 50 chartering agreements for the owned dry bulk fleet since Q2
2023 earnings release.
VII. SALE AND
PURCHASE ACTIVITY
Vessel Acquisitions
- Conclusion of:
- the acquisition of
the 2011-built, 175,975 DWT capacity dry bulk vessel, Enna, in
August 2023.
- the acquisition of
the 2011-built, 179,842 DWT capacity dry bulk vessel, Dorado, in
August 2023.
- the acquisition of
the 2013-built, 61,424 DWT capacity dry bulk vessel, Arya, in
September 2023.
Vessel Disposals
- Conclusion of:
- the sale of the 1998-built, 2,472
TEU capacity containership, Monemvasia, in August 2023. Prior to
the conclusion of such sale, the Company owned 49% equity interest
in the company owning this containership with the remaining equity
interest being owned by York Capital.
- the sale of the
2000-built 4,890 TEU capacity containership, Oakland, in October
2023.
- Agreement for the
sale of the 2006-built, 55,709 DWT capacity dry bulk vessel, Peace.
The sale is expected to be concluded in Q4 2023.
- Agreement for the
sale of the 2006-built, 55,705 DWT capacity dry bulk vessel, Pride.
The sale is expected to be concluded in Q4 2023.
VIII. DIVIDEND
ANNOUNCEMENTS
- On October 2, 2023,
the Company declared a dividend of $0.115 per share on the common
stock, which is payable on November 6, 2023, to holders of record
of common stock as of October 20, 2023.
- On October 2, 2023,
the Company declared a dividend of $0.476563 per share on the
Series B Preferred Stock, $0.531250 per share on the Series C
Preferred Stock, $0.546875 per share on the Series D Preferred
Stock and $0.554688 per share on the Series E Preferred Stock,
which were all paid on October 16, 2023 to holders of record as of
October 13, 2023.
____________________
1 Adjusted Net Income available to common
stockholders and respective per share figures are non-GAAP measures
and should not be used in isolation or as substitutes for
Costamare’s financial results presented in accordance with U.S.
generally accepted accounting principles (“GAAP”). For the
definition and reconciliation of these measures to the most
directly comparable financial measure calculated and presented in
accordance with GAAP, please refer to Exhibit I.2 Including our
share of cash amounting to $7.3 million held by vessel owning
companies set-up pursuant to the Framework Deed dated May 15, 2013,
as amended and restated from time to time (the “Framework Deed”),
between the Company and York Capital Management Global Advisors LLC
and an affiliated fund (collectively, “York Capital”), margin
deposits relating to our forward freight agreements (“FFAs”) of
$38.7 million and $144.2 million of available undrawn funds from
two hunting license facilities (one of which is on a commitment
status basis and subject to final documentation).3 Including
the commitment under the hunting license facility of $60 million,
which is still subject to final documentation.4 Please refer to the
Containership Fleet List table for additional information on vessel
employment details for our containership fleet.5 Calculated on a
TEU basis, including one vessel owned by a vessel owning company
set-up pursuant to the Framework Deed.6 As of October 31, 2023.
Total contracted revenues and TEU-weighted remaining time charter
duration include our ownership percentage for one vessel owned
pursuant to the Framework Deed.
Mr. Gregory Zikos, Chief Financial
Officer of Costamare Inc., commented:
“During the third quarter of the year, the
Company generated Net Income of about $53 million. As of quarter
end, liquidity was close to $1 billion.
In the containership sector, larger ships
continue to enjoy a tight market, while smaller vessels experience
deteriorating conditions. Overall, the market outlook remains
uncertain due to the large orderbook and insufficient vessel
demolition.
On the dry bulk side, as part of our strategy to
renew the fleet and increase its average size, we acquired one
ultramax and two capesize vessels and at the same time we disposed
of two older supramax vessels.
Our owned dry bulk vessels continue to trade on
a spot basis while the trading platform has grown to a fleet of 59
ships. Having invested $200 million in the dry bulk operating
platform, we are committed long term to the sector whose
fundamentals we view positively.
Regarding Neptune Maritime Leasing, the platform
has been steadily growing on a prudent basis, having concluded
leasing transactions for 17 ships in total, which are complemented
by a healthy pipeline extending over the coming quarters.
Finally, we continued our share repurchase
program, and since our Q2 2023 earnings press release, we have
bought $10 million worth of common shares highlighting our strong
belief that the share price is heavily undervalued considering both
the Company’s performance and prospects."
| |
|
Financial Summary |
| |
|
|
|
|
|
|
|
|
|
| |
|
Nine-month period ended September 30, |
|
Three-month period ended September 30, |
|
(Expressed in thousands of U.S. dollars, except share and per share
data) |
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Voyage
revenue |
|
$ |
848,428 |
|
|
$ |
1,011,968 |
|
|
$ |
289,491 |
|
|
$ |
397,256 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accrued charter revenue
(1) |
|
$ |
782 |
|
|
$ |
4,515 |
|
|
$ |
(4,287 |
) |
|
$ |
3,984 |
|
| Amortization of time-charter
assumed |
|
$ |
148 |
|
|
$ |
(141 |
) |
|
$ |
50 |
|
|
$ |
(170 |
) |
| Voyage revenue adjusted on a
cash basis (2) |
|
$ |
849,358 |
|
|
$ |
1,016,342 |
|
|
$ |
285,254 |
|
|
$ |
401,070 |
|
| Income from investments in
leaseback vessels |
|
|
- |
|
|
$ |
4,591 |
|
|
|
- |
|
|
$ |
3,114 |
|
| |
|
|
|
|
|
|
|
|
|
| Adjusted Net Income available
to common stockholders (3) |
|
$ |
330,436 |
|
|
$ |
169,024 |
|
|
$ |
107,378 |
|
|
$ |
53,931 |
|
| Weighted Average number of
shares |
|
|
123,295,035 |
|
|
|
121,059,768 |
|
|
|
121,458,291 |
|
|
|
118,107,881 |
|
| Adjusted Earnings per share
(3) |
|
$ |
2.68 |
|
|
$ |
1.40 |
|
|
$ |
0.88 |
|
|
$ |
0.46 |
|
| |
|
|
|
|
|
|
|
|
|
| Net Income |
|
$ |
360,516 |
|
|
$ |
276,344 |
|
|
$ |
115,492 |
|
|
$ |
60,086 |
|
| Net Income available to common
stockholders |
|
$ |
337,214 |
|
|
$ |
258,094 |
|
|
$ |
107,638 |
|
|
$ |
53,287 |
|
| Weighted Average number of
shares |
|
|
123,295,035 |
|
|
|
121,059,768 |
|
|
|
121,458,291 |
|
|
|
118,107,881 |
|
| Earnings per share |
|
$ |
2.74 |
|
|
$ |
2.13 |
|
|
$ |
0.89 |
|
|
$ |
0.45 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Accrued charter revenue represents the
difference between cash received during the period and revenue
recognized on a straight-line basis. In the early years of a
charter with escalating charter rates, voyage revenue will exceed
cash received during the period and during the last years of such
charter cash received will exceed revenue recognized on a
straight-line basis. The reverse is true for charters with
descending rates. (2) Voyage revenue adjusted on a cash basis
represents Voyage revenue after adjusting for non-cash “Accrued
charter revenue” recorded under charters with escalating charter
rates. However, Voyage revenue adjusted on a cash basis is not a
recognized measurement under U.S. GAAP. We believe that the
presentation of Voyage revenue adjusted on a cash basis is useful
to investors because it presents the charter revenue for the
relevant period based on the then current daily charter rates. The
increases or decreases in daily charter rates under our charter
party agreements of our fleet are described in the notes to the
“Fleet List” tables below.(3) Adjusted Net Income available to
common stockholders and Adjusted Earnings per Share are non-GAAP
measures. Refer to the reconciliation of Net Income to Adjusted Net
Income and Adjusted Earnings per Share.
Non-GAAP Measures
The Company reports its financial results in
accordance with U.S. GAAP. However, management believes that
certain non-GAAP financial measures used in managing the business
may provide users of these financial measures additional meaningful
comparisons between current results and results in prior operating
periods. Management believes that these non-GAAP financial measures
can provide additional meaningful reflection of underlying trends
of the business because they provide a comparison of historical
information that excludes certain items that impact the overall
comparability. Management also uses these non-GAAP financial
measures in making financial, operating and planning decisions and
in evaluating the Company’s performance. The tables below set out
supplemental financial data and corresponding reconciliations to
GAAP financial measures for the three-month and the nine-month
periods ended September 30, 2023 and 2022. Non-GAAP financial
measures should be viewed in addition to, and not as an alternative
for, voyage revenue or net income as determined in accordance with
GAAP. Non-GAAP financial measures include (i) Voyage revenue
adjusted on a cash basis (reconciled above), (ii) Adjusted Net
Income available to common stockholders and (iii) Adjusted Earnings
per Share.
Exhibit I Reconciliation of Net Income
to Adjusted Net Income available to common stockholders and
Adjusted Earnings per Share
| |
|
Nine-month period ended September
30, |
|
|
Three-month period ended September
30, |
|
(Expressed in thousands of U.S. dollars, except share and per share
data) |
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
Income |
$ |
360,516 |
|
|
$ |
276,344 |
|
|
$ |
115,492 |
|
|
$ |
60,086 |
|
| Earnings allocated to
Preferred Stock |
|
(23,302 |
) |
|
|
(23,302 |
) |
|
|
(7,854 |
) |
|
|
(7,854 |
) |
| Non-Controlling Interest |
|
- |
|
|
|
5,052 |
|
|
|
- |
|
|
|
1,055 |
|
| Net Income available
to common stockholders |
|
337,214 |
|
|
|
258,094 |
|
|
|
107,638 |
|
|
|
53,287 |
|
| Accrued charter revenue |
|
782 |
|
|
|
4,515 |
|
|
|
(4,287 |
) |
|
|
3,984 |
|
| General and administrative
expenses - non-cash component |
|
5,701 |
|
|
|
4,294 |
|
|
|
1,341 |
|
|
|
1,440 |
|
| Amortization of Time charter
assumed |
|
148 |
|
|
|
(141 |
) |
|
|
50 |
|
|
|
(170 |
) |
| Realized (gain) / loss on
Euro/USD forward contracts (1) |
|
1,806 |
|
|
|
(536 |
) |
|
|
856 |
|
|
|
(301 |
) |
| Vessel’s impairment loss |
|
- |
|
|
|
229 |
|
|
|
- |
|
|
|
229 |
|
| Gain on sale of vessels,
net |
|
(21,250 |
) |
|
|
(118,046 |
) |
|
|
- |
|
|
|
- |
|
| Loss on vessel held for
sale |
|
- |
|
|
|
4,855 |
|
|
|
- |
|
|
|
4,855 |
|
| Loss / (Gain) on sale of
vessels by jointly owned companies with York Capital included in
equity gain on investments (1) |
|
- |
|
|
|
493 |
|
|
|
- |
|
|
|
(1,572 |
) |
| Non-recurring, non-cash
write-off of loan deferred financing costs |
|
2,395 |
|
|
|
1,439 |
|
|
|
56 |
|
|
|
- |
|
| (Gain) / Loss on derivative
instruments, excluding realized (gain)/loss on derivative
instruments (1) |
|
2,634 |
|
|
|
13,828 |
|
|
|
1,724 |
|
|
|
(7,821 |
) |
| Non-recurring payments for
loan cancellation fees |
|
1,006 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Adjusted Net Income
available to common stockholders |
$ |
330,436 |
|
|
$ |
169,024 |
|
|
$ |
107,378 |
|
|
$ |
53,931 |
|
|
Adjusted Earnings per Share |
$ |
2.68 |
|
|
$ |
1.40 |
|
|
$ |
0.88 |
|
|
$ |
0.46 |
|
| Weighted
average number of shares |
|
123,295,035 |
|
|
|
121,059,768 |
|
|
|
121,458,291 |
|
|
|
118,107,881 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share represent Net Income
after earnings allocated to preferred stock and Non-Controlling
Interest, but before non-cash “Accrued charter revenue” recorded
under charters with escalating or descending charter rates,
amortization of time-charter assumed, loss on vessel held for sale,
realized (gain)/loss on Euro/USD forward contracts, vessel’s
impairment loss, gain on sale of vessels, net, loss/ (gain) on sale
of vessels by jointly owned companies with York Capital included in
equity gain on investments, non-recurring, non-cash write-off of
loan deferred financing costs, general and administrative expenses
- non-cash component, (gain)/loss on derivative instruments,
excluding realized (gain)/loss on derivative instruments and
non-recurring payments for loan cancellation fees. “Accrued charter
revenue” is attributed to the timing difference between the revenue
recognition and the cash collection. However, Adjusted Net Income
available to common stockholders and Adjusted Earnings per Share
are not recognized measurements under U.S. GAAP. We believe that
the presentation of Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share are useful to
investors because they are frequently used by securities analysts,
investors and other interested parties in the evaluation of
companies in our industry. We also believe that Adjusted Net Income
available to common stockholders and Adjusted Earnings per Share
are useful in evaluating our ability to service additional debt and
make capital expenditures. In addition, we believe that Adjusted
Net Income available to common stockholders and Adjusted Earnings
per Share are useful in evaluating our operating performance and
liquidity position compared to that of other companies in our
industry because the calculation of Adjusted Net Income available
to common stockholders and Adjusted Earnings per Share generally
eliminates the effects of the accounting effects of capital
expenditures and acquisitions, certain hedging instruments and
other accounting treatments, items which may vary for different
companies for reasons unrelated to overall operating performance
and liquidity. In evaluating Adjusted Net Income available to
common stockholders and Adjusted Earnings per Share, you should be
aware that in the future we may incur expenses that are the same as
or similar to some of the adjustments in this presentation. Our
presentation of Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share should not be
construed as an inference that our future results will be
unaffected by unusual or non-recurring items.
(1) Items to consider for comparability include
gains and charges. Gains positively impacting Net Income available
to common stockholders are reflected as deductions to Adjusted Net
Income available to common stockholders. Charges negatively
impacting Net Income available to common stockholders are reflected
as increases to Adjusted Net Income available to common
stockholders.
Results of Operations
Three-month period ended September 30,
2023 compared to the three-month period ended September 30,
2022
During the three-month periods ended September
30, 2023 and 2022, we had an average of 111.1 and 117.0 vessels,
respectively, in our owned fleet. In addition, during the
three-month period ended September 30, 2023, through our dry-bulk
operating platform Costamare Bulkers Inc. (“CBI”), we chartered-in
an average of 55.0 third-party dry-bulk vessels. As of October 31,
2023, CBI has chartered-in 59 dry-bulk vessels on period
charters.
During the three-month period ended September
30, 2023, we acquired the secondhand dry-bulk vessels Enna, Dorado
and Arya with an aggregate DWT of 417,241.
In March 2023, we entered into an agreement with
Neptune Maritime Leasing Limited (“NML”) and its shareholders
pursuant to which we agreed to invest in NML’s ship sale and
leaseback business up to $200 million in exchange for up to
40% of its ordinary shares and up to 79.05% of its preferred
shares. In addition, we received a special ordinary share in
NML which carries 75% of the voting rights of the ordinary
shares providing control over NML. NML was established in 2021
to acquire and bareboat charter out vessels through wholly-owned
subsidiaries. Up to September 30, 2023, we
have invested in NML the amount of $73.7
million. During the three-month period ended September 30,
2023, NML is included in our consolidated financial statements.
In the three-month periods ended September 30,
2023 and 2022, our fleet ownership days totaled 10,222 and 10,764
days, respectively. Ownership days are one of the primary drivers
of voyage revenue and vessels’ operating expenses and represent the
aggregate number of days in a period during which each vessel in
our fleet is owned. Furthermore, during the three-month period
ended September 30, 2023, the days of the third-party vessels
chartered-in through CBI were 5,065.
Consolidated Financial Results and
Vessels’ Operational
Data(1)
|
(Expressed in millions of U.S. dollars, except
percentages) |
|
Three-month period ended September 30, |
|
|
Change |
|
PercentageChange |
|
| |
2022 |
|
2023 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
289.5 |
|
$ |
397.3 |
|
|
$ |
107.8 |
|
|
37.2 |
% |
| Income from
investments in leaseback vessels |
|
- |
|
|
3.1 |
|
|
|
3.1 |
|
|
n.m. |
| Voyage
expenses |
|
(14.2 |
) |
|
(84.8 |
) |
|
|
70.6 |
|
|
n.m. |
| Charter-in hire
expenses |
|
- |
|
|
(87.7 |
) |
|
|
87.7 |
|
|
n.m. |
| Voyage expenses –
related parties |
|
(4.0 |
) |
|
(3.6 |
) |
|
|
(0.4 |
) |
|
(10.0 |
%) |
| Vessels’ operating
expenses |
|
(65.0 |
) |
|
(63.5 |
) |
|
|
(1.5 |
) |
|
(2.3 |
%) |
| General and
administrative expenses |
|
(2.6 |
) |
|
(6.0 |
) |
|
|
3.4 |
|
|
130.8 |
% |
| Management and
agency fees – related parties |
|
(11.0 |
) |
|
(13.9 |
) |
|
|
2.9 |
|
|
26.4 |
% |
| General and
administrative expenses - non-cash component |
|
(1.3 |
) |
|
(1.4 |
) |
|
|
0.1 |
|
|
7.7 |
% |
| Amortization of
dry-docking and special survey costs |
|
(3.8 |
) |
|
(5.0 |
) |
|
|
1.2 |
|
|
31.6 |
% |
| Depreciation |
|
(41.8 |
) |
|
(42.2 |
) |
|
|
0.4 |
|
|
1.0 |
% |
| Loss on vessel
held for sale |
|
- |
|
|
(4.8 |
) |
|
|
4.8 |
|
|
n.m. |
| Vessel’s
impairment loss |
|
- |
|
|
(0.2 |
) |
|
|
0.2 |
|
|
n.m. |
| Foreign exchange
gains / (losses) |
|
0.2 |
|
|
(3.1 |
) |
|
|
3.3 |
|
|
n.m. |
| Interest
income |
|
1.0 |
|
|
9.1 |
|
|
|
8.1 |
|
|
n.m. |
| Interest and
finance costs |
|
(31.2 |
) |
|
(36.7 |
) |
|
|
5.5 |
|
|
17.6 |
% |
| Income from equity
method investments |
|
0.8 |
|
|
1.8 |
|
|
|
1.0 |
|
|
125.0 |
% |
| Other |
|
0.6 |
|
|
1.9 |
|
|
|
1.3 |
|
|
n.m. |
| Loss on derivative
instruments, net |
|
(1.7 |
) |
|
(0.2 |
) |
|
|
(1.5 |
) |
|
(88.2 |
%) |
| Net
Income |
$ |
115.5 |
|
$ |
60.1 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
Three-month period ended September 30, |
|
|
Change |
|
PercentageChange |
|
| |
2022 |
|
2023 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Voyage
revenue |
$ |
289.5 |
|
$ |
397.3 |
|
|
$ |
107.8 |
|
|
37.2 |
% |
| Accrued charter
revenue |
|
(4.3 |
) |
|
4.0 |
|
|
|
8.3 |
|
|
n.m. |
| Amortization of
time charter assumed |
|
0.1 |
|
|
(0.2 |
) |
|
|
(0.3 |
) |
|
n.m. |
| Voyage revenue
adjusted on a cash basis (1) |
$ |
285.3 |
|
$ |
401.1 |
|
|
$ |
115.8 |
|
|
40.6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
|
Three-month period ended September 30, |
|
|
|
|
PercentageChange |
| |
2022 |
|
2023 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of vessels |
|
117.0 |
|
111.1 |
|
|
|
(5.9 |
) |
|
(5.0 |
%) |
|
Ownership days |
|
10,764 |
|
10,222 |
|
|
|
(542 |
) |
|
(5.0 |
%) |
|
Number of vessels under dry-docking and special survey |
|
4 |
|
6 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Voyage revenue adjusted on a cash basis is
not a recognized measurement under U.S. generally accepted
accounting principles (“GAAP”). Refer to “Consolidated Financial
Results and Vessels’ Operational Data” above for the reconciliation
of Voyage revenue adjusted on a cash basis.
Voyage Revenue
Voyage revenue increased by 37.2%, or $107.8
million, to $397.3 million during the three-month period ended
September 30, 2023, from $289.5 million during the three-month
period ended September 30, 2022. The increase is mainly
attributable to (i) revenue earned by CBI, which has been fully
operational since the first quarter of 2023 and (ii) increased
charter rates in certain of our container vessels; partly off-set
by decreased charter rates in certain of our dry bulk vessels and
by revenue not earned by five container vessels and three dry bulk
vessels that were sold during the fourth quarter of 2022 and the
nine-month period ended September 30, 2023.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”) increased by 40.6%,
or $115.8 million, to $401.1 million during the three-month period
ended September 30, 2023, from $285.3 million during the
three-month period ended September 30, 2022. Accrued charter
revenue for the three-month periods ended September 30, 2023 and
2022 was a positive amount of $4.0 million and a negative amount of
$4.3 million, respectively.
Income from investments in leaseback vessels
Income from investments in leaseback vessels was
$3.1 million for the three-month period ended September 30, 2023.
Income from investments in leaseback vessels was earned from NML’s
operations during the third quarter of 2023. NML acquires, owns and
bareboat charters out vessels through its wholly-owned
subsidiaries. NML is included in our consolidated financial
statements.
Voyage Expenses
Voyage expenses were $84.8 million and $14.2
million for the three-month periods ended September 30, 2023 and
2022, respectively. Voyage expenses increased, period over period,
mainly due to the operations of CBI which has been fully
operational since the first quarter of 2023. Voyage expenses mainly
include (i) fuel consumption mainly related to dry bulk vessels,
(ii) third-party commissions, (iii) port expenses and (iv) canal
tolls.
Charter-in Hire Expenses
Charter-in hire expenses were $87.7 million and
nil for the three-month periods ended September 30, 2023 and 2022,
respectively. Charter-in hire expenses are expenses relating to
chartering-in of third-party dry bulk vessels under charter
agreements through CBI.
Voyage Expenses – related parties
Voyage expenses – related parties were $3.6
million and $4.0 million for the three-month periods ended
September 30, 2023 and 2022, respectively. Voyage expenses –
related parties represent (i) fees of 1.25%, in the aggregate, on
voyage revenues earned by our owned fleet charged by a related
manager and a related 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 $0.4
million and $0.4 million, in the aggregate, for the three-month
periods ended September 30, 2023 and 2022, respectively.
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include
the realized gain/(loss) under derivative contracts entered into in
relation to foreign currency exposure, were $63.5 million and $65.0
million during the three-month periods ended September 30, 2023 and
2022, respectively. Daily vessels’ operating expenses were $6,212
and $6,037 for the three-month periods ended September 30, 2023 and
2022, respectively. Daily operating expenses are calculated as
vessels’ operating expenses for the period over the ownership days
of the period.
General and Administrative Expenses
General and administrative expenses were $6.0
million and $2.6 million during the three-month periods ended
September 30, 2023 and 2022, respectively, and include amounts of
$0.67 million and $0.67 million, respectively, that were paid to a
related service provider.
Management and Agency Fees – related parties
Management fees charged by our related managers
were $11.2 million and $11.0 million during the three-month periods
ended September 30, 2023 and 2022, respectively. Furthermore,
during the three-month period ended September 30, 2023, agency fees
of $2.7 million, in aggregate, were charged by three related agency
companies in connection with the operations of CBI.
General and Administrative Expenses - non-cash
component
General and administrative expenses - non-cash
component for the three-month period ended September 30, 2023
amounted to $1.4 million, representing the value of the shares
issued to a related service provider on September 29, 2023. General
and administrative expenses - non-cash component for the
three-month period ended September 30, 2022 amounted to $1.3
million, representing the value of the shares issued to a related
service provider on September 30, 2022.
Amortization of Dry-Docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs was $5.0 million and $3.8 million during the
three-month periods ended September 30, 2023 and 2022,
respectively. During the three-month period ended September 30,
2023, five vessels underwent and completed their dry-docking and
special survey and one vessel was in the process of completing her
dry-docking and special survey. During the three-month period ended
September 30, 2022, three vessels underwent and completed their
dry-docking and special survey and one vessel was in the process of
completing her dry-docking and special survey.
Depreciation
Depreciation expense for the three-month periods
ended September 30, 2023 and 2022 was $42.2 million and $41.8
million, respectively.
Vessels Held for Sale
During the three-month period ended September
30, 2023, we recorded a loss on vessel held for sale of $4.8
million representing the expected loss from the sale of the
container vessel Oakland during the next twelve-month period. As of
September 30, 2022, the container vessels Sealand Illinois, Sealand
Michigan, and York (each of which was initially classified as a
vessel held for sale during the fourth quarter of 2021) and the
container vessels Sealand Washington, and Maersk Kalamata (each of
which was initially classified as a vessel held for sale during the
first quarter of 2022) continued to be classified as vessels held
for sale. No loss on vessels held for sale was recorded during the
third quarter of 2022 since each vessel’s fair value less cost to
sell exceeded each vessel’s carrying value.
Vessel’s Impairment Loss
During the three-month period ended September
30, 2023, we recorded an impairment loss in relation to one of our
dry-bulk vessels in the amount of $0.2 million. During the
three-month period ended September 30, 2022, no impairment loss was
recorded.
Interest Income
Interest income amounted to $9.1 million and
$1.0 million for the three-month periods ended September 30, 2023
and 2022, respectively.
Interest and Finance Costs
Interest and finance costs were $36.7 million
and $31.2 million during the three-month periods ended September
30, 2023 and 2022, respectively. The increase is mainly
attributable to the increased interest expense due to increased
financing costs during the three-month period ended September 30,
2023 compared to the three-month period ended September 30,
2022.
Income from Equity Method Investments
Income from equity method investments for the
three-month periods ended September 30, 2023 and 2022 was $1.8
million and $0.8 million, respectively, representing our share of
the gain in jointly owned companies set up pursuant to the
Framework Deed. As of September 30, 2023 and 2022 three and five
companies, respectively, were jointly owned pursuant to the
Framework Deed out of which one and four companies, respectively,
owned container vessels.
Loss on Derivative Instruments, net
As of September 30, 2023, we hold derivative
financial instruments that qualify for hedge accounting and
derivative financial instruments that do not qualify for hedge
accounting. The change in the fair value of each derivative
instrument that qualifies for hedge accounting is recorded in
“Other Comprehensive Income” (“OCI”). The change in the fair value
of each derivative instrument that does not qualify for hedge
accounting is recorded in the consolidated statements of
income.
As of September 30, 2023, the fair value of
these instruments, in aggregate, amounted to a net asset of $49.5
million. During the three-month period ended September 30, 2023, a
net gain of $5.9 million has been included in OCI and a net loss of
$0.2 million has been included in Loss on Derivative Instruments,
net.
Cash FlowsThree-month
periods ended September 30, 2023 and 2022
| Condensed cash
flows |
|
Three-month period ended September 30, |
| (Expressed in millions of U.S.
dollars) |
|
2022 |
|
2023 |
|
Net Cash Provided by Operating Activities |
|
$ |
141.8 |
|
|
$ |
74.8 |
|
| Net Cash Used in Investing
Activities |
|
$ |
(17.5 |
) |
|
$ |
(1.6 |
) |
| Net Cash Used in Financing
Activities |
|
$ |
(96.3 |
) |
|
$ |
(42.8 |
) |
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended September 30, 2023, decreased by
$67.0 million to $74.8 million, from $141.8 million for the
three-month period ended September 30, 2022. The decrease is mainly
attributable to the decreased net cash from operations, to the
unfavorable change in working capital position, excluding the
current portion of long-term debt and the accrued charter revenue
(representing the difference between cash received in that period
and revenue recognized on a straight-line basis), to the increased
payments for interest (including swap net receipts) during the
three-month period ended September 30, 2023 compared to the
three-month period ended September 30, 2022 and to the increased
dry-docking and special survey costs during the three-month period
ended September 30, 2023 compared to the three-month period ended
September 30, 2022.
Net Cash Used in Investing
Activities
Net cash used in investing activities was $1.6
million in the three-month period ended September 30, 2023, which
mainly consisted of (i) payments for the acquisition of the
secondhand dry bulk vessels Enna, Dorado and Arya, (ii) payments
for upgrades for certain of our container and dry bulk vessels and
(iii) payments for net investments into which NML entered; partly
offset by the proceeds we received from the maturity of our
short-term investments in US Treasury Bills.
Net cash used in investing activities was $17.5
million in the three-month period ended September 30, 2022, which
mainly consisted of payments (i) for upgrades for certain of our
container and dry bulk vessels and (ii) for the purchase of
short-term investments in US Treasury Bills.
Net Cash Used in Financing
Activities
Net cash used in financing activities was $42.8
million in the three-month period ended September 30, 2023, which
mainly consisted of (a) $3.0 million net payments relating to our
debt financing agreements and finance lease liability agreement
(including proceeds of $82.4 million we received from three debt
financing agreements), (b) $28.8 million we paid for the
re-purchase of 2.8 million of our common shares, (c) $9.5 million
we paid for dividends to holders of our common stock for the second
quarter of 2023 and (d) $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 April 15,
2023 to July 14, 2023.
Net cash used in financing activities was $96.3
million in the three-month period ended September 30, 2022, which
mainly consisted of (a) $66.2 million net payments relating to our
debt financing agreements (including proceeds of $46.0 million we
received from one of our debt financing agreements), (b) $7.7
million we paid for the re-purchase of 0.6 million of our common
shares, (c) $10.3 million we paid for dividends to holders of our
common stock for the second quarter of 2022 and (d) $0.9 million we
paid for dividends to holders of our Series B Preferred Stock, $2.1
million we paid for dividends to holders of our Series C Preferred
Stock, $2.2 million we paid for dividends to holders of our Series
D Preferred Stock and $2.5 million we paid for dividends to holders
of our Series E Preferred Stock for the period from April 15, 2022
to July 14, 2022.
Results of Operations
Nine-month period ended September 30,
2023 compared to the nine-month period ended September 30,
2022
During the nine-month periods ended September
30, 2023 and 2022, we had an average of 111.3 and 117.4 vessels,
respectively, in our owned fleet. In addition, during the
nine-month period ended September 30, 2023, through CBI we
chartered-in an average of 36.3 third-party dry-bulk vessels. As of
October 31, 2023, CBI has chartered-in 59 dry-bulk vessels on
period charters.
During the nine-month period ended September 30,
2023, we (i) sold our 49% equity interest in the company owning the
2018-built, 3,800 TEU capacity containership, Polar Argentina to
York Capital and (ii) acquired the 51% equity interest of York
Capital of the 2018-built, 3,800 TEU capacity containership Polar
Brasil and as a result we obtained 100% of the equity interest in
the vessel. Furthermore, during the nine-month period ended
September 30, 2023, we acquired the secondhand dry-bulk vessels
Enna, Dorado and Arya with an aggregate DWT of 417,241 and we sold
the container vessels Maersk Kalamata and Sealand Washington with
an aggregate TEU capacity of 13,292 and the dry-bulk vessels Miner,
Taibo and Comity with an aggregate DWT of 104,714.
During the nine-month period ended September 30,
2022, we accepted delivery of (i) the secondhand container vessel
Dyros with a TEU capacity of 4,578 and (ii) the secondhand dry bulk
vessels Oracle, Libra and Norma with an aggregate DWT of 172,717.
Furthermore, in the nine-month period ended September 30, 2022, we
sold the container vessel Messini, with a TEU capacity of 2,458,
and the dry bulk vessel Thunder, with DWT of 57,334.
In March 2023, we entered into an agreement with
NML and its shareholders pursuant to which we agreed to invest in
NML’s ship sale and leaseback business up to $200 million in
exchange for up to 40% of its ordinary shares and up to 79.05% of
its preferred shares. In addition, we received a special
ordinary share in NML which carries 75% of the voting rights of the
ordinary shares providing control over NML. NML was
established in 2021 to acquire and bareboat charter out vessels
through wholly-owned subsidiaries. Up to September 30,
2023, we have invested in NML the amount
of $73.7 million. NML is included in our consolidated
financial statements.
In the nine-month periods ended September 30,
2023 and 2022, our fleet ownership days totaled 30,385 and 32,043
days, respectively. Ownership days are one of the primary drivers
of voyage revenue and vessels’ operating expenses and represent the
aggregate number of days in a period during which each vessel in
our fleet is owned. Furthermore, during the nine-month period ended
September 30, 2023, the days of the third-party vessels
chartered-in through CBI were 9,908.
Consolidated Financial Results and
Vessels’ Operational
Data(1)
|
(Expressed in millions of U.S. dollars, except
percentages) |
|
Nine-month periodended September
30, |
|
Change |
|
PercentageChange |
|
| |
2022 |
|
2023 |
|
|
| |
|
|
|
|
Voyage revenue |
$ |
848.4 |
|
$ |
1,012.0 |
|
$ |
163.6 |
|
|
19.3 |
% |
| Income from
investments in lease back vessels |
|
- |
|
|
4.6 |
|
|
4.6 |
|
|
n.m. |
| Voyage
expenses |
|
(34.0 |
) |
|
(185.9 |
) |
|
151.9 |
|
|
n.m. |
| Charter-in hire
expenses |
|
- |
|
|
(174.7 |
) |
|
174.7 |
|
|
n.m. |
| Voyage expenses –
related parties |
|
(11.7 |
) |
|
(10.3 |
) |
|
(1.4 |
) |
|
(12.0 |
%) |
| Vessels’ operating
expenses |
|
(198.3 |
) |
|
(194.1 |
) |
|
(4.2 |
) |
|
(2.1 |
%) |
| General and
administrative expenses |
|
(9.3 |
) |
|
(14.5 |
) |
|
5.2 |
|
|
55.9 |
% |
| Management and
agency fees – related parties |
|
(32.9 |
) |
|
(43.9 |
) |
|
11.0 |
|
|
33.4 |
% |
| General and
administrative expenses – non-cash component |
|
(5.7 |
) |
|
(4.3 |
) |
|
(1.4 |
) |
|
(24.6 |
%) |
| Amortization of
dry-docking and special survey costs |
|
(9.5 |
) |
|
(14.5 |
) |
|
5.0 |
|
|
52.6 |
% |
| Depreciation |
|
(124.2 |
) |
|
(124.5 |
) |
|
0.3 |
|
|
0.2 |
% |
| Gain on sale of
vessels, net |
|
21.3 |
|
|
118.0 |
|
|
96.7 |
|
|
n.m. |
| Loss on vessel
held for sale |
|
- |
|
|
(4.8 |
) |
|
4.8 |
|
|
n.m. |
| Vessel’s
impairment loss |
|
- |
|
|
(0.2 |
) |
|
0.2 |
|
|
n.m. |
| Foreign exchange
gains / (losses) |
|
0.5 |
|
|
(1.3 |
) |
|
(1.8 |
) |
|
n.m. |
| Interest
income |
|
1.1 |
|
|
25.5 |
|
|
24.4 |
|
|
n.m. |
| Interest and
finance costs |
|
(86.5 |
) |
|
(110.0 |
) |
|
23.5 |
|
|
27.2 |
% |
| Income from equity
method investments |
|
1.6 |
|
|
0.7 |
|
|
(0.9 |
) |
|
(56.3 |
%) |
| Other |
|
2.3 |
|
|
5.7 |
|
|
3.4 |
|
|
147.8 |
% |
| Loss on derivative
instruments, net |
|
(2.6 |
) |
|
(7.2 |
) |
|
(4.6 |
) |
|
176.9 |
% |
| Net
Income |
$ |
360.5 |
|
$ |
276.3 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, except percentages) |
|
Nine-month periodended September
30, |
|
Change |
|
PercentageChange |
|
| |
2022 |
|
2023 |
|
|
| |
|
|
|
|
|
|
|
|
| Voyage
revenue |
$ |
848.4 |
|
$ |
1,012.0 |
|
$ |
163.6 |
|
|
19.3 |
% |
| Accrued charter
revenue |
|
0.8 |
|
|
4.5 |
|
|
3.7 |
|
|
n.m. |
| Amortization of
time charter assumed |
|
0.2 |
|
|
(0.1 |
) |
|
(0.3 |
) |
|
n.m. |
| Voyage revenue
adjusted on a cash basis (1) |
$ |
849.4 |
|
$ |
1,016.4 |
|
$ |
167.0 |
|
|
19.7 |
% |
| |
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
|
Nine-month periodended September
30, |
|
|
|
PercentageChange |
| |
2022 |
|
2023 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Average number of vessels |
|
117.4 |
|
111.3 |
|
|
(6.1 |
) |
|
(5.2 |
%) |
|
Ownership days |
|
32,043 |
|
30,385 |
|
|
(1,658 |
) |
|
(5.2 |
%) |
|
Number of vessels under dry-docking and special survey |
|
16 |
|
18 |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Voyage revenue adjusted on a cash basis is
not a recognized measurement under U.S. generally accepted
accounting principles (“GAAP”). Refer to “Consolidated Financial
Results and Vessels’ Operational Data” above for the reconciliation
of Voyage revenue adjusted on a cash basis.
Voyage Revenue
Voyage revenue increased by 19.3%, or $163.6
million, to $1,012.0 million during the nine-month period ended
September 30, 2023, from $848.4 million during the nine-month
period ended September 30, 2022. The increase is mainly
attributable to (i) revenue earned by CBI, which has been fully
operational since the first quarter of 2023 and (ii) increased
charter rates in certain of our container vessels; partly off-set
by decreased charter rates in certain of our dry bulk vessels, by
revenue not earned by six container vessels and four dry bulk
vessels sold during 2022 and the first half of 2023.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”) increased by 19.7%,
or $167.0 million, to $1,016.4 million during the nine-month period
ended September 30, 2023, from $849.4 million during the nine-month
period ended September 30, 2022. Accrued charter revenue for the
nine-month periods ended September 30, 2023 and 2022 was a positive
amount of $4.5 million and $0.8 million, respectively.
Income from investments in leaseback vessels
Income from investments in leaseback vessels was
$4.6 million for the nine-month period ended September 30, 2023.
Income from investments in leaseback vessels was earned from NML’s
operations during the second and third quarters of 2023. NML
acquires, owns and bareboat charters out vessels through its
wholly-owned subsidiaries. NML is included in our consolidated
financial statements.
Voyage Expenses
Voyage expenses were $185.9 million and $34.0
million for the nine-month periods ended September 30, 2023 and
2022, respectively. Voyage expenses increased, period over period,
mainly due to the operations of CBI which was fully operational
during the nine-month period ended September 30, 2023 and to the
increased repositioning expenses of certain of our owned dry-bulk
vessels during the first quarter of 2023. Voyage expenses mainly
include (i) fuel consumption mainly related to dry bulk vessels,
(ii) third-party commissions, (iii) port expenses and (iv) canal
tolls.
Charter-in Hire Expenses
Charter-in hire expenses were $174.7 million and
nil for the nine-month periods ended September 30, 2023 and 2022,
respectively. Charter-in hire expenses are expenses relating to
chartering-in of third-party dry bulk vessels under charter
agreements through CBI.
Voyage Expenses – related parties
Voyage expenses – related parties were $10.3
million and $11.7 million for the nine-month periods ended
September 30, 2023 and 2022, respectively. Voyage expenses –
related parties represent (i) fees of 1.25%, in the aggregate, on
voyage revenues earned by our owned fleet charged by a related
manager and a related 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 $1.0
million and $1.1 million, in the aggregate, for the nine-month
periods ended September 30, 2023 and 2022, respectively.
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include
the realized gain/(loss) under derivative contracts entered into in
relation to foreign currency exposure, were $194.1 million and
$198.3 million during the nine-month periods ended September 30,
2023 and 2022, respectively. Daily vessels’ operating expenses were
$6,388 and $6,189 for the nine-month periods ended September 30,
2023 and 2022, respectively. Daily operating expenses are
calculated as vessels’ operating expenses for the period over the
ownership days of the period.
General and Administrative Expenses
General and administrative expenses were $14.5
million and $9.3 million during the nine-month periods ended
September 30, 2023 and 2022, respectively, and include amounts of
$2.0 million and $2.0 million, respectively, that were paid to a
related service provider.
Management and Agency Fees – related parties
Management fees charged by our related managers
were $32.8 million and $32.9 million during the nine-month periods
ended September 30, 2023 and 2022, respectively. Furthermore,
during the nine-month period ended September 30, 2023, agency fees
of $11.1 million, in aggregate, were charged by three related
agency companies in connection with the operations of CBI.
General and Administrative Expenses – non-cash
component
General and administrative expenses – non-cash
component for the nine-month period ended September 30, 2023
amounted to $4.3 million, representing the value of the shares
issued to a related service provider on March 30, 2023, June 30,
2023 and September 29, 2023. General and administrative expenses –
non-cash component for the for the nine-month period ended
September 30, 2022 amounted to $5.7 million, representing the value
of the shares issued to a related party manager on March 30, 2022,
on June 30, 2022 and on September 30, 2022.
Amortization of Dry-Docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs was $14.5 million and $9.5 million during the
nine-month periods ended September 30, 2023 and 2022, respectively.
During the nine-month period ended September 30, 2023, 17 vessels
underwent and completed their dry-docking and special survey and
one vessel was in the process of completing her dry-docking and
special survey. During the nine-month period ended September 30,
2022, 15 vessels underwent and completed their dry-docking and
special survey and one vessel was in the process of completing her
dry-docking and special survey.
Depreciation
Depreciation expense for the nine-month periods
ended September 30, 2023 and 2022 was $124.5 million and $124.2
million, respectively.
Gain on Sale of Vessels, net
During the nine-month period ended September 30,
2023, we recorded an aggregate net gain of $118.0 million from (i)
the sale of the container vessels Maersk Kalamata and Sealand
Washington, which were classified as vessels held for sale as of
December 31, 2022 (initially classified as vessels held for sale as
of March 31, 2022), (ii) the sale of the dry-bulk vessel Taibo,
which was classified as vessel held for sale as of March 31, 2023,
(iii) the sale of the dry-bulk vessels Miner and Comity and (iv)
the result of the accounting classification of the container
vessels Vela and Vulpecula as “Net investment in Sale type lease
(Vessels)”. During the nine-month period ended September 30, 2022,
we recorded an aggregate gain of $21.3 million from the sale of the
container vessel Messini (vessel classified as held for sale during
the fourth quarter of 2021) and the dry bulk vessel Thunder (vessel
classified as held for sale during the first quarter of 2022).
Vessels Held for Sale
During the nine-month period ended September 30,
2023, we recorded a loss on vessel held for sale of $4.8 million,
representing the expected loss from the sale of the container
vessel Oakland during the next twelve-month period.
During the nine-month period ended September 30,
2022, the container vessels Sealand Washington and Maersk Kalamata
(each of which was initially classified as a vessel held for sale
during the first quarter of 2022) and the container vessels Sealand
Illinois, Sealand Michigan and York (each of which was initially
classified as a vessel held for sale during the fourth quarter of
2021) continued to be classified as vessels held for sale. No loss
on vessels held for sale was recorded during the nine-month period
ended September 30, 2022, since each vessel’s fair value less cost
to sell, exceeded each vessel’s carrying value.
Vessel’s Impairment Loss
During the nine-month period ended September 30,
2023, we recorded an impairment loss in relation to one of our
dry-bulk vessels in the amount of $0.2 million. During the
nine-month period ended September 30, 2022, no impairment loss was
recorded.
Interest Income
Interest income amounted to $25.5 million and
$1.1 million for the nine-month periods ended September 30, 2023
and 2022, respectively.
Interest and Finance Costs
Interest and finance costs were $110.0 million
and $86.5 million during the nine-month periods ended September 30,
2023 and 2022, respectively. The increase is mainly attributable to
the increased interest expense due to increased financing costs
during the nine-month period ended September 30, 2023 compared to
the nine-month period ended September 30, 2022.
Income from Equity Method Investments
Income from equity method investments for the
nine-month periods ended September 30, 2023 and 2022 was $0.7
million and $1.6 million, respectively, representing our share of
the income in jointly owned companies set up pursuant to the
Framework Deed. During the nine-month period ended September 30,
2023, we (i) sold our 49% equity interest in the company owning the
2018-built, 3,800 TEU capacity containership, Polar Argentina to
York Capital and (ii) acquired the 51% equity interest of York
Capital of the 2018-built, 3,800 TEU capacity containership Polar
Brasil and as a result we obtained 100% of the equity interest in
the vessel. As of September 30, 2023 and 2022, three and five
companies, respectively, were jointly owned pursuant to the
Framework Deed out of which one and four companies, respectively,
owned container vessels.
Loss on Derivative Instruments, net
As of September 30, 2023, we hold derivative
financial instruments that qualify for hedge accounting and
derivative financial instruments that do not qualify for hedge
accounting. The change in the fair value of each derivative
instrument that qualifies for hedge accounting is recorded in
“Other Comprehensive Income” (“OCI”). The change in the fair value
of each derivative instrument that does not qualify for hedge
accounting is recorded in the consolidated statements of
income.
As of September 30, 2023, the fair value of
these instruments, in aggregate, amounted to a net asset of $49.5
million. During the nine-month period ended September 30, 2023, a
net loss of $1.7 million has been included in OCI and a net loss of
$7.2 million has been included in Loss on Derivative Instruments,
net.
Cash FlowsNine-month periods ended
September 30, 2023 and 2022
| Condensed cash
flows |
|
Nine-month period ended September 30, |
| (Expressed in millions of U.S.
dollars) |
|
2022 |
|
2023 |
|
Net Cash Provided by Operating Activities |
|
$ |
457.2 |
|
|
$ |
178.5 |
|
| Net Cash Provided by / (Used
in) Investing Activities |
|
$ |
(39.4 |
) |
|
$ |
112.4 |
|
| Net Cash Used in Financing
Activities |
|
$ |
(55.4 |
) |
|
$ |
(295.8 |
) |
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the nine-month period ended September 30, 2023, decreased by
$278.7 million to $178.5 million, from $457.2 million for the
nine-month period ended September 30, 2022. The decrease is mainly
attributable to the decreased net cash from operations, to the
unfavorable change in working capital position, excluding the
current portion of long-term debt and the accrued charter revenue
(representing the difference between cash received in that period
and revenue recognized on a straight-line basis), to the increased
payments for interest (including swap net receipts) during the
nine-month period ended September 30, 2023 compared to the
nine-month period ended September 30, 2022 and to the increased
dry-docking and special survey costs during the nine-month period
ended September 30, 2023 compared to the nine-month period ended
September 30, 2022.
Net Cash Provided by / (Used in)
Investing Activities
Net cash provided by investing activities was
$112.4 million in the nine-month period ended September 30, 2023,
which mainly consisted of proceeds we received from (i) the sale of
the container vessels Sealand Washington and Maersk Kalamata and
the dry bulk vessels Miner, Taibo and Comity and (ii) the maturity
of our short-term investments in US Treasury Bills; partly off-set
by payments for the purchase of short-term investments in US
Treasury Bills, payments for upgrades for certain of our container
and dry bulk vessels, payments for the acquisition of the
secondhand dry bulk vessels Enna, Dorado and Arya and payments for
net investments into which NML entered.
Net cash used in investing activities was $39.4
million in the nine-month period ended September 30, 2022, which
mainly consisted of (i) payments for the acquisition of two
secondhand dry bulk vessels, (ii) settlement payment for the
delivery of one secondhand dry bulk vessel, (iii) payment for the
purchase of short-term investments in US Treasury Bills and (iv)
payments for upgrades for certain of our container and dry bulk
vessels; partly off-set by proceeds we received from (i) the sale
of the container vessel Messini and the dry bulk vessel Thunder and
(ii) the maturity of part of short-term investments in US Treasury
Bills.
Net Cash Used in Financing
Activities
Net cash used in financing activities was $295.8
million in the nine-month period ended September 30, 2023, which
mainly consisted of (a) $168.0 million net payments relating to our
debt financing agreements and finance lease liability agreement
(including proceeds of $564.2 million we received from seven debt
financing agreements), (b) $60.0 million we paid for the
re-purchase of 6.3 million of our common shares, (c) $29.8 million
we paid for dividends to holders of our common stock for the fourth
quarter of 2022, the first quarter of 2023 and the second quarter
of 2023 and (d) $2.8 million we paid for dividends to holders of
our Series B Preferred Stock, $6.3 million we paid for dividends to
holders of our Series C Preferred Stock, $6.6 million we paid for
dividends to holders of our Series D Preferred Stock and $7.6
million we paid for dividends to holders of our Series E Preferred
Stock for the period from October 15, 2022 to January 14, 2023,
January 15, 2023 to April 14, 2023 and April 15, 2023 to July 14,
2023.
Net cash used in financing activities was $55.4
million in the nine-month period ended September 30, 2022, which
mainly consisted of (a) $125.3 million net proceeds relating to our
debt financing agreements (including proceeds of $816.4 million we
received from our debt financing agreements), (b) $60.1 million we
paid for the re-purchase of 4.7 million of our common shares, (c)
$78.5 million we paid for dividends to holders of our common stock
for the fourth quarter of 2021, the first quarter of 2022 and the
second quarter of 2022 (including a special dividend paid to
holders of our common stock of $46.7 million for the first quarter
of 2022) and (d) $2.8 million we paid for dividends to holders of
our Series B Preferred Stock, $6.3 million we paid for dividends to
holders of our Series C Preferred Stock, $6.6 million we paid for
dividends to holders of our Series D Preferred Stock and $7.6
million we paid for dividends to holders of our Series E Preferred
Stock for the periods from October 15, 2021 to January 14, 2022,
January 15, 2022 to April 14, 2022 and April 15, 2022 to July 14,
2022.
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of September 30, 2023, we had Cash and cash
equivalents (including restricted cash) of $806.7 million and $38.7
million margin deposits in relation to our FFAs. Furthermore, as of
September 30, 2023, our liquidity stood at $996.9 million including
(a) our share of cash amounting to $7.3 million held in joint
venture companies set up pursuant to the Framework Deed and (b)
$144.2 million of available undrawn funds from two hunting license
facilities (one of which is still subject to final
documentation).
Debt-free vessels
As of October 31, 2023, the following vessels were free of
debt.
Unencumbered Vessels (Refer to
Fleet list for full details)
|
Vessel Name |
|
|
YearBuilt |
|
TEU / DWT Capacity |
|
|
Containerships |
|
|
|
|
|
|
| KURE |
|
1996 |
|
|
7,403 |
|
| MAERSK
KOWLOON |
|
2005 |
|
|
7,471 |
|
| ETOILE |
|
2005 |
|
|
2,556 |
|
| MICHIGAN |
|
2008 |
|
|
1,300 |
|
| ARKADIA (*) |
|
2001 |
|
|
1,550 |
|
| Dry Bulk
Vessels |
|
|
|
|
|
|
| ARYA |
|
2013 |
|
|
61,424 |
|
(*) Vessel acquired pursuant to the Framework Deed.
Conference Call details:
On Wednesday, November 1, 2023 at 8:30 a.m. EST,
Costamare’s management team will hold a conference call to discuss
the financial results. Participants should dial into the call 10
minutes before the scheduled time using the following numbers:
1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or
+1-412-317-9258 (from outside the US and the UK). Please quote
“Costamare”. A replay of the conference call will be available
until November 8, 2023. The United States replay number is
+1-877-344-7529; the standard international replay number is
+1-412-317-0088; and the access code required for the replay is:
3471997.
Live webcast: There will also
be a simultaneous live webcast over the Internet, through the
Costamare Inc. website (www.costamare.com). Participants to the
live webcast should register on the website approximately 10
minutes prior to the start of the webcast.
About Costamare Inc.
Costamare Inc. is one of the world’s leading
owners and providers of containerships and dry bulk vessels for
charter. The Company has 49 years of history in the international
shipping industry and a fleet of 68 containerships, with a total
capacity of approximately 513,000 TEU and 45 dry bulk vessels with
a total capacity of approximately 2,749,000 DWT (including two
vessels that we have agreed to sell). The Company also has a dry
bulk operating platform which charters in/out dry bulk vessels,
enters into contracts of affreightment, forward freight agreements
and may also utilize hedging solutions. The Company participates in
a leasing business that provides financing to third-party owners.
The Company’s common stock, Series B Preferred Stock, Series C
Preferred Stock, Series D Preferred Stock and Series E Preferred
Stock trade on the New York Stock Exchange under the symbols
“CMRE”, “CMRE PR B”, “CMRE PR C”, “CMRE PR D” and “CMRE PR E”,
respectively.
Forward-Looking Statements
This earnings release contains “forward-looking
statements”. In some cases, you can identify these statements by
forward-looking words such as “believe”, “intend”, “anticipate”,
“estimate”, “project”, “forecast”, “plan”, “potential”, “may”,
“should”, “could”, “expect” and similar expressions. These
statements are not historical facts but instead represent only
Costamare’s belief regarding future results, many of which, by
their nature, are inherently uncertain and outside of Costamare’s
control. It is possible that actual results may differ, possibly
materially, from those anticipated in these forward-looking
statements. For a discussion of some of the risks and important
factors that could affect future results, see the discussion in the
Company’s Annual Report on Form 20-F (File No. 001-34934) under the
caption “Risk Factors”.
Company Contacts:
Gregory Zikos – Chief Financial Officer Konstantinos Tsakalidis
– Business DevelopmentCostamare Inc., MonacoTel: (+377) 93 25 09
40Email: ir@costamare.com
Containership Fleet List
The table below provides additional information,
as of October 31, 2023, about our fleet of containerships, the
vessels acquired pursuant to the Framework Deed and those vessels
subject to sale and leaseback agreements. Each vessel is a cellular
containership, meaning it is a dedicated container vessel.
|
|
Vessel Name |
Charterer |
Year Built |
Capacity (TEU) |
Current Daily Charter
Rate(1)
(U.S. dollars) |
Expiration of
Charter(2) |
|
1 |
TRITON |
Evergreen |
2016 |
14,424 |
(*) |
March 2026 |
|
2 |
TITAN(ii) |
Evergreen |
2016 |
14,424 |
(*) |
April 2026 |
|
3 |
TALOS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
July 2026 |
|
4 |
TAURUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
|
5 |
THESEUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
|
6 |
YM TRIUMPH(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
May 2030 |
|
7 |
YM TRUTH(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
May 2030 |
|
8 |
YM TOTALITY(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
July 2030 |
|
9 |
YM TARGET(ii) |
Yang Ming |
2021 |
12,690 |
(*) |
November 2030 |
|
10 |
YM TIPTOP(ii) |
Yang Ming |
2021 |
12,690 |
(*) |
March 2031 |
|
11 |
CAPE AKRITAS |
MSC |
2016 |
11,010 |
33,000 |
August 2031 |
|
12 |
CAPE TAINARO |
MSC |
2017 |
11,010 |
33,000 |
April 2031 |
|
13 |
CAPE KORTIA |
MSC |
2017 |
11,010 |
33,000 |
August 2031 |
|
14 |
CAPE SOUNIO |
MSC |
2017 |
11,010 |
33,000 |
April 2031 |
|
15 |
CAPE ARTEMISIO |
Hapag Lloyd/(*) |
2017 |
11,010 |
36,650/(*) |
March 2030(3) |
|
16 |
ZIM SHANGHAI |
ZIM |
2006 |
9,469 |
72,700 |
July 2025 |
|
17 |
ZIM YANTIAN |
ZIM |
2006 |
9,469 |
72,700 |
June 2025 |
|
18 |
YANTIAN |
COSCO |
2006 |
9,469 |
39,600 |
February 2024 |
|
19 |
COSCO HELLAS |
COSCO |
2006 |
9,469 |
39,600 |
February 2024 |
|
20 |
BEIJING |
COSCO |
2006 |
9,469 |
39,600 |
March 2024 |
|
21 |
MSC AZOV |
MSC |
2014 |
9,403 |
46,300 |
December 2026(4) |
|
22 |
MSC AMALFI |
MSC |
2014 |
9,403 |
46,300 |
March 2027(5) |
|
23 |
MSC AJACCIO |
MSC |
2014 |
9,403 |
46,300 |
February 2027(6) |
|
24 |
MSC ATHENS |
MSC |
2013 |
8,827 |
35,300 |
January 2026 |
|
25 |
MSC ATHOS |
MSC |
2013 |
8,827 |
35,300 |
February 2026 |
|
26 |
VALOR |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
April 2030(7) |
|
27 |
VALUE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
April 2030(8) |
|
28 |
VALIANT |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
June 2030(9) |
|
29 |
VALENCE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
July 2030(10) |
|
30 |
VANTAGE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
September 2030(11) |
|
31 |
NAVARINO |
MSC/(*) |
2010 |
8,531 |
31,000/(*) |
March 2029(12) |
|
32 |
KLEVEN |
MSC |
1996 |
8,044 |
41,500 |
November 2026 |
|
33 |
KOTKA |
MSC |
1996 |
8,044 |
41,500 |
December 2026 |
|
34 |
MAERSK KOWLOON |
Maersk |
2005 |
7,471 |
18,500 |
August 2025 |
|
35 |
KURE |
MSC |
1996 |
7,403 |
41,500 |
July 2026 |
|
36 |
METHONI |
Maersk |
2003 |
6,724 |
46,500 |
August 2026 |
|
37 |
PORTO CHELI |
Maersk |
2001 |
6,712 |
30,075 |
June 2026 |
|
38 |
ZIM TAMPA |
ZIM |
2000 |
6,648 |
45,000 |
July 2025 |
|
39 |
ZIM VIETNAM |
ZIM |
2003 |
6,644 |
53,000 |
October 2025 |
|
40 |
ZIM AMERICA |
ZIM |
2003 |
6,644 |
53,000 |
October 2025 |
|
41 |
ARIES |
(*) |
2004 |
6,492 |
58,500 |
March 2026 |
|
42 |
ARGUS |
(*) |
2004 |
6,492 |
58,500 |
April 2026 |
|
43 |
PORTO KAGIO |
Maersk |
2002 |
5,908 |
28,822 |
June 2026 |
|
44 |
GLEN CANYON |
ZIM |
2006 |
5,642 |
62,500 |
June 2025 |
|
45 |
PORTO GERMENO |
Maersk |
2002 |
5,570 |
28,822 |
June 2026 |
|
46 |
LEONIDIO |
Maersk |
2014 |
4,957 |
14,200 |
December 2024(13) |
|
47 |
KYPARISSIA |
Maersk |
2014 |
4,957 |
14,200 |
November 2024(13) |
|
48 |
MEGALOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(14) |
|
49 |
MARATHOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(14) |
|
50 |
GIALOVA |
ZIM |
2009 |
4,578 |
25,500 |
April 2024 |
|
51 |
DYROS |
Maersk |
2008 |
4,578 |
22,750 |
January 2024 |
|
52 |
NORFOLK |
(*) |
2009 |
4,259 |
(*) |
March 2025 |
|
53 |
VULPECULA |
ZIM |
2010 |
4,258 |
43,250(on average) |
May 2028(15) |
|
54 |
VOLANS |
Hapag Lloyd |
2010 |
4,258 |
21,750 |
June 2024 |
|
55 |
VIRGO |
Maersk |
2009 |
4,258 |
30,200 |
February 2024 |
|
56 |
VELA |
ZIM |
2009 |
4,258 |
43,250(on average) |
April 2028(16) |
|
57 |
ANDROUSA |
(*) |
2010 |
4,256 |
(*) |
May 2024 |
|
58 |
NEOKASTRO |
CMA CGM |
2011 |
4,178 |
39,000 |
February 2027 |
|
59 |
ULSAN |
Maersk |
2002 |
4,132 |
34,730 |
January 2026 |
|
60 |
POLAR BRASIL (ii) |
Maersk |
2018 |
3,800 |
19,700 |
January 2025(17) |
|
61 |
LAKONIA |
COSCO |
2004 |
2,586 |
26,500 |
March 2025 |
|
62 |
SCORPIUS |
Hapag Lloyd |
2007 |
2,572 |
17,750 |
May 2024 |
|
63 |
ETOILE |
(*) |
2005 |
2,556 |
(*) |
June 2026 |
|
64 |
AREOPOLIS |
COSCO |
2000 |
2,474 |
26,500 |
April 2025 |
|
65 |
ARKADIA(i) |
Swire Shipping |
2001 |
1,550 |
14,250 |
February 2024 |
|
66 |
MICHIGAN |
(*) |
2008 |
1,300 |
(*) |
October 2025 |
|
67 |
TRADER |
(*)/(*) |
2008 |
1,300 |
(*)/(*) |
October 2026(18) |
|
68 |
LUEBECK |
MSC/(*) |
2001 |
1,078 |
15,000/(*) |
April 2026(19) |
|
(1) |
Daily charter rates are gross, unless stated otherwise. Amounts set
out for current daily charter rate are the amounts contained in the
charter contracts. |
| (2) |
Charter terms and expiration
dates are based on the earliest date charters (unless otherwise
noted) could expire. |
| (3) |
Cape Artemisio is currently
chartered to Hapag Lloyd at a daily rate of $36,650 until March 12,
2025, at the earliest. Upon redelivery of the vessel from Hapag
Lloyd, the vessel will commence a new charter with a leading liner
company for a period of 60 to 64 months at an undisclosed
rate. |
| (4) |
This charter rate will be earned
by MSC Azov until December 2, 2023. From the aforementioned date
until the expiry of the charter, the daily rate will be
$35,300. |
| (5) |
This charter rate will be earned
by MSC Amalfi until March 16, 2024. From the aforementioned date
until the expiry of the charter, the daily rate will be
$35,300. |
| (6) |
This charter rate will be earned
by MSC Ajaccio until February 1, 2024. From the aforementioned date
until the expiry of the charter, the daily rate will be
$35,300. |
| (7) |
Valor is currently chartered to
Hapag Lloyd at a daily rate of $32,400 until April 3, 2025, at the
earliest. Upon redelivery of the vessel from Hapag Lloyd, the
vessel will commence a new charter with a leading liner company for
a period of 60 to 64 months at an undisclosed rate. |
| (8) |
Value is currently chartered to
Hapag Lloyd at a daily rate of $32,400 until April 25, 2025, at the
earliest. Upon redelivery of the vessel from Hapag Lloyd, the
vessel will commence a new charter with a leading liner company for
a period of 60 to 64 months at an undisclosed rate. |
| (9) |
Valiant is currently chartered to
Hapag Lloyd at a daily rate of $32,400 until June 5, 2025, at the
earliest. Upon redelivery of the vessel from Hapag Lloyd, the
vessel will commence a new charter with a leading liner company for
a period of 60 to 64 months at an undisclosed rate. |
| (10) |
Valence is currently chartered to
Hapag Lloyd at a daily rate of $32,400 until July 3, 2025, at the
earliest. Upon redelivery of the vessel from Hapag Lloyd, the
vessel will commence a new charter with a leading liner company for
a period of 60 to 64 months at an undisclosed rate. |
| (11) |
Vantage is currently chartered to
Hapag Lloyd at a daily rate of $32,400 until September 8, 2025, at
the earliest. Upon redelivery of the vessel from Hapag Lloyd, the
vessel will commence a new charter with a leading liner company for
a period of 60 to 64 months at an undisclosed rate. |
| (12) |
Navarino is currently chartered
to MSC at a daily rate of $31,000 until March 1, 2025, at the
earliest. Upon redelivery of the vessel from MSC, the vessel will
commence a new charter with a leading liner company for a period of
48 to 52 months at an undisclosed rate. |
| (13) |
Charterer has the option to
extend the current time charter for an additional period of 12 to
24 months at a daily rate of $17,000. |
| (14) |
Charterer has the option to
extend the current time charter for an additional period of
approximately 24 months at a daily rate of $14,500. |
| (15) |
Vulpecula is currently chartered
to ZIM under a charterparty agreement which commenced in May 2023.
The tenor of the charter is for a period of 60 to 64 months at a
daily rate of $43,250, on average. For this charter, the daily rate
will be $99,000 for the first 12 month period, $91,250 for the
second 12 month period, $10,000 for the third 12 month period and
$8,000 for the remaining duration of the charter. |
| (16) |
Vela is currently chartered to
ZIM under a charterparty agreement which commenced in April 2023.
The tenor of the charter is for a period of 60 to 64 months at a
daily rate of $43,250, on average. For this charter, the daily rate
will be $99,000 for the first 12 month period, $91,250 for the
second 12 month period, $10,000 for the third 12 month period and
$8,000 for the remaining duration of the charter. |
| (17) |
Charterer has the option to
extend the current time charter for three additional one-year
periods at a daily rate of $21,000. |
| (18) |
Trader is currently chartered at
an undisclosed rate until October 1, 2024, at the earliest. Upon
redelivery of the vessel from its current charterer, the vessel
will commence a new charter with a leading liner company for a
period of 24 to 26 months at an undisclosed rate. |
| (19) |
Luebeck is currently chartered to
MSC at a daily rate of $15,000 until April 2024, at the earliest.
Upon redelivery of the vessel from MSC, the vessel will commence a
new charter with a leading liner company for a period of 24 to 26
months at an undisclosed rate. |
| |
|
| (i) |
Denotes vessel acquired pursuant
to the Framework Deed. The Company holds an equity interest of 49%
in each of the vessel-owning companies. |
| (ii) |
Denotes vessels subject to a sale
and leaseback transaction. |
| |
|
| |
|
| (*) |
Denotes charterer’s identity
and/or current daily charter rates and/or charter expiration dates,
which are treated as confidential. |
Dry Bulk Vessel Fleet List
The tables below provide information, as of
October 31, 2023 about our fleet of dry bulk vessels, including the
two vessels that we have agreed to sell.
|
|
Vessel Name |
Year Built |
Capacity (DWT) |
|
|
1 |
DORADO |
2011 |
179,842 |
|
|
2 |
ENNA |
2011 |
175,975 |
|
|
3 |
AEOLIAN |
2012 |
83,478 |
|
|
4 |
GRENETA |
2010 |
82,166 |
|
|
5 |
HYDRUS |
2011 |
81,601 |
|
|
6 |
PHOENIX |
2012 |
81,569 |
|
|
7 |
BUILDER |
2012 |
81,541 |
|
|
8 |
FARMER |
2012 |
81,541 |
|
|
9 |
SAUVAN |
2010 |
79,700 |
|
|
10 |
ROSE |
2008 |
76,619 |
|
|
11 |
MERCHIA |
2015 |
63,800 |
|
|
12 |
SEABIRD |
2016 |
63,553 |
|
|
13 |
DAWN |
2018 |
63,530 |
|
|
14 |
ORION |
2015 |
63,473 |
|
|
15 |
DAMON |
2012 |
63,227 |
|
|
16 |
ARYA |
2013 |
61,424 |
|
|
17 |
TITAN I |
2009 |
58,090 |
|
|
18 |
ERACLE |
2012 |
58,018 |
|
|
19 |
PYTHIAS |
2010 |
58,018 |
|
|
20 |
NORMA |
2010 |
58,018 |
|
|
21 |
ORACLE |
2009 |
57,970 |
|
|
22 |
CURACAO |
2011 |
57,937 |
|
|
23 |
URUGUAY |
2011 |
57,937 |
|
|
24 |
ATHENA |
2012 |
57,809 |
|
|
25 |
SERENA |
2010 |
57,266 |
|
|
26 |
LIBRA |
2010 |
56,729 |
|
|
27 |
PEGASUS |
2011 |
56,726 |
|
|
28 |
MERIDA |
2012 |
56,670 |
|
|
29 |
CLARA |
2008 |
56,557 |
|
|
30 |
PEACE (i) |
2006 |
55,709 |
|
|
31 |
PRIDE (i) |
2006 |
55,705 |
|
|
32 |
BERMONDI |
2009 |
55,469 |
|
|
33 |
VERITY |
2012 |
37,163 |
|
|
34 |
PARITY |
2012 |
37,152 |
|
|
35 |
ACUITY |
2011 |
37,149 |
|
|
36 |
EQUITY |
2013 |
37,071 |
|
|
37 |
DISCOVERY |
2012 |
37,019 |
|
|
38 |
BERNIS |
2011 |
34,627 |
|
|
39 |
MANZANILLO |
2010 |
34,426 |
|
|
40 |
ADVENTURE |
2011 |
33,755 |
|
|
41 |
ALLIANCE |
2012 |
33,751 |
|
|
42 |
CETUS |
2010 |
32,527 |
|
|
43 |
PROGRESS |
2011 |
32,400 |
|
|
44 |
KONSTANTINOS |
2012 |
32,178 |
|
|
45 |
RESOURCE |
2010 |
31,776 |
|
(i) Denotes vessels
that we have agreed to sell.
|
Consolidated Statements of Income |
| |
| |
|
Nine-months ended September 30, |
|
|
Three-months ended September 30, |
|
(Expressed in thousands of U.S. dollars, except share and per share
amounts) |
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
(Unaudited) |
|
|
(Unaudited) |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
| Voyage revenue |
$ |
848,428 |
|
|
$ |
1,011,968 |
|
|
$ |
289,491 |
|
|
$ |
397,256 |
|
| Income from investments in
leaseback vessels |
|
- |
|
|
|
4,591 |
|
|
|
- |
|
|
|
3,114 |
|
| Total
revenues |
$ |
848,428 |
|
|
$ |
1,016,559 |
|
|
$ |
289,491 |
|
|
$ |
400,370 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
| Voyage expenses |
|
(34,014 |
) |
|
|
(185,851 |
) |
|
|
(14,181 |
) |
|
|
(84,840 |
) |
| Charter-in hire expenses |
|
- |
|
|
|
(174,670 |
) |
|
|
- |
|
|
|
(87,709 |
) |
| Voyage expenses – related
parties |
|
(11,726 |
) |
|
|
(10,262 |
) |
|
|
(3,986 |
) |
|
|
(3,626 |
) |
| Vessels’ operating
expenses |
|
(198,330 |
) |
|
|
(194,110 |
) |
|
|
(64,979 |
) |
|
|
(63,503 |
) |
| General and administrative
expenses |
|
(9,290 |
) |
|
|
(14,459 |
) |
|
|
(2,565 |
) |
|
|
(5,984 |
) |
| Management and agency fees –
related parties |
|
(32,868 |
) |
|
|
(43,950 |
) |
|
|
(10,976 |
) |
|
|
(13,889 |
) |
| General and administrative
expenses – non-cash component |
|
(5,701 |
) |
|
|
(4,294 |
) |
|
|
(1,341 |
) |
|
|
(1,440 |
) |
| Amortization of dry-docking
and special survey costs |
|
(9,459 |
) |
|
|
(14,472 |
) |
|
|
(3,813 |
) |
|
|
(5,015 |
) |
| Depreciation |
|
(124,236 |
) |
|
|
(124,566 |
) |
|
|
(41,760 |
) |
|
|
(42,155 |
) |
| Gain on sale of vessels,
net |
|
21,250 |
|
|
|
118,046 |
|
|
|
- |
|
|
|
- |
|
| Loss on vessel held for
sale |
|
- |
|
|
|
(4,855 |
) |
|
|
- |
|
|
|
(4,855 |
) |
| Vessel’s impairment loss |
|
- |
|
|
|
(229 |
) |
|
|
- |
|
|
|
(229 |
) |
| Foreign exchange gains /
(losses) |
|
555 |
|
|
|
(1,284 |
) |
|
|
168 |
|
|
|
(3,113 |
) |
| Operating
income |
$ |
444,609 |
|
|
$ |
361,603 |
|
|
$ |
146,058 |
|
|
$ |
84,012 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| OTHER INCOME /
(EXPENSES): |
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
$ |
1,093 |
|
|
$ |
25,544 |
|
|
$ |
955 |
|
|
$ |
9,173 |
|
| Interest and finance
costs |
|
(86,444 |
) |
|
|
(110,023 |
) |
|
|
(31,233 |
) |
|
|
(36,686 |
) |
| Income from equity method
investments |
|
1,593 |
|
|
|
689 |
|
|
|
817 |
|
|
|
1,826 |
|
| Other |
|
2,299 |
|
|
|
5,710 |
|
|
|
619 |
|
|
|
1,954 |
|
| Loss on derivative
instruments, net |
|
(2,634 |
) |
|
|
(7,179 |
) |
|
|
(1,724 |
) |
|
|
(193 |
) |
| Total other
expenses |
$ |
(84,093 |
) |
|
$ |
(85,259 |
) |
|
$ |
(30,566 |
) |
|
$ |
(23,926 |
) |
| Net
Income |
$ |
360,516 |
|
|
$ |
276,344 |
|
|
$ |
115,492 |
|
|
$ |
60,086 |
|
| Earnings allocated to
Preferred Stock |
|
(23,302 |
) |
|
|
(23,302 |
) |
|
|
(7,854 |
) |
|
|
(7,854 |
) |
| Net loss attributable to the
non-controlling interest |
|
- |
|
|
|
5,052 |
|
|
|
- |
|
|
|
1,055 |
|
| Net Income available
to common stockholders |
$ |
337,214 |
|
|
$ |
258,094 |
|
|
$ |
107,638 |
|
|
$ |
53,287 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Earnings per common share,
basic and diluted |
$ |
2.74 |
|
|
$ |
2.13 |
|
|
$ |
0.89 |
|
|
$ |
0.45 |
|
| Weighted average number of
shares, basic and diluted |
|
123,295,035 |
|
|
|
121,059,768 |
|
|
|
121,458,291 |
|
|
|
118,107,881 |
|
| |
|
COSTAMARE INC. |
|
Consolidated Balance Sheets |
| |
| (Expressed in thousands of
U.S. dollars) |
|
As of December 31, 2022 |
|
|
As of September 30, 2023 |
| ASSETS |
|
(Audited) |
|
|
(Unaudited) |
| CURRENT
ASSETS: |
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
718,049 |
|
|
$ |
726,011 |
|
| Restricted cash |
|
9,768 |
|
|
|
10,429 |
|
| Margin deposits |
|
- |
|
|
|
38,651 |
|
| Short-term investments |
|
120,014 |
|
|
|
- |
|
| Investment in leaseback vessels,
current |
|
- |
|
|
|
21,639 |
|
| Net investment in sales type
lease (Vessels), current |
|
- |
|
|
|
17,734 |
|
| Accounts receivable |
|
26,943 |
|
|
|
40,654 |
|
| Inventories |
|
28,039 |
|
|
|
66,572 |
|
| Due from related parties |
|
3,838 |
|
|
|
29 |
|
| Fair value of derivatives |
|
25,660 |
|
|
|
31,692 |
|
| Insurance claims
receivable |
|
5,410 |
|
|
|
17,881 |
|
| Vessels held for sale |
|
55,195 |
|
|
|
12,058 |
|
| Time charter assumed |
|
199 |
|
|
|
199 |
|
| Accrued charter revenue |
|
10,885 |
|
|
|
9,553 |
|
| Prepayments and other |
|
10,622 |
|
|
|
63,619 |
|
| Total current
assets |
$ |
1,014,622 |
|
|
$ |
1,056,721 |
|
| FIXED ASSETS,
NET: |
|
|
|
|
|
| Vessels and advances, net |
|
3,666,861 |
|
|
|
3,547,606 |
|
| Total fixed assets,
net |
$ |
3,666,861 |
|
|
$ |
3,547,606 |
|
| NON-CURRENT
ASSETS: |
|
|
|
|
|
| Equity method investments |
$ |
20,971 |
|
|
$ |
10,811 |
|
| Investment in leaseback
vessels, non-current |
|
- |
|
|
|
143,670 |
|
| Deferred charges, net |
|
55,035 |
|
|
|
69,130 |
|
| Finance leases, right-of-use
assets (Vessels) |
|
- |
|
|
|
39,562 |
|
| Net investment in sales type
lease (Vessels), non-current |
|
- |
|
|
|
27,483 |
|
| Operating leases, right-of-use
assets |
|
- |
|
|
|
311,512 |
|
| Accounts receivable,
non-current |
|
5,261 |
|
|
|
6,461 |
|
| Restricted cash |
|
83,741 |
|
|
|
70,233 |
|
| Fair value of derivatives,
non-current |
|
37,643 |
|
|
|
42,376 |
|
| Accrued charter revenue,
non-current |
|
11,627 |
|
|
|
10,493 |
|
| Time charter assumed,
non-current |
|
468 |
|
|
|
319 |
|
| Total
assets |
$ |
4,896,229 |
|
|
$ |
5,336,377 |
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
| CURRENT
LIABILITIES: |
|
|
|
|
|
| Current portion of long-term
debt |
$ |
320,114 |
|
|
$ |
339,442 |
|
| Finance lease liability |
|
- |
|
|
|
2,648 |
|
| Operating lease liabilities,
current portion |
|
- |
|
|
|
175,331 |
|
| Accounts payable |
|
18,155 |
|
|
|
48,760 |
|
| Due to related parties |
|
2,332 |
|
|
|
4,146 |
|
| Accrued liabilities |
|
51,551 |
|
|
|
40,955 |
|
| Unearned revenue |
|
25,227 |
|
|
|
45,725 |
|
| Fair value of derivatives |
|
2,255 |
|
|
|
10,554 |
|
| Other current liabilities |
|
3,456 |
|
|
|
5,370 |
|
| Total current
liabilities |
$ |
423,090 |
|
|
$ |
672,931 |
|
| NON-CURRENT
LIABILITIES |
|
|
|
|
|
| Long-term debt, net of current
portion |
$ |
2,264,507 |
|
|
$ |
2,087,880 |
|
| Finance lease liability, net
of current portion |
|
- |
|
|
|
24,565 |
|
| Operating lease liabilities,
non-current portion |
|
- |
|
|
|
131,361 |
|
| Fair value of derivatives, net
of current portion |
|
13,655 |
|
|
|
14,011 |
|
| Unearned revenue, net of
current portion |
|
34,540 |
|
|
|
29,871 |
|
| Other non-current
liabilities |
|
- |
|
|
|
6,284 |
|
| Total non-current
liabilities |
$ |
2,312,702 |
|
|
$ |
2,293,972 |
|
| COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
| Temporary equity –
Redeemable non-controlling interest in subsidiary |
$ |
3,487 |
|
|
$ |
1,148 |
|
| STOCKHOLDERS’
EQUITY: |
|
|
|
|
|
| Preferred stock |
$ |
- |
|
|
$ |
- |
|
| Common stock |
|
12 |
|
|
|
12 |
|
| Treasury stock |
|
(60,095 |
) |
|
|
(120,095 |
) |
| Additional paid-in
capital |
|
1,423,954 |
|
|
|
1,434,069 |
|
| Retained earnings |
|
746,658 |
|
|
|
962,887 |
|
| Accumulated other
comprehensive income |
|
46,421 |
|
|
|
44,712 |
|
| Total Costamare Inc.
stockholders’ equity |
$ |
2,156,950 |
|
|
$ |
2,321,585 |
|
| Non-controlling interest |
|
- |
|
|
|
46,741 |
|
| Total stockholders’
equity |
|
2,156,950 |
|
|
|
2,368,326 |
|
| Total liabilities and
stockholders’ equity |
$ |
4,896,229 |
|
|
$ |
5,336,377 |
|
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