Costamare Inc. Reports Results for the Fourth Quarter and Year Ended December 31, 2021
Costamare reported a record year with a net income of $404.1 million ($3.28 per share) for 2021 and $153.4 million ($1.24 per share) for Q4 2021. The company declared a $0.50 special dividend and maintained liquidity of $552 million. Significant vessel sales are anticipated to yield $150 million and $183 million, contributing to a total estimated capital gain of $235.8 million. New charter agreements have secured $1.4 billion in contracted revenues, with a total of $3.4 billion and a weighted average remaining charter duration of 4.2 years.
- Record net income of $404.1 million for 2021.
- Declared a special dividend of $0.50 per share.
- Anticipated vessel sales could generate a total of $235.8 million in capital gains.
- Secured $1.4 billion in new charter agreements extending total contracted revenues to $3.4 billion.
- Increased operating expenses were noted, rising from $117.1 million to $180 million for 2021.
- High interest and finance costs increased from $68.7 million to $86.1 million in 2021.
MONACO, March 09, 2022 (GLOBE NEWSWIRE) -- Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today reported unaudited financial results for the fourth quarter (“Q4 2021”) and year ended December 31, 2021.
I. RECORD PROFITABILITY FOR Q4 2021 AND YEAR ENDED 2021
- Year end Net Income available to common stockholders of
$404.1 million ($3.28 per share). - Q4 2021 Net Income available to common stockholders of
$153.4 million ($1.24 per share). - Year end Adjusted Net Income available to common stockholders1 of
$289.9 million ($2.36 per share). - Q4 2021 Adjusted Net Income available to common stockholders1 of
$112.1 million ($0.91 per share). - Year end liquidity of
$552 million 2.
_____________________
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
II. SPECIAL DIVIDEND
- The Company has decided to declare a special dividend of
$0.50 per common share. The special dividend will be in addition to the regular first quarter 2022 dividend and will be paid at the same time as, and using the same record date as, the regular first quarter 2022 dividend.
III. SALE AND PURCHASE ACTIVITY
Vessels Disposals
- Agreement for the sale with forward delivery of the below two containerships (average age 21 years):
- c/v Maersk Kalamata, 2003-built, 6,644 TEU capacity (latest expected date for the conclusion of the sale in Q1 2023).
- c/v Sealand Washington, 2000-built, 6,648 TEU capacity (latest expected date for the conclusion of the sale in Q1 2023).
Total gross sale proceeds are estimated to be
- Agreement for the sale with forward delivery of the below three containerships (average age 22 years):
- c/v Sealand Michigan, 2000-built, 6,648 TEU capacity (latest expected date for the conclusion of the sale in Q4 2022).
- c/v Sealand Illinois, 2000-built, 6,648 TEU capacity (latest expected date for the conclusion of the sale in Q4 2022).
- c/v York, 2000-built, 6,648 TEU capacity (latest expected date for the conclusion of the sale in Q4 2022).
Total gross sale proceeds are estimated to be
- Agreement for the sale of the 1997-built, 2,458 TEU containership Messini. The sale is expected to be concluded in Q1 2022 and will result in an estimated capital gain of
$17.8 million . - Conclusion of the sale of the 2002-built, 4,992 TEU containership ZIM New York, which resulted in a capital gain of approximately
$14.0 million . - Total estimated capital gains from vessel disposals of
$235.8 million .
Vessels Acquisitions
- Accepted delivery of the 2008-built, 4,578 TEU containership Dyros (ex. Co Kobe), which commenced its time charter with Maersk for a period of between 24.5 to 27.5 months. The vessel acquisition price was
$20.0 million . - Accepted delivery of another 11 dry bulk vessels (total delivered fleet of 45 vessels), with one additional vessel expected to be delivered in Q1 2022.
IV. NEW CHARTER ARRANGEMENTS3
- Entered into a total of 35 chartering agreements for our containerships with contracted revenues of
$1.4 billion in the aggregate since the beginning of 2021, bringing our contracted revenues to a total of$3.4 billion with a weighted average remaining time charter duration of 4.2 years4.
- Selected fixtures of the Company’s containerships since last quarter are shown below:
- Charter on a forward basis with latest delivery to the charterer in Q4 2023, three 1996-built vessels ranging between 7,400 to 8,000 TEU capacity, for a minimum fixed period of 36 months at a daily rate of
$41,500 each. More specifically:- c/v Kure of 7,403 TEU capacity and latest delivery to its new charterers in August 2023.
- c/v Maersk Kleven of 8,044 TEU capacity and latest delivery to its new charterers in October 2023.
- c/v Maersk Kotka of 8,044 TEU capacity and latest delivery to its new charterers in October 2023.
- Charter on a forward basis with latest delivery to the charterer in Q4 2022, two 2003-built vessels of 6,500 TEUs for a minimum fixed period of 36 months at a daily rate of
$53,000 each. More specifically:- c/v Maersk Kolkata of 6,644 TEU capacity and latest delivery to its new charterers in October 2022.
- c/v Maersk Kingston of 6,644 TEU capacity and latest delivery to its new charterers in October 2022.
- Charter on a forward basis with latest delivery to the charterer in Q2 2023, two 2009/2010-built vessels of 4,250 TEUs for a minimum fixed period of 60 months at an average daily rate of
$43,250 each. More specifically:- c/v Vela of 4,258 TEU capacity, latest delivery to its new charterers in April 2023 and at a daily charter rate for the first year of employment at
$99,000. - c/v Vulpecula of 4,258 TEU capacity, latest delivery to its new charterers in May 2023 and at a daily charter rate for the first year of employment at
$99,000.
- c/v Vela of 4,258 TEU capacity, latest delivery to its new charterers in April 2023 and at a daily charter rate for the first year of employment at
- Charter on a forward basis with latest delivery to the charterer in Q4 2023, three 1996-built vessels ranging between 7,400 to 8,000 TEU capacity, for a minimum fixed period of 36 months at a daily rate of
Total contracted revenues from the above seven fixtures amount to
_____________________
3 Please refer to Fleet List tables for additional information on vessels employment details.
4 As of March 9, 2022. Total contracted revenues and remaining time charter duration include our share in entities co-owned with York and exclude contracted revenues and time charter duration attributable to our contracted eight newbuilding containerships.
5 Assuming the vessels commence their new charters from the latest redelivery dates of their current charterparty agreements.
V. NEW DEBT FINANCING AND CAPITAL STRUCTURE
- New financing agreements / amendments to existing financing agreements since last quarter in excess of
$430 million . More specifically:- In December 2021, we signed a loan agreement with a leading European financial institution for an amount of up to
$55 million for the purposes of refinancing the then existing indebtedness of five dry bulk carriers. The new facility has a tenor of five years, and will mature in January 2027. - In December 2021, we signed a loan agreement with a leading European financial institution for an amount of up to
$43.5 million for the purposes of refinancing the then existing indebtedness of four dry bulk carriers. The new facility has a tenor of five years, and will mature in December 2026. - In December 2021, we signed a hunting license loan agreement with a European financial institution for an amount of up to
$100 million for the purposes of financing the acquisition cost of dry bulk vessels. The availability period of this facility expires in December 2022, an amount of$56.7 million has already been drawn and the facility has a maximum tenor of 5 to 6 years following the expiration of the availability period. - In December 2021, we extended the availability period of the
$150 million hunting license loan facility agreement, originally signed in September 2021. The new availability period expires in June 2022. - In January 2022, we signed a loan agreement with a leading European financial institution for an amount of up to
$85 million for the purposes of refinancing the then existing indebtedness of five containerships and for general corporate purposes. The new facility has a tenor of four years and will mature in January 2026.
- In December 2021, we signed a loan agreement with a leading European financial institution for an amount of up to
VI. SHARE REPURCHASE PROGRAM AND DIVIDEND ANNOUNCEMENTS
- On November 30, 2021, we approved a share repurchase program of up to a maximum
$150 million of our common shares and up to a maximum$150 million of our preferred shares. The timing of repurchases and the exact number of shares to be purchased will be determined by the Company’s management, in its discretion. - On January 3, 2022, we declared a dividend for the quarter ended December 31, 2021, of
$0.11 5 per share on our common stock, which was paid on February 7, 2022, to stockholders of record of common stock as of January 20, 2022. - On January 3, 2022, we declared a dividend of
$0.47 6563 per share on our Series B Preferred Stock, of$0.53 1250 per share on our Series C Preferred Stock, of$0.54 6875 per share on our Series D Preferred Stock and of$0.55 4688 per share on our Series E Preferred Stock, which were all paid on January 18, 2022 to holders of record as of January 14, 2022.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
“2021 has been a record year for Costamare. With a fleet of 123 vessels, including 46 dry bulk ships, the Company generated Net Income of above
On the containerships side, market conditions remained firm with strong demand and logistical disruptions continuing to impact the sector. We chartered a total of 35 secondhand vessels during the year, which added incremental contracted revenues of
We have covered substantially all of our containership open days for 2022 and are in the process of arranging employment for the vessels coming off charter next year. At the same time, we agreed to dispose of some older tonnage with forward, year-end deliveries at prices that reflect today’s tight market environment.
Regarding our expansion into the dry bulk shipping business, we entered a market with favorable supply and demand dynamics underpinned by a historically low orderbook. Our dry bulk fleet is currently trading in the spot market generating healthy returns, on the back of timely acquisitions.
In light of the above, the Company has decided to declare a special dividend of
| 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) | 2020 | 2021 | 2020 | 2021 | |||||||||||
| Voyage revenue | $ | 460,319 | $ | 793,639 | $ | 119,143 | $ | 283,918 | |||||||
| Accrued charter revenue (1) | $ | 21,250 | $ | (11,303 | ) | $ | 5,308 | $ | (14,473 | ) | |||||
| Amortization of Time-charter assumed | $ | 192 | $ | (424 | ) | $ | 48 | $ | 39 | ||||||
| Voyage revenue adjusted on a cash basis (2) | $ | 481,761 | $ | 781,912 | $ | 124,499 | $ | 269,484 | |||||||
| Adjusted Net Income available to common stockholders (3) | $ | 123,671 | $ | 289,873 | $ | 32,666 | $ | 112,070 | |||||||
| Weighted Average number of shares | 120,696,130 | 123,070,730 | 121,817,769 | 123,737,763 | |||||||||||
| Adjusted Earnings per share (3) | $ | 1.02 | $ | 2.36 | $ | 0.27 | $ | 0.91 | |||||||
| Net Income | $ | 8,877 | $ | 435,121 | $ | 27,075 | $ | 161,154 | |||||||
| Net Income / (Loss) available to common stockholders | $ | (21,586 | ) | $ | 404,053 | $ | 19,308 | $ | 153,387 | ||||||
| Weighted Average number of shares | 120,696,130 | 123,070,730 | 121,817,769 | 123,737,763 | |||||||||||
| Earnings / (Losses) per share | $ | (0.18 | ) | $ | 3.28 | $ | 0.16 | $ | 1.24 | ||||||
(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 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.
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 periods and years ended December 31, 2021 and 2020. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, voyage revenue or net income as determined in accordance with GAAP. Non-GAAP financial measures include (i) Voyage revenue adjusted on a cash basis (reconciled above), (ii) Adjusted Net Income available to common stockholders and (iii) Adjusted Earnings per Share.
Exhibit I
Reconciliation of Net Income to Adjusted Net Income available to common stockholders and Adjusted Earnings per Share
| Year ended December 31, | Three-month period ended December 31, | |||||||||||||||
| (Expressed in thousands of U.S. dollars, except share and per share data) | 2020 | 2021 | 2020 | 2021 | ||||||||||||
| Net Income | $ | 8,877 | $ | 435,121 | $ | 27,075 | $ | 161,154 | ||||||||
| Earnings allocated to Preferred Stock | (31,082 | ) | (31,068 | ) | (7,767 | ) | (7,767 | ) | ||||||||
| Gain on retirement of Preferred Stock | 619 | - | - | - | ||||||||||||
| Net Income / (Loss) available to common stockholders | (21,586 | ) | 404,053 | 19,308 | 153,387 | |||||||||||
| Accrued charter revenue | 21,250 | (11,303 | ) | 5,308 | (14,473 | ) | ||||||||||
| General and administrative expenses - non-cash component | 3,655 | 7,414 | 1,239 | 1,891 | ||||||||||||
| Amortization of Time charter assumed | 192 | (424 | ) | 48 | 39 | |||||||||||
| Realized (gain) / loss on Euro/USD forward contracts (1) | (488 | ) | 460 | - | 434 | |||||||||||
| Vessels’ impairment loss | 31,577 | - | - | - | ||||||||||||
| (Gain) / loss on sale / disposal of vessels, net | 79,120 | (45,894 | ) | (499 | ) | (27,819 | ) | |||||||||
| Non-recurring, non-cash write-off of loan deferred financing costs | 521 | 964 | 43 | 601 | ||||||||||||
| Loss on vessels held for sale | 7,665 | - | 7,665 | - | ||||||||||||
| Gain on sale of vessel by a jointly owned company with York included in equity gain on investments | - | (5,726 | ) | - | - | |||||||||||
| Swap’s breakage costs | 6 | - | - | - | ||||||||||||
| (Gain) / Loss on derivative instruments, excluding interest accrued and realized on non-hedging derivative instruments | 1,759 | 1,246 | (446 | ) | 27 | |||||||||||
| Gain on sale of equity securities | - | (60,161 | ) | - | (2,017 | ) | ||||||||||
| Other non-recurring, non-cash items | - | (756 | ) | - | - | |||||||||||
| Adjusted Net Income available to common stockholders | $ | 123,671 | $ | 289,873 | $ | 32,666 | $ | 112,070 | ||||||||
| Adjusted Earnings per Share | $ | 1.02 | $ | 2.36 | $ | 0.27 | $ | 0.91 | ||||||||
| Weighted average number of shares | 120,696,130 | 123,070,730 | 121,817,769 | 123,737,763 | ||||||||||||
Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent Net Income after earnings allocated to preferred stock and gain on retirement of preferred stock, but before non-cash “Accrued charter revenue” recorded under charters with escalating or descending charter rates, realized (gain)/loss on Euro/USD forward contracts, vessels’ impairment loss, (gain)/loss on sale / disposal of vessels, net, loss on vessels held for sale, gain on sale / disposal of vessel by a jointly owned company with York included in equity gain on investments, gain on sale of equity securities, swap’s breakage costs, non-recurring, non-cash write-off of loan deferred financing costs, general and administrative expenses - non-cash component, non-cash changes in fair value of derivatives and other non-recurring, non-cash items. “Accrued charter revenue” is attributed to the timing difference between the revenue recognition and the cash collection. However, Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are not recognized measurements under U.S. GAAP. We believe that the presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our ability to service additional debt and make capital expenditures. In addition, we believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our operating performance and liquidity position compared to that of other companies in our industry because the calculation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share generally eliminates the effects of the accounting effects of capital expenditures and acquisitions, certain hedging instruments and other accounting treatments, items which may vary for different companies for reasons unrelated to overall operating performance and liquidity. In evaluating Adjusted Net Income available to common stockholders and Adjusted Earnings per Share, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
(1) Items to consider for comparability include gains and charges. Gains positively impacting Net Income available to common stockholders are reflected as deductions to Adjusted Net Income available to common stockholders. Charges negatively impacting Net Income available to common stockholders are reflected as increases to Adjusted Net Income available to common stockholders.
Results of Operations
Three-month period ended December 31, 2021 compared to the three-month period ended December 31, 2020
During the three-month periods ended December 31, 2021 and 2020, we had an average of 108.1 and 60.3 vessels, respectively, in our fleet.
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 (ex. Charm), Curacao, Rose, Bermondi, Titan I, Orion, Greneta, Merchia, Damon, Pythias, Egyptian Mike and Phoenix) with an aggregate DWT of 811,567.
In the three-month period ended December 31, 2020, we accepted delivery of the secondhand container vessel Neokastro with a TEU capacity of 4,178 and we sold the container vessel Singapore Express with a TEU capacity of 4,890.
In the three-month periods ended December 31, 2021 and 2020, our fleet ownership days totaled 9,942 and 5,552 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
| Three-month period | ||||||||||||||
| (Expressed in millions of U.S. dollars, | ended December 31, | Percentage | ||||||||||||
| except percentages) | 2020 | 2021 | Change | Change | ||||||||||
| Voyage revenue | $ | 119.1 | $ | 283.9 | $ | 164.8 | 138.4 | % | ||||||
| Voyage expenses | (1.0 | ) | (5.8 | ) | 4.8 | n.m. | ||||||||
| Voyage expenses – related parties | (1.8 | ) | (3.7 | ) | 1.9 | 105.6 | % | |||||||
| Vessels’ operating expenses | (32.0 | ) | (60.6 | ) | 28.6 | 89.4 | % | |||||||
| General and administrative expenses | (2.1 | ) | (3.4 | ) | 1.3 | 61.9 | % | |||||||
| Management fees – related parties | (5.6 | ) | (9.7 | ) | 4.1 | 73.2 | % | |||||||
| General and administrative expenses - non-cash component | (1.2 | ) | (1.9 | ) | 0.7 | 58.3 | % | |||||||
| Amortization of dry-docking and special survey costs | (2.3 | ) | (2.9 | ) | 0.6 | 26.1 | % | |||||||
| Depreciation | (27.1 | ) | (40.9 | ) | 13.8 | 50.9 | % | |||||||
| Gain on sale / disposal of vessels | 0.5 | 27.8 | 27.3 | n.m. | ||||||||||
| Loss on vessels held for sale | (7.7 | ) | - | (7.7 | ) | n.m. | ||||||||
| Foreign exchange losses | (0.1 | ) | (0.1 | ) | - | - | ||||||||
| Interest income | 0.4 | - | (0.4 | ) | n.m. | |||||||||
| Interest and finance costs | (17.2 | ) | (25.3 | ) | 8.1 | 47.1 | % | |||||||
| Gain on sale of equity securities | - | 2.0 | 2.0 | n.m. | ||||||||||
| Income from equity method investments | 4.0 | 0.8 | (3.2 | ) | (80.0 | %) | ||||||||
| Other | 0.7 | 1.0 | 0.3 | 42.9 | % | |||||||||
| Gain / (loss) on derivative instruments | 0.5 | - | (0.5 | ) | n.m. | |||||||||
| Net Income | $ | 27.1 | $ | 161.2 | ||||||||||
| Three-month period | ||||||||||||||
| (Expressed in millions of U.S. dollars, | ended December 31, | Percentage | ||||||||||||
| except percentages) | 2020 | 2021 | Change | Change | ||||||||||
| Voyage revenue | $ | 119.1 | $ | 283.9 | $ | 164.8 | 138.4 | % | ||||||
| Accrued charter revenue | 5.3 | (14.5 | ) | (19.8 | ) | n.m. | ||||||||
| Amortization of time charter assumed | - | - | ||||||||||||
| Voyage revenue adjusted on a cash basis (1) | $ | 124.4 | $ | 269.4 | $ | 145 | 116.6 | % | ||||||
| Vessels’ operational data | Three-month period | |||||||||||||
| ended December 31, | Percentage | |||||||||||||
| 2020 | 2021 | Change | Change | |||||||||||
| Average number of vessels | 60.3 | 108.1 | 47.8 | 79.3 | % | |||||||||
| Ownership days | 5,552 | 9,942 | 4,390 | 79.1 | % | |||||||||
| Number of vessels under dry-docking | 2 | 2 | - | |||||||||||
Segmental Financial Summary
| Three-month period ended December 31, 2021 | ||||||||||||
| Container vessels | Dry bulk vessels | Other | Total | |||||||||
| 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 / disposal of vessels | 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 | ||||
(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
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 Fees – related parties
Management fees paid to 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, 2021 amounted to
Amortization of Dry-Docking and Special Survey
Amortization of deferred dry-docking and special survey costs was
Depreciation
Depreciation expense for the three-month periods ended December 31, 2021 and 2020 was
Gain on Sale / Disposal of Vessels
During the three-month period ended December 31, 2021, we recorded a gain of
Loss on Vessels Held for Sale
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. During the three-month period ended December 31, 2020, the container vessel Halifax Express was classified as vessel held for sale and we recorded a loss on vessel held for sale of
Interest Income
Interest income amounted to nil and
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
During the three-month period ended December 31, 2021, we recorded an income from equity method investments of
Gain / (loss) on Derivative Instruments
As of December 31, 2021, ten interest rate derivative instruments and two cross currency rate swaps were outstanding and their fair value, in aggregate, amounted to a liability of
Cash Flows
Three-month periods ended December 31, 2021 and 2020
| Condensed cash flows | Three-month period ended December 31, | |||||||
| (Expressed in millions of U.S. dollars) | 2020 | 2021 | ||||||
| Net Cash Provided by Operating Activities | $ | 68.4 | $ | 165.4 | ||||
| Net Cash Used in Investing Activities | $ | (14.7 | ) | $ | (110.2 | ) | ||
| Net Cash Used in Financing Activities | $ | (49.2 | ) | $ | - | |||
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the three-month period ended December 31, 2021, increased by
Net Cash Used in Investing Activities
Net cash used in investing activities was
Net cash used in investing activities was
Net Cash Used in Financing Activities
Net cash used in financing activities was nil in the three-month period ended December 31, 2021, which mainly consisted of (a)
Net cash used in financing activities was
Year ended December 31, 2021 compared to the year ended December 31, 2020
During the years ended December 31, 2021 and 2020, we had an average of 83.6 and 60.0 vessels, respectively, in our fleet.
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
Furthermore, 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 (ex. Charm), Curacao, Rose, Bermondi, Titan I, Orion, Merchia, Damon, Pythias, Egyptian Mike and Phoenix) with an aggregate DWT of 1,388,422.
In the year ended December 31, 2020, we accepted delivery of the newbuild container vessels YM Triumph, YM Truth and YM Totality with an aggregate TEU capacity of 38,070 and the secondhand container vessels Virgo, Scorpius and Neokastro with an aggregate TEU capacity of 11,008; and we sold the container vessels Neapolis, Kawasaki, Kokura, Zagora and Singapore Express with an aggregate TEU capacity of 22,503.
In the year ended December 31, 2021 and 2020, our fleet ownership days totaled 30,525 and 21,965 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, | Year ended December, | Percentage | ||||||||||||
| except percentages) | 2020 | 2021 | Change | Change | ||||||||||
| Voyage revenue | $ | 460.3 | $ | 793.6 | $ | 333.3 | 72.4 | % | ||||||
| Voyage expenses | (7.4 | ) | (13.3 | ) | 5.9 | 79.7 | % | |||||||
| Voyage expenses – related parties | (6.5 | ) | (11.1 | ) | 4.6 | 70.8 | % | |||||||
| Vessels’ operating expenses | (117.1 | ) | (180.0 | ) | 62.9 | 53.7 | % | |||||||
| General and administrative expenses | (7.4 | ) | (9.4 | ) | 2.0 | 27.0 | % | |||||||
| Management fees – related parties | (21.6 | ) | (29.6 | ) | 8.0 | 37.0 | % | |||||||
| General and administrative expenses - non-cash component | (3.7 | ) | (7.4 | ) | 3.7 | 100.0 | % | |||||||
| Amortization of dry-docking and special survey costs | (9.0 | ) | (10.4 | ) | 1.4 | 15.6 | % | |||||||
| Depreciation | (108.7 | ) | (137.0 | ) | 28.3 | 26.0 | % | |||||||
| Gain / (loss) on sale / disposal of vessels, net | (79.1 | ) | 45.9 | 125.0 | n.m. | |||||||||
| Loss on vessels held for sale | (7.7 | ) | - | (7.7 | ) | n.m. | ||||||||
| Vessels’ impairment loss | (31.6 | ) | - | (31.6 | ) | n.m. | ||||||||
| Foreign exchange gains / (losses) | (0.3 | ) | 0.1 | 0.4 | n.m. | |||||||||
| Interest income | 1.9 | 1.6 | (0.3 | ) | (15.8 | %) | ||||||||
| Interest and finance costs | (68.7 | ) | (86.1 | ) | 17.4 | 25.3 | % | |||||||
| Swaps’ breakage cost | - | - | - | n.m. | ||||||||||
| Gain on sale of equity securities | - | 60.2 | 60.2 | n.m. | ||||||||||
| Income from equity method investments | 16.2 | 12.8 | (3.4 | ) | (21.0 | %) | ||||||||
| Dividend income from investment in equity securities | - | 1.8 | 1.8 | n.m. | ||||||||||
| Other | 1.2 | 4.6 | 3.4 | n.m. | ||||||||||
| Loss on derivative instruments | (1.9 | ) | (1.2 | ) | (0.7 | ) | (36.8 | %) | ||||||
| Net Income | $ | 8.9 | $ | 435.1 | ||||||||||
| (Expressed in millions of U.S. dollars, | Year ended December 31, | Percentage | ||||||||||||
| except percentages) | 2020 | 2021 | Change | Change | ||||||||||
| Voyage revenue | $ | 460.3 | $ | 793.6 | $ | 333.3 | 72.4 | % | ||||||
| Accrued charter revenue | 21.3 | (11.3 | ) | (32.6 | ) | (153.1 | %) | |||||||
| Amortization of time charter assumed | 0.2 | (0.4 | ) | (0.6 | ) | n.m. | ||||||||
| Voyage revenue adjusted on a cash basis (2) | $ | 481.8 | $ | 781.9 | $ | 300.1 | 62.3 | % | ||||||
| Vessels’ operational data | Year ended December 31, | Percentage | ||||||||||||
| 2020 | 2021 | Change | Change | |||||||||||
| Average number of vessels | 60.0 | 83.6 | 23.6 | 39.3 | % | |||||||||
| Ownership days | 21,965 | 30,525 | 8,560 | 39.0 | % | |||||||||
| Number of vessels under dry-docking | 11 | 15 | 4 | |||||||||||
Segmental Financial Summary (1)
| Year ended December 31, 2021 | ||||||||||||||||||||
| Container vessels | Dry bulk vessels | 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 / disposal 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 | ||||||||||||
(1) The results of dry bulk vessels are included from June 14, 2021. Prior to that, our results were attributable to container vessels only.
(2) Voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles (“GAAP”). Refer to “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
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 Fees – related parties
Management fees paid to 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, 2021 amounted to
Amortization of Dry-Docking and Special Survey
Amortization of deferred dry-docking and special survey costs was
Depreciation
Depreciation expense for the year ended December 31, 2021 and 2020 was
Gain / (loss) on Sale / Disposal of Vessels, net
During the year ended December 31, 2021, we recorded a net gain of
Loss on Vessels Held for Sale
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. During the year ended December 31, 2020, the container vessel Halifax Express was classified as vessel held for sale and we recorded a loss on vessel held for sale of
Vessels’ Impairment Loss
During the year ended December 31, 2021 no impairment loss was recorded. During the year ended December 31, 2020, we recorded an impairment loss in relation to five of our container vessels in the amount of
Interest Income
Interest income amounted to
Interest and Finance Costs
Interest and finance costs were
Swaps’ Breakage Costs
During the year ended December 31, 2020, we terminated two interest rate derivative instruments that qualified for hedge accounting and we paid the counterparties breakage costs in the amount of
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
During the year ended December 31, 2021, we recorded an income from equity method investments of
Loss on Derivative Instruments
As of December 31, 2021, ten interest rate derivative instruments and two cross currency rate swaps were outstanding and their fair value, in aggregate, as at that date were a liability of
Cash Flows
Years ended December 31, 2021 and 2020
| Condensed cash flows | Years ended December 31, | |||||||
| (Expressed in millions of U.S. dollars) | 2020 | 2021 | ||||||
| Net Cash Provided by Operating Activities | $ | 274.3 | $ | 466.5 | ||||
| Net Cash Used in Investing Activities | $ | (36.4 | ) | $ | (787.5 | ) | ||
| Net Cash Provided by / (Used in) Financing Activities | $ | (241.9 | ) | $ | 482.6 | |||
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the year ended December 31, 2021, increased by
Net Cash Used in Investing Activities
Net cash used in investing activities was
Net cash used in investing activities was
Net Cash Provided by / (Used in) Financing Activities
Net cash provided by financing activities was
Net cash used in financing activities was
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of December 31, 2021, we had Cash and cash equivalents of
Debt-free vessels
As of March 9, 2022, the following vessels were free of debt.
| Unencumbered Vessels (Refer to fleet list for full details) | |||||
| Vessel Name | Year Built | TEU Capacity | |||
| Containerships | |||||
| ETOILE | 2005 | 2,556 | |||
| MICHIGAN | 2008 | 1,300 | |||
| MESSINI | 1997 | 2,458 | |||
| MONEMVASIA (*) | 1998 | 2,472 | |||
| ARKADIA (*) | 2001 | 1,550 | |||
(*) Vessels acquired pursuant to the Framework Deed with York.
Conference Call details:
On Thursday, March 10, 2022 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 March 17, 2022. 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: 4701527.
Live webcast:
There will also be a simultaneous live webcast over the Internet, through the Costamare Inc. website (www.costamare.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Costamare Inc.
Costamare Inc. is one of the world’s leading owners and providers of containerships for charter. The Company has 48 years of history in the international shipping industry and a fleet of 85 containerships, with a total capacity of approximately 670,600 TEU (including eight newbuild vessels currently under construction and six vessels that we have agreed to sell) and 46 dry bulk vessels with a total capacity of approximately 2,493,500 DWT (including one secondhand vessel that we have agreed to acquire). Four of our containerships have been acquired pursuant to the Framework Deed with York by vessel-owning joint venture entities in which we hold a minority equity interest. The Company’s common stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock trade on the New York Stock Exchange under the symbols “CMRE”, “CMRE PR B”, “CMRE PR C”, “CMRE PR D” and “CMRE PR E”, respectively.
Forward-Looking Statements
This earnings release contains “forward-looking statements”. In some cases, you can identify these statements by forward-looking words such as “believe”, “intend”, “anticipate”, “estimate”, “project”, “forecast”, “plan”, “potential”, “may”, “should”, “could”, “expect” and similar expressions. These statements are not historical facts but instead represent only Costamare’s belief regarding future results, many of which, by their nature, are inherently uncertain and outside of Costamare’s control. It is possible that actual results may differ, possibly materially, from those anticipated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect future results, see the discussion in the Company’s Annual Report on Form 20-F (File No. 001-34934) under the caption “Risk Factors” and the Company’s Results for the Second Quarter and Six-Months Ended June 30, 2021 on Form 6-K (filed on July 28, 2021 with the SEC) under the caption “Risk Factor Update”.
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 tables below provide additional information, as of March 9, 2022, about our fleet of containerships, including the vessels we have agreed to sell, the vessels under construction, the vessels acquired pursuant to the Framework Deed and those vessels subject to sale and leaseback agreements. Each vessel is a cellular containership, meaning it is a dedicated container vessel.
| Vessel Name | Charterer | Year Built | Capacity (TEU) | Current Daily Charter Rate(1) (U.S. dollars) | Expiration of Charter(2) | |
| 1 | TRITON(ii) | Evergreen | 2016 | 14,424 | (*) | March 2026 |
| 2 | TITAN(ii) | Evergreen | 2016 | 14,424 | (*) | April 2026 |
| 3 | TALOS(ii) | Evergreen | 2016 | 14,424 | (*) | July 2026 |
| 4 | TAURUS(ii) | Evergreen | 2016 | 14,424 | (*) | August 2026 |
| 5 | THESEUS(ii) | Evergreen | 2016 | 14,424 | (*) | August 2026 |
| 6 | YM TRIUMPH(ii) | Yang Ming | 2020 | 12,690 | (*) | May 2030 |
| 7 | YM TRUTH(ii) | Yang Ming | 2020 | 12,690 | (*) | May 2030 |
| 8 | YM TOTALITY(ii) | Yang Ming | 2020 | 12,690 | (*) | July 2030 |
| 9 | YM TARGET(ii) | Yang Ming | 2021 | 12,690 | (*) | November 2030 |
| 10 | YM TIPTOP(ii) | Yang Ming | 2021 | 12,690 | (*) | March 2031 |
| 11 | CAPE AKRITAS | 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 2025 |
| 16 | COSCO GUANGZHOU | COSCO/(*) | 2006 | 9,469 | 30,900/72,700 | April 2025(3) |
| 17 | COSCO NINGBO | COSCO/(*) | 2006 | 9,469 | 30,900/72,700 | April 2025(3) |
| 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(ii) | MSC | 2013 | 8,827 | 45,300 | January 2026(7) |
| 25 | MSC ATHOS(ii) | MSC | 2013 | 8,827 | 45,300 | February 2026(8) |
| 26 | VALOR | Hapag Lloyd | 2013 | 8,827 | 32,400 | April 2025 |
| 27 | VALUE | Hapag Lloyd | 2013 | 8,827 | 32,400 | April 2025 |
| 28 | VALIANT | Hapag Lloyd | 2013 | 8,827 | 32,400 | June 2025 |
| 29 | VALENCE | Hapag Lloyd | 2013 | 8,827 | 32,400 | July 2025 |
| 30 | VANTAGE | Hapag Lloyd | 2013 | 8,827 | 32,400 | September 2025 |
| 31 | NAVARINO | MSC | 2010 | 8,531 | 31,000 | January 2025 |
| 32 | MAERSK KLEVEN | Maersk/MSC | 1996 | 8,044 | 25,000/41,500 | June 2026(9) |
| 33 | MAERSK KOTKA | Maersk/MSC | 1996 | 8,044 | 25,000/41,500 | June 2026(9) |
| 34 | MAERSK KOWLOON | Maersk | 2005 | 7,471 | 18,500 | August 2025(10) |
| 35 | KURE | COSCO/MSC | 1996 | 7,403 | 31,000/41,500 | March 2026(11) |
| 36 | METHONI | Maersk | 2003 | 6,724 | 46,500 | August 2026 |
| 37 | PORTO CHELI | Maersk | 2001 | 6,712 | 30,075 | June 2026 |
| 38 | YORK(iii) | Maersk | 2000 | 6,648 | 21,250 | November 2022(12) |
| 39 | ZIM TAMPA (ex. KOBE) | ZIM | 2000 | 6,648 | 45,000 | July 2025 |
| 40 | SEALAND WASHINGTON(iii) | Maersk | 2000 | 6,648 | 25,000 | March 2023 (13) |
| 41 | SEALAND MICHIGAN(iii) | Maersk | 2000 | 6,648 | 25,000 | October 2022(13) |
| 42 | SEALAND ILLINOIS(iii) | Maersk | 2000 | 6,648 | 25,000 | October 2022 (13) |
| 43 | MAERSK KALAMATA(iii) | Maersk | 2003 | 6,644 | 25,000 | December 2022(13) |
| 44 | MAERSK KOLKATA | Maersk/ZIM | 2003 | 6,644 | 25,000/53,000 | October 2025 (14) |
| 45 | MAERSK KINGSTON | Maersk/ZIM | 2003 | 6,644 | 25,000/53,000 | October 2025 (14) |
| 46 | ARIES | ONE | 2004 | 6,492 | (*) | December 2022 |
| 47 | ARGUS | ONE | 2004 | 6,492 | (*) | January 2023 |
| 48 | PORTO KAGIO | Maersk | 2002 | 5,908 | 28,822 | June 2026 |
| 49 | GLEN CANYON | ZIM | 2006 | 5,642 | 62,500 | July 2025 |
| 50 | PORTO GERMENO | Maersk | 2002 | 5,570 | 28,822 | June 2026 |
| 51 | LEONIDIO(ii) | Maersk | 2014 | 4,957 | 14,200 | December 2024(15) |
| 52 | KYPARISSIA(ii) | Maersk | 2014 | 4,957 | 14,200 | November 2024(15) |
| 53 | MEGALOPOLIS | Maersk | 2013 | 4,957 | 13,500 | July 2025(16) |
| 54 | MARATHOPOLIS | Maersk | 2013 | 4,957 | 13,500 | July 2025(16) |
| 55 | OAKLAND | Maersk | 2000 | 4,890 | 24,500 | March 2023 |
| 56 | GIALOVA | ZIM | 2009 | 4,578 | 25,500 | April 2024 |
| 57 | DYROS | Maersk | 2008 | 4,578 | 22,750 | January 2024 |
| 58 | NORFOLK | Maersk | 2009 | 4,259 | 30,000 | May 2023 |
| 59 | VULPECULA | OOCL/ZIM | 2010 | 4,258 | 22,700/43,250 (on average) | February 2028(17) |
| 60 | VOLANS | ZIM | 2010 | 4,258 | 24,250 | April 2024 |
| 61 | VIRGO | Maersk | 2009 | 4,258 | 30,200 | February 2024 |
| 62 | VELA | OOCL/ZIM | 2009 | 4,258 | 22,700/43,250 (on average) | January 2028(18) |
| 63 | ANDROUSA | Maersk | 2010 | 4,256 | 22,750 | May 2023 |
| 64 | NEOKASTRO | CMA CGM | 2011 | 4,178 | 39,000 | March 2027 |
| 65 | ULSAN | Maersk | 2002 | 4,132 | 34,730 | January 2026 |
| 66 | POLAR ARGENTINA(i)(ii) | Maersk | 2018 | 3,800 | 19,700 | October 2024 |
| 67 | POLAR BRASIL(i)(ii) | Maersk | 2018 | 3,800 | 19,700 | January 2025 |
| 68 | LAKONIA | COSCO | 2004 | 2,586 | 26,500 | March 2025(19) |
| 69 | SCORPIUS | Hapag Lloyd | 2007 | 2,572 | 17,750 | January 2023 |
| 70 | ETOILE | (*) | 2005 | 2,556 | (*) | February 2023 |
| 71 | AREOPOLIS | COSCO | 2000 | 2,474 | 26,500 | April 2025(20) |
| 72 | MONEMVASIA(i) | Maersk | 1998 | 2,472 | 9,250 | November 2022(21) |
| 73 | MESSINI(iii) | (*) | 1997 | 2,458 | 18,000 | March 2022 |
| 74 | ARKADIA(i) | Swire Shipping | 2001 | 1,550 | 21,500 | May 2023 |
| 75 | MICHIGAN | MSC | 2008 | 1,300 | 18,700 | September 2023 |
| 76 | TRADER | (*) | 2008 | 1,300 | (*) | October 2024 |
| 77 | LUEBECK | MSC | 2001 | 1,078 | 15,000 | March 2024(22) |
Container Vessels under construction
| Vessel | Vessel Capacity (TEU) | Estimated Delivery(23) | Employment | |
| 1 | Newbuilding 1 | 12,690 | Q3 2023 | Long Term Employment upon delivery from shipyard |
| 2 | Newbuilding 2 | 12,690 | Q1 2024 | Long Term Employment upon delivery from shipyard |
| 3 | Newbuilding 3 | 12,690 | Q1 2024 | Long Term Employment upon delivery from shipyard |
| 4 | Newbuilding 4 | 12,690 | Q2 2024 | Long Term Employment upon delivery from shipyard |
| 5 | Newbuilding 5 | 15,000 | Q1 2024 | Long Term Employment upon delivery from shipyard |
| 6 | Newbuilding 6 | 15,000 | Q2 2024 | Long Term Employment upon delivery from shipyard |
| 7 | Newbuilding 7 | 15,000 | Q2 2024 | Long Term Employment upon delivery from shipyard |
| 8 | Newbuilding 8 | 15,000 | Q3 2024 | Long Term Employment upon delivery from shipyard |
| (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) | Upon redelivery of each vessel from COSCO between April 2022 and July 2022, each vessel will commence a charter for a period of 36 to 39 months 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 Athens until January 29, 2023. From the aforementioned date until the expiry of the charter, the daily rate will be |
| (8) | 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 |
| (9) | The current daily rate of each of Maersk Kleven and Maersk Kotka is a base rate of |
| (10) | This charter rate will be earned by Maersk Kowloon from June 12, 2022. Until then the daily charter rate will be |
| (11) | 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 |
| (12) | Expiration of charter represents latest redelivery date. |
| (13) | The daily rate for Sealand Washington, Sealand Michigan, Sealand Illinois and Maersk Kalamata is a base rate of |
| (14) | The current daily rate for Maersk Kolkata and Maersk Kingston is a base rate of |
| (15) | Charterer has the option to extend the current time charter for an additional period of 12 to 24 months at a daily rate of |
| (16) | Charterer has the option to extend the current time charter for an additional period of approximately 24 months at a daily rate of |
| (17) | The current daily rate for Vulpecula is |
| (18) | The current daily rate for Vela is |
| (19) | This charter rate will be earned by Lakonia from April 24, 2022. Until then the daily charter rate will be |
| (20) | This charter rate will be earned by Areopolis from May 3, 2022. Until then the daily charter rate will be |
| (21) | Expiration of charter represents latest redelivery date. |
| (22) | This charter rate will be earned by Luebeck from March 19, 2022. Until then the daily charter rate will be |
| (23) | Based on latest shipyard construction schedule, subject to change. |
| (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 vessels that we have agreed to sell. |
| (*) Denotes charterer’s identity and/or current daily charter rates and/or charter expiration dates, which are treated as confidential. | |
Dry Bulk Vessel Fleet List
The tables below provide additional information, as of March 9, 2022, about our fleet of dry bulk vessels, including one vessel that we have agreed to acquire.
| Vessel Name | Year Built | Capacity (DWT) | Current Daily Charter Rate(1) (U.S. dollars) | Expiration of Charter(2) | ||
| 1 | AEOLIAN | 2012 | 83,478 | 26,000 / Participation to the BPI_82 performance(3) | June 2022 | |
| 2 | GRENETA | 2010 | 82,166 | Participation to the BPI_82 performance(4) | October 2022 | |
| 3 | EGYPTIAN MIKE | 2011 | 81,601 | 11,000 | March 2022 | |
| 4 | PHOENIX | 2012 | 81,569 | - | In negotiations for employment | |
| 5 | BUILDER | 2012 | 81,541 | Participation to the BPI_82 performance(4) | September 2022 | |
| 6 | FARMER | 2012 | 81,541 | Participation to the BPI_82 performance(4) (5) | October 2022 | |
| 7 | SAUVAN | 2010 | 79,700 | 21,000(6) | May 2022 | |
| 8 | ROSE | 2008 | 76,619 | Participation to the BPI_82 performance(4) minus | August 2022 | |
| 9 | MERCHIA | 2015 | 63,800 | participation to the BSI_58 performance(7)(8) | November 2022 | |
| 10 | SEABIRD | 2016 | 63,553 | participation to the BSI_58 performance(7) | November 2022 | |
| 11 | DAWN | 2018 | 63,530 | participation to the BSI_58 performance(7) | September 2022 | |
| 12 | ORION | 2015 | 63,473 | participation to the BSI_58 performance(7) | October 2022 | |
| 13 | DAMON | 2012 | 63,227 | 35,000 | March 2022 | |
| 14 | TITAN I | 2009 | 58,090 | participation to the BSI_58 performance(7) | October 2022 | |
| 15 | ERACLE | 2012 | 58,018 | 31,500(9) | May 2022 | |
| 16 | PYTHIAS | 2010 | 58,018 | 22,000 | May 2022(10) | |
| 17 | ORACLE | 2009 | 57,970 | 16,500 | March 2022 | |
| 18 | CURACAO | 2011 | 57,937 | 25,000 | April 2022 | |
| 19 | URUGUAY | 2011 | 57,937 | 26,000 | March 2022 | |
| 20 | ATHENA | 2012 | 57,809 | 30,500(11) | April 2022 | |
| 21 | THUNDER | 2009 | 57,334 | - | In negotiations for employment | |
| 22 | SERENA | 2010 | 57,266 | participation to the BSI_58 performance(7) | May 2022 | |
| 23 | LIBRA | 2010 | 56,729 | 30,000 | March 2022 | |
| 24 | PEGASUS | 2011 | 56,726 | 28,500 | March 2022 | |
| 25 | MERIDA | 2012 | 56,670 | participation to the BSI_58 performance(7) | May 2022 | |
| 26 | CLARA | 2008 | 56,557 | participation to the BSI_58 performance(7) | September 2022 | |
| 27 | PEACE | 2006 | 55,709 | participation to the BSI_58 performance(7) | July 2022 | |
| 28 | PRIDE | 2006 | 55,705 | participation to the BSI_58 performance(7) | August 2022 | |
| 29 | BERMONDI | 2009 | 55,469 | participation to the BSI_58 performance(7)(12) | January 2023 | |
| 30 | COMITY | 2010 | 37,302 | participation to the BHSI_38 performance(13) | July 2022 | |
| 31 | VERITY | 2012 | 37,163 | participation to the BHSI_38 performance(13) | April 2022 | |
| 32 | PARITY | 2012 | 37,152 | participation to the BHSI_38 performance(13) | December 2022 | |
| 33 | ACUITY | 2011 | 37,149 | participation to the BHSI_38 performance(13) | December 2022 | |
| 34 | EQUITY | 2013 | 37,071 | participation to the BHSI_38 performance(13) | December 2022 | |
| 35 | DISCOVERY | 2012 | 37,019 | 16,250(14) | March 2022 | |
| 36 | TAIBO | 2011 | 35,112 | - | Vessel in dry dock | |
| 37 | BERNIS | 2011 | 34,627 | participation to the BHSI_38 performance(13} | December 2022 | |
| 38 | MANZANILLO | 2010 | 34,426 | 18,500 | March 2022 | |
| 39 | ADVENTURE | 2011 | 33,755 | - | In negotiations for employment | |
| 40 | ALLIANCE | 2012 | 33,751 | 14,350 | March 2022 | |
| 41 | CETUS (ex. CHARM) | 2010 | 32,527 | - | In negotiations for employment | |
| 42 | PROGRESS | 2011 | 32,400 | - | In negotiations for employment | |
| 43 | MINER | 2010 | 32,300 | 16,000 | April 2022 | |
| 44 | KONSTANTINOS | 2012 | 32,178 | - | In negotiations for employment | |
| 45 | RESOURCE | 2010 | 31,776 | 16,150 | April 2022 | |
Dry Bulk Vessels Agreed to be Acquired Within 2022
| Vessel Name | Year Built | Capacity (DWT) | Current Daily Charter Rate(1) (U.S. dollars) | Expiration of Charter(2) | |
| 1 | MAGDA (tbr. NORMA) | 2010 | 58,018 | - | - |
| (1) | Daily charter rates are gross, unless stated otherwise. |
| (2) | Charter terms and expiration dates are based on the earliest date charters (unless otherwise noted) could expire. |
| (3) | After April 20, 2022, the gross daily charter rate of Aeolian will be linked to the Baltic Panamax Index-82,500 dwt (“BPI_82”). For this charter, Aeolian received a gross ballast bonus of |
| (4) | Gross daily charter rate linked to the BPI_82. |
| (5) | For this charter, Farmer received a gross ballast bonus of |
| (6) | For this charter, Sauvan received a gross ballast bonus of |
| (7) | Gross daily charter rate linked to the Baltic Exchange Supramax Index (“BSI_58’’). |
| (8) | After May 1, 2022, the gross daily charter rate of Merchia will be linked to the BSI_58 performance with a participation rate of |
| (9) | For every additional day after May 5, 2022, the gross daily charter rate of Eracle will be |
| (10) | Latest redelivery date. |
| (11) | For every additional day after April 29, 2022, the gross daily charter rate of Athena will be |
| (12) | For this charter, Bermondi received a gross ballast bonus of |
| (13) | Gross daily charter rate linked to the Baltic Exchange Handysize Index (“BHSI_38’’). |
| (14) | For every additional day after March 27, 2022, the gross daily charter rate of Discovery will be |
| 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) | 2020 | 2021 | 2020 | 2021 | ||||||||
| (Audited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
| REVENUES: | ||||||||||||
| Voyage revenue | $ | 460,319 | $ | 793,639 | $ | 119,143 | $ | 283,918 | ||||
| EXPENSES: | ||||||||||||
| Voyage expenses | (7,372 | ) | (13,311 | ) | (989 | ) | (5,831 | ) | ||||
| Voyage expenses – related parties | (6,516 | ) | (11,089 | ) | (1,763 | ) | (3,750 | ) | ||||
| Vessels’ operating expenses | (117,054 | ) | (179,981 | ) | (32,055 | ) | (60,665 | ) | ||||
| General and administrative expenses | (7,360 | ) | (9,405 | ) | (2,059 | ) | (3,445 | ) | ||||
| Management fees – related parties | (21,616 | ) | (29,621 | ) | (5,593 | ) | (9,682 | ) | ||||
| General and administrative expenses – non-cash component | (3,655 | ) | (7,414 | ) | (1,239 | ) | (1,891 | ) | ||||
| Amortization of dry-docking and special survey costs | (9,056 | ) | (10,433 | ) | (2,291 | ) | (2,869 | ) | ||||
| Depreciation | (108,700 | ) | (136,958 | ) | (27,082 | ) | (40,948 | ) | ||||
| Gain / (loss) on sale / disposal of vessels, net | (79,120 | ) | 45,894 | 499 | 27,819 | |||||||
| Loss on vessels held for sale | (7,665 | ) | - | (7,665 | ) | - | ||||||
| Vessels’ impairment loss | (31,577 | ) | - | - | - | |||||||
| Foreign exchange gains / (losses) | (300 | ) | 29 | (97 | ) | (118 | ) | |||||
| Operating income | $ | 60,328 | $ | 441,350 | $ | 38,809 | $ | 182,538 | ||||
| OTHER INCOME / (EXPENSES): | ||||||||||||
| Interest income | $ | 1,827 | $ | 1,587 | $ | 363 | $ | 33 | ||||
| Interest and finance costs | (68,702 | ) | (86,047 | ) | (17,250 | ) | (25,254 | ) | ||||
| Swaps’ breakage cost | (6 | ) | - | - | - | |||||||
| Income from equity method investments | 16,195 | 12,859 | 3,994 | 854 | ||||||||
| Gain on sale of equity securities | - | 60,161 | - | 2,017 | ||||||||
| Dividend income from investment in equity securities | - | 1,833 | - | - | ||||||||
| Other | 1,181 | 4,624 | 713 | 993 | ||||||||
| Gain / (loss) on derivative instruments | (1,946 | ) | (1,246 | ) | 446 | (27 | ) | |||||
| Total other income / (expenses) | $ | (51,451 | ) | $ | (6,229 | ) | $ | (11,734 | ) | $ | (21,384 | ) |
| Net Income | $ | 8,877 | $ | 435,121 | $ | 27,075 | $ | 161,154 | ||||
| Earnings allocated to Preferred Stock | (31,082 | ) | (31,068 | ) | (7,767 | ) | (7,767 | ) | ||||
| Gain on retirement of Preferred Stock | 619 | - | - | - | ||||||||
| Net Income / (Loss) available to common stockholders | $ | (21,586 | ) | $ | 404,053 | $ | 19,308 | $ | 153,387 | |||
| Earnings / (Losses) per common share, basic and diluted | $ | (0.18 | ) | $ | 3.28 | $ | 0.16 | $ | 1.24 | |||
| Weighted average number of shares, basic and diluted | 120,696,130 | 123,070,730 | 121,817,769 | 123,737,763 | ||||||||
| COSTAMARE INC. Consolidated Balance Sheets | ||||||
| As of December 31, | As of December 31, | |||||
| (Expressed in thousands of U.S. dollars) | 2020 | 2021 | ||||
| ASSETS | (Audited) | (Unaudited) | ||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 143,922 | $ | 276,002 | ||
| Restricted cash | 4,998 | 8,856 | ||||
| Accounts receivable | 8,249 | 20,978 | ||||
| Inventories | 10,455 | 21,365 | ||||
| Due from related parties | 1,623 | - | ||||
| Fair value of derivatives | 460 | - | ||||
| Insurance claims receivable | 883 | 3,970 | ||||
| Asset held for sale | 12,416 | 78,799 | ||||
| Time charter assumed | 191 | 198 | ||||
| Accrued charter revenue | - | 7,361 | ||||
| Prepayments and other | 8,853 | 8,595 | ||||
| Total current assets | $ | 192,050 | $ | 426,124 | ||
| FIXED ASSETS, NET: | ||||||
| Right-of-use assets | $ | 199,098 | $ | 191,303 | ||
| Vessels and advances, net | 2,450,510 | 3,650,192 | ||||
| Total fixed assets, net | $ | 2,649,608 | $ | 3,841,495 | ||
| NON-CURRENT ASSETS: | ||||||
| Equity method investments | $ | 78,227 | $ | 19,872 | ||
| Deferred charges, net | 27,682 | 31,859 | ||||
| Accounts receivable, non-current | 3,896 | 5,076 | ||||
| Restricted cash | 42,976 | 68,670 | ||||
| Fair value of derivatives, non-current | - | 3,429 | ||||
| Accrued charter revenue, non-current | - | 8,183 | ||||
| Time charter assumed, non-current | 839 | 667 | ||||
| Debt securities, held to maturity (Net of allowance for credit losses of | 6,813 | - | ||||
| Other non-current assets | 8,425 | 1,666 | ||||
| Total assets | $ | 3,010,516 | $ | 4,407,041 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Current portion of long-term debt | $ | 147,137 | $ | 272,365 | ||
| Accounts payable | 7,582 | 18,865 | ||||
| Due to related parties | 432 | 1,694 | ||||
| Finance lease liabilities | 16,495 | 16,676 | ||||
| Accrued liabilities | 17,621 | 27,304 | ||||
| Unearned revenue | 11,893 | 23,830 | ||||
| Fair value of derivatives | 3,440 | 6,876 | ||||
| Other current liabilities | 2,374 | 2,417 | ||||
| Total current liabilities | $ | 206,974 | $ | 370,027 | ||
| NON-CURRENT LIABILITIES | ||||||
| Long-term debt, net of current portion | $ | 1,305,076 | $ | 2,169,718 | ||
| Finance lease liabilities, net of current portion | 116,366 | 99,689 | ||||
| Fair value of derivatives, net of current portion | 3,653 | 7,841 | ||||
| Unearned revenue, net of current portion | 29,627 | 33,867 | ||||
| Total non-current liabilities | $ | 1,454,722 | $ | 2,311,115 | ||
| COMMITMENTS AND CONTINGENCIES | ||||||
| STOCKHOLDERS’ EQUITY: | ||||||
| Preferred stock | $ | - | $ | - | ||
| Common stock | 12 | 12 | ||||
| Additional paid-in capital | 1,366,486 | 1,386,636 | ||||
| Retained earnings / (Accumulated deficit) | (9,721 | ) | 341,482 | |||
| Accumulated other comprehensive loss | (7,957 | ) | (2,231 | ) | ||
| Total stockholders’ equity | $ | 1,348,820 | $ | 1,725,899 | ||
| Total liabilities and stockholders’ equity | $ | 3,010,516 | $ | 4,407,041 | ||
FAQ
What are Costamare's financial results for Q4 2021?
What is the special dividend declared by Costamare?
What was Costamare's total contracted revenues for 2021?
How much liquidity does Costamare have as of December 31, 2021?
What capital gains are expected from vessel disposals?
