Costamare Inc. Reports Results for the Fourth Quarter and Year Ended December 31, 2022
Costamare Inc. (CMRE) reported strong financial performance for 2022, with net income reaching $523.9 million ($4.26 per share), up from $404.1 million in 2021. The company also achieved an adjusted net income of $405.3 million ($3.30 per share), compared to $289.9 million in the previous year. Fourth quarter results showed a net income of $186.7 million ($1.53 per share), but adjusted net income dipped to $74.8 million ($0.61 per share) from $112.1 million in Q4 2021. Costamare's liquidity increased significantly to $973.2 million, and the company announced a new dry bulk venture, Costamare Bulkers Inc. Additionally, new debt financing of approximately $558 million was secured to improve financial flexibility.
- Net income increased to $523.9 million for 2022, up 29.7% from 2021.
- Adjusted net income rose to $405.3 million, reflecting strong operational efficiency.
- Liquidity improved significantly, reaching $973.2 million, up 76.2% from the prior year.
- New venture in dry bulk shipping launched with Costamare Bulkers Inc.
- Secured $558 million in new debt financing to enhance financial flexibility.
- Q4 2022 adjusted net income dropped to $74.8 million, down 33.5% from $112.1 million in Q4 2021.
- Voyage revenue for Q4 decreased by 6.5% to $265.4 million compared to $283.9 million in Q4 2021.
- Increased voyage expenses and operating costs impacting profitability.
MONACO, Feb. 08, 2023 (GLOBE NEWSWIRE) -- Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today reported unaudited financial results for the fourth quarter (“Q4 2022”) and year ended December 31, 2022.
I. RECORD PROFITABILITY FOR YEAR ENDED 2022
- 2022 Net Income available to common stockholders of
$523.9 million ($4.26 per share) vs$404.1 million ($3.28 per share) in 2021. - 2022 Adjusted Net Income available to common stockholders1 of
$405.3 million ($3.30 per share) vs$289.9 million ($2.36 per share) in 2021. - Q4 2022 Net Income available to common stockholders of
$186.7 million ($1.53 per share) vs$153.4 million ($1.24 per share) in Q4 2021. - Q4 2022 Adjusted Net Income available to common stockholders1 of
$74.8 million ($0.61 per share) vs$112.1 million ($0.91 per share) in Q4 2021. - 2022 Year-end liquidity of
$973.2 million 2 vs$552.3 million 3 in 2021 Year-end.
II. DRY BULK OPERATING PLATFORM
- Setup of a new venture under Costamare Bulkers Inc. (“CBI”), which is fully consolidated with the Company.
- CBI will charter-in/out dry bulk vessels, enter into contracts of affreightment, forward freight agreements and may also utilize hedging solutions.
- CBI has currently fixed a fleet of 14 Newcastlemax/Capesize bulk carriers and a fleet of 9 Kamsarmax/Panamax bulk carriers.
III. NEW DEBT FINANCING
- New financing agreements totaling approximately
$558 million in aggregate and extension of maturity of a bilateral loan facility. More specifically:- Refinancing of existing indebtedness of 10 containerships, secured by long term contracted cash flows:
- Bilateral loan facility for a total amount of approximately
$323 million . - Loan proceeds used for prepayment of existing indebtedness and general corporate purposes.
- Seven year tenor.
- Significant improvement of funding cost, and extension of maturity for eight out of the ten refinanced vessels.
- Bilateral loan facility for a total amount of approximately
- Refinancing of existing indebtedness of two containerships, secured by long term contracted cash flows:
- Bilateral loan facility for a total amount of
$85 million . - Loan proceeds used for prepayment of existing indebtedness and general corporate purposes.
- Eight year tenor.
- Five year extension of original loan maturity for the two refinanced vessels.
- Bilateral loan facility for a total amount of
- Refinancing of existing indebtedness of nine dry bulk carriers:
- Bilateral hunting license loan facility for a total amount of
$120 million . - Approximately
$83 million drawn for the refinancing of the original indebtedness. - Six year tenor.
- Bilateral hunting license loan facility for a total amount of
- Refinancing of existing indebtedness of three dry bulk carriers:
- Bilateral loan facility for a total amount of
$30 million . - Loan proceeds of
$30 million used for prepayment of existing indebtedness. - Six year tenor.
- Bilateral loan facility for a total amount of
- Extension of the original maturity until Q1 2029, of a bilateral loan facility (outstanding indebtedness of approximately
$127 million ) secured by two containerships with long term contracted cash flows.
- Refinancing of existing indebtedness of 10 containerships, secured by long term contracted cash flows:
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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
3 Including our share of cash amounting to
IV. OWNED FLEET CHARTER UPDATE - FULLY EMPLOYED CONTAINERSHIP FLEET4 FOR THE YEAR AHEAD
96% and85% of the containership fleet5 fixed for 2023 and 2024, respectively.- Contracted revenues for the containership fleet of approximately
$3.2 billion with a TEU-weighted duration of 4.2 years6. - Entered into a total of 38 chartering agreements for the owned dry bulk fleet since Q3 2022 earnings release.
V. SALE AND PURCHASE ACTIVITY
- Conclusion of the sale of the 2003-built, 6,644 TEU capacity containership, Maersk Kalamata in January 2023, resulting in an estimated capital gain of
$48.5 million in Q1 2023.
VI. DIVIDEND ANNOUNCEMENTS
- On January 3, 2023, the Company declared a dividend of
$0.11 5 per share on the common stock, which was paid on February 7, 2023, to holders of record of common stock as of January 20, 2023. - On January 3, 2023, the Company declared a dividend of
$0.47 6563 per share on the Series B Preferred Stock,$0.53 1250 per share on the Series C Preferred Stock,$0.54 6875 per share on the Series D Preferred Stock and$0.55 4688 per share on the Series E Preferred Stock, which were all paid on January 17, 2023 to holders of record as of January 13, 2023. - Available funds remaining under the share repurchase program of approximately
$90 million for common shares and$150 million for preferred shares.
______________________
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 vessels owned by vessel owning-companies set-up pursuant to the Framework Deed, and excluding one vessel that we have agreed to sell.
6 As of February 8, 2023. Total contracted revenues and TEU-weighted remaining time charter duration include our ownership percentage for four vessels owned pursuant to the Framework Deed.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
“2022 has been a record year for Costamare. With a fleet of 117 vessels, including 45 dry bulk ships, the Company generated Net Income of above
On the containerships side, 2022 was a unique year with the first half drawing upon favorable market conditions with strong demand and logistical disruptions continuing to impact the sector, while during the second half charter rates and asset values normalized as a result of reduced cargo demand and the return of capacity previously tied up by congestion.
We chartered a total of 16 secondhand containerships during the year, which added incremental contracted revenues of more than
We are above
On the dry bulk side, the new dry bulk operating platform previously announced commenced operations during the quarter. With an equity commitment of up to
On the back of our increased liquidity and container charter coverage, we are actively pursuing new investment opportunities in the shipping sector that have the potential to provide enhanced returns at acceptable risk levels.”
| Financial Summary | ||||||||||||||||
| Year ended December 31, | Three-month period ended December 31, | |||||||||||||||
| (Expressed in thousands of U.S. dollars, except share and per share data) | 2021 | 2022 | 2021 | 2022 | ||||||||||||
| Voyage revenue | $ | 793,639 | $ | 1,113,859 | $ | 283,918 | $ | 265,431 | ||||||||
| Accrued charter revenue (1) | $ | (11,303 | ) | $ | (2,631 | ) | $ | (14,473 | ) | $ | (3,413 | ) | ||||
| Amortization of time-charter assumed | $ | (424 | ) | $ | 198 | $ | 39 | $ | 50 | |||||||
| Voyage revenue adjusted on a cash basis (2) | $ | 781,912 | $ | 1,111,426 | $ | 269,484 | $ | 262,068 | ||||||||
| Adjusted Net Income available to common stockholders (3) | $ | 289,873 | $ | 405,274 | $ | 112,070 | $ | 74,837 | ||||||||
| Weighted Average number of shares | 123,070,730 | 122,964,358 | 123,737,763 | 121,983,112 | ||||||||||||
| Adjusted Earnings per share (3) | $ | 2.36 | $ | 3.30 | $ | 0.91 | $ | 0.61 | ||||||||
| Net Income | $ | 435,121 | $ | 554,692 | $ | 161,154 | $ | 194,176 | ||||||||
| Net Income available to common stockholders | $ | 404,053 | $ | 523,887 | $ | 153,387 | $ | 186,672 | ||||||||
| Weighted Average number of shares | 123,070,730 | 122,964,358 | 123,737,763 | 121,983,112 | ||||||||||||
| Earnings per share | $ | 3.28 | $ | 4.26 | $ | 1.24 | $ | 1.53 | ||||||||
(1) Accrued charter revenue represents the difference between cash received during the period and revenue recognized on a straight-line basis. In the early years of a charter with escalating charter rates, voyage revenue will exceed cash received during the period and during the last years of such charter cash received will exceed revenue recognized on a straight-line basis. The reverse is true for charters with descending rates.
(2) Voyage revenue adjusted on a cash basis represents Voyage revenue after adjusting for non-cash “Accrued charter revenue” recorded under charters with escalating charter rates. However, Voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. GAAP. We believe that the presentation of Voyage revenue adjusted on a cash basis is useful to investors because it presents the charter revenue for the relevant period based on the then current daily charter rates. The increases or decreases in daily charter rates under our charter party agreements of our fleet are described in the notes to the “Fleet List” tables below.
(3) Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are non-GAAP measures. Refer to the reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings per Share.
Non-GAAP Measures
The Company reports its financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial measures additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. The tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the three-months and the years ended December 31, 2022 and 2021. 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
| Year ended December 31, | Three-month period ended December 31, | |||||||||||||||
| (Expressed in thousands of U.S. dollars, except share and per share data) | 2021 | 2022 | 2021 | 2022 | ||||||||||||
| Net Income | $ | 435,121 | $ | 554,692 | $ | 161,154 | $ | 194,176 | ||||||||
| Earnings allocated to Preferred Stock | (31,068 | ) | (31,068 | ) | (7,767 | ) | (7,767 | ) | ||||||||
| Non-Controlling Interest | - | 263 | - | 263 | ||||||||||||
| Net Income available to common stockholders | 404,053 | 523,887 | 153,387 | 186,672 | ||||||||||||
| Accrued charter revenue | (11,303 | ) | (2,631 | ) | (14,473 | ) | (3,413 | ) | ||||||||
| General and administrative expenses - non-cash component | 7,414 | 7,089 | 1,891 | 1,388 | ||||||||||||
| Amortization of Time charter assumed | (424 | ) | 198 | 39 | 50 | |||||||||||
| Realized loss on Euro/USD forward contracts | 460 | 2,323 | 434 | 517 | ||||||||||||
| Gain on sale of vessels, net | (45,894 | ) | (126,336 | ) | (27,819 | ) | (105,086 | ) | ||||||||
| Vessels’ impairment loss | - | 1,691 | - | 1,691 | ||||||||||||
| Non-recurring, non-cash write-off of loan deferred financing costs | 964 | 3,309 | 601 | 914 | ||||||||||||
| Gain on sale / disposal of vessel by a jointly owned company with York included in equity gain on investments | (5,726 | ) | - | - | - | |||||||||||
| (Gain) / loss on derivative instruments, excluding interest accrued and realized on non-hedging derivative instruments (1) | 1,246 | (2,698 | ) | 27 | (5,332 | ) | ||||||||||
| Non-recurring payments for loan cancellation fees | - | 1,032 | - | 26 | ||||||||||||
| Gain on sale of equity securities | (60,161 | ) | - | (2,017 | ) | - | ||||||||||
| Other non-cash items | (756 | ) | (2,590 | ) | - | (2,590 | ) | |||||||||
| Adjusted Net Income available to common stockholders | $ | 289,873 | $ | 405,274 | $ | 112,070 | $ | 74,837 | ||||||||
| Adjusted Earnings per Share | $ | 2.36 | $ | 3.30 | $ | 0.91 | $ | 0.61 | ||||||||
| Weighted average number of shares | 123,070,730 | 122,964,358 | 123,737,763 | 121,983,112 | ||||||||||||
Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent Net Income after earnings allocated to preferred stock and Non-Controlling Interest, but before non-cash “Accrued charter revenue” recorded under charters with escalating or descending charter rates, amortization of time-charter assumed, realized loss on Euro/USD forward contracts, gain on sale of vessels, net, vessels’ impairment loss, gain on sale of equity securities, non-recurring, non-cash write-off of loan deferred financing costs, non-recurring payments for loan cancellation fees, gain on sale / disposal of vessel by a jointly owned company with York included in equity gain on investments, general and administrative expenses - non-cash component, non-cash changes in fair value of derivatives and other 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 December 31, 2022 compared to the three-month period ended December 31, 2021
During the three-month periods ended December 31, 2022 and 2021, we had an average of 114.7 and 108.1 vessels, respectively, in our fleet.
During the three-month period ended December 31, 2022, we sold the container vessels Sealand Michigan, Sealand Illinois and York with an aggregate TEU capacity of 19,944.
Furthermore, during the fourth quarter of 2022, Costamare Bulkers Inc. (“CBI”) commenced operations. CBI charters-in/out dry bulk vessels, enters into contracts of affreightment, forward freight agreements and may also utilize hedging solutions.
In the three-month period ended December 31, 2021, we sold the container vessels ZIM Shanghai and ZIM New York, with an aggregate TEU capacity of 9,984. Furthermore, during the three-month period ended December 31, 2021, we accepted delivery of 13 secondhand dry bulk vessels (Equity, Cetus, Curacao, Rose, Bermondi, Titan I, Orion, Greneta, Merchia, Damon, Pythias, Hydrus and Phoenix) with an aggregate DWT of 811,567.
In the three-month periods ended December 31, 2022 and 2021, our fleet ownership days totaled 10,552 and 9,942 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)
| Three-month period ended December 31, | |||||||||||||||
| (Expressed in millions of U.S. dollars, except percentages) | 2021 | 2022 | Change | Percentage Change | |||||||||||
| Voyage revenue | $ | 283.9 | $ | 265.4 | $ | (18.5 | ) | (6.5 | %) | ||||||
| Voyage expenses | (5.8 | ) | (15.1 | ) | 9.3 | 160.3 | % | ||||||||
| Voyage expenses – related parties | (3.7 | ) | (3.7 | ) | - | n.m. | |||||||||
| Vessels’ operating expenses | (60.6 | ) | (70.9 | ) | 10.3 | 17.0 | % | ||||||||
| General and administrative expenses | (3.4 | ) | (3.1 | ) | (0.3 | ) | (8.8 | %) | |||||||
| Management and agency fees – related parties | (9.7 | ) | (13.9 | ) | 4.2 | 43.3 | % | ||||||||
| General and administrative expenses - non-cash component | (1.9 | ) | (1.4 | ) | (0.5 | ) | (26.3 | %) | |||||||
| Amortization of dry-docking and special survey costs | (2.9 | ) | (4.0 | ) | 1.1 | 37.9 | % | ||||||||
| Depreciation | (40.9 | ) | (41.7 | ) | 0.8 | 2.0 | % | ||||||||
| Gain on sale of vessels, net | 27.8 | 105.1 | 77.3 | n.m. | |||||||||||
| Vessels’ impairment loss | - | (1.7 | ) | 1.7 | n.m. | ||||||||||
| Foreign exchange gains / (losses) | (0.1 | ) | 2.7 | 2.8 | n.m. | ||||||||||
| Interest income | - | 4.9 | 4.9 | n.m. | |||||||||||
| Interest and finance costs | (25.3 | ) | (35.8 | ) | 10.5 | 41.5 | % | ||||||||
| Gain on sale of equity securities | 2.0 | - | (2.0 | ) | n.m. | ||||||||||
| Income from equity method investments | 0.8 | 0.7 | (0.1 | ) | (12.5 | %) | |||||||||
| Other | 1.0 | 1.4 | 0.4 | 40.0 | % | ||||||||||
| Gain on derivative instruments | - | 5.3 | 5.3 | n.m. | |||||||||||
| Net Income | $ | 161.2 | $ | 194.2 | |||||||||||
| (Expressed in millions of U.S. dollars, except percentages) | Three-month period ended December 31, | ||||||||||||||
| 2021 | 2022 | Change | Percentage Change | ||||||||||||
| Voyage revenue | $ | 283.9 | $ | 265.4 | $ | (18.5 | ) | (6.5 | %) | ||||||
| Accrued charter revenue | (14.5 | ) | (3.4 | ) | 11.1 | 76.6 | % | ||||||||
| Amortization of time charter assumed | - | 0.1 | 0.1 | n.m. | |||||||||||
| Voyage revenue adjusted on a cash basis (1) | $ | 269.4 | $ | 262.1 | $ | (7.3 | ) | (2.7 | %) | ||||||
| Vessels’ operational data | Three-month period ended December 31, | ||||||||||||||
| 2021 | 2022 | Change | Percentage Change | ||||||||||||
| Average number of vessels | 108.1 | 114.7 | 6.6 | 6.1 | % | ||||||||||
| Ownership days | 9,942 | 10,552 | 610 | 6.1 | % | ||||||||||
| Number of vessels under dry-docking and special survey | 2 | 7 | 5 | ||||||||||||
Segmental Financial Summary
| Three-month period ended December 31, 2021 | ||||||||||||||||||
| Container vessels | Dry bulk vessels | Other | Total | |||||||||||||||
| (Expressed in millions of U.S. dollars) | ||||||||||||||||||
| Voyage revenue | $ | 203.2 | $ | 80.7 | $ | - | $ | 283.9 | ||||||||||
| Voyage expenses | (1.7 | ) | (4.1 | ) | - | (5.8 | ) | |||||||||||
| Voyage expenses – related parties | (2.7 | ) | (1.0 | ) | - | (3.7 | ) | |||||||||||
| Vessels’ operating expenses | (41.2 | ) | (19.4 | ) | - | (60.6 | ) | |||||||||||
| General and administrative expenses | (2.3 | ) | (1.1 | ) | - | (3.4 | ) | |||||||||||
| Management fees – related parties | (6.6 | ) | (3.1 | ) | - | (9.7 | ) | |||||||||||
| General and administrative expenses - non-cash component | (1.3 | ) | (0.6 | ) | - | (1.9 | ) | |||||||||||
| Amortization of dry-docking and special survey costs | (2.8 | ) | (0.1 | ) | - | (2.9 | ) | |||||||||||
| Depreciation | (33.4 | ) | (7.5 | ) | - | (40.9 | ) | |||||||||||
| Gain on sale of vessels, net | 27.8 | - | - | 27.8 | ||||||||||||||
| Foreign exchange losses | (0.1 | ) | - | - | (0.1 | ) | ||||||||||||
| Interest and finance costs | (22.5 | ) | (2.8 | ) | - | (25.3 | ) | |||||||||||
| Gain on sale of equity securities | - | - | 2.0 | 2.0 | ||||||||||||||
| Income from equity method investments | - | - | 0.8 | 0.8 | ||||||||||||||
| Other | 0.8 | 0.2 | - | 1.0 | ||||||||||||||
| Net Income | $ | 117.2 | $ | 41.2 | $ | 2.8 | $ | 161.2 | ||||||||||
| Three-month period ended December 31, 2022 | ||||||||||||||||||
| Container vessels | Dry bulk vessels | CBI | Other | Eliminations | Total | |||||||||||||
| (Expressed in millions of U.S. dollars) | ||||||||||||||||||
| Voyage revenue | $ | 205.6 | $ | 59.4 | $ | 0.4 | $ | - | $ | - | $ | 265.4 | ||||||
| Intersegment voyage revenue | - | 0.8 | - | - | (0.8 | ) | - | |||||||||||
| Voyage expenses | (4.1 | ) | (10.9 | ) | (0.1 | ) | - | - | (15.1 | ) | ||||||||
| Intersegment voyage expenses | - | - | (0.8 | ) | - | 0.8 | - | |||||||||||
| Voyage expenses – related parties | (2.9 | ) | (0.8 | ) | - | - | - | (3.7 | ) | |||||||||
| Vessels’ operating expenses | (43.0 | ) | (27.9 | ) | - | - | - | (70.9 | ) | |||||||||
| General and administrative expenses | (1.8 | ) | (1.0 | ) | (0.3 | ) | - | - | (3.1 | ) | ||||||||
| Management and agency fees – related parties | (6.9 | ) | (4.2 | ) | (2.8 | ) | - | - | (13.9 | ) | ||||||||
| General and administrative expenses - non-cash component | (0.8 | ) | (0.6 | ) | - | - | - | (1.4 | ) | |||||||||
| Amortization of dry-docking and special survey costs | (3.3 | ) | (0.7 | ) | - | - | - | (4.0 | ) | |||||||||
| Depreciation | (31.7 | ) | (10.0 | ) | - | - | - | (41.7 | ) | |||||||||
| Gain on sale of vessels, net | 105.1 | - | - | - | - | 105.1 | ||||||||||||
| Vessels’ impairment loss | - | (1.7 | ) | - | - | - | (1.7 | ) | ||||||||||
| Foreign exchange gains | 1.6 | 1.1 | - | - | - | 2.7 | ||||||||||||
| Interest income | 3.0 | 1.9 | - | - | - | 4.9 | ||||||||||||
| Interest and finance costs | (28.9 | ) | (6.9 | ) | - | - | - | (35.8 | ) | |||||||||
| Income from equity method investments | - | - | - | 0.7 | - | 0.7 | ||||||||||||
| Other | 1.1 | 0.3 | - | - | - | 1.4 | ||||||||||||
| Gain on derivative instruments | 3.2 | 2.0 | 0.1 | - | - | 5.3 | ||||||||||||
| Net Income / (Loss) | $ | 196.2 | $ | 0.8 | $ | (3.5 | ) | $ | 0.7 | $ | - | $ | 194.2 | |||||
(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 decreased by
Voyage revenue adjusted on a cash basis (which eliminates non-cash “Accrued charter revenue”) decreased by
Voyage Expenses
Voyage expenses were
Voyage Expenses – related parties
Voyage expenses – related parties were
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
General and Administrative Expenses
General and administrative expenses were
Management and Agency Fees – related parties
Management fees charged by our related party managers were
General and Administrative Expenses - non-cash component
General and administrative expenses - non-cash component for the three-month period ended December 31, 2022 amounted to
Amortization of Dry-Docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs was
Depreciation
Depreciation expense for the three-month periods ended December 31, 2022 and 2021 was
Gain on Sale of Vessels, net
During the three-month period ended December 31, 2022, we recorded a gain of
Vessels’ Impairment Loss
During the three-month period ended December 31, 2022, we recorded an impairment loss in relation to four of our dry bulk vessels in the amount of
Vessels Held for Sale
As of December 31, 2022, the container vessels Sealand Washington and Maersk Kalamata (initially classified as vessels held for sale during the first quarter of 2022) continue to be classified as vessels held for sale. No loss on vessels held for sale was recorded during the fourth quarter of 2022, since each vessel’s fair value less cost to sell, exceeded each vessel’s carrying value. During the three-month period ended December 31, 2021, the container vessels Messini, Sealand Illinois, Sealand Michigan and York were classified as vessels held for sale. No loss on vessels held for sale was recorded during the fourth quarter of 2021, since each vessel’s estimated fair value less costs to sell, exceeded each vessel’s carrying value.
Interest Income
Interest income amounted to
Interest and Finance Costs
Interest and finance costs were
Gain on Sale of Equity Securities
Gain on sale of equity securities of
Income from Equity Method Investments
Income from equity method investments for the three-month period ended December 31, 2022 was
Gain on Derivative Instruments
As of December 31, 2022, we hold 28 interest rate derivatives and two cross currency rate swaps, all of which qualify for hedge accounting. As a result, the change in the fair value of each instrument is recorded in “Other Comprehensive Income” (“OCI”). As of December 31, 2022, the fair value of these instruments, in aggregate, amounted to a net asset of
Furthermore, as of December 31, 2022, we hold six Forward Freight Agreements (“FFAs”) and one Bunker Swap agreement, none of which qualify for hedge accounting. As a result, the change in the fair value of such instruments is recorded in the consolidated statements of operations. As of December 31, 2022, the fair value of these instruments, in aggregate, amounted to a net asset of
Cash Flows
Three-month periods ended December 31, 2022 and 2021
| Condensed cash flows | Three-month period ended December 31, | |||||||
| (Expressed in millions of U.S. dollars) | 2021 | 2022 | ||||||
| Net Cash Provided by Operating Activities | $ | 165.4 | $ | 124.4 | ||||
| Net Cash Provided by / (Used in) Investing Activities | $ | (110.2 | ) | $ | 81.9 | |||
| Net Cash Used in Financing Activities | $ | - | $ | (110.6 | ) | |||
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the three-month period ended December 31, 2022, decreased by
Net Cash Provided by / (Used in) Investing Activities
Net cash provided by investing activities was
Net cash used in investing activities was
Net Cash Used in Financing Activities
Net cash used in financing activities was
Net cash used in financing activities was nil in the three-month period ended December 31, 2021, which mainly consisted of (a)
Year ended December 31, 2022 compared to the year ended December 31, 2021
During the years ended December 31, 2022 and 2021, we had an average of 116.7 and 83.6 vessels, respectively, in our fleet.
In the year ended December 31, 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 year ended December 31, 2022, we sold the container vessels Messini, Sealand Michigan, Sealand Illinois and York with an aggregate TEU capacity of 22,402, and the dry bulk vessel Thunder, with DWT of 57,334.
Furthermore, during the fourth quarter of 2022, CBI commenced operations. CBI charters-in/out dry bulk vessels, enters into contracts of affreightment, forward freight agreements and may also utilize hedging solutions.
In the year ended December 31, 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, Porto Germeno, and Gialova with an aggregate TEU capacity of 49,909; and we sold the container vessels Halifax Express, Prosper, Venetiko, ZIM Shanghai and ZIM New York with an aggregate TEU capacity of 22,306 and (ii) we acquired (a) the
In addition, in the year ended December 31, 2021, we acquired all of the equity interest of sixteen companies (which owned or had committed to acquire dry bulk vessels) owned by entities affiliated with 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 did not receive a profit as a result of the acquisition. The sixteen dry bulk vessels (Pegasus, Builder, Adventure, Eracle, Peace, Sauvan, Pride, Alliance, Manzanillo, Acuity, Seabird, Aeolian, Comity, Athena, Farmer and Greneta) that were part of the acquisition had an aggregate DWT of 932,329 and were delivered to us during the year ended December 31, 2021. In addition, in the year ended December 31, 2021, we accepted delivery of another twenty-seven secondhand dry bulk vessels (Bernis, Verity, Dawn, Discovery, Clara, Serena, Merida, Progress, Miner, Parity, Uruguay, Resource, Konstantinos, Taibo, Thunder, Equity, Cetus, Curacao, Rose, Bermondi, Titan I, Orion, Merchia, Damon, Pythias, Hydrus and Phoenix) with an aggregate DWT of 1,388,422.
In the years ended December 31, 2022 and 2021, our fleet ownership days totaled 42,595 and 30,525 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, except percentages) | Year ended December 31, | ||||||||||||||
| 2021 | 2022 | Change | Percentage Change | ||||||||||||
| Voyage revenue | $ | 793.6 | $ | 1,113.9 | $ | 320.3 | 40.4 | % | |||||||
| Voyage expenses | (13.3 | ) | (49.1 | ) | 35.8 | n.m. | |||||||||
| Voyage expenses – related parties | (11.1 | ) | (15.4 | ) | 4.3 | 38.7 | % | ||||||||
| Vessels’ operating expenses | (180.0 | ) | (269.2 | ) | 89.2 | 49.6 | % | ||||||||
| General and administrative expenses | (9.4 | ) | (12.4 | ) | 3.0 | 31.9 | % | ||||||||
| Management and agency fees – related parties | (29.6 | ) | (46.7 | ) | 17.1 | 57.8 | % | ||||||||
| General and administrative expenses – non-cash component | (7.4 | ) | (7.1 | ) | (0.3 | ) | (4.1 | %) | |||||||
| Amortization of dry-docking and special survey costs | (10.4 | ) | (13.5 | ) | 3.1 | 29.8 | % | ||||||||
| Depreciation | (137.0 | ) | (166.0 | ) | 29.0 | 21.2 | % | ||||||||
| Gain on sale of vessels, net | 45.9 | 126.3 | 80.4 | 175.2 | % | ||||||||||
| Vessels’ impairment loss | - | (1.7 | ) | 1.7 | n.m. | ||||||||||
| Foreign exchange gains | 0.1 | 3.2 | 3.1 | n.m. | |||||||||||
| Interest income | 1.6 | 5.9 | 4.3 | n.m. | |||||||||||
| Interest and finance costs | (86.1 | ) | (122.2 | ) | 36.1 | 41.9 | % | ||||||||
| Gain on sale of equity securities | 60.2 | - | (60.2 | ) | n.m. | ||||||||||
| Income from equity method investments | 12.8 | 2.3 | (10.5 | ) | (82.0 | %) | |||||||||
| Dividend income from investment in equity securities | 1.8 | - | (1.8 | ) | n.m. | ||||||||||
| Other | 4.6 | 3.7 | (0.9 | ) | (19.6 | %) | |||||||||
| Gain / (loss) on derivative instruments | (1.2 | ) | 2.7 | 3.9 | n.m. | ||||||||||
| Net Income | $ | 435.1 | $ | 554.7 | |||||||||||
| (Expressed in millions of U.S. dollars, except percentages) | Year ended December 31, | ||||||||||||||
| 2021 | 2022 | Change | Percentage Change | ||||||||||||
| Voyage revenue | $ | 793.6 | $ | 1,113.9 | $ | 320.3 | 40.4 | % | |||||||
| Accrued charter revenue | (11.3 | ) | (2.6 | ) | 8.7 | 77.0 | % | ||||||||
| Amortization of time charter assumed | (0.4 | ) | 0.2 | 0.6 | n.m. | ||||||||||
| Voyage revenue adjusted on a cash basis (1) | $ | 781.9 | $ | 1,111.5 | $ | 329.6 | 42.2 | % | |||||||
| Vessels’ operational data | Year ended December 31, | ||||||||||||||
| 2021 | 2022 | Change | Percentage Change | ||||||||||||
| Average number of vessels | 83.6 | 116.7 | 33.1 | 39.6 | % | ||||||||||
| Ownership days | 30,525 | 42,595 | 12,070 | 39.5 | % | ||||||||||
| Number of vessels under dry-docking and special survey | 15 | 23 | 8 | ||||||||||||
Segmental Financial Summary
| Year ended December 31, 2021 | |||||||||||
| (Expressed in millions of U.S. dollars) | Container vessels | Dry bulk vessels (2) | Other | Total | |||||||
| Voyage revenue | $ | 678.3 | $ | 115.3 | $ | - | $ | 793.6 | |||
| Voyage expenses | (7.1 | ) | (6.2 | ) | - | (13.3 | ) | ||||
| Voyage expenses – related parties | (9.6 | ) | (1.5 | ) | - | (11.1 | ) | ||||
| Vessels’ operating expenses | (151.5 | ) | (28.5 | ) | - | (180.0 | ) | ||||
| General and administrative expenses | (8.2 | ) | (1.2 | ) | - | (9.4 | ) | ||||
| Management fees – related parties | (24.9 | ) | (4.7 | ) | - | (29.6 | ) | ||||
| General and administrative expenses – non-cash component | (6.3 | ) | (1.1 | ) | - | (7.4 | ) | ||||
| Amortization of dry-docking and special survey costs | (10.3 | ) | (0.1 | ) | - | (10.4 | ) | ||||
| Depreciation | (125.8 | ) | (11.2 | ) | - | (137.0 | ) | ||||
| Gain on sale of vessels, net | 45.9 | - | - | 45.9 | |||||||
| Foreign exchange gains | 0.1 | - | - | 0.1 | |||||||
| Interest income | 1.6 | - | - | 1.6 | |||||||
| Interest and finance costs | (81.9 | ) | (4.2 | ) | - | (86.1 | ) | ||||
| Gain on sale of equity securities | - | - | 60.2 | 60.2 | |||||||
| Income from equity method investments | - | - | 12.8 | 12.8 | |||||||
| Dividend income from investment in equity securities | - | - | 1.8 | 1.8 | |||||||
| Other | 4.3 | 0.3 | - | 4.6 | |||||||
| Loss on derivative instruments | (1.1 | ) | (0.1 | ) | - | (1.2 | ) | ||||
| Net Income | $ | 303.5 | $ | 56.8 | $ | 74.8 | $ | 435.1 | |||
| Year ended December 31, 2022 | |||||||||||||||||
| (Expressed in millions of U.S. dollars) | Container vessels | Dry bulk vessels | CBI | Other | Eliminations | Total | |||||||||||
| Voyage revenue | $ | 797.4 | $ | 316.1 | $ | 0.4 | $ | - | $ | - | $ | 1,113.9 | |||||
| Intersegment voyage revenue | - | 0.8 | - | - | (0.8 | ) | - | ||||||||||
| Voyage expenses | (11.4 | ) | (37.6 | ) | (0.1 | ) | - | - | (49.1 | ) | |||||||
| Intersegment voyage expenses | - | - | (0.8 | ) | - | 0.8 | - | ||||||||||
| Voyage expenses – related parties | (11.4 | ) | (4.0 | ) | - | - | - | (15.4 | ) | ||||||||
| Vessels’ operating expenses | (169.4 | ) | (99.8 | ) | - | - | - | (269.2 | ) | ||||||||
| General and administrative expenses | (7.7 | ) | (4.4 | ) | (0.3 | ) | - | - | (12.4 | ) | |||||||
| Management and agency fees– related parties | (27.0 | ) | (16.9 | ) | (2.8 | ) | - | - | (46.7 | ) | |||||||
| General and administrative expenses - non-cash component | (4.4 | ) | (2.7 | ) | - | - | - | (7.1 | ) | ||||||||
| Amortization of dry-docking and special survey costs | (11.8 | ) | (1.7 | ) | - | - | - | (13.5 | ) | ||||||||
| Depreciation | (126.3 | ) | (39.7 | ) | - | - | - | (166.0 | ) | ||||||||
| Gain on sale of vessels, net | 122.8 | 3.5 | - | - | - | 126.3 | |||||||||||
| Vessels’ impairment loss | - | (1.7 | ) | - | - | - | (1.7 | ) | |||||||||
| Foreign exchange gains | 2.2 | 1.0 | - | - | - | 3.2 | |||||||||||
| Interest income | 3.6 | 2.3 | - | - | - | 5.9 | |||||||||||
| Interest and finance costs | (101.9 | ) | (20.3 | ) | - | - | - | (122.2 | ) | ||||||||
| Income from equity method investments | - | - | - | 2.3 | - | 2.3 | |||||||||||
| Other | 2.3 | 1.4 | - | - | - | 3.7 | |||||||||||
| Gain on derivative instruments | 1.5 | 1.1 | 0.1 | - | - | 2.7 | |||||||||||
| Net Income / (Loss) | $ | 458.5 | $ | 97.4 | $ | (3.5 | ) | $ | 2.3 | $ | - | $ | 554.7 | ||||
(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.
(2) The results of dry bulk vessels are included from June 14, 2021. Prior to that, our results were attributable to container vessels only.
Voyage Revenue
Voyage revenue increased by
Voyage revenue adjusted on a cash basis (which eliminates non-cash “Accrued charter revenue”), increased by
Voyage Expenses
Voyage expenses were
Voyage Expenses – related parties
Voyage expenses – related parties were
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
General and Administrative Expenses
General and administrative expenses were
Management and Agency Fees – related parties
Management fees charged by our related party managers were
General and Administrative Expenses – non-cash component
General and administrative expenses – non-cash component for the year ended December 31, 2022 amounted to
Amortization of Dry-Docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs was
Depreciation
Depreciation expense for the years ended December 31, 2022 and 2021 was
Gain on Sale of Vessels, net
During the year ended December 31, 2022, we recorded an aggregate gain of
Vessels’ Impairment Loss
During the year ended December 31, 2022, we recorded an impairment loss in relation to four of our dry bulk vessels in the amount of
Vessels Held for Sale
During the year ended December 31, 2022, the container vessels Sealand Washington and Maersk Kalamata were classified as vessels held for sale. No loss on vessels held for sale was recorded during the year ended December 31, 2022, since each vessel’s fair value less cost to sell, exceeded each vessel’s carrying value. During the year ended December 31, 2021, the container vessels Messini, Sealand Illinois, Sealand Michigan and York were classified as vessels held for sale. No loss on vessels held for sale was recorded since each vessel’s estimated fair value less costs to sell exceeded each vessel’s carrying value.
Interest Income
Interest income amounted to
Interest and Finance Costs
Interest and finance costs were
Gain on Sale of Equity Securities / Dividend Income from Investment in Equity Securities
The gain on sale of equity securities of
Income from Equity Method Investments
Income from equity method investments for the year ended December 31, 2022, was
Gain / (loss) on Derivative Instruments
As of December 31, 2022, we hold 28 interest rate derivatives and two cross currency rate swaps, all of which qualify for hedge accounting. As a result, the change in the fair value of each instrument is recorded in “Other Comprehensive Income” (“OCI”). As of December 31, 2022, the fair value of these instruments, in aggregate, amounted to a net asset of
Furthermore, as of December 31, 2022, we hold six FFAs and one Bunker Swap agreement, none of which qualify for hedge accounting. As a result, the change in the fair value of such instruments is recorded in the consolidated statements of operations. As of December 31, 2022, the fair value of these instruments, in aggregate, amounted to a net asset of
Cash Flows
Years ended December 31, 2022 and 2021
| Condensed cash flows | Years ended December 31, | |||||||
| (Expressed in millions of U.S. dollars) | 2021 | 2022 | ||||||
| Net Cash Provided by Operating Activities | $ | 466.5 | $ | 581.6 | ||||
| Net Cash Provided by / (Used in) Investing Activities | $ | (787.5 | ) | $ | 42.5 | |||
| Net Cash Provided by / (Used in) Financing Activities | $ | 482.6 | $ | (166.1 | ) | |||
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the year ended December 31, 2022, increased by
Net Cash Provided by / (Used in) Investing Activities
Net cash provided by investing activities was
Net cash used in investing activities was
Net Cash Provided by / (Used in) Financing Activities
Net cash used in financing activities was
Net cash provided by financing activities was
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of December 31, 2022, we had Cash and cash equivalents (including restricted cash) of
Debt-free vessels
As of February 8, 2023, the following vessels were free of debt.
| Unencumbered Vessels (Refer to Fleet list for full details) | ||||||||
| Vessel Name | Year Built | TEU Capacity | ||||||
| Containerships | ||||||||
| KURE | 1996 | 7,403 | ||||||
| MAERSK KOWLOON | 2005 | 7,471 | ||||||
| SEALAND WASHINGTON | 2000 | 6,648 | ||||||
| ETOILE | 2005 | 2,556 | ||||||
| MICHIGAN | 2008 | 1,300 | ||||||
| MONEMVASIA (*) | 1998 | 2,472 | ||||||
| ARKADIA (*) | 2001 | 1,550 | ||||||
(*) Vessels acquired pursuant to the Framework Deed.
Conference Call details:
On Wednesday, February 8, 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 February 15, 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: 8914429.
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 72 containerships, with a total capacity of approximately 531,000 TEU (including one vessel that we have agreed to sell) and 45 dry bulk vessels with a total capacity of approximately 2,436,000 DWT. The Company also has a dry bulk operating platform which charters in/out dry bulk vessels, enters into contracts of affreightment and utilizes hedging solutions. Four of our containerships have been acquired pursuant to the Framework Deed with York by vessel-owning joint venture companies in which we hold a minority equity interest. The Company’s common stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock trade on the New York Stock Exchange under the symbols “CMRE”, “CMRE PR B”, “CMRE PR C”, “CMRE PR D” and “CMRE PR E”, respectively.
Forward-Looking Statements
This earnings release contains “forward-looking statements”. In some cases, you can identify these statements by forward-looking words such as “believe”, “intend”, “anticipate”, “estimate”, “project”, “forecast”, “plan”, “potential”, “may”, “should”, “could”, “expect” and similar expressions. These statements are not historical facts but instead represent only Costamare’s belief regarding future results, many of which, by their nature, are inherently uncertain and outside of Costamare’s control. It is possible that actual results may differ, possibly materially, from those anticipated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect future results, see the discussion in the Company’s Annual Report on Form 20-F (File No. 001-34934) under the caption “Risk Factors”.
Company Contacts:
Gregory Zikos – Chief Financial Officer
Konstantinos Tsakalidis – Business Development
Costamare Inc., Monaco
Tel: (+377) 93 25 09 40
Email: ir@costamare.com
Containership Fleet List
The table below provides additional information, as of February 8, 2023, about our fleet of containerships, including the vessel 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 | Evergreen | 2016 | 14,424 | (*) | March 2026 |
| 2 | TITAN(ii) | Evergreen | 2016 | 14,424 | (*) | April 2026 |
| 3 | TALOS(ii) | Evergreen | 2016 | 14,424 | (*) | July 2026 |
| 4 | TAURUS(ii) | Evergreen | 2016 | 14,424 | (*) | August 2026 |
| 5 | THESEUS(ii) | Evergreen | 2016 | 14,424 | (*) | August 2026 |
| 6 | YM TRIUMPH(ii) | Yang Ming | 2020 | 12,690 | (*) | May 2030 |
| 7 | YM TRUTH(ii) | Yang Ming | 2020 | 12,690 | (*) | May 2030 |
| 8 | YM TOTALITY(ii) | Yang Ming | 2020 | 12,690 | (*) | July 2030 |
| 9 | YM TARGET(ii) | Yang Ming | 2021 | 12,690 | (*) | November 2030 |
| 10 | YM TIPTOP(ii) | Yang Ming | 2021 | 12,690 | (*) | March 2031 |
| 11 | CAPE AKRITAS | MSC | 2016 | 11,010 | 33,000 | August 2031 |
| 12 | CAPE TAINARO | MSC | 2017 | 11,010 | 33,000 | April 2031 |
| 13 | CAPE KORTIA | MSC | 2017 | 11,010 | 33,000 | August 2031 |
| 14 | CAPE SOUNIO | MSC | 2017 | 11,010 | 33,000 | April 2031 |
| 15 | CAPE ARTEMISIO | Hapag Lloyd/(*) | 2017 | 11,010 | 36,650/(*) | March 2030(3) |
| 16 | ZIM SHANGHAI (ex. COSCO GUANGZHOU) | ZIM | 2006 | 9,469 | 72,700 | July 2025 |
| 17 | ZIM YANTIAN (ex. COSCO NINGBO) | ZIM | 2006 | 9,469 | 72,700 | June 2025 |
| 18 | YANTIAN | COSCO | 2006 | 9,469 | 39,600 | February 2024 |
| 19 | COSCO HELLAS | COSCO | 2006 | 9,469 | 39,600 | February 2024 |
| 20 | BEIJING | COSCO | 2006 | 9,469 | 39,600 | March 2024 |
| 21 | MSC AZOV | MSC | 2014 | 9,403 | 46,300 | December 2026(4) |
| 22 | MSC AMALFI | MSC | 2014 | 9,403 | 46,300 | March 2027(5) |
| 23 | MSC AJACCIO | MSC | 2014 | 9,403 | 46,300 | February 2027(6) |
| 24 | MSC ATHENS | MSC | 2013 | 8,827 | 35,300 | January 2026 |
| 25 | MSC ATHOS | MSC | 2013 | 8,827 | 45,300 | February 2026(7) |
| 26 | VALOR | Hapag Lloyd/(*) | 2013 | 8,827 | 32,400/(*) | April 2030(8) |
| 27 | VALUE | Hapag Lloyd/(*) | 2013 | 8,827 | 32,400/(*) | April 2030(9) |
| 28 | VALIANT | Hapag Lloyd/(*) | 2013 | 8,827 | 32,400/(*) | June 2030(10) |
| 29 | VALENCE | Hapag Lloyd/(*) | 2013 | 8,827 | 32,400/(*) | July 2030(11) |
| 30 | VANTAGE | Hapag Lloyd/(*) | 2013 | 8,827 | 32,400/(*) | September 2030(12) |
| 31 | NAVARINO | MSC/(*) | 2010 | 8,531 | 31,000/(*) | March 2029(13) |
| 32 | MAERSK KLEVEN | Maersk/MSC | 1996 | 8,044 | 25,000/41,500 | June 2026(14) |
| 33 | MAERSK KOTKA | Maersk/MSC | 1996 | 8,044 | 25,000/41,500 | June 2026(14) |
| 34 | MAERSK KOWLOON | Maersk | 2005 | 7,471 | 18,500 | August 2025 |
| 35 | KURE | COSCO/MSC | 1996 | 7,403 | 31,000/41,500 | March 2026(15) |
| 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 | SEALAND WASHINGTON(iii) | - | 2000 | 6,648 | vessel agreed to be sold | |
| 40 | ZIM VIETNAM (ex. MAERSK KOLKATA) | ZIM | 2003 | 6,644 | 53,000 | October 2025 |
| 41 | ZIM AMERICA (ex. MAERSK KINGSTON) | ZIM | 2003 | 6,644 | 53,000 | October 2025 |
| 42 | ARIES | (*)/(*) | 2004 | 6,492 | (*)/58,500 | March 2026(16) |
| 43 | ARGUS | (*)/(*) | 2004 | 6,492 | (*)/58,500 | April 2026(17) |
| 44 | PORTO KAGIO | Maersk | 2002 | 5,908 | 28,822 | June 2026 |
| 45 | GLEN CANYON | ZIM | 2006 | 5,642 | 62,500 | June 2025 |
| 46 | PORTO GERMENO | Maersk | 2002 | 5,570 | 28,822 | June 2026 |
| 47 | LEONIDIO | Maersk | 2014 | 4,957 | 14,200 | December 2024(18) |
| 48 | KYPARISSIA | Maersk | 2014 | 4,957 | 14,200 | November 2024(18) |
| 49 | MEGALOPOLIS | Maersk | 2013 | 4,957 | 13,500 | July 2025(19) |
| 50 | MARATHOPOLIS | Maersk | 2013 | 4,957 | 13,500 | July 2025(19) |
| 51 | OAKLAND | CMA CGM | 2000 | 4,890 | 21,000 | May 2023 |
| 52 | GIALOVA | ZIM | 2009 | 4,578 | 25,500 | April 2024 |
| 53 | DYROS | Maersk | 2008 | 4,578 | 22,750 | January 2024 |
| 54 | NORFOLK | Maersk | 2009 | 4,259 | 30,000 | May 2023 |
| 55 | VULPECULA | OOCL/ZIM | 2010 | 4,258 | 22,700/43,250 (on average) | March 2028(20) |
| 56 | VOLANS | ZIM | 2010 | 4,258 | 24,250 | April 2024 |
| 57 | VIRGO | Maersk | 2009 | 4,258 | 30,200 | February 2024 |
| 58 | VELA | OOCL/ZIM | 2009 | 4,258 | 22,700/43,250 (on average) | March 2028(21) |
| 59 | ANDROUSA | Maersk | 2010 | 4,256 | 22,750 | May 2023 |
| 60 | NEOKASTRO | CMA CGM | 2011 | 4,178 | 39,000 | February 2027 |
| 61 | ULSAN | Maersk | 2002 | 4,132 | 34,730 | January 2026 |
| 62 | POLAR ARGENTINA(i)(ii) | Maersk | 2018 | 3,800 | 19,700 | October 2024(22) |
| 63 | POLAR BRASIL(i)(ii) | Maersk | 2018 | 3,800 | 19,700 | January 2025(22) |
| 64 | LAKONIA | COSCO | 2004 | 2,586 | 26,500 | March 2025 |
| 65 | SCORPIUS | Hapag Lloyd | 2007 | 2,572 | 17,750 | June 2023 |
| 66 | ETOILE | (*)/(*) | 2005 | 2,556 | (*)/(*) | March 2026(23) |
| 67 | AREOPOLIS | COSCO | 2000 | 2,474 | 26,500 | April 2025 |
| 68 | MONEMVASIA(i) | CMA CGM | 1998 | 2,472 | 17,300 | April 2023 |
| 69 | ARKADIA(i) | Swire Shipping | 2001 | 1,550 | 21,500 | May 2023 |
| 70 | MICHIGAN | MSC/(*) | 2008 | 1,300 | 18,700/(*) | October 2025(24) |
| 71 | TRADER | (*)/(*) | 2008 | 1,300 | (*)/(*) | October 2026(25) |
| 72 | LUEBECK | MSC/(*) | 2001 | 1,078 | 15,000/(*) | April 2026(26) |
(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
(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
(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
(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
(7) 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
(8) Valor is currently chartered to Hapag Lloyd at a daily rate of
(9) Value is currently chartered to Hapag Lloyd at a daily rate of
(10) Valiant is currently chartered to Hapag Lloyd at a daily rate of
(11) Valence is currently chartered to Hapag Lloyd at a daily rate of
(12) Vantage is currently chartered to Hapag Lloyd at a daily rate of
(13) Navarino is currently chartered to MSC at a daily rate of
(14) The current daily rate of each of Maersk Kleven and Maersk Kotka is a base rate of
(15) Upon redelivery of Kure from COSCO between March 2023 and July 2023, the vessel will commence a new charter with MSC for a period of 36 to 38 months at a daily rate of
(16) Vessel’s daily charter rate will be
(17) Vessel’s daily charter rate will be
(18) Charterer has the option to extend the current time charter for an additional period of 12 to 24 months at a daily rate of
(19) Charterer has the option to extend the current time charter for an additional period of approximately 24 months at a daily rate of
(20) Vulpecula is currently chartered to OOCL at a daily rate of
(21) Vela is currently chartered to OOCL at a daily rate of
(22) Charterer has the option to extend the current time charter for three additional one-year periods at a daily rate of
(23) Etoile is currently chartered at an undisclosed rate until March 2023, at the earliest. Upon redelivery of the vessel from its current charterer the vessel will commence a new charter with a leading liner company for a period of 36 to 39 months at an undisclosed rate.
(24) Michigan is currently chartered to MSC at a daily rate of
(25) 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.
(26) Luebeck is currently chartered to MSC at a daily rate of
(i) Denotes vessels acquired pursuant to the Framework Deed. The Company holds an equity interest of
(ii) Denotes vessels subject to a sale and leaseback transaction.
(iii) Denotes vessel 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.
Dry Bulk Vessel Fleet List
The table below provides information, as of February 8, 2023, about our fleet of dry bulk vessels.
| | Vessel Name | Year Built | Capacity (DWT) |
| 1 | AEOLIAN | 2012 | 83,478 |
| 2 | GRENETA | 2010 | 82,166 |
| 3 | HYDRUS | 2011 | 81,601 |
| 4 | PHOENIX | 2012 | 81,569 |
| 5 | BUILDER | 2012 | 81,541 |
| 6 | FARMER | 2012 | 81,541 |
| 7 | SAUVAN | 2010 | 79,700 |
| 8 | ROSE | 2008 | 76,619 |
| 9 | MERCHIA | 2015 | 63,800 |
| 10 | SEABIRD | 2016 | 63,553 |
| 11 | DAWN | 2018 | 63,530 |
| 12 | ORION | 2015 | 63,473 |
| 13 | DAMON | 2012 | 63,227 |
| 14 | TITAN I | 2009 | 58,090 |
| 15 | ERACLE | 2012 | 58,018 |
| 16 | PYTHIAS | 2010 | 58,018 |
| 17 | NORMA | 2010 | 58,018 |
| 18 | ORACLE | 2009 | 57,970 |
| 19 | CURACAO | 2011 | 57,937 |
| 20 | URUGUAY | 2011 | 57,937 |
| 21 | ATHENA | 2012 | 57,809 |
| 22 | SERENA | 2010 | 57,266 |
| 23 | LIBRA | 2010 | 56,729 |
| 24 | PEGASUS | 2011 | 56,726 |
| 25 | MERIDA | 2012 | 56,670 |
| 26 | CLARA | 2008 | 56,557 |
| 27 | PEACE | 2006 | 55,709 |
| 28 | PRIDE | 2006 | 55,705 |
| 29 | BERMONDI | 2009 | 55,469 |
| 30 | COMITY | 2010 | 37,302 |
| 31 | VERITY | 2012 | 37,163 |
| 32 | PARITY | 2012 | 37,152 |
| 33 | ACUITY | 2011 | 37,149 |
| 34 | EQUITY | 2013 | 37,071 |
| 35 | DISCOVERY | 2012 | 37,019 |
| 36 | TAIBO | 2011 | 35,112 |
| 37 | BERNIS | 2011 | 34,627 |
| 38 | MANZANILLO | 2010 | 34,426 |
| 39 | ADVENTURE | 2011 | 33,755 |
| 40 | ALLIANCE | 2012 | 33,751 |
| 41 | CETUS | 2010 | 32,527 |
| 42 | PROGRESS | 2011 | 32,400 |
| 43 | MINER | 2010 | 32,300 |
| 44 | KONSTANTINOS | 2012 | 32,178 |
| 45 | RESOURCE | 2010 | 31,776 |
| Consolidated Statements of Income | |||||||||||||||
| Year ended December 31, | Three-months ended December 31, | ||||||||||||||
| (Expressed in thousands of U.S. dollars, except share and per share amounts) | 2021 | 2022 | 2021 | 2022 | |||||||||||
| (Audited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| REVENUES: | |||||||||||||||
| Voyage revenue | $ | 793,639 | $ | 1,113,859 | $ | 283,918 | $ | 265,431 | |||||||
| EXPENSES: | |||||||||||||||
| Voyage expenses | (13,311 | ) | (49,069 | ) | (5,831 | ) | (15,055 | ) | |||||||
| Voyage expenses – related parties | (11,089 | ) | (15,418 | ) | (3,750 | ) | (3,692 | ) | |||||||
| Vessels’ operating expenses | (179,981 | ) | (269,231 | ) | (60,665 | ) | (70,901 | ) | |||||||
| General and administrative expenses | (9,405 | ) | (12,440 | ) | (3,445 | ) | (3,150 | ) | |||||||
| Management and agency fees – related parties | (29,621 | ) | (46,735 | ) | (9,682 | ) | (13,867 | ) | |||||||
| General and administrative expenses – non-cash component | (7,414 | ) | (7,089 | ) | (1,891 | ) | (1,388 | ) | |||||||
| Amortization of dry-docking and special survey costs | (10,433 | ) | (13,486 | ) | (2,869 | ) | (4,027 | ) | |||||||
| Depreciation | (136,958 | ) | (165,998 | ) | (40,948 | ) | (41,762 | ) | |||||||
| Gain on sale of vessels, net | 45,894 | 126,336 | 27,819 | 105,086 | |||||||||||
| Vessels’ impairment loss | - | (1,691 | ) | - | (1,691 | ) | |||||||||
| Foreign exchange gains / (losses) | 29 | 3,208 | (118 | ) | 2,653 | ||||||||||
| Operating income | $ | 441,350 | $ | 662,246 | $ | 182,538 | $ | 217,637 | |||||||
| OTHER EXPENSES: | |||||||||||||||
| Interest income | $ | 1,587 | $ | 5,956 | $ | 33 | $ | 4,863 | |||||||
| Interest and finance costs | (86,047 | ) | (122,233 | ) | (25,254 | ) | (35,789 | ) | |||||||
| Income from equity method investments | 12,859 | 2,296 | 854 | 703 | |||||||||||
| Gain on sale of equity securities | 60,161 | - | 2,017 | - | |||||||||||
| Dividend income from investment in equity securities | 1,833 | - | - | - | |||||||||||
| Other | 4,624 | 3,729 | 993 | 1,430 | |||||||||||
| Gain / (loss) on derivative instruments | (1,246 | ) | 2,698 | (27 | ) | 5,332 | |||||||||
| Total other expenses | $ | (6,229 | ) | $ | (107,554 | ) | $ | (21,384 | ) | $ | (23,461 | ) | |||
| Net Income | $ | 435,121 | $ | 554,692 | $ | 161,154 | $ | 194,176 | |||||||
| Earnings allocated to Preferred Stock | (31,068 | ) | (31,068 | ) | (7,767 | ) | (7,767 | ) | |||||||
| Non-controlling interest | - | 263 | - | 263 | |||||||||||
| Net Income available to common stockholders | $ | 404,053 | $ | 523,887 | $ | 153,387 | $ | 186,672 | |||||||
| Earnings per common share, basic and diluted | $ | 3.28 | $ | 4.26 | $ | 1.24 | $ | 1.53 | |||||||
| Weighted average number of shares, basic and diluted | 123,070,730 | 122,964,358 | 123,737,763 | 121,983,112 | |||||||||||
| COSTAMARE INC. Consolidated Balance Sheets | ||||||
| (Expressed in thousands of U.S. dollars) | As of December 31, 2021 | As of December 31, 2022 | ||||
| ASSETS | (Audited) | (Unaudited) | ||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 276,002 | $ | 718,049 | ||
| Restricted cash | 8,856 | 9,768 | ||||
| Short-term investments | - | 120,014 | ||||
| Accounts receivable | 20,978 | 26,943 | ||||
| Inventories | 21,365 | 28,039 | ||||
| Due from related parties | - | 3,838 | ||||
| Fair value of derivatives | - | 25,660 | ||||
| Insurance claims receivable | 3,970 | 5,410 | ||||
| Asset held for sale | 78,799 | 55,195 | ||||
| Time charter assumed | 198 | 199 | ||||
| Accrued charter revenue | 7,361 | 10,885 | ||||
| Prepayments and other | 8,595 | 10,622 | ||||
| Total current assets | $ | 426,124 | $ | 1,014,622 | ||
| FIXED ASSETS, NET: | ||||||
| Right-of-use assets | $ | 191,303 | $ | - | ||
| Vessels and advances, net | 3,650,192 | 3,666,861 | ||||
| Total fixed assets, net | $ | 3,841,495 | $ | 3,666,861 | ||
| NON-CURRENT ASSETS: | ||||||
| Equity method investments | $ | 19,872 | $ | 20,971 | ||
| Deferred charges, net | 31,859 | 55,035 | ||||
| Accounts receivable, non-current | 5,076 | 5,261 | ||||
| Restricted cash | 68,670 | 83,741 | ||||
| Fair value of derivatives, non-current | 3,429 | 37,643 | ||||
| Accrued charter revenue, non-current | 8,183 | 11,627 | ||||
| Time charter assumed, non-current | 667 | 468 | ||||
| Other non-current assets | 1,666 | - | ||||
| Total assets | $ | 4,407,041 | $ | 4,896,229 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Current portion of long-term debt | $ | 272,365 | $ | 320,114 | ||
| Accounts payable | 18,865 | 18,155 | ||||
| Due to related parties | 1,694 | 2,332 | ||||
| Finance lease liabilities | 16,676 | - | ||||
| Accrued liabilities | 27,304 | 51,551 | ||||
| Unearned revenue | 23,830 | 25,227 | ||||
| Fair value of derivatives | 6,876 | 2,255 | ||||
| Other current liabilities | 2,417 | 3,456 | ||||
| Total current liabilities | $ | 370,027 | $ | 423,090 | ||
| NON-CURRENT LIABILITIES | ||||||
| Long-term debt, net of current portion | $ | 2,169,718 | $ | 2,264,507 | ||
| Finance lease liabilities, net of current portion | 99,689 | - | ||||
| Fair value of derivatives, net of current portion | 7,841 | 13,655 | ||||
| Unearned revenue, net of current portion | 33,867 | 34,540 | ||||
| Total non-current liabilities | $ | 2,311,115 | $ | 2,312,702 | ||
| COMMITMENTS AND CONTINGENCIES | ||||||
| Temporary equity | $ | - | $ | 3,487 | ||
| STOCKHOLDERS’ EQUITY: | ||||||
| Preferred stock | $ | - | $ | - | ||
| Common stock | 12 | 12 | ||||
| Treasury stock | - | (60,095 | ) | |||
| Additional paid-in capital | 1,386,636 | 1,423,954 | ||||
| Retained earnings | 341,482 | 746,658 | ||||
| Accumulated other comprehensive income / (loss) | (2,231 | ) | 46,421 | |||
| Total stockholders’ equity | $ | 1,725,899 | $ | 2,156,950 | ||
| Total liabilities and stockholders’ equity | $ | 4,407,041 | $ | 4,896,229 | ||
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