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Monaco - February 8, 2023
Costamare Inc. ("Costamare" or the "Company") (NYSE: CMRE) today reported unaudited financial results for the fourth quarter ("Q4 2022") and year ended December 31, 2022.
I. RECORD PROFITABILITY FOR YEAR ENDED 2022
• 2022 Net Income available to common stockholders of $523.9 million ($4.26 per share) vs $404.1 million ($3.28 per share) in 2021.
• 2022 Adjusted Net Income available to common stockholders1 of $405.3 million ($3.30 per share) vs $289.9 million ($2.36 per share) in 2021.
• Q4 2022 Net Income available to common stockholders of $186.7 million ($1.53 per share) vs $153.4 million ($1.24 per share) in Q4 2021.
• Q4 2022 Adjusted Net Income available to common stockholders1 of $74.8 million ($0.61 per share) vs $112.1 million ($0.91 per share) in Q4 2021.
• 2022 Year-end liquidity of $973.2 million2 vs $552.3 million3 in 2021 Year-end.
II. DRY BULK OPERATING PLATFORM
• Setup of a new venture under Costamare Bulkers Inc. ("CBI"), which is fully consolidated with the Company.
• CBI will charter-in/out dry bulk vessels, enter into contracts of affreightment, forward freight agreements and may also utilize hedging solutions.
• CBI has currently fixed a fleet of 14 Newcastlemax/Capesize bulk carriers and a fleet of 9 Kamsarmax/Panamax bulk carriers.
III. NEW DEBT FINANCING
• New financing agreements totaling approximately $558 million in aggregate and extension of maturity of a bilateral loan facility. More specifically:
Refinancing of existing indebtedness of 10 containerships, secured by long termcontracted cash flows:
• Bilateral loan facility for a total amount of approximately $323 million.
• Loan proceeds used for prepayment of existing indebtedness and general corporate purposes.
• Seven year tenor.
• Significant improvement of funding cost, and extension of maturity for eight out of the ten refinanced vessels.
Refinancing of existing indebtedness of two containerships, secured by long term contracted cash flows:
• Bilateral loan facility for a total amount of $85 million.
• Loan proceeds used for prepayment of existing indebtedness and general corporate purposes.
• Eight year tenor.
• Five year extension of original loan maturity for the two refinanced vessels.
Refinancing of existing indebtedness of nine dry bulk carriers:
• Bilateral hunting license loan facility for a total amount of $120 million.
• Approximately $83 million drawn for the refinancing of the original indebtedness.
• Six year tenor.
Refinancing of existing indebtedness of three dry bulk carriers:
• Bilateral loan facility for a total amount of $30 million.
• Loan proceeds of $30 million used for prepayment of existing indebtedness.
• Six year tenor.
Extension of the original maturity until Q1 2029, of a bilateral loan facility (outstanding indebtedness of approximately $127 million) secured by two containerships with long term contracted cash flows.
IV. OWNED FLEET CHARTER UPDATE - FULLY EMPLOYED CONTAINERSHIP FLEET4 FOR THE YEAR AHEAD
• 96% and 85% of the containership fleet5 fixed for 2023 and 2024, respectively.
• Contracted revenues for the containership fleet of approximately $3.2 billion with a TEU-weighted duration of 4.2 years6.
• Entered into a total of 38 chartering agreements for the owned dry bulk fleet since Q3 2022 earnings release.
V. SALE AND PURCHASE ACTIVITY
• Conclusion of the sale of the 2003-built, 6,644 TEU capacity containership, Maersk Kalamata in January 2023, resulting in an estimated capital gain of $48.5 million in Q1 2023.
VI. DIVIDEND ANNOUNCEMENTS
• On January 3, 2023, the Company declared a dividend of $0.115 per share on the common stock, which was paid on February 7, 2023, to holders of record of common stock as of January 20, 2023.
• On January 3, 2023, the Company declared a dividend of $0.476563 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 January 17, 2023 to holders of record as of January 13, 2023.
• Available funds remaining under the share repurchase program of approximately $90 million for common shares and $150 million for preferred shares.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
"2022 has been a record year for Costamare. With a fleet of 117 vessels, including 45 dry bulk ships, the Company generated Net Income of above $523 million. As of the end of the year liquidity stood at around $970 million.
On the containerships side, 2022 was a unique year with the first half drawing upon favorable market conditions with strong demand and logistical disruptions continuing to impact the sector, while during the second half charter rates and asset values normalized as a result of reduced cargo demand and the return of capacity previously tied up by congestion.
We chartered a total of 16 secondhand containerships during the year, which added incremental contracted revenues of more than $550 million. Total contracted revenues amount to $3.2 billion with a weighted average remaining time charter duration of about 4.2 years.
We are above 95% covered for 2023 and we have proactively arranged long term employment on a forward basis for a number of containerships coming off charter between 2023 and 2025. At the same time, we are in the process of disposing of some older tonnage at prices fixed during a tight market environment.
On the dry bulk side, the new dry bulk operating platform previously announced commenced operations during the quarter. With an equity commitment of up to $200 million our goal is to grow the business on a prudent basis realizing healthy returns for our shareholders.
On the back of our increased liquidity and container charter coverage, we are actively pursuing new investment opportunities in the shipping sector that have the potential to provide enhanced returns at acceptable risk levels."
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 $4.5 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 $120.0 million and $37.1 million of available undrawn funds from one hunting license facility as of December 31, 2022.
3 Including our share of cash amounting to $5.5 million held by vessel owning-companies set-up pursuant to the Framework Deed and $193.3 million of available undrawn funds from two hunting license facilities (adjusted for the $56.7 million drawn between January 1, 2022 and March 9, 2022 (date of Q4 2021 earnings release)).
4 Please refer to the Containership Fleet List table for additional information on vessel employment details for our containership fleet.
5 Calculated on a TEU basis, including vessels owned by vessel owning-companies set-up pursuant to the Framework Deed, and excluding one vessel that we have agreed to sell.
6 As of February 8, 2023. Total contracted revenues and TEU-weighted remaining time charter duration include our ownership percentage for four vessels owned pursuant to the Framework Deed.
Full report
About Costamare Inc.
Costamare Inc. is one of the world's leading owners and providers of containerships and dry bulk vessels for charter. The Company has 49 years of history in the international shipping industry and a fleet of 72 containerships, with a total capacity of approximately 531,000 TEU (including one vessel that we have agreed to sell) and 45 dry bulk vessels with a total capacity of approximately 2,436,000 DWT. The Company also has a dry bulk operating platform which charters in/out dry bulk vessels, enters into contracts of affreightment and utilizes hedging solutions. Four of our containerships have been acquired pursuant to the Framework Deed with York by vessel-owning joint venture companies in which we hold a minority equity interest. The Company's common stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock trade on the New York Stock Exchange under the symbols "CMRE", "CMRE PR B", "CMRE PR C", "CMRE PR D" and "CMRE PR E", respectively.
Costamare Inc. press release
