Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today
reported unaudited financial results for the third quarter (“Q3
2022”) and nine-months ended September 30, 2022.
-
RECORD PROFITABILITY IN A THIRD QUARTER SINCE NYSE
LISTING
- Q3 2022
Net Income available to common stockholders of $107.6 million
($0.89 per share) vs $107.4 million ($0.87 per share) in Q3
2021.
- Q3 2022
Adjusted Net Income available to common stockholders1 of $107.4
million ($0.88 per share) vs $81.5 million ($0.66 per share) in Q3
2021.
- Q3 2022
liquidity of $897.3 million2 vs $557.8 million in Q3 2021.
-
ELEVEN NEW CHARTER ARRANGEMENTS WITH FORWARD START - FULLY
EMPLOYED CONTAINERSHIP FLEET3 FOR THE YEAR AHEAD
-
Chartered 11 containerships on a forward basis with a leading liner
company. More specifically:
- Six
containerships with existing charters maturing in
2025, the Cape Artemisio, Valor, Value, Valiant,
Valence and Vantage (between 8,800 and 11,000 TEU capacity), have
been forward chartered for a period of 60 to
64 months until 2030.
- One
containership with an existing charter maturing in
2025, the Navarino (8,500 TEU capacity), has been
forward chartered for a period of 48 to
52 months until 2029.
- Two
containerships with existing charters maturing in
2024, the Luebeck and Trader (between 1,000 and
1,300 TEU capacity), have been forward chartered for a period of
24 to 26 months until
2026.
- Two
containerships with existing charters maturing in
2023, the Michigan and Etoile (between 1,300 and
2,600 TEU capacity), have been forward chartered for a period of
24 to 26 months and
36 to 39 months, respectively,
until 2025 and 2026,
respectively.
-
Incremental contracted revenues of approximately $420 million.
-
Incremental TEU-weighted duration of forward charters of 4.6
years.
- More
than 96% and 84% of the containership fleet4 fixed for 2023 and
2024, respectively.
- Entered
into a total of 34 chartering agreements for the dry bulk fleet
since Q2 2022 earnings release.
-
SALE AND PURCHASE ACTIVITY
-
Conclusion, in October 2022, of the sale of the following
2000-built, 6,648 TEU capacity containerships:
- Sealand
Michigan, with an estimated capital gain of $34.7 million in Q4
2022.
- Sealand
Illinois, with an estimated capital gain of $34.0 million in Q4
2022.
- York,
with an estimated capital gain of $37.0 million in Q4 2022.
-
NEW DEBT FINANCING
-
Refinancing of existing indebtedness of two 1996-built, 8,044 TEU
capacity containerships (Maersk Kleven / Maersk Kotka):
- Gross
loan proceeds of $46 million used for prepayment of existing
indebtedness and general corporate purposes.
- Four
year tenor facility.
-
Extension of original facility’s balloon payment due in Q3
2023.
- Facility
secured by long term vessels charters.
-
DIVIDEND ANNOUNCEMENTS
- On
October 3, 2022, the Company declared a dividend of $0.115 per
share on the common stock, which will be paid on November 7, 2022,
to holders of record of common stock as of October 20, 2022.
- On
October 3, 2022, the Company declared a dividend of $0.476563 per
share on the Series B Preferred Stock, $0.531250 per share on the
Series C Preferred Stock, $0.546875 per share on the Series D
Preferred Stock and $0.554688 per share on the Series E Preferred
Stock, which were all paid on October 17, 2022 to holders of record
as of October 14, 2022.
-
Available funds remaining under the share repurchase program of
approximately $90 million for common shares and $150 million for
preferred shares.
_________________
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 $4.0 million held by vessel owning-companies set-up pursuant to
the Framework Deed dated May 15, 2013, as amended and restated from
time to time (the “Framework Deed”), between the Company and York
Capital Management Global Advisors LLC and an affiliated fund
(collectively, “York”), short term investments in U.S. Treasury
Bills amounting to $24.9 million and $152.5 million of available
undrawn funds from our two hunting license facilities as of
September 30, 2022.3 Please refer to the Fleet List table for
additional information on vessel employment details for our
containership fleet.4 Calculated on a TEU basis, including vessels
owned by vessel owning-companies set-up pursuant to the Framework
Deed, and excluding vessels we have agreed to sell.
Mr. Gregory Zikos, Chief Financial
Officer of Costamare Inc., commented:
“During the third quarter revenues reached
approx. $290 million and Adjusted Net Income reached $107 million,
compared to $216 million and $82 million for the same period last
year. As of quarter end, cash balances stood at around $745 million
and total liquidity, including undrawn credit lines, was above $890
million.
Focusing on increasing visibility and our
contracted cash flow base, we recently chartered with a leading
liner company a total of 11 containerships with existing charters
originally expiring between 2023 and 2025. Seven of those vessels
were chartered for a period ranging from four to five years
starting from 2025 onwards, and the remaining ships, with forward
starts in 2023 and 2024. The new charters increase our contracted
revenues by about $420 million and result in incremental charter
coverage of about 4.5 years.
Regarding the container market, cargo volumes
have been softening across several trade lanes with energy costs
and inflation impacting consumer spending. Fixing activity has been
at low levels and the majority of new fixtures are for short term
employment. Charter rates have been under pressure, although they
remain at profitable levels.
On the dry bulk market, rates for our vessels
sizes remain profitable, especially for owners who entered the
market the year before. We feel comfortable with the long-term
supply and demand dynamics of the sector, and we view any potential
softening of asset values as a compelling buying opportunity.
On the back of our increased liquidity and
container charter coverage, we are focused on new investment
opportunities in the shipping sector that have the potential to
provide enhanced returns at acceptable risk levels.”
Financial Summary
|
|
|
|
|
|
|
|
|
|
|
Nine-month period endedSeptember 30, |
|
Three-month period endedSeptember 30, |
(Expressed in thousands of
U.S. dollars, except share and per share data) |
|
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
|
$ |
509,721 |
|
|
$ |
848,428 |
|
|
$ |
216,226 |
|
|
$ |
289,491 |
|
|
|
|
|
|
|
|
|
|
Accrued charter revenue
(1) |
|
$ |
3,170 |
|
|
$ |
782 |
|
|
$ |
1,024 |
|
|
$ |
(4,287 |
) |
Amortization of time-charter
assumed |
|
$ |
(463 |
) |
|
$ |
148 |
|
|
$ |
(118 |
) |
|
$ |
50 |
|
Voyage revenue adjusted on a
cash basis (2) |
|
$ |
512,428 |
|
|
$ |
849,358 |
|
|
$ |
217,132 |
|
|
$ |
285,254 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income available
to common stockholders (3) |
|
$ |
177,802 |
|
|
$ |
330,436 |
|
|
$ |
81,540 |
|
|
$ |
107,378 |
|
Weighted Average number of
shares |
|
|
122,845,943 |
|
|
|
123,295,035 |
|
|
|
123,299,457 |
|
|
|
121,458,291 |
|
Adjusted Earnings per share
(3) |
|
$ |
1.45 |
|
|
$ |
2.68 |
|
|
$ |
0.66 |
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
273,967 |
|
|
$ |
360,516 |
|
|
$ |
115,210 |
|
|
$ |
115,492 |
|
Net Income available to common
stockholders |
|
$ |
250,665 |
|
|
$ |
337,214 |
|
|
$ |
107,356 |
|
|
$ |
107,638 |
|
Weighted Average number of
shares |
|
|
122,845,943 |
|
|
|
123,295,035 |
|
|
|
123,299,457 |
|
|
|
121,458,291 |
|
Earnings per share |
|
$ |
2.04 |
|
|
$ |
2.74 |
|
|
$ |
0.87 |
|
|
$ |
0.89 |
|
(1) Accrued charter revenue represents the
difference between cash received during the period and revenue
recognized on a straight-line basis. In the early years of a
charter with escalating charter rates, voyage revenue will exceed
cash received during the period and during the last years of such
charter cash received will exceed revenue recognized on a
straight-line basis. The reverse is true for charters with
descending rates.(2) Voyage revenue adjusted on a cash basis
represents Voyage revenue after adjusting for non-cash “Accrued
charter revenue” recorded under charters with escalating charter
rates. However, Voyage revenue adjusted on a cash basis is not a
recognized measurement under U.S. GAAP. We believe that the
presentation of Voyage revenue adjusted on a cash basis is useful
to investors because it presents the charter revenue for the
relevant period based on the then current daily charter rates. The
increases or decreases in daily charter rates under our charter
party agreements of our fleet are described in the notes to the
“Fleet List” tables below.(3) Adjusted Net Income available to
common stockholders and Adjusted Earnings per Share are non-GAAP
measures. Refer to the reconciliation of Net Income to Adjusted Net
Income and Adjusted Earnings per Share.
Non-GAAP Measures
The Company reports its financial results in
accordance with U.S. GAAP. However, management believes that
certain non-GAAP financial measures used in managing the business
may provide users of these financial measures additional meaningful
comparisons between current results and results in prior operating
periods. Management believes that these non-GAAP financial measures
can provide additional meaningful reflection of underlying trends
of the business because they provide a comparison of historical
information that excludes certain items that impact the overall
comparability. Management also uses these non-GAAP financial
measures in making financial, operating and planning decisions and
in evaluating the Company’s performance. The tables below set out
supplemental financial data and corresponding reconciliations to
GAAP financial measures for the three-month and the nine-month
periods ended September 30, 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
|
|
Nine-month period ended September
30, |
|
Three-month period ended September
30, |
(Expressed in thousands of U.S. dollars, except share and per share
data) |
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
273,967 |
|
$ |
360,516 |
|
$ |
115,210 |
|
$ |
115,492 |
|
Earnings allocated to
Preferred Stock |
|
(23,302 |
) |
|
(23,302 |
) |
|
(7,854 |
) |
|
(7,854 |
) |
Net Income available
to common stockholders |
|
250,665 |
|
|
337,214 |
|
|
107,356 |
|
|
107,638 |
|
Accrued charter revenue |
|
3,170 |
|
|
782 |
|
|
1,024 |
|
|
(4,287 |
) |
General and administrative
expenses - non-cash component |
|
5,523 |
|
|
5,701 |
|
|
2,316 |
|
|
1,341 |
|
Amortization of Time charter
assumed |
|
(463 |
) |
|
148 |
|
|
(118 |
) |
|
50 |
|
Realized loss on Euro/USD
forward contracts (1) |
|
26 |
|
|
1,806 |
|
|
200 |
|
|
856 |
|
Gain on sale of vessels,
net |
|
(18,075 |
) |
|
(21,250 |
) |
|
(16,669 |
) |
|
- |
|
Non-recurring, non-cash
write-off of loan deferred financing costs |
|
363 |
|
|
2,395 |
|
|
- |
|
|
56 |
|
Gain on sale / disposal of
vessel by a jointly owned company with York included in equity gain
on investments |
|
(5,726 |
) |
|
- |
|
|
(5,726 |
) |
|
- |
|
Loss on derivative
instruments, excluding interest accrued and realized on non-hedging
derivative instruments (1) |
|
1,219 |
|
|
2,634 |
|
|
207 |
|
|
1,724 |
|
Non-recurring payments for
loan cancellation fees |
|
- |
|
|
1,006 |
|
|
- |
|
|
- |
|
Fair value measurement /
Change in fair value of equity securities |
|
(58,144 |
) |
|
- |
|
|
(7,050 |
) |
|
- |
|
Other non-recurring, non-cash
items |
|
(756 |
) |
|
- |
|
|
- |
|
|
- |
|
Adjusted Net Income
available to common stockholders |
$ |
177,802 |
|
$ |
330,436 |
|
$ |
81,540 |
|
$ |
107,378 |
|
Adjusted Earnings per
Share |
$ |
1.45 |
|
$ |
2.68 |
|
$ |
0.66 |
|
$ |
0.88 |
|
Weighted average number of
shares |
|
122,845,943 |
|
|
123,295,035 |
|
|
123,299,457 |
|
|
121,458,291 |
|
Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share represent Net Income
after earnings allocated to preferred stock, but before non-cash
“Accrued charter revenue” recorded under charters with escalating
or descending charter rates, realized loss on Euro/USD forward
contracts, gain on sale of vessels, net, fair value measurement of
equity securities / change in fair value 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-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 September 30,
2022 compared to the three-month period ended September 30,
2021
During the three-month periods ended September
30, 2022 and 2021, we had an average of 117.0 and 91.7 vessels,
respectively, in our fleet.
During the three-month period ended September
30, 2022, we did not purchase, sell or take delivery of any
vessels. In the three-month period ended September 30, 2021, we
accepted delivery of the secondhand container vessel Gialova with a
TEU capacity of 4,578 and we sold the container vessel Venetiko
with a TEU capacity of 5,928. Furthermore, during the three-month
period ended September 30, 2021, we accepted delivery of 27
secondhand dry bulk vessels (Eracle, Peace, Bernis, Sauvan, Verity,
Pride, Alliance, Manzanillo, Dawn, Acuity, Seabird, Discovery,
Aeolian, Comity, Clara, Serena, Merida, Progress, Miner, Parity,
Uruguay, Resource, Konstantinos, Taibo, Thunder, Athena and Farmer)
with an aggregate DWT of 1,337,162.
In the three-month periods ended September 30,
2022 and 2021, our fleet ownership days totaled 10,764 and 8,434
days, respectively. Ownership days are one of the primary drivers
of voyage revenue and vessels’ operating expenses and represent the
aggregate number of days in a period during which each vessel in
our fleet is owned.
Consolidated Financial Results and
Vessels’ Operational Data(1)
(Expressed in millions of U.S. dollars, |
|
Three-month period endedSeptember 30, |
|
Change |
|
|
Percentage |
|
except percentages) |
|
2021 |
|
|
2022 |
|
|
|
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
216.2 |
|
|
$ |
289.5 |
|
|
$ |
73.3 |
|
33.9 |
% |
Voyage expenses |
|
(4.4 |
) |
|
(14.2 |
) |
|
9.8 |
|
|
n.m. |
|
Voyage expenses – related parties |
|
(3.0 |
) |
|
(4.0 |
) |
|
1.0 |
|
33.3 |
% |
Vessels’ operating expenses |
|
(49.7 |
) |
|
(65.0 |
) |
|
15.3 |
|
30.8 |
% |
General and administrative expenses |
|
(2.3 |
) |
|
(2.6 |
) |
|
0.3 |
|
13.0 |
% |
Management fees – related parties |
|
(8.2 |
) |
|
(11.0 |
) |
|
2.8 |
|
34.1 |
% |
General and administrative expenses - non-cash component |
|
(2.3 |
) |
|
(1.3 |
) |
|
(1.0 |
) |
(43.5) |
% |
Amortization of dry-docking and special survey costs |
|
(2.7 |
) |
|
(3.8 |
) |
|
1.1 |
|
40.7 |
% |
Depreciation |
|
(37.3 |
) |
|
(41.8 |
) |
|
4.5 |
|
12.1 |
% |
Gain on sale of vessels |
|
16.7 |
|
|
- |
|
|
(16.7 |
) |
|
n.m. |
|
Foreign exchange gains |
|
- |
|
|
0.2 |
|
|
0.2 |
|
|
n.m. |
|
Interest income |
|
0.1 |
|
|
1.0 |
|
|
0.9 |
|
|
n.m. |
|
Interest and finance costs |
|
(24.2 |
) |
|
(31.2 |
) |
|
7.0 |
|
28.9 |
% |
Change in fair value of equity securities |
|
7.1 |
|
|
- |
|
|
(7.1 |
) |
|
n.m. |
|
Income from equity method investments |
|
7.1 |
|
|
0.8 |
|
|
(6.3 |
) |
(88.7) |
% |
Dividend income from investment in equity securities |
|
1.8 |
|
|
- |
|
|
(1.8 |
) |
|
n.m. |
|
Other |
|
0.5 |
|
|
0.6 |
|
|
0.1 |
|
20.0 |
% |
Loss on derivative instruments |
|
(0.2 |
) |
|
(1.7 |
) |
|
|
1.5 |
|
|
n.m. |
|
Net Income |
$ |
115.2 |
|
|
$ |
115.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Expressed in millions of U.S. dollars, |
|
Three-month period endedSeptember 30, |
|
|
Change |
|
|
Percentage |
|
except percentages) |
|
2021 |
|
|
|
2022 |
|
|
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
216.2 |
|
|
$ |
289.5 |
|
|
$ |
73.3 |
|
|
33.9 |
% |
Accrued charter revenue |
|
1.0 |
|
|
(4.3 |
) |
|
|
(5.3 |
) |
|
n.m. |
|
Amortization of time charter assumed |
|
(0.1 |
) |
|
0.1 |
|
|
|
0.2 |
|
|
n.m. |
|
Voyage revenue adjusted on a cash basis (1) |
$ |
217.1 |
|
|
$ |
285.3 |
|
|
$ |
68.2 |
|
|
31.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
|
Three-month period endedSeptember 30, |
|
|
|
|
|
|
Percentage |
|
|
2021 |
|
|
|
2022 |
|
|
Change |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of vessels |
91.7 |
|
|
|
117.0 |
|
|
|
25.3 |
|
|
27.6 |
% |
Ownership days |
8,434 |
|
|
|
10,764 |
|
|
|
2,330 |
|
|
27.6 |
% |
Number of vessels under dry-docking |
5 |
|
|
|
4 |
|
|
|
(1 |
) |
|
Segmental Financial Summary
|
Three-month period ended September 30, 2021 |
(Expressed in millions of U.S. dollars) |
Container vessels |
Dry bulk vessels |
Other |
Total |
|
|
|
|
|
Voyage revenue |
$ |
182.4 |
|
$ |
33.8 |
|
$ |
- |
$ |
216.2 |
|
Voyage expenses |
|
(2.4 |
) |
|
(2.0 |
) |
|
- |
|
(4.4 |
) |
Voyage expenses – related parties |
|
(2.6 |
) |
|
(0.4 |
) |
|
- |
|
(3.0 |
) |
Vessels’ operating expenses |
|
(40.8 |
) |
|
(8.9 |
) |
|
- |
|
(49.7 |
) |
General and administrative expenses |
|
(1.9 |
) |
|
(0.4 |
) |
|
- |
|
(2.3 |
) |
Management fees – related parties |
|
(6.6 |
) |
|
(1.6 |
) |
|
- |
|
(8.2 |
) |
General and administrative expenses - non-cash component |
|
(1.9 |
) |
|
(0.4 |
) |
|
- |
|
(2.3 |
) |
Amortization of dry-docking and special survey costs |
|
(2.7 |
) |
|
- |
|
|
- |
|
(2.7 |
) |
Depreciation |
|
(33.7 |
) |
|
(3.6 |
) |
|
- |
|
(37.3 |
) |
Gain on sale of vessels |
|
16.7 |
|
|
- |
|
|
- |
|
16.7 |
|
Interest income |
|
0.1 |
|
|
- |
|
|
- |
|
0.1 |
|
Interest and finance costs |
|
(22.9 |
) |
|
(1.3 |
) |
|
- |
|
(24.2 |
) |
Change in fair value of equity securities |
|
- |
|
|
- |
|
|
7.1 |
|
7.1 |
|
Income from equity method investments |
|
- |
|
|
- |
|
|
7.1 |
|
7.1 |
|
Dividend income from investment in equity securities |
|
- |
|
|
- |
|
|
1.8 |
|
1.8 |
|
Other |
|
0.5 |
|
|
- |
|
|
- |
|
0.5 |
|
Loss on derivative instruments |
|
(0.2 |
) |
|
- |
|
|
- |
|
(0.2 |
) |
Net Income |
$ |
84.0 |
|
$ |
15.2 |
|
$ |
16.0 |
$ |
115.2 |
|
|
|
|
|
|
|
Three-month period ended September 30, 2022 |
(Expressed in millions of U.S. dollars) |
Container vessels |
Dry bulk vessels |
Other |
Total |
|
|
|
|
|
Voyage revenue |
$ |
211.5 |
|
$ |
78.0 |
|
$ |
- |
$ |
289.5 |
|
Voyage expenses |
|
(2.9 |
) |
|
(11.3 |
) |
|
- |
|
(14.2 |
) |
Voyage expenses – related parties |
|
(3.0 |
) |
|
(1.0 |
) |
|
- |
|
(4.0 |
) |
Vessels’ operating expenses |
|
(42.2 |
) |
|
(22.8 |
) |
|
- |
|
(65.0 |
) |
General and administrative expenses |
|
(1.6 |
) |
|
(1.0 |
) |
|
- |
|
(2.6 |
) |
Management fees – related parties |
|
(6.8 |
) |
|
(4.2 |
) |
|
- |
|
(11.0 |
) |
General and administrative expenses - non-cash component |
|
(0.8 |
) |
|
(0.5 |
) |
|
- |
|
(1.3 |
) |
Amortization of dry-docking and special survey costs |
|
(3.2 |
) |
|
(0.6 |
) |
|
- |
|
(3.8 |
) |
Depreciation |
|
(31.8 |
) |
|
(10.0 |
) |
|
- |
|
(41.8 |
) |
Foreign exchange gains |
|
0.2 |
|
|
- |
|
|
- |
|
0.2 |
|
Interest income |
|
0.6 |
|
|
0.4 |
|
|
- |
|
1.0 |
|
Interest and finance costs |
|
(25.9 |
) |
|
(5.3 |
) |
|
- |
|
(31.2 |
) |
Income from equity method investments |
|
- |
|
|
- |
|
|
0.8 |
|
0.8 |
|
Other |
|
0.5 |
|
|
0.1 |
|
|
- |
|
0.6 |
|
Loss on derivative instruments |
|
(1.1 |
) |
|
(0.6 |
) |
|
- |
|
(1.7 |
) |
Net Income |
$ |
93.5 |
|
$ |
21.2 |
|
$ |
0.8 |
$ |
115.5 |
|
|
|
|
|
|
(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 33.9%, or $73.3
million, to $289.5 million during the three-month period ended
September 30, 2022, from $216.2 million during the three-month
period ended September 30, 2021. The increase is mainly
attributable to (i) revenue earned by one container vessel and
three dry bulk vessels acquired during the first quarter of 2022,
by one container vessel acquired during the third quarter of 2021
and 27 and 13 dry bulk vessels acquired during the third and the
fourth quarter of 2021, respectively, and (ii) increased charter
rates in certain of our container vessels, partly off-set by
revenue not earned by one container vessel and one dry bulk vessel
sold during the first and the second quarter of 2022, respectively,
and three container vessels sold during the six-month period ended
December 31, 2021.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”) increased by 31.4%,
or $68.2 million, to $285.3 million during the three-month period
ended September 30, 2022, from $217.1 million during the
three-month period ended September 30, 2021. Accrued charter
revenue for the three-month period ended September 30, 2022 was a
negative amount of $4.3 million and for the three-month period
ended September 30, 2021 was a positive amount of $1.0 million.
Voyage Expenses
Voyage expenses were $14.2 million and $4.4
million for the three-month periods ended September 30, 2022 and
2021, respectively. Voyage expenses increased period over period
due to the increased size of our fleet and mainly include (i)
off-hire expenses of our vessels, primarily related to fuel
consumption and (ii) third party commissions.
Voyage Expenses – related parties
Voyage expenses – related parties were $4.0
million and $3.0 million for the three-month periods ended
September 30, 2022 and 2021, respectively. Voyage expenses –
related parties represent (i) fees of 1.25%, in the aggregate, on
voyage revenues charged by a related manager and a service provider
and (ii) charter brokerage fees (in respect of our container
vessels) payable to two related charter brokerage companies for an
amount of approximately $0.4 million and $0.3 million, in the
aggregate, for the three-month periods ended September 30, 2022 and
2021, respectively.
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include
the realized gain/(loss) under derivative contracts entered into in
relation to foreign currency exposure, were $65.0 million and $49.7
million during the three-month periods ended September 30, 2022 and
2021, respectively. Daily vessels’ operating expenses were $6,037
and $5,895 for the three-month periods ended September 30, 2022 and
2021, respectively. Daily operating expenses are calculated as
vessels’ operating expenses for the period over the ownership days
of the period.
General and Administrative Expenses
General and administrative expenses were $2.6
million and $2.3 million during the three-month periods ended
September 30, 2022 and 2021, respectively, and include amounts of
$0.67 million and $0.63 million, respectively, that were paid to a
related manager.
Management Fees – related parties
Management fees paid to our related party
managers were $11.0 million and $8.2 million during the three-month
periods ended September 30, 2022 and 2021, respectively.
General and Administrative Expenses - non-cash
component
General and administrative expenses - non-cash
component for the three-month period ended September 30, 2022
amounted to $1.3 million, representing the value of the shares
issued to a related party manager on September 30, 2022. General
and administrative expenses - non-cash component for the
three-month period ended September 30, 2021 amounted to $2.3
million, representing the value of the shares issued to a related
party manager on September 30, 2021.
Amortization of Dry-Docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs was $3.8 million and $2.7 million during the
three-month periods ended September 30, 2022 and 2021,
respectively. During the three-month period ended September 30,
2022, three vessels underwent and completed their dry-docking and
special survey and one vessel was in the process of completing her
dry-docking and special survey. During the three-month period ended
September 30, 2021, two vessels underwent and completed their
dry-docking and special survey and three vessels were in the
process of completing their dry-docking and special survey.
Depreciation
Depreciation expense for the three-month periods
ended September 30, 2022 and 2021 was $41.8 million and $37.3
million, respectively.
Gain on Sale of Vessels
During the three-month period ended September
30, 2022, no vessels were sold.
During the three-month period ended September
30, 2021, we recorded a gain of $16.5 million from the sale of the
container vessel Venetiko, which was classified as vessel held for
sale during the first quarter of 2021, and an additional gain of
$0.2 million from the sale of the container vessel Halifax Express,
which was sold in the first half of 2021.
Vessels Held for Sale
As of September 30, 2022, the container vessels
Sealand Illinois, Sealand Michigan, York (initially classified as
vessels held for sale during the fourth quarter of 2021), 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 third 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 September
30, 2021, the container vessels ZIM New York, and ZIM Shanghai were
classified as vessels held for sale (initially classified as
vessels held for sale as of June 30, 2021). No loss on vessels held
for sale was recorded during the third quarter of 2021, since each
vessel’s estimated market value exceeded each vessel’s carrying
value.
Interest Income
Interest income amounted to $1.0 million and
$0.1 million for the three-month periods ended September 30, 2022
and 2021, respectively.
Interest and Finance Costs
Interest and finance costs were $31.2 million
and $24.2 million during the three-month periods ended September
30, 2022 and 2021, respectively. The increase is mainly
attributable to the increased average loan balances and increased
financing costs during the three-month period ended September 30,
2022 compared to the three-month period ended September 30,
2021.
Change in Fair Value of Equity Securities /
Dividend Income from Investment in Equity Securities
Change in fair value of equity securities of
$7.1 million for the three-month period ended September 30, 2021,
represents the difference between the aggregate fair value of
1,221,800 ordinary shares of ZIM that we owned as at September 30,
2021 compared to the fair value of such shares as of June 30, 2021.
Furthermore, in the three-month period ended September 30, 2021, we
received a special dividend from ZIM in the amount of $1.8 million.
During the fourth quarter of 2021 we sold all the ordinary shares
of ZIM we owned.
Income from Equity Method Investments
Income from equity method investments for the
three-month period ended September 30, 2022 was $0.8 million ($7.1
million for the three-month period ended September 30, 2021)
representing our share of the income in jointly owned companies set
up pursuant to the Framework Deed dated May 15, 2013, as amended
and restated from time to time (the “Framework Deed”), with York.
As of September 30, 2022 and September 30, 2021 five and six
companies, respectively, were jointly owned pursuant to the
Framework Deed out of which four and four companies, respectively,
owned container vessels. The decreased income from equity method
investments in the third quarter of 2022 compared to the third
quarter of 2021 is mainly attributable to the recorded capital gain
on the sale of one jointly owned vessel during the third quarter of
2021.
Loss on Derivative Instruments
As of September 30, 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 September 30, 2022, the fair value of these
instruments, in aggregate, amounted to a net asset of $36.7
million. During the three-month period ended September 30, 2022, a
gain of $21.2 million has been included in OCI and a loss of $0.1
million has been included in Loss on Derivative Instruments.
Cash Flows
Three-month periods ended September 30, 2022 and
2021
Condensed cash
flows |
|
Three-month period endedSeptember 30, |
(Expressed in millions of U.S. dollars) |
|
|
2021 |
|
|
|
2022 |
|
Net Cash Provided by Operating
Activities |
|
$ |
125.9 |
|
|
$ |
141.8 |
|
Net Cash Used in Investing
Activities |
|
$ |
(395.8 |
) |
|
$ |
(17.5 |
) |
Net Cash Provided by / (Used
in) Financing Activities |
|
$ |
219.3 |
|
|
$ |
(96.3 |
) |
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended September 30, 2022, increased by
$15.9 million to $141.8 million, from $125.9 million for the
three-month period ended September 30, 2021. The increase is mainly
attributable to increased cash from operations of $68.1 million;
partly off-set by the unfavorable change in working capital
position, excluding the current portion of long-term debt and the
accrued charter revenue (representing the difference between cash
received in that period and revenue recognized on a straight-line
basis) of $6.2 million, by the increased payments for interest
(including swap payments) of $4.8 million during the three-month
period ended September 30, 2022 compared to the three-month period
ended September 30, 2021 and by the increased dry-docking and
special survey costs of $3.3 million during the three-month period
ended September 30, 2022 compared to the three-month period ended
September 30, 2021.
Net Cash Used in Investing
Activities
Net cash used in investing activities was $17.5
million in the three-month period ended September 30, 2022, which
mainly consisted of payments (i) for upgrades for certain of our
container and dry bulk vessels and (ii) for the purchase of
short-term investments in US Treasury Bills.
Net cash used in investing activities was $395.8
million in the three-month period ended September 30, 2021, which
mainly consisted of (i) payments for the acquisition of 10
secondhand dry bulk vessels, (ii) settlement payments for the
delivery of one container vessel and 15 secondhand dry bulk
vessels, (iii) advance payments for the acquisition of five
secondhand dry bulk vessels, (iv) payments for the acquisition of
the equity interest of sixteen companies (which owned or had
committed to acquire dry bulk vessels) owned by our Chairman and
Chief Executive Officer, Konstantinos Konstantakopoulos, pursuant
to the Share and Purchase Agreement dated June 14, 2021 (agreed to
acquire the equity interest of these companies at cost with no
mark-up or premium payable to Mr. Konstantakopoulos or his
affiliated entities) and (v) payments for upgrades for certain of
our container and dry bulk vessels, partly off-set by proceeds we
received from the sale of one container vessel and by return of
capital we received from one entity jointly -owned with York
pursuant to the Framework Deed.
Net Cash Provided by / (Used in)
Financing Activities
Net cash used in financing activities was $96.3
million in the three-month period ended September 30, 2022, which
mainly consisted of (a) $66.2 million net payments relating to our
debt financing agreements (including proceeds of $46.0 million we
received from one of our debt financing agreements), (b) $7.7
million we paid for the re-purchase of 0.6 million of our common
shares, (c) $10.3 million we paid for dividends to holders of our
common stock for the second quarter of 2022, (d) $0.9 million we
paid for dividends to holders of our 7.625% Series B Cumulative
Redeemable Perpetual Preferred Stock (“Series B Preferred Stock”),
$2.1 million we paid for dividends to holders of our 8.500% Series
C Cumulative Redeemable Perpetual Preferred Stock (“Series C
Preferred Stock”), $2.2 million we paid for dividends to holders of
our 8.75% Series D Cumulative Redeemable Perpetual Preferred Stock
(“Series D Preferred Stock”) and $2.5 million we paid for dividends
to holders of our 8.875% Series E Cumulative Redeemable Perpetual
Preferred Stock (“Series E Preferred Stock”) for the period from
April 15, 2022 to July 14, 2022.
Net cash provided by financing activities was
$219.3 million in the three-month period ended September 30, 2021,
which mainly consisted of (a) $240.6 million net proceeds relating
to our debt financing agreements (including proceeds of $300.9
million we received from our debt financing agreements), (b) $10.8
million we paid for dividends to holders of our common stock for
the second quarter of 2021 and (c) $0.9 million we paid for
dividends to holders of our Series B Preferred Stock, $2.1 million
we paid for dividends to holders of our Series C Preferred Stock,
$2.2 million we paid for dividends to holders of our Series D
Preferred Stock and $2.5 million we paid for dividends to holders
of our Series E Preferred Stock for the period from April 15, 2021
to July 14, 2021.
Nine-month period ended September 30,
2022 compared to the nine-month period ended September 30,
2021
During the nine-month periods ended September
30, 2022 and 2021, we had an average of 117.4 and 75.4 vessels,
respectively, in our fleet.
In the nine-month period ended September 30,
2022, we accepted delivery of (i) the secondhand container vessel
Dyros with a TEU capacity of 4,578 and (ii) the secondhand dry bulk
vessels Oracle, Libra and Norma with an aggregate DWT of 172,717.
Furthermore, in the nine-month period ended September 30, 2022, we
sold the container vessel Messini, with a TEU capacity of 2,458,
and the dry bulk vessel Thunder, with DWT of 57,334.
In the nine-month period ended September 30,
2021, (i) we accepted delivery of the newbuild container vessels YM
Target and YM Tiptop with an aggregate TEU capacity of 25,380, the
secondhand container vessels Aries, Argus, Glen Canyon, Androusa,
Norfolk, Porto Cheli, Porto Kagio, Porto Germeno and Gialova with
an aggregate TEU capacity of 49,909 and we sold the container
vessels Halifax Express, Prosper and Venetiko with an aggregate TEU
capacity of 12,322 and (ii) we acquired (a) the 75% equity interest
of York Capital Management in each of the 11,010 TEU container
vessels Cape Kortia and Cape Sounio and (b) the 51% equity interest
of York Capital Management in each of the 11,010 TEU container
vessels Cape Tainaro, Cape Artemisio and Cape Akritas and as a
result we obtained 100% of the equity interest in each of these
five vessels.
Furthermore, in the nine-month period ended
September 30, 2021, we acquired all of the equity interest of
sixteen companies (which owned or had committed to acquire dry bulk
vessels) owned by our Chairman and Chief Executive Officer,
Konstantinos Konstantakopoulos. We agreed to acquire these
companies from Mr. Konstantakopoulos at cost with no mark-up or
premium payable to Mr. Konstantakopoulos or his affiliated
entities. Mr. Konstantakopoulos did not receive a profit as a
result of the acquisition. Fifteen of the dry bulk vessels
(Pegasus, Builder, Adventure, Eracle, Peace, Sauvan, Pride,
Alliance, Manzanillo, Acuity, Seabird, Aeolian, Comity, Athena and
Farmer) that were part of the acquisition with an aggregate DWT of
850,163, were delivered to us during the nine-month period ended
September 30, 2021. In addition, in the nine-month period ended
September 30, 2021, we accepted delivery of another fifteen
secondhand dry bulk vessels (Bernis, Verity, Dawn, Discovery,
Clara, Serena, Merida, Progress, Miner, Parity, Uruguay, Resource,
Konstantinos, Taibo and Thunder) with an aggregate DWT of
659,021.
In the nine-month periods ended September 30,
2022 and 2021, our fleet ownership days totaled 32,043 and 20,583
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, |
|
Nine-month
period |
|
|
|
|
|
except
percentages) |
|
ended September 30, |
|
|
|
|
Percentage |
|
|
2021 |
|
|
2022 |
|
|
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
509.7 |
|
$ |
848.4 |
|
|
$ |
338.7 |
|
|
66.5 |
% |
Voyage
expenses |
|
(7.5 |
) |
|
(34.0 |
) |
|
|
26.5 |
|
|
n.m. |
|
Voyage
expenses – related parties |
|
(7.3 |
) |
|
(11.7 |
) |
|
|
4.4 |
|
|
60.3 |
% |
Vessels’
operating expenses |
|
(119.3 |
) |
|
(198.3 |
) |
|
|
79.0 |
|
|
66.2 |
% |
General and
administrative expenses |
|
(6.0 |
) |
|
(9.3 |
) |
|
|
3.3 |
|
|
55.0 |
% |
Management
fees – related parties |
|
(19.9 |
) |
|
(32.9 |
) |
|
|
13.0 |
|
|
65.3 |
% |
General and
administrative expenses – non-cash component |
|
(5.5 |
) |
|
(5.7 |
) |
|
|
0.2 |
|
|
3.6 |
% |
Amortization
of dry-docking and special survey costs |
|
(7.6 |
) |
|
(9.5 |
) |
|
|
1.9 |
|
|
25.0 |
% |
Depreciation |
|
(96.0 |
) |
|
(124.2 |
) |
|
|
28.2 |
|
|
29.4 |
% |
Gain on sale
of vessels, net |
|
18.1 |
|
|
21.3 |
|
|
|
3.2 |
|
|
17.7 |
% |
Foreign
exchange gains |
|
0.2 |
|
|
0.5 |
|
|
|
0.3 |
|
|
150.0 |
% |
Interest
income |
|
1.6 |
|
|
1.1 |
|
|
|
(0.5 |
) |
|
(31.3) |
% |
Interest and
finance costs |
|
(60.8 |
) |
|
(86.5 |
) |
|
|
25.7 |
|
|
42.3 |
% |
Fair value
measurement of equity securities |
|
58.1 |
|
|
- |
|
|
|
(58.1 |
) |
|
n.m. |
|
Income from
equity method investments |
|
12.0 |
|
|
1.6 |
|
|
|
(10.4 |
) |
|
(86.7) |
% |
Dividend
income from investment in equity securities |
|
1.8 |
|
|
- |
|
|
|
(1.8 |
) |
|
n.m. |
|
Other |
|
3.6 |
|
|
2.3 |
|
|
|
(1.3 |
) |
|
(36.1) |
% |
Loss on
derivative instruments |
|
(1.2 |
) |
|
(2.6 |
) |
|
|
1.4 |
|
|
116.7 |
% |
Net
Income |
$ |
274.0 |
|
$ |
360.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine-month
period |
|
|
|
|
|
(Expressed
in millions of U.S. dollars, |
|
ended September 30, |
|
|
|
|
Percentage |
except
percentages) |
|
2021 |
|
|
2022 |
|
|
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
Voyage
revenue |
$ |
509.7 |
|
$ |
848.4 |
|
|
$ |
338.7 |
|
|
66.50 |
% |
Accrued
charter revenue |
|
3.2 |
|
|
0.8 |
|
|
|
(2.4 |
) |
|
(75.0) |
% |
Amortization
of time charter assumed |
|
(0.5 |
) |
|
0.2 |
|
|
|
0.7 |
|
|
n.m. |
|
Voyage
revenue adjusted on a cash basis (1) |
$ |
512.4 |
|
$ |
849.4 |
|
|
$ |
337.0 |
|
|
65.8 |
% |
|
|
|
|
|
|
|
|
|
|
Vessels’ operational data |
|
Nine-month
period |
|
|
|
|
|
|
|
ended September 30, |
|
|
|
|
Percentage |
|
|
2021 |
|
|
2022 |
|
|
|
Change |
|
Change |
|
|
|
|
|
|
|
|
|
|
Average
number of vessels |
|
75.4 |
|
|
117.4 |
|
|
|
42.0 |
|
|
55.7 |
% |
Ownership
days |
|
20,583 |
|
|
32,043 |
|
|
|
11,460 |
|
|
55.7 |
% |
Number of
vessels under dry-docking |
|
14 |
|
|
16 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segmental Financial Summary
Nine-month period ended September 30, 2021 |
(Expressed in millions of U.S. dollars) |
Container vessels |
Dry bulk vessels (2) |
Other |
Total |
Voyage revenue |
$ |
475.1 |
|
$ |
34.6 |
|
$ |
- |
$ |
509.7 |
|
Voyage expenses |
|
(5.4 |
) |
|
(2.1 |
) |
|
- |
|
(7.5 |
) |
Voyage expenses – related parties |
|
(6.9 |
) |
|
(0.4 |
) |
|
- |
|
(7.3 |
) |
Vessels’ operating expenses |
|
(110.2 |
) |
|
(9.1 |
) |
|
- |
|
(119.3 |
) |
General and administrative expenses |
|
(5.6 |
) |
|
(0.4 |
) |
|
- |
|
(6.0 |
) |
Management fees – related parties |
|
(18.3 |
) |
|
(1.6 |
) |
|
- |
|
(19.9 |
) |
General and administrative expenses – non-cash component |
|
(5.0 |
) |
|
(0.5 |
) |
|
- |
|
(5.5 |
) |
Amortization of dry-docking and special survey costs |
|
(7.6 |
) |
|
- |
|
|
- |
|
(7.6 |
) |
Depreciation |
|
(92.3 |
) |
|
(3.7 |
) |
|
- |
|
(96.0 |
) |
Gain on sale of Vessels, net |
|
18.1 |
|
|
- |
|
|
- |
|
18.1 |
|
Foreign exchange gains |
|
0.2 |
|
|
- |
|
|
- |
|
0.2 |
|
Interest income |
|
1.6 |
|
|
- |
|
|
- |
|
1.6 |
|
Interest and finance costs |
|
(59.5 |
) |
|
(1.3 |
) |
|
- |
|
(60.8 |
) |
Fair value measurement of equity securities |
|
- |
|
|
- |
|
|
58.1 |
|
58.1 |
|
Income from equity method investments |
|
- |
|
|
- |
|
|
12.0 |
|
12.0 |
|
Dividend income from investment in equity securities |
|
- |
|
|
- |
|
|
1.8 |
|
1.8 |
|
Other |
|
3.6 |
|
|
- |
|
|
- |
|
3.6 |
|
Loss on derivative instruments |
|
(1.2 |
) |
|
- |
|
|
- |
|
(1.2 |
) |
Net Income |
$ |
186.6 |
|
$ |
15.5 |
|
$ |
71.9 |
$ |
274.0 |
|
|
|
|
Nine-month period ended September 30, 2022 |
(Expressed in millions of U.S. dollars) |
Container vessels |
Dry bulk vessels |
Other |
Total |
Voyage revenue |
$ |
591.7 |
|
$ |
256.7 |
|
$ |
- |
$ |
848.4 |
|
Voyage expenses |
|
(7.3 |
) |
|
(26.7 |
) |
|
- |
|
(34.0 |
) |
Voyage expenses – related parties |
|
(8.5 |
) |
|
(3.2 |
) |
|
- |
|
(11.7 |
) |
Vessels’ operating expenses |
|
(126.4 |
) |
|
(71.9 |
) |
|
- |
|
(198.3 |
) |
General and administrative expenses |
|
(6.0 |
) |
|
(3.3 |
) |
|
- |
|
(9.3 |
) |
Management fees – related parties |
|
(20.2 |
) |
|
(12.7 |
) |
|
- |
|
(32.9 |
) |
General and administrative expenses – non-cash component |
|
(3.5 |
) |
|
(2.2 |
) |
|
- |
|
(5.7 |
) |
Amortization of dry-docking and special survey costs |
|
(8.5 |
) |
|
(1.0 |
) |
|
- |
|
(9.5 |
) |
Depreciation |
|
(94.6 |
) |
|
(29.6 |
) |
|
- |
|
(124.2 |
) |
Gain on sale of vessels |
|
17.8 |
|
|
3.5 |
|
|
- |
|
21.3 |
|
Foreign exchange gains |
|
0.5 |
|
|
- |
|
|
- |
|
0.5 |
|
Interest income |
|
0.7 |
|
|
0.4 |
|
|
- |
|
1.1 |
|
Interest and finance costs |
|
(73.3 |
) |
|
(13.2 |
) |
|
- |
|
(86.5 |
) |
Income from equity method investments |
|
- |
|
|
- |
|
|
1.6 |
|
1.6 |
|
Other |
|
1.3 |
|
|
1.0 |
|
|
- |
|
2.3 |
|
Loss on derivative instruments |
|
(1.7 |
) |
|
(0.9 |
) |
|
- |
|
(2.6 |
) |
Net Income |
$ |
262.0 |
|
$ |
96.9 |
|
$ |
1.6 |
$ |
360.5 |
|
|
|
|
|
|
|
|
|
|
|
(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 66.5%, or $338.7
million, to $848.4 million during the nine-month period ended
September 30, 2022, from $509.7 million during the nine-month
period ended September 30, 2021. The increase is mainly
attributable to (i) revenue earned by one container vessel and
three dry bulk vessels acquired during the first quarter of 2022,
as well as by revenue earned by 16 container vessels and 43 dry
bulk vessels acquired during the year ended December 31, 2021, and
(ii) increased charter rates in certain of our container vessels
during the nine-month period ended September 30, 2022 compared to
the nine-month period ended September 30, 2021, partly off-set by
revenue not earned by one container vessel and one dry bulk vessel
sold during the first and the second quarter of 2022, respectively,
and five container vessels sold during the year ended December 31,
2021.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”), increased by 65.8%,
or $337.0 million, to $849.4 million during the nine-month period
ended September 30, 2022, from $512.4 million during the nine-month
period ended September 30, 2021. Accrued charter revenue for the
nine-month periods ended September 30, 2022 and 2021 was a positive
amount of $0.8 million and $3.2 million, respectively.
Voyage Expenses
Voyage expenses were $34.0 million and $7.5
million for the nine-month periods ended September 30, 2022 and
2021, respectively. Voyage expenses increased period over period
primarily due to the increased number of vessels in our fleet, and
mainly include (i) off-hire expenses of our vessels, primarily
related to fuel consumption and (ii) third party commissions.
Voyage Expenses – related parties
Voyage expenses – related parties were $11.7
million and $7.3 million for the nine-month periods ended September
30, 2022 and 2021, respectively. Voyage expenses – related parties
represent (i) fees of 1.25% in the aggregate on voyage revenues
charged by a related manager and a service provider and (ii)
charter brokerage fees (in respect of our container vessels)
payable to two related charter brokerage companies for an amount of
approximately $1.1 million and $0.9 million, in the aggregate, for
the nine-month periods ended September 30, 2022 and 2021,
respectively.
Vessels’ Operating Expenses
Vessels’ operating expenses, which also include
the realized gain/(loss) under derivative contracts entered into in
relation to foreign currency exposure, were $198.3 million and
$119.3 million during the nine-month periods ended September 30,
2022 and 2021, respectively. Daily vessels’ operating expenses were
$6,189 and $5,797 for the nine-month periods ended September 30,
2022 and 2021, respectively. The increase in the daily operating
expenses during the nine-month period ended September 30, 2022 is
mainly attributable to increased crew costs related to COVID-19
pandemic measures. Daily operating expenses are calculated as
vessels’ operating expenses for the period over the ownership days
of the period.
General and Administrative Expenses
General and administrative expenses were $9.3
million and $6.0 million during the nine-month periods ended
September 30, 2022 and 2021, respectively, and include $2.0 million
and $1.9 million, respectively, that were paid to a related
manager.
Management Fees – related parties
Management fees paid to our related party
managers were $32.9 million and $19.9 million during the nine-month
periods ended September 30, 2022 and 2021, respectively.
General and Administrative Expenses – non-cash
component
General and administrative expenses – non-cash
component for the nine-month period ended September 30, 2022
amounted to $5.7 million, representing the value of the shares
issued to a related party manager on March 30, 2022, on June 30,
2022 and on September 30, 2022. General and administrative expenses
– non-cash component for the nine-month period ended September 30,
2021 amounted to $5.5 million, representing the value of the shares
issued to a related party manager on March 31, 2021, on June 30,
2021 and on September 30, 2021.
Amortization of Dry-Docking and Special Survey
Costs
Amortization of deferred dry-docking and special
survey costs was $9.5 million and $7.6 million during the
nine-month periods ended September 30, 2022 and 2021, respectively.
During the nine-month period ended September 30, 2022, 15 vessels
underwent and completed their dry-docking and special survey and
one vessel was in the process of completing her dry-docking and
special survey. During the nine-month period ended September 30,
2021, 11 vessels underwent and completed their dry-docking and
special survey and three vessels were in the process of completing
their dry-docking and special survey.
Depreciation
Depreciation expense for the nine-month periods
ended September 30, 2022 and 2021 was $124.2 million and $96.0
million, respectively.
Gain on Sale of Vessels, net
During the nine-month period ended September 30,
2022, we recorded an aggregate gain of $21.3 million from the sale
of the container vessel Messini (vessel classified as held for sale
during the fourth quarter of 2021) and the dry bulk vessel Thunder
(vessel classified as held for sale during the first quarter of
2022). During the nine-month period ended September 30, 2021, we
recorded a net gain of $18.1 million from the sale of the container
vessels Halifax Express (vessel classified as held for sale during
the fourth quarter of 2020), Prosper and Venetiko (both vessels
were classified as held for sale during the first quarter of
2021).
Vessels Held for Sale
During the nine-month period ended September 30,
2022, the container vessels Sealand Washington and Maersk Kalamata
were classified as vessels held for sale and the container vessels
Sealand Illinois, Sealand Michigan and York (initially classified
as vessels held for sale during the fourth quarter of 2021)
continued to be classified as vessels held for sale. No loss on
vessels held for sale was recorded during the nine-month period
ended September 30, 2022, since each vessel’s fair value less cost
to sell, exceeded each vessel’s carrying value.
During the nine-month period ended September 30,
2021, the container vessels Zim New York and Zim Shanghai were
classified as vessels held for sale (initially classified as
vessels held for sale on June 30, 2021). No loss on vessels held
for sale was recorded during the nine-month period ended September
30, 2021, since each vessel’s fair value less cost to sell,
exceeded each vessel’s carrying value.
Interest Income
Interest income amounted to $1.1 million and
$1.6 million for the nine-month periods ended September 30, 2022
and 2021, respectively.
Interest and Finance Costs
Interest and finance costs were $86.5 million
and $60.8 million during the nine-month periods ended September 30,
2022 and 2021, respectively. The increase is mainly attributable to
the increased average loan balances and increased financing costs
during the nine-month period ended September 30, 2022 compared to
the nine-month period ended September 30, 2021.
Fair value measurement of equity securities /
Dividend Income from Investment in Equity Securities
Fair value measurement of equity securities of
$58.1 million for the nine-month period ended September 30, 2021,
represents the difference between the aggregate fair value of
1,221,800 ordinary shares of ZIM that we owned as at September 30,
2021 of $61.9 million compared to the book value of these shares of
$3.8 million as of December 31, 2020. Furthermore, in the
nine-month period ended September 30, 2021, we received a special
dividend from ZIM in the amount of $1.8 million. During the fourth
quarter of 2021 we sold all the ordinary shares of ZIM we owned.
ZIM completed its initial public offering and listing on the New
York Stock Exchange of its ordinary shares on January 27, 2021.
Income from Equity Method Investments
Income from equity method investments for the
nine-month period ended September 30, 2022, was $1.6 million ($12.0
million for the nine-month period ended September 30, 2021),
representing our share of the income in jointly owned companies set
up pursuant to the Framework Deed dated May 15, 2013, as amended
and restated from time to time (the “Framework Deed”), with York.
As of September 30, 2022 and September 30, 2021 five and six
companies, respectively, were jointly owned pursuant to the
Framework Deed out of which four and four companies, respectively,
owned container vessels. The decreased income from equity method
investments in the nine-month period ended September 30, 2022
compared to the nine-month period ended September 30, 2021 is
mainly attributable to the recorded capital gain on the sale of one
jointly owned container vessel during the third quarter of
2021.
Loss on Derivative Instruments
As of September 30, 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 September 30, 2022, the fair value of these
instruments, in aggregate, amounted to a net asset of $36.7
million. During the nine-month period ended September 30, 2022, a
gain of $50.0 million has been included in OCI and a loss of $0.3
million has been included in Loss on Derivative Instruments.
Cash Flows
Nine-month periods ended September 30, 2022 and
2021
Condensed cash
flows |
|
Nine-month period endedSeptember 30, |
(Expressed in millions of U.S. dollars) |
|
|
2021 |
|
|
|
2022 |
|
Net Cash Provided by Operating
Activities |
|
$ |
301.1 |
|
|
$ |
457.2 |
|
Net Cash Used in Investing
Activities |
|
$ |
(677.2 |
) |
|
$ |
(39.4 |
) |
Net Cash Provided by / (Used
in) Financing Activities |
|
$ |
482.6 |
|
|
$ |
(55.4 |
) |
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the nine-month period ended September 30, 2022, increased by
$156.1 million to $457.2 million, from $301.1 million for the
nine-month period ended September 30, 2021. The increase is mainly
attributable to increased cash from operations of $336.9 million;
partly off-set by the unfavorable change in working capital
position, excluding the current portion of long-term debt and the
accrued charter revenue (representing the difference between cash
received in that period and revenue recognized on a straight-line
basis) of $13.5 million, by the increased payments for interest
(including swap payments) of $15.8 million during the nine-month
period ended September 30, 2022 compared to the nine-month period
ended September 30, 2021 and by the increased dry-docking and
special survey costs of $12.2 million during the nine-month period
ended September 30, 2022 compared to the nine-month period ended
September 30, 2021.
Net Cash Used in Investing
Activities
Net cash used in investing activities was $39.4
million in the nine-month period ended September 30, 2022, which
mainly consisted of (i) payments for the acquisition of two
secondhand dry bulk vessels, (ii) settlement payment for the
delivery of one secondhand dry bulk vessel, (iii) payment for the
purchase of short-term investments in US Treasury Bills and (iv)
payments for upgrades for certain of our container and dry bulk
vessels; partly off-set by proceeds we received from (i) the sale
of the container vessel Messini and the dry bulk vessel Thunder and
(ii) the maturity of part of short-term investments in US Treasury
Bills.
Net cash used in investing activities was $677.2
million in the nine-month period ended September 30, 2021, which
mainly consisted of (i) net payments for the acquisition of the 75%
equity interest in two companies and of the 51% equity interest in
three companies, previously jointly owned with York pursuant to the
Framework Deed, (ii) payments for the delivery of two newbuild
container vessels, nine secondhand container vessels and 28 dry
bulk vessels, (iii) advance payments for the acquisition of one
secondhand container vessel and six secondhand dry bulk vessels
(iv) payments for the acquisition of the equity interest of sixteen
companies (which owned or had committed to acquire dry bulk
vessels) owned by our Chairman and Chief Executive Officer,
Konstantinos Konstantakopoulos, pursuant to the Share and Purchase
Agreement dated June 14, 2021 (agreed to acquire the equity
interest of these companies at cost with no mark-up or premium
payable to Mr. Konstantakopoulos or his affiliated entities) and
(v) payments for upgrades for certain of our container and dry bulk
vessels, partly off-set by proceeds we received from the sale of
three container vessels and by return of capital we received from
one entity jointly -owned with York pursuant to the Framework
Deed.
Net Cash Provided by / (Used in)
Financing Activities
Net cash used in financing activities was $55.4
million in the nine-month period ended September 30, 2022, which
mainly consisted of (a) $125.3 million net proceeds relating to our
debt financing agreements (including proceeds of $816.4 million we
received from our debt financing agreements), (b) $60.1 million we
paid for the re-purchase of 4.7 million of our common shares, (c)
$78.5 million we paid for dividends to holders of our common stock
for the fourth quarter of 2021, the first quarter of 2022 and the
second quarter of 2022 (including a special dividend paid to
holders of our common stock of $46.7 million for the first quarter
of 2022) and (d) $2.8 million we paid for dividends to holders of
our Series B Preferred Stock, $6.3 million we paid for dividends to
holders of our Series C Preferred Stock, $6.6 million we paid for
dividends to holders of our Series D Preferred Stock and $7.6
million we paid for dividends to holders of our Series E Preferred
Stock for the periods from October 15, 2021 to January 14, 2022,
January 15, 2022 to April 14, 2022 and April 15, 2022 to July 14,
2022.
Net cash provided by financing activities was
$482.6 million in the nine-month period ended September 30, 2021,
which mainly consisted of (a) $550.0 million net proceeds relating
to our debt financing agreements (including proceeds we received
(i) from the issuance of €100.0 million unsecured bond on the
Athens Exchange and (ii) from our debt financing agreements of an
amount of $944.0 million), (b) $29.6 million we paid for dividends
to holders of our common stock for the fourth quarter of 2020, the
first quarter of 2021 and the second quarter of 2021 and (c) $2.8
million we paid for dividends to holders of our Series B Preferred
Stock, $6.3 million we paid for dividends to holders of our Series
C Preferred Stock, $6.6 million we paid for dividends to holders of
our Series D Preferred Stock and $7.5 million we paid for dividends
to holders of our Series E Preferred Stock for the periods from
October 15, 2020 to January 14, 2021, January 15, 2021 to April 14,
2021 and April 15, 2021 to July 14, 2021.
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of September 30, 2022, we had Cash and cash
equivalents of $715.9 million, consisting of cash, cash equivalents
and restricted cash and $24.9 million invested in short-dated US
Treasury Bills (Short-term investments). Furthermore, as of
September 30, 2022, our liquidity stood at $897.3 million including
(a) our share of cash amounting to $4.0 million held in joint
venture companies set up pursuant to the Framework Deed and (b)
$152.5 million of available undrawn funds from our two hunting
license facilities.
Debt-free vessels
As of November 2, 2022, the following vessels were free of
debt.
Unencumbered Vessels (Refer to
Fleet list for full details)
Vessel Name |
|
|
YearBuilt |
|
TEU Capacity |
|
Containerships |
|
|
|
|
|
|
MAERSK
KOWLOON |
|
2005 |
|
|
7,471 |
|
ETOILE |
|
2005 |
|
|
2,556 |
|
MICHIGAN |
|
2008 |
|
|
1,300 |
|
MONEMVASIA
(*) |
|
1998 |
|
|
2,472 |
|
ARKADIA (*) |
|
2001 |
|
|
1,550 |
|
(*) Vessels acquired pursuant to the Framework Deed with
York.
Conference Call details:
On Wednesday, November 2, 2022 at 9:00 a.m. EST,
Costamare’s management team will hold a conference call to discuss
the financial results. Participants should dial into the call 10
minutes before the scheduled time using the following numbers:
1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or
+1-412-317-9258 (from outside the US and the UK). Please quote
“Costamare”. A replay of the conference call will be available
until November 9, 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:
9395089.
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 48 years of history in the international
shipping industry and a fleet of 73 containerships, with a total
capacity of approximately 537,000 TEU (including two vessels that
we have agreed to sell) and 45 dry bulk vessels with a total
capacity of approximately 2,436,000 DWT. 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
DevelopmentCostamare Inc., MonacoTel: (+377) 93 25 09 40Email:
ir@costamare.com
Containership Fleet List
The table below provides additional information,
as of November 2, 2022, about our fleet of containerships,
including the vessels we have agreed to sell, the vessels acquired
pursuant to the Framework Deed and those vessels subject to sale
and leaseback agreements. Each vessel is a cellular containership,
meaning it is a dedicated container vessel.
|
Vessel Name |
Charterer |
Year Built |
Capacity (TEU) |
Current Daily Charter Rate(1)
(U.S. dollars) |
Expiration of Charter(2) |
1 |
TRITON |
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 |
45,300 |
January 2026(7) |
25 |
MSC ATHOS |
MSC |
2013 |
8,827 |
45,300 |
February 2026(8) |
26 |
VALOR |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
April 2030(9) |
27 |
VALUE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
April 2030(10) |
28 |
VALIANT |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
June 2030(11) |
29 |
VALENCE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
July 2030(12) |
30 |
VANTAGE |
Hapag Lloyd/(*) |
2013 |
8,827 |
32,400/(*) |
September 2030(13) |
31 |
NAVARINO |
MSC/(*) |
2010 |
8,531 |
31,000/(*) |
January 2029(14) |
32 |
MAERSK KLEVEN |
Maersk/MSC |
1996 |
8,044 |
25,000/41,500 |
June 2026(15) |
33 |
MAERSK KOTKA |
Maersk/MSC |
1996 |
8,044 |
25,000/41,500 |
June 2026(15) |
34 |
MAERSK KOWLOON |
Maersk |
2005 |
7,471 |
18,500 |
August 2025 |
35 |
KURE |
COSCO/MSC |
1996 |
7,403 |
31,000/41,500 |
March 2026(16) |
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) |
Maersk |
2000 |
6,648 |
25,000 |
January 2023 (17) |
40 |
MAERSK KALAMATA(iii) |
Maersk |
2003 |
6,644 |
25,000 |
December 2022(17) |
41 |
ZIM VIETNAM (ex. MAERSK KOLKATA) |
ZIM |
2003 |
6,644 |
53,000 |
October 2025 |
42 |
ZIM AMERICA (ex. MAERSK KINGSTON) |
ZIM |
2003 |
6,644 |
53,000 |
October 2025 |
43 |
ARIES |
(*)/(*) |
2004 |
6,492 |
(*)/58,500 |
March 2026(18) |
44 |
ARGUS |
(*)/(*) |
2004 |
6,492 |
(*)/58,500 |
April 2026(19) |
45 |
PORTO KAGIO |
Maersk |
2002 |
5,908 |
28,822 |
June 2026 |
46 |
GLEN CANYON |
ZIM |
2006 |
5,642 |
62,500 |
June 2025 |
47 |
PORTO GERMENO |
Maersk |
2002 |
5,570 |
28,822 |
June 2026 |
48 |
LEONIDIO |
Maersk |
2014 |
4,957 |
14,200 |
December 2024(20) |
49 |
KYPARISSIA |
Maersk |
2014 |
4,957 |
14,200 |
November 2024(20) |
50 |
MEGALOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(21) |
51 |
MARATHOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(21) |
52 |
OAKLAND |
Maersk |
2000 |
4,890 |
24,500 |
March 2023 |
53 |
GIALOVA |
ZIM |
2009 |
4,578 |
25,500 |
April 2024 |
54 |
DYROS |
Maersk |
2008 |
4,578 |
22,750 |
January 2024 |
55 |
NORFOLK |
Maersk |
2009 |
4,259 |
30,000 |
May 2023 |
56 |
VULPECULA |
OOCL/ZIM |
2010 |
4,258 |
22,700/43,250 (on average) |
February 2028(22) |
57 |
VOLANS |
ZIM |
2010 |
4,258 |
24,250 |
April 2024 |
58 |
VIRGO |
Maersk |
2009 |
4,258 |
30,200 |
February 2024 |
59 |
VELA |
OOCL/ZIM |
2009 |
4,258 |
22,700/43,250 (on average) |
January 2028(23) |
60 |
ANDROUSA |
Maersk |
2010 |
4,256 |
22,750 |
May 2023 |
61 |
NEOKASTRO |
CMA CGM |
2011 |
4,178 |
39,000 |
February 2027 |
62 |
ULSAN |
Maersk |
2002 |
4,132 |
34,730 |
January 2026 |
63 |
POLAR ARGENTINA(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
October 2024(24) |
64 |
POLAR BRASIL(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
January 2025(24) |
65 |
LAKONIA |
COSCO |
2004 |
2,586 |
26,500 |
March 2025 |
66 |
SCORPIUS |
Hapag Lloyd |
2007 |
2,572 |
17,750 |
January 2023 |
67 |
ETOILE |
(*)/(*) |
2005 |
2,556 |
(*)/(*) |
February 2026(25) |
68 |
AREOPOLIS |
COSCO |
2000 |
2,474 |
26,500 |
April 2025 |
69 |
MONEMVASIA(i) |
Maersk |
1998 |
2,472 |
9,250 |
November 2022 |
70 |
ARKADIA(i) |
Swire Shipping |
2001 |
1,550 |
21,500 |
May 2023 |
71 |
MICHIGAN |
MSC/(*) |
2008 |
1,300 |
18,700/(*) |
September 2025(26) |
72 |
TRADER |
(*)/(*) |
2008 |
1,300 |
(*)/(*) |
October 2026(27) |
73 |
LUEBECK |
MSC/(*) |
2001 |
1,078 |
15,000/(*) |
March 2026(28) |
(1) |
Daily charter rates are gross, unless stated otherwise. Amounts set
out for current daily charter rate are the amounts contained in the
charter contracts. |
(2) |
Charter terms and expiration dates are based on the earliest date
charters (unless otherwise noted) could expire. |
(3) |
Cape Artemisio is currently chartered to Hapag Lloyd at a daily
rate of $36,650 until March 12, 2025, at the earliest. Upon
redelivery of the vessel from Hapag Lloyd the vessel will commence
a new charter with a leading liner company for a period of 60 to 64
months at an undisclosed rate. |
(4) |
This charter rate will be earned by MSC Azov until December 2,
2023. From the aforementioned date until the expiry of the charter,
the daily rate will be $35,300. |
(5) |
This charter rate will be earned by MSC Amalfi until March 16,
2024. From the aforementioned date until the expiry of the charter,
the daily rate will be $35,300. |
(6) |
This charter rate will be earned by MSC Ajaccio until February 1,
2024. From the aforementioned date until the expiry of the charter,
the daily rate will be $35,300. |
(7) |
This charter rate will be earned by MSC Athens until January 29,
2023. From the aforementioned date until the expiry of the charter,
the daily rate will be $35,300. |
(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 $35,300. |
(9) |
Valor is currently chartered to Hapag Lloyd at a daily rate of
$32,400 until April 3, 2025, at the earliest. Upon redelivery of
the vessel from Hapag Lloyd the vessel will commence a new charter
with a leading liner company for a period of 60 to 64 months at an
undisclosed rate. |
(10) |
Value is currently chartered to Hapag Lloyd at a daily rate of
$32,400 until April 25, 2025, at the earliest. Upon redelivery of
the vessel from Hapag Lloyd the vessel will commence a new charter
with a leading liner company for a period of 60 to 64 months at an
undisclosed rate. |
(11) |
Valiant is currently chartered to Hapag Lloyd at a daily rate of
$32,400 until June 5, 2025, at the earliest. Upon redelivery of the
vessel from Hapag Lloyd the vessel will commence a new charter with
a leading liner company for a period of 60 to 64 months at an
undisclosed rate. |
(12) |
Valence is currently chartered to Hapag Lloyd at a daily rate of
$32,400 until July 3, 2025, at the earliest. Upon redelivery of the
vessel from Hapag Lloyd the vessel will commence a new charter with
a leading liner company for a period of 60 to 64 months at an
undisclosed rate. |
(13) |
Vantage is currently chartered to Hapag Lloyd at a daily rate of
$32,400 until September 8, 2025, at the earliest. Upon redelivery
of the vessel from Hapag Lloyd the vessel will commence a new
charter with a leading liner company for a period of 60 to 64
months at an undisclosed rate. |
(14) |
Navarino is currently chartered to MSC at a daily rate of $31,000
until January 1, 2025, at the earliest. Upon redelivery of the
vessel from MSC the vessel will commence a new charter with a
leading liner company for a period of 48 to 52 months at an
undisclosed rate. |
(15) |
The current daily rate of each of Maersk Kleven and Maersk Kotka is
a base rate of $17,000, adjusted pursuant to the terms of a 50:50
profit/loss sharing mechanism based on market conditions with a
minimum charter rate of $12,000 and a maximum charter rate of
$25,000. Upon redelivery of each vessel from Maersk between June
2023 and October 2023, each vessel will commence a new charter with
MSC for a period of 36 to 38 months at a fixed daily rate of
$41,500. |
(16) |
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 $41,500. Until then the daily
charter rate will be $31,000. |
(17) |
The daily rate for Sealand Washington and Maersk Kalamata has been
determined on a base rate of $16,000, adjusted pursuant to the
terms of a 50:50 profit/loss sharing mechanism based on market
conditions with a minimum charter rate of $12,000 and a maximum
charter rate of $25,000. Expiration dates of the charters of these
vessels represent latest redelivery dates. |
(18) |
Vessel’s daily charter rate will be $58,500 from March 2023. Until
then the vessel is chartered at an undisclosed rate. |
(19) |
Vessel’s daily charter rate will be $58,500 from April 2023. Until
then the vessel is chartered at an undisclosed rate. |
(20) |
Charterer has the option to extend the current time charter for an
additional period of 12 to 24 months at a daily rate of
$17,000. |
(21) |
Charterer has the option to extend the current time charter for an
additional period of approximately 24 months at a daily rate of
$14,500. |
(22) |
Vulpecula is currently chartered to OOCL at a daily rate of
$22,700. Upon redelivery of the vessel from OOCL in February 2023
(estimated on the earliest redelivery date) the vessel will
commence a new charter with ZIM for a period of 60 to 64 months at
a daily rate of $43,250, on average. For this new charter, the
daily rate will be $99,000 for the first 12 month period, $91,250
for the second 12 month period, $10,000 for the third 12 month
period and $8,000 for the remaining duration of the charter. |
(23) |
Vela is currently chartered to OOCL at a daily rate of $22,700.
Upon redelivery of the vessel from OOCL in January 2023 (estimated
on the earliest redelivery date) the vessel will commence a new
charter with ZIM for a period of 60 to 64 months at a daily rate of
$43,250, on average. For this new charter, the daily rate will be
$99,000 for the first 12 month period, $91,250 for the second 12
month period, $10,000 for the third 12 month period and $8,000 for
the remaining duration of the charter. |
(24) |
Charterer has the option to extend the current time charter for
three additional one-year periods at a daily rate of $21,000. |
(25) |
Etoile is currently chartered at an undisclosed rate until February
20, 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. |
(26) |
Michigan is currently chartered to MSC at a daily rate of $18,700
until September 15, 2023, at the earliest. Upon redelivery of the
vessel from MSC the vessel will commence a new charter with a
leading liner company for a period of 24 to 26 months at an
undisclosed rate. |
(27) |
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. |
(28) |
Luebeck is currently chartered to MSC at a daily rate of $15,000
until March 19, 2024, at the earliest. Upon redelivery of the
vessel from MSC the vessel will commence a new charter with a
leading liner company for a period of 24 to 26 months at an
undisclosed rate. |
|
|
(i) |
Denotes vessels acquired pursuant to the Framework Deed. The
Company holds an equity interest of 49% in each of the
vessel-owning companies. |
(ii) |
Denotes vessels subject to a sale and leaseback transaction. |
(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 table below provides information, as of
November 2, 2022, 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
|
|
Nine months endedSeptember 30, |
|
Three months endedSeptember 30, |
(Expressed in thousands of U.S. dollars, except share and per share
amounts) |
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
REVENUES: |
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
509,721 |
|
$ |
848,428 |
|
$ |
216,226 |
|
$ |
289,491 |
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
Voyage expenses |
|
(7,480 |
) |
|
(34,014 |
) |
|
(4,409 |
) |
|
(14,181 |
) |
Voyage expenses – related
parties |
|
(7,339 |
) |
|
(11,726 |
) |
|
(3,038 |
) |
|
(3,986 |
) |
Vessels’ operating
expenses |
|
(119,316 |
) |
|
(198,330 |
) |
|
(49,716 |
) |
|
(64,979 |
) |
General and administrative
expenses |
|
(5,960 |
) |
|
(9,290 |
) |
|
(2,251 |
) |
|
(2,565 |
) |
Management fees – related
parties |
|
(19,939 |
) |
|
(32,868 |
) |
|
(8,153 |
) |
|
(10,976 |
) |
General and administrative
expenses – non-cash component |
|
(5,523 |
) |
|
(5,701 |
) |
|
(2,316 |
) |
|
(1,341 |
) |
Amortization of dry-docking
and special survey costs |
|
(7,564 |
) |
|
(9,459 |
) |
|
(2,717 |
) |
|
(3,813 |
) |
Depreciation |
|
(96,010 |
) |
|
(124,236 |
) |
|
(37,284 |
) |
|
(41,760 |
) |
Gain on sale of vessels,
net |
|
18,075 |
|
|
21,250 |
|
|
16,669 |
|
|
- |
|
Foreign exchange gains |
|
147 |
|
|
555 |
|
|
1 |
|
|
168 |
|
Operating
income |
$ |
258,812 |
|
$ |
444,609 |
|
$ |
123,012 |
|
$ |
146,058 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME /
(EXPENSES): |
|
|
|
|
|
|
|
|
Interest income |
$ |
1,554 |
|
$ |
1,093 |
|
$ |
65 |
|
$ |
955 |
|
Interest and finance
costs |
|
(60,793 |
) |
|
(86,444 |
) |
|
(24,245 |
) |
|
(31,233 |
) |
Income from equity method
investments |
|
12,005 |
|
|
1,593 |
|
|
7,054 |
|
|
817 |
|
Fair value measurement of
equity securities |
|
58,144 |
|
|
- |
|
|
7,050 |
|
|
- |
|
Dividend income from
investment in equity securities |
|
1,833 |
|
|
- |
|
|
1,833 |
|
|
- |
|
Other |
|
3,631 |
|
|
2,299 |
|
|
648 |
|
|
619 |
|
Loss on derivative
instruments |
|
(1,219 |
) |
|
(2,634 |
) |
|
(207 |
) |
|
(1,724 |
) |
Total other income /
(expenses) |
$ |
15,155 |
|
$ |
(84,093 |
) |
$ |
(7,802 |
) |
$ |
(30,566 |
) |
Net
Income |
$ |
273,967 |
|
$ |
360,516 |
|
$ |
115,210 |
|
$ |
115,492 |
|
Earnings allocated to
Preferred Stock |
|
(23,302 |
) |
|
(23,302 |
) |
|
(7,854 |
) |
|
(7,854 |
) |
Net Income available
to common stockholders |
$ |
250,665 |
|
$ |
337,214 |
|
$ |
107,356 |
|
$ |
107,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share,
basic and diluted |
$ |
2.04 |
|
$ |
2.74 |
|
$ |
0.87 |
|
$ |
0.89 |
|
Weighted average number of
shares, basic and diluted |
|
122,845,943 |
|
|
123,295,035 |
|
|
123,299,457 |
|
|
121,458,291 |
|
COSTAMARE
INC.Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars) |
|
As of December 31, 2021 |
|
As of September 30, 2022 |
ASSETS |
|
(Audited) |
|
(Unaudited) |
CURRENT
ASSETS: |
|
|
|
|
Cash and cash equivalents |
$ |
276,002 |
|
$ |
619,832 |
|
Restricted cash |
|
8,856 |
|
|
10,855 |
|
Short-term investments |
|
- |
|
|
24,873 |
|
Accounts receivable |
|
20,978 |
|
|
20,716 |
|
Inventories |
|
21,365 |
|
|
25,005 |
|
Due from related parties |
|
- |
|
|
3,447 |
|
Fair value of derivatives |
|
- |
|
|
19,254 |
|
Insurance claims
receivable |
|
3,970 |
|
|
6,176 |
|
Asset held for sale |
|
78,799 |
|
|
129,301 |
|
Time charter assumed |
|
198 |
|
|
199 |
|
Accrued charter revenue |
|
7,361 |
|
|
10,731 |
|
Prepayments and other |
|
8,595 |
|
|
9,491 |
|
Total current
assets |
$ |
426,124 |
|
$ |
879,880 |
|
FIXED ASSETS,
NET: |
|
|
|
|
Right-of-use assets |
$ |
191,303 |
|
$ |
- |
|
Vessels and advances, net |
|
3,650,192 |
|
|
3,705,212 |
|
Total fixed assets,
net |
$ |
3,841,495 |
|
$ |
3,705,212 |
|
NON-CURRENT
ASSETS: |
|
|
|
|
Equity method investments |
$ |
19,872 |
|
$ |
20,268 |
|
Deferred charges, net |
|
31,859 |
|
|
48,797 |
|
Accounts receivable,
non-current |
|
5,076 |
|
|
5,251 |
|
Restricted cash |
|
68,670 |
|
|
85,237 |
|
Fair value of derivatives,
non-current |
|
3,429 |
|
|
41,892 |
|
Accrued charter revenue,
non-current |
|
8,183 |
|
|
7,698 |
|
Time charter assumed,
non-current |
|
667 |
|
|
518 |
|
Other non-current assets |
|
1,666 |
|
|
- |
|
Total
assets |
$ |
4,407,041 |
|
$ |
4,794,753 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current portion of long-term
debt |
$ |
272,365 |
|
$ |
356,019 |
|
Accounts payable |
|
18,865 |
|
|
12,982 |
|
Due to related parties |
|
1,694 |
|
|
833 |
|
Finance lease liabilities |
|
16,676 |
|
|
- |
|
Accrued liabilities |
|
27,304 |
|
|
39,124 |
|
Unearned revenue |
|
23,830 |
|
|
27,746 |
|
Fair value of derivatives |
|
6,876 |
|
|
5,470 |
|
Other current liabilities |
|
2,417 |
|
|
2,481 |
|
Total current
liabilities |
$ |
370,027 |
|
$ |
444,655 |
|
NON-CURRENT
LIABILITIES |
|
|
|
|
Long-term debt, net of current
portion |
$ |
2,169,718 |
|
$ |
2,313,445 |
|
Finance lease liabilities, net
of current portion |
|
99,689 |
|
|
- |
|
Fair value of derivatives, net
of current portion |
|
7,841 |
|
|
21,776 |
|
Unearned revenue, net of
current portion |
|
33,867 |
|
|
34,649 |
|
Total non-current
liabilities |
$ |
2,311,115 |
|
$ |
2,369,870 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
Preferred stock |
$ |
- |
|
$ |
- |
|
Common stock |
|
12 |
|
|
12 |
|
Treasury stock |
|
- |
|
|
(60,095 |
) |
Additional paid-in
capital |
|
1,386,636 |
|
|
1,418,574 |
|
Retained earnings |
|
341,482 |
|
|
573,984 |
|
Accumulated other
comprehensive income / (loss) |
|
(2,231 |
) |
|
47,753 |
|
Total stockholders’
equity |
$ |
1,725,899 |
|
$ |
1,980,228 |
|
Total liabilities and
stockholders’ equity |
$ |
4,407,041 |
|
$ |
4,794,753 |
|
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