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Monaco - 5 February 2025
Costamare Inc. ("Costamare" or the "Company") (NYSE: CMRE) today reported unaudited financial results for the fourth quarter ("Q4 2024") and year ended December 31, 2024.
I. PROFITABILITY AND LIQUIDITY
• FY 2024 Net Income available to common stockholders of $290.7 million ($2.44 per share).
• FY 2024 Adjusted Net Income available to common stockholders1 of $329.7 million ($2.76 per share).
• Q4 2024 Net Income available to common stockholders of $29.7 million ($0.25 per share).
• Q4 2024 Adjusted Net Income available to common stockholders1 of $82.3 million ($0.69 per share).
• Liquidity of $941.6 million2.
II. OWNED FLEET CHARTER UPDATE3 - FULLY EMPLOYED CONTAINERSHIP FLEET FOR 2025
• Forward fixing of 12 containerships for a period ranging from 16 to 38 months with incremental revenues of $332.6 million since the Q3 2024 earnings release.
• 96% and 69% of the containership fleet4 fixed for 2025 and 2026, respectively.
• Contracted revenues for the containership fleet of approximately $2.4 billion with a TEU-weighted duration of 3.4 years5.
• Entered into more than 50 chartering agreements for the owned dry bulk fleet since Q3 2024 earnings release.
III. SALE AND PURCHASE ACTIVITY
Vessel Acquisitions
• Conclusion of the acquisition of:
- the 2011-built, 179,546 DWT capacity dry bulk vessel, Magnes (ex. Nord Magnes).
- the 2014-built, 61,090 DWT capacity dry bulk vessel, Alwine (ex. Alwine Oldendorff).
- the 2015-built, 61,090 DWT capacity dry bulk vessel, August (ex. August Oldendorff).
Vessel Disposals
• Conclusion of the sale of the 2012-built, 37,019 DWT capacity dry bulk vessel, Discovery generating net sale proceeds after debt prepayment of $7.7 million.
• Agreement for the sale of the 2008-built, 76,619 DWT capacity dry bulk vessel, Rose (expected conclusion of the sale within Q1 – Q2 2025). Estimated net sale proceeds after debt prepayment of $4.1 million.
IV. NEW DEBT FINANCING / PREPAYMENT OF UNSECURED BONDS
• Conclusion of refinancing/ financing of 36 dry bulk vessels through four bilateral term loan facilities with European financial institutions. More specifically:
- Total drawn amounts: $339.3 million.
- No increase in leverage with respect to the refinancings.
- Repayment tenor of at least 5 years.
- Improvement of funding cost.
• No significant debt maturities until 2027.
• Conclusion of the full prepayment with cash on hand of €100 million aggregate principal amount of unsecured bonds issued by our wholly owned subsidiary, Costamare Participations Plc.
• Secured $100 million hunting license agreement with a European financial institution.
V. DRY BULK OPERATING PLATFORM
• Costamare Bulkers Inc. ("CBI") has currently fixed a fleet of 51 dry bulk vessels on period charters, consisting of:
- 36 Newcastlemax/ Capesize vessels.
- 15 Kamsarmax vessels.
• Majority of the fixed fleet is on index linked charter-in agreements, consisting of:
- 32 charters for Newcastlemax/ Capesize vessels that are index linked.
- 10 charters for Kamsarmax vessels that are index linked.
• Average remaining tenor for the Newcastlemax/ Capesize and Kamsarmax chartered-in fleet of 13 and 14 months, respectively.
VI. LEASE FINANCING PLATFORM
• Controlling interest in Neptune Maritime Leasing Limited ("NML").
• Company's current investment in NML of $123.3 million.
• Growing leasing platform, currently funding or committed to funding 37 shipping assets as of the date of this press release, representing a total investment of approximately $505.7 million, on the back of what we believe is a healthy pipeline.
VII. DIVIDEND ANNOUNCEMENTS – SHARE REPURCHASE PROGRAM
• On January 2, 2025, the Company declared a dividend of $0.115 per share on the common stock, which is payable on February 6, 2025, to holders of record of common stock as of January 21, 2025.
• On January 2, 2025, the Company declared a dividend of $0.476563 per share on the Series B Preferred Stock, $0.531250 per share on the Series C Preferred Stock and $0.546875 per share on the Series D Preferred Stock, which were all paid on January 15, 2025 to holders of record as of January 14, 2025.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
"During the fourth quarter of the year, the Company generated adjusted Net Income of about $82 million. Our liquidity stands at around $940 million after repaying during the year a fixed rate bond of 100 million Euro and redeeming the Series E preferred stock of approximately $115 million.
In the containership sector the Red Sea crisis led to diversions via the much longer Cape of Good Hope route. These diversions, together with strong cargo demand, absorbed the incremental new building capacity. The commercially idle fleet remained low during 2024 and at the start of 2025. Should however liners gradually return to the Suez route, the release of tonnage, combined with new building capacity, could potentially distort the current supply and demand dynamics.
During the quarter we chartered on a forward basis 12 containerships with an average time charter duration of about two and a half years and estimated contracted revenues of close to $330 million.
The containership fleet employment stands at 96% and 69% for 2025 and 2026, respectively. Total contracted revenues amount to $2.4 billion with a remaining time charter duration of 3.4 years.
On the dry bulk market, charter rates dropped to their lowest levels of 2024 during the last quarter and have started 2025 on a similarly soft note. The easing of congestion, along with pressures in the China steel market and less grain ton-mile demand have resulted in tonnage oversupply.
As per our strategy to renew the owned fleet and increase its average size during the quarter we concluded the acquisition of one Capesize and two Ultramax vessels as well as the disposal of one Handysize ship, while we have agreed to sell one Panamax vessel.
CBI manages a fleet of 51 ships, the majority of which are on index-linked charter-in agreements. As mentioned in the past, we have a long-term commitment to the sector, and we view the vessel-owning and the trading platform as highly complementary activities.
Finally, with regards to Neptune Maritime Leasing, the platform continues to grow with a healthy pipeline, having total investments and commitments exceeding $500 million."
Full report
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 margin deposits relating to our forward freight agreements ("FFAs") and bunker swaps of $45.2 million, short term investments in U.S. Treasury Bills amounting to $18.5 million and $100 million from one hunting license facility subject to final documentation.
3 Please refer to the Containership Fleet List table for additional information on vessel employment details for our containership fleet.
4 Calculated on a TEU basis.
5 As of February 4, 2025
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 51 years of history in the international shipping industry and a fleet of 68 containerships, with a total capacity of approximately 513,000 TEU and 38 dry bulk vessels with a total capacity of approximately 3,016,000 DWT (including one vessel we have agreed to sell). The Company also has a dry bulk operating platform which charters in/out dry bulk vessels, enters into contracts of affreightment, forward freight agreements and may also utilize hedging solutions. The Company participates in a leasing business that provides financing to third-party owners. The Company's common stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock trade on the New York Stock Exchange under the symbols "CMRE", "CMRE PR B", "CMRE PR C" and "CMRE PR D", respectively.
Costamare Inc. press release
