Costamare Inc. (“Costamare” or the “Company”) (NYSE: CMRE) today
reported unaudited financial results for the second quarter (“Q2
2022”) and six-months ended June 30, 2022.
I. RECORD PROFITABILITY IN A SECOND
QUARTER SINCE NYSE LISTING
- Q2 2022 Net Income
available to common stockholders of $114.1 million ($0.92 per
share) vs $82.8 million ($0.67 per share) in Q2 2021.
- Q2 2022 Adjusted
Net Income available to common stockholders1 of $118.6 million
($0.95 per share) vs $58.3 million ($0.47 per share) in Q2
2021.
- Q2 2022 liquidity
of $854.1 million2 vs $564.6 million in Q2 2021.
II. CLOSING OF $500 MILLION SYNDICATED
LOAN FACILITY
- Refinancing of
existing indebtedness of 17 vessels, secured by long term
contracted cash flows, with a tenor of 5 years.
- Additional
liquidity raised of approximately $200 million.
- Participation of 12
U.S., European and Asian financing institutions, most of which
represent new financing relationships.
- Significant
reduction of funding cost, and extension of repayment schedule for
16 out of the 17 refinanced vessels.
III. SHARE REPURCHASE PROGRAM TO
DATE
- Repurchase of
4,736,702 common shares (representing 3.8% of total common shares)
at an average price of $12.67 per share, for a total consideration
of approximately $60 million.
- Available funds
remaining under the share repurchase program of approximately $90
million for common shares and $150 million for preferred
shares.
IV. NEW CHARTER ARRANGEMENTS AND FULLY
EMPLOYED CONTAINERSHIP FLEET3 FOR
THE YEAR AHEAD
- Containership fleet
fully employed for the remainder of 2022.
- More than 95% of
the containership fleet4 is fixed for 2023.
- Forward fixing of
two 2004-built, 6,492 TEU containerships, Aries and Argus, for a
minimum tenor of 3 years at a daily rate of $58,500.
- Entered into a
total of 27 chartering agreements for the dry bulk fleet since Q1
2022 earnings release.
V. SALE AND PURCHASE
ACTIVITY
- Conclusion of the
sale of the 2009-built, 57,334 DWT dry bulk vessel Thunder,
resulting in a capital gain of $3.5 million.
VI. DIVIDEND ANNOUNCEMENTS
- On July 1, 2022,
the Company declared a dividend of $0.115 per share on the common
stock, which will be paid on August 8, 2022, to holders of record
of common stock as of July 21, 2022.
- On July 1, 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 July 15, 2022 to holders of record as of
July 14, 2022.
__________________________1 Adjusted Net Income available to
common stockholders and respective per share figures are non-GAAP
measures and should not be used in isolation or as substitutes for
Costamare’s financial results presented in accordance with U.S.
generally accepted accounting principles (“GAAP”). For the
definition and reconciliation of these measures to the most
directly comparable financial measure calculated and presented in
accordance with GAAP, please refer to Exhibit I.2 Including our
share of cash amounting to $3.6 million held by vessel
owning-companies (the “Framework Deed”) set-up pursuant to the
Framework Deed dated May 15, 2013, as amended and restated from
time to time, 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 $10.0
million and $152.5 million of available undrawn funds from our two
hunting license facilities as of June 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 second quarter revenues reached
approx. $290 million and Adjusted Net Income more than doubled to
$119 million, compared to $58 million for the same period last
year. As of quarter end, cash balances stood at around $700 million
and total liquidity, including undrawn credit lines, was above $850
million.
Over the last months we executed on our
previously announced share buy-back program, buying $60 million
worth of common shares. At the same time, we concluded a 5-year
syndicated loan facility of $500 million, proactively refinancing
the indebtedness of 16 vessels and significantly reducing our cost
of funding at competitive terms.
Regarding the market, congestion and pressured
supply chains remain challenging as we enter the second half of the
year. On the container market, asset values and charter rates
remain at healthy and historically high levels, as also evidenced
by our latest fixtures.
On the dry bulk market, rates have recently been
under pressure but still remain at profitable levels, especially
for owners who entered the market the year before. We view any
potential softening of asset values as a compelling buying
opportunity as we feel comfortable with the long-term supply and
demand dynamics of the sector.
On the back of our increased liquidity, we are
actively evaluating new investment opportunities in the shipping
sector that have the potential to provide enhanced returns at
acceptable risk levels.”
Financial Summary
|
|
Six-month period endedJune 30, |
|
Three-month period endedJune 30, |
(Expressed in thousands of U.S. dollars, except share and per share
data) |
|
2021 |
|
|
|
2022 |
|
|
2021 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
293,495 |
|
|
$ |
558,937 |
|
$ |
166,770 |
|
|
$ |
290,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued charter revenue
(1) |
$ |
2,146 |
|
|
$ |
5,069 |
|
$ |
1,114 |
|
|
$ |
1,712 |
Amortization of time-charter
assumed |
$ |
(345 |
) |
|
$ |
98 |
|
$ |
(345 |
) |
|
$ |
49 |
Voyage revenue adjusted on a
cash basis (2) |
$ |
295,296 |
|
|
$ |
564,104 |
|
$ |
167,539 |
|
|
$ |
292,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income available
to common stockholders (3) |
$ |
96,262 |
|
|
$ |
223,058 |
|
$ |
58,275 |
|
|
$ |
118,563 |
Weighted Average number of
shares |
|
122,615,427 |
|
|
|
124,228,628 |
|
|
122,844,260 |
|
|
|
124,306,059 |
Adjusted Earnings per share
(3) |
$ |
0.79 |
|
|
$ |
1.80 |
|
$ |
0.47 |
|
|
$ |
0.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
158,757 |
|
|
$ |
245,024 |
|
$ |
90,616 |
|
|
$ |
121,987 |
Net Income available to common
stockholders |
$ |
143,309 |
|
|
$ |
229,576 |
|
$ |
82,762 |
|
|
$ |
114,133 |
Weighted Average number of
shares |
|
122,615,427 |
|
|
|
124,228,628 |
|
|
122,844,260 |
|
|
|
124,306,059 |
Earnings per share |
$ |
1.17 |
|
|
$ |
1.85 |
|
$ |
0.67 |
|
|
$ |
0.92 |
(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 containership fleet are described in the
notes to the “Fleet List” table below.(3) Adjusted Net Income
available to common stockholders and Adjusted Earnings per Share
are non-GAAP measures. Refer to the reconciliation of Net Income to
Adjusted Net Income.
Non-GAAP Measures
The Company reports its financial results in
accordance with U.S. GAAP. However, management believes that
certain non-GAAP financial measures used in managing the business
may provide users of these financial measures additional meaningful
comparisons between current results and results in prior operating
periods. Management believes that these non-GAAP financial measures
can provide additional meaningful reflection of underlying trends
of the business because they provide a comparison of historical
information that excludes certain items that impact the overall
comparability. Management also uses these non-GAAP financial
measures in making financial, operating and planning decisions and
in evaluating the Company’s performance. The tables below set out
supplemental financial data and corresponding reconciliations to
GAAP financial measures for the three-month and the six-month
periods ended June 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
|
|
Six-month period ended June
30, |
|
Three-month period ended June
30, |
(Expressed in thousands of U.S. dollars, except share and per share
data) |
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Net
Income |
$ |
158,757 |
|
$ |
245,024 |
|
$ |
90,616 |
|
$ |
121,987 |
|
Earnings allocated to
Preferred Stock |
|
(15,448 |
) |
|
(15,448 |
) |
|
(7,854 |
) |
|
(7,854 |
) |
Net Income available
to common stockholders |
|
143,309 |
|
|
229,576 |
|
|
82,762 |
|
|
114,133 |
|
Accrued charter revenue |
|
2,146 |
|
|
5,069 |
|
|
1,114 |
|
|
1,712 |
|
General and administrative
expenses - non-cash component |
|
3,207 |
|
|
4,360 |
|
|
1,768 |
|
|
1,808 |
|
Amortization of Time charter
assumed |
|
(345 |
) |
|
98 |
|
|
(345 |
) |
|
49 |
|
Realized (gain) / loss on
Euro/USD forward contracts (1) |
|
(174 |
) |
|
950 |
|
|
(96 |
) |
|
619 |
|
Gain on sale of vessels,
net |
|
(1,406 |
) |
|
(21,250 |
) |
|
(1,666 |
) |
|
(3,452 |
) |
Non-recurring, non-cash
write-off of loan deferred financing costs |
|
363 |
|
|
2,339 |
|
|
- |
|
|
1,705 |
|
(Gain) / Loss on derivative
instruments, excluding interest accrued and realized on non-hedging
derivative instruments (1) |
|
1,012 |
|
|
910 |
|
|
(105 |
) |
|
983 |
|
Non-recurring payments for
loan cancellation fees |
|
- |
|
|
1,006 |
|
|
- |
|
|
1,006 |
|
Fair value measurement /
Change in fair value of equity securities |
|
(51,094 |
) |
|
- |
|
|
(25,157 |
) |
|
- |
|
Other non-recurring, non-cash
items |
|
(756 |
) |
|
- |
|
|
- |
|
|
- |
|
Adjusted Net Income
available to common stockholders |
$ |
96,262 |
|
$ |
223,058 |
|
$ |
58,275 |
|
$ |
118,563 |
|
Adjusted Earnings per
Share |
$ |
0.79 |
|
$ |
1.80 |
|
$ |
0.47 |
|
$ |
0.95 |
|
Weighted average number of
shares |
|
122,615,427 |
|
|
124,228,628 |
|
|
122,844,260 |
|
|
124,306,059 |
|
Adjusted Net Income available to common
stockholders and Adjusted Earnings per Share represent Net Income
after earnings allocated to preferred stock and gain on retirement
of preferred stock, but before non-cash “Accrued charter revenue”
recorded under charters with escalating or descending charter
rates, realized (gain)/loss on Euro/USD forward contracts, 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, 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 June 30, 2022
compared to the three-month period ended June 30, 2021
During the three-month periods ended June 30,
2022 and 2021, we had an average of 117.7 and 71.5 vessels,
respectively, in our fleet.
In the three-month period ended June 30, 2022,
we sold the dry bulk vessel Thunder with DWT of 57,334.
In the three-month period ended June 30, 2021,
we accepted delivery of the newbuild container vessel YM Tiptop
with a TEU capacity of 12,690 and the secondhand container vessels
Androusa, Norfolk, Porto Cheli, Porto Kagio and Porto Germeno with
an aggregate TEU capacity of 26,705, and we sold the container
vessel Prosper with a TEU capacity of 1,504.
Furthermore, in the three-month period ended
June 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. Three of the dry bulk vessels that were
part of the acquisition, the Builder, Pegasus and Adventure (with
an aggregate DWT of 171,997), were delivered to us during the
three-month period ended June 30, 2021.
In the three-month periods ended June 30, 2022
and 2021, our fleet ownership days totaled 10,715 and 6,509 days,
respectively. Ownership days are one of the primary drivers of
voyage revenue and vessels’ operating expenses and represent the
aggregate number of days in a period during which each vessel in
our fleet is owned.
Consolidated Financial Results and
Vessels’ Operational Data(1)
(Expressed in millions of U.S. dollars,except percentages) |
|
Three-month period endedJune 30, |
|
|
|
|
PercentageChange |
|
|
2021 |
|
|
2022 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
166.8 |
|
|
$ |
290.9 |
|
|
$ |
124.1 |
|
74.4 |
% |
Voyage expenses |
|
(2.0 |
) |
|
|
(11.3 |
) |
|
|
9.3 |
|
n.m. |
|
Voyage expenses – related
parties |
|
(2.4 |
) |
|
|
(4.0 |
) |
|
|
1.6 |
|
66.7 |
% |
Vessels’ operating
expenses |
|
(37.8 |
) |
|
|
(67.6 |
) |
|
|
29.8 |
|
78.8 |
% |
General and administrative
expenses |
|
(1.7 |
) |
|
|
(3.5 |
) |
|
|
1.8 |
|
105.9 |
% |
Management fees – related
parties |
|
(6.3 |
) |
|
|
(11.0 |
) |
|
|
4.7 |
|
74.6 |
% |
General and administrative
expenses - non-cash component |
|
(1.8 |
) |
|
|
(1.8 |
) |
|
|
- |
|
- |
|
Amortization of dry-docking
and special survey costs |
|
(2.5 |
) |
|
|
(2.9 |
) |
|
|
0.4 |
|
16.0 |
% |
Depreciation |
|
(31.6 |
) |
|
|
(41.3 |
) |
|
|
9.7 |
|
30.7 |
% |
Gain on sale of vessels |
|
1.7 |
|
|
|
3.5 |
|
|
|
1.8 |
|
105.9 |
% |
Foreign exchange gains |
|
- |
|
|
|
0.3 |
|
|
|
0.3 |
|
n.m. |
|
Interest income |
|
1.1 |
|
|
|
0.1 |
|
|
|
(1.0 |
) |
(90.9 |
%) |
Interest and finance
costs |
|
(20.4 |
) |
|
|
(30.1 |
) |
|
|
9.7 |
|
47.5 |
% |
Change in fair value of equity
securities |
|
25.1 |
|
|
|
- |
|
|
|
(25.1 |
) |
n.m. |
|
Income from equity method
investments |
|
1.0 |
|
|
|
0.5 |
|
|
|
(0.5 |
) |
(50.0 |
%) |
Other |
|
1.3 |
|
|
|
1.2 |
|
|
|
(0.1 |
) |
(7.7 |
%) |
Gain / (loss) on derivative
instruments |
|
0.1 |
|
|
|
(1.0 |
) |
(1.1 |
) |
n.m. |
|
Net
Income |
$ |
90.6 |
|
|
$ |
122.0 |
|
(Expressed in millions of U.S. dollars,except percentages) |
|
Three-month period endedJune 30, |
|
|
Change |
|
PercentageChange |
|
2021 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
166.8 |
|
|
$ |
290.9 |
|
|
$ |
124.1 |
|
74.4 |
% |
Accrued charter revenue |
|
1.1 |
|
|
|
1.7 |
|
|
|
0.6 |
|
54.5 |
% |
Amortization of time charter
assumed |
|
(0.3 |
) |
|
|
- |
|
|
|
0.3 |
|
n.m. |
|
Voyage revenue adjusted on a
cash basis (1) |
$ |
167.6 |
|
|
$ |
292.6 |
|
|
$ |
125.0 |
|
74.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessels’ operational
data |
|
Three-month period endedJune
30, |
|
|
|
PercentageChange |
|
2021 |
|
|
2022 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Average number of vessels |
|
71.5 |
|
|
117.7 |
|
|
46.2 |
|
|
64.6 |
% |
Ownership days |
|
6,509 |
|
|
10,715 |
|
|
4,206 |
|
|
64.6 |
% |
Number of vessels under
dry-docking |
|
6 |
|
|
10 |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segmental Financial Summary
|
Three-month period ended June 30, 2021 |
|
Containervessels |
Dry bulkvessels
(2) |
Other |
Total |
|
|
|
|
|
Voyage revenue |
$ |
165.9 |
|
$ |
0.9 |
|
$ |
- |
$ |
166.8 |
|
Voyage expenses |
|
(1.9 |
) |
|
(0.1 |
) |
|
- |
|
(2.0 |
) |
Voyage expenses – related parties |
|
(2.4 |
) |
|
- |
|
|
- |
|
(2.4 |
) |
Vessels’ operating expenses |
|
(37.6 |
) |
|
(0.2 |
) |
|
- |
|
(37.8 |
) |
General and administrative expenses |
|
(1.7 |
) |
|
- |
|
|
- |
|
(1.7 |
) |
Management fees – related parties |
|
(6.3 |
) |
|
- |
|
|
- |
|
(6.3 |
) |
General and administrative expenses - non-cash component |
|
(1.8 |
) |
|
- |
|
|
- |
|
(1.8 |
) |
Amortization of dry-docking and special survey costs |
|
(2.5 |
) |
|
- |
|
|
- |
|
(2.5 |
) |
Depreciation |
|
(31.5 |
) |
|
(0.1 |
) |
|
- |
|
(31.6 |
) |
Gain on sale of vessels |
|
1.7 |
|
|
- |
|
|
- |
|
1.7 |
|
Interest income |
|
1.1 |
|
|
- |
|
|
- |
|
1.1 |
|
Interest and finance costs |
|
(20.4 |
) |
|
- |
|
|
- |
|
(20.4 |
) |
Change in fair value of equity securities |
|
- |
|
|
- |
|
|
25.1 |
|
25.1 |
|
Income from equity method investments |
|
- |
|
|
- |
|
|
1.0 |
|
1.0 |
|
Other |
|
1.3 |
|
|
- |
|
|
- |
|
1.3 |
|
Gain on derivative instruments |
|
0.1 |
|
|
- |
|
|
- |
|
0.1 |
|
Net Income |
$ |
64.0 |
|
$ |
0.5 |
|
$ |
26.1 |
$ |
90.6 |
|
|
|
|
|
|
|
Three-month period ended June 30, 2022 |
|
Containervessels |
Dry bulkvessels |
Other |
Total |
|
|
|
|
|
Voyage revenue |
$ |
190.8 |
|
$ |
100.1 |
|
$ |
- |
$ |
290.9 |
|
Voyage expenses |
|
(2.4 |
) |
|
(8.9 |
) |
|
- |
|
(11.3 |
) |
Voyage expenses – related parties |
|
(2.7 |
) |
|
(1.3 |
) |
|
- |
|
(4.0 |
) |
Vessels’ operating expenses |
|
(42.4 |
) |
|
(25.2 |
) |
|
- |
|
(67.6 |
) |
General and administrative expenses |
|
(2.3 |
) |
|
(1.2 |
) |
|
- |
|
(3.5 |
) |
Management fees – related parties |
|
(6.7 |
) |
|
(4.3 |
) |
|
- |
|
(11.0 |
) |
General and administrative expenses - non-cash component |
|
(1.1 |
) |
|
(0.7 |
) |
|
- |
|
(1.8 |
) |
Amortization of dry-docking and special survey costs |
|
(2.7 |
) |
|
(0.2 |
) |
|
- |
|
(2.9 |
) |
Depreciation |
|
(31.4 |
) |
|
(9.9 |
) |
|
- |
|
(41.3 |
) |
Gain on sale of vessels |
|
- |
|
|
3.5 |
|
|
- |
|
3.5 |
|
Foreign exchange gains |
|
0.2 |
|
|
0.1 |
|
|
- |
|
0.3 |
|
Interest income |
|
0.1 |
|
|
- |
|
|
- |
|
0.1 |
|
Interest and finance costs |
|
(25.6 |
) |
|
(4.5 |
) |
|
- |
|
(30.1 |
) |
Income from equity method investments |
|
- |
|
|
- |
|
|
0.5 |
|
0.5 |
|
Other |
|
0.3 |
|
|
0.9 |
|
|
- |
|
1.2 |
|
Loss on derivative instruments |
|
(0.6 |
) |
|
(0.4 |
) |
|
- |
|
(1.0 |
) |
Net Income |
$ |
73.5 |
|
$ |
48.0 |
|
$ |
0.5 |
$ |
122.0 |
|
|
|
|
|
|
(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 74.4%, or $124.1
million, to $290.9 million during the three-month period ended June
30, 2022, from $166.8 million during the three-month period ended
June 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 seven container
vessels and 43 dry bulk vessels acquired during the nine-month
ended December 31, 2021 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
six-month period ended June 30, 2022 and four container vessels
sold during the nine-month period ended December 31, 2021.
Voyage revenue adjusted on a cash basis (which
eliminates non-cash “Accrued charter revenue”) increased by 74.6%,
or $125.0 million, to $292.6 million during the three-month period
ended June 30, 2022, from $167.6 million during the three-month
period ended June 30, 2021. Accrued charter revenue for the
three-month periods ended June 30, 2022 and 2021 was a positive
amount of $1.7 million and $1.1 million, respectively.
Voyage Expenses
Voyage expenses were $11.3 million and $2.0
million for the three-month periods ended June 30, 2022 and 2021,
respectively. Voyage expenses 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 $2.4 million for the three-month periods ended June 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 June 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 $67.6 million and $37.8
million during the three-month periods ended June 30, 2022 and
2021, respectively. Daily vessels’ operating expenses were $6,309
and $5,811 for the three-month periods ended June 30, 2022 and
2021, respectively. The increase in the daily operating expenses
during the quarter ended June 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 $3.5
million and $1.7 million during the three-month periods ended June
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 $6.3 million during the three-month
periods ended June 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 June 30, 2022 amounted
to $1.8 million, representing the value of the shares issued to a
related party manager on June 30, 2022. General and administrative
expenses - non-cash component for the three-month period ended June
30, 2021 amounted to $1.8 million, representing the value of the
shares issued to a related party manager on June 30, 2021.
Amortization of Dry-Docking and Special
Survey
Amortization of deferred dry-docking and special
survey costs was $2.9 million and $2.5 million during the
three-month periods ended June 30, 2022 and 2021, respectively.
During the three-month period ended June 30, 2022, seven 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. During the three-month period ended June 30,
2021, five vessels underwent and completed their dry-docking and
special survey and one vessel was in the process of completing its
dry-docking and special survey.
Depreciation
Depreciation expense for the three-month periods
ended June 30, 2022 and 2021 was $41.3 million and $31.6 million,
respectively.
Gain on Sale of Vessels
During the three-month period ended June 30,
2022, we recorded a gain of $3.5 million from the sale of the dry
bulk vessel Thunder, which was classified as vessel held for sale
during the first quarter of 2022. During the three-month period
ended June 30, 2021, we recorded a gain of $1.7 million from the
sale of the container vessel Prosper, which was classified as
vessel held for sale during the first quarter of 2021.
Vessels Held for Sale
As of June 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 second 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 June 30,
2021, the container vessels Zim New York, and Zim Shanghai were
classified as vessels held for sale and the container vessel
Venetiko continued to be classified as vessel held for sale
(initially classified as vessel held for sale during the first
quarter of 2021). No loss on vessels held for sale was recorded
during the second quarter of 2021, since each vessel’s fair value
less cost to sell exceeded each vessel’s carrying value.
Interest Income
Interest income amounted to $0.1 million and
$1.1 million for the three-month periods ended June 30, 2022 and
2021, respectively.
Interest and Finance Costs
Interest and finance costs were $30.1 million
and $20.4 million during the three-month periods ended June 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 June 30, 2022 compared to the
three-month period ended June 30, 2021.
Change in Fair Value of Equity Securities
Change in fair value of equity securities of
$25.1 million for the three-month period ended June 30, 2021,
represents the difference between the aggregate fair value of
1,221,800 ordinary shares of ZIM that we owned as at June 30, 2021
compared to the fair value of such shares as of March 31, 2021.
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 June 30, 2022 was $0.5 million ($1.0
million for the three-month period ended June 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 June 30, 2022 and June 30, 2021 six and six companies,
respectively, were jointly owned pursuant to the Framework Deed out
of which four and five companies, respectively, owned container
vessels. The decreased income from equity method investments in the
second quarter of 2022 compared to the second quarter of 2021 is
mainly attributable to the decreased number of container vessels
jointly owned with York during the respective periods.
Gain / (loss) on Derivative Instruments
As of June 30, 2022, we hold 27 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 June 30, 2022, the fair value of these instruments,
in aggregate, amounted to a net asset of $17.4 million. During the
three-month period ended June 30, 2022, a gain of $7.6 million has
been included in OCI and a loss of $0.1 million has been included
in Gain/(loss) on Derivative Instruments.
Cash Flows
Three-month periods ended June 30, 2022 and
2021
Condensed cash
flows |
Three-month period endedJune 30, |
(Expressed in millions of U.S. dollars) |
|
2021 |
|
|
|
2022 |
Net Cash Provided by Operating
Activities |
$ |
104.0 |
|
|
$ |
161.1 |
Net Cash Provided by / (Used
in) Investing Activities |
$ |
(195.1 |
) |
|
$ |
24.9 |
Net Cash Provided by Financing
Activities |
$ |
204.2 |
|
|
$ |
14.0 |
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the three-month period ended June 30, 2022, increased by $57.1
million to $161.1 million, from $104.0 million for the three-month
period ended June 30, 2021. The increase is mainly attributable to
increased cash from operations of $125.1 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 $5.0 million,
by the increased payments for interest (including swap payments) of
$6.9 million during the three-month period ended June 30, 2022
compared to the three-month period ended June 30, 2021 and by the
increased dry-docking and special survey costs of $8.5 million
during the three-month period ended June 30, 2022 compared to the
three-month period ended June 30, 2021.
Net Cash Provided by / (Used in)
Investing Activities
Net cash provided by investing activities was
$24.9 million in the three-month period ended June 30, 2022, which
mainly consisted of proceeds we received from (i) the sale of the
dry bulk vessel Thunder and (ii) the maturity of short-term
investments in US Treasury Bills; partly off-set by 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 $195.1
million in the three-month period ended June 30, 2021, which mainly
consisted of (i) net payments for the acquisition of the 51% equity
interest in one company, previously jointly owned with York
pursuant to the Framework Deed, (ii) payments for the delivery of
one newbuild container vessel, four secondhand container vessels
and one dry bulk vessel, (iii) advance payments for the acquisition
of twelve secondhand dry bulk vessels and (iv) payments for
upgrades for certain of our vessels; partly off-set by proceeds we
received from the sale of one vessel.
Net Cash Provided by Financing
Activities
Net cash provided by financing activities was
$14.0 million in the three-month period ended June 30, 2022, which
mainly consisted of (a) $143.5 million net proceeds relating to our
debt financing agreements (including proceeds of $551.3 million we
received from our debt financing agreements), (b) $52.4 million we
paid for the re-purchase of 4.1 million of our common shares, (c)
$57.5 million we paid for dividends to holders of our common stock
for the first quarter of 2022 (including a special dividend to
holders of our common stock of $46.7 million), (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
January 15, 2022 to April 14, 2022.
Net cash provided by financing activities was
$204.2 million in the three-month period ended June 30, 2021, which
mainly consisted of (a) $227.8 million net proceeds relating to our
debt financing agreements (including proceeds we received from the
issuance of €100.0 million unsecured bond on the Athens Exchange),
(b) $9.4 million we paid for dividends to holders of our common
stock for the first 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 January 15,
2021 to April 14, 2021.
Six-month period ended June 30, 2022
compared to the six-month period ended June 30, 2021
During the six-month periods ended June 30, 2022
and 2021, we had an average of 117.6 and 67.1 vessels,
respectively, in our fleet.
In the six-month period ended June 30, 2022, we
accepted delivery of (i) the secondhand container vessel Dyros (ex.
Co Kobe) with a TEU capacity of 4,578 and (ii) the secondhand dry
bulk vessels Oracle (ex. Belstar), Libra (ex. Universal Bremen) and
Norma (ex. Magda) with an aggregate DWT of 172,717. Furthermore, in
the six-month period ended June 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 six-month period ended June 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 and Porto Germeno with an
aggregate TEU capacity of 45,331 and we sold the container vessels
Halifax Express and Prosper with an aggregate TEU capacity of 6,394
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 six-month period ended June
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. Three of the dry bulk vessels that were
part of the acquisition, the Builder, Pegasus and Adventure (with
an aggregate DWT of 171,997), were delivered to us during the
six-month period ended June 30, 2021.
In the six-month periods ended June 30, 2022 and
2021, our fleet ownership days totaled 21,279 and 12,149 days,
respectively. Ownership days are one of the primary drivers of
voyage revenue and vessels’ operating expenses and represent the
aggregate number of days in a period during which each vessel in
our fleet is owned.
Consolidated Financial Results and
Vessels’ Operational Data (1)
(Expressed in millions of U.S. dollars,except percentages) |
|
Six-month period endedJune 30, |
|
|
|
|
PercentageChange |
|
|
2021 |
|
|
2022 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
293.5 |
|
|
$ |
558.9 |
|
|
$ |
265.4 |
|
90.4 |
% |
Voyage expenses |
|
(3.1 |
) |
|
|
(19.8 |
) |
|
|
16.7 |
|
n.m. |
|
Voyage expenses – related
parties |
|
(4.3 |
) |
|
|
(7.7 |
) |
|
|
3.4 |
|
79.1 |
% |
Vessels’ operating
expenses |
|
(69.6 |
) |
|
|
(133.4 |
) |
|
|
63.8 |
|
91.7 |
% |
General and administrative
expenses |
|
(3.7 |
) |
|
|
(6.7 |
) |
|
|
3.0 |
|
81.1 |
% |
Management fees – related
parties |
|
(11.8 |
) |
|
|
(21.9 |
) |
|
|
10.1 |
|
85.6 |
% |
General and administrative
expenses - non-cash component |
|
(3.2 |
) |
|
|
(4.4 |
) |
|
|
1.2 |
|
37.5 |
% |
Amortization of dry-docking
and special survey costs |
|
(4.8 |
) |
|
|
(5.6 |
) |
|
|
0.8 |
|
16.7 |
% |
Depreciation |
|
(58.7 |
) |
|
|
(82.5 |
) |
|
|
23.8 |
|
40.5 |
% |
Gain on sale of vessels,
net |
|
1.4 |
|
|
|
21.3 |
|
|
|
19.9 |
|
n.m. |
|
Foreign exchange gains |
|
0.1 |
|
|
|
0.4 |
|
|
|
0.3 |
|
n.m. |
|
Interest income |
|
1.5 |
|
|
|
0.1 |
|
|
|
(1.4 |
) |
(93.3 |
%) |
Interest and finance
costs |
|
(36.5 |
) |
|
|
(55.2 |
) |
|
|
18.7 |
|
51.2 |
% |
Fair value measurement of
equity securities |
|
51.1 |
|
|
|
- |
|
|
|
(51.1 |
) |
n.m. |
|
Income from equity method
investments |
|
5.0 |
|
|
|
0.8 |
|
|
|
(4.2 |
) |
(84.0 |
%) |
Other |
|
2.9 |
|
|
|
1.6 |
|
|
|
(1.3 |
) |
(44.8 |
%) |
Loss on derivative
instruments |
|
(1.0 |
) |
|
|
(0.9 |
) |
(0.1 |
) |
(10.0 |
%) |
Net
Income |
$ |
158.8 |
|
|
$ |
245.0 |
|
(Expressed in millions of U.S. dollars,except percentages) |
|
Six-month period endedJune
30, |
|
|
Change |
|
PercentageChange |
|
2021 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
293.5 |
|
|
$ |
558.9 |
|
|
$ |
265.4 |
|
90.4 |
% |
Accrued charter revenue |
|
2.1 |
|
|
|
5.1 |
|
|
|
3.0 |
|
n.m. |
|
Amortization of time charter
assumed |
|
(0.3 |
) |
|
|
0.1 |
|
|
|
0.4 |
|
n.m. |
|
Voyage revenue adjusted on a
cash basis (1) |
$ |
295.3 |
|
|
$ |
564.1 |
|
|
$ |
268.8 |
|
91.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessels’ operational
data |
|
Six-month period endedJune
30, |
|
|
|
PercentageChange |
|
2021 |
|
|
2022 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Average number of vessels |
|
67.1 |
|
|
117.6 |
|
|
50.5 |
|
|
75.3 |
% |
Ownership days |
|
12,149 |
|
|
21,279 |
|
|
9,130 |
|
|
75.2 |
% |
Number of vessels under
dry-docking |
|
9 |
|
|
12 |
|
|
3 |
|
|
Segmental Financial Summary
Six-month period ended June 30, 2021 |
|
Containervessels |
Dry bulkvessels (2) |
Other |
Total |
Voyage revenue |
$ |
292.6 |
|
$ |
0.9 |
|
$ |
- |
$ |
293.5 |
|
Voyage expenses |
|
(3.0 |
) |
|
(0.1 |
) |
|
- |
|
(3.1 |
) |
Voyage expenses – related parties |
|
(4.3 |
) |
|
- |
|
|
- |
|
(4.3 |
) |
Vessels’ operating expenses |
|
(69.4 |
) |
|
(0.2 |
) |
|
- |
|
(69.6 |
) |
General and administrative expenses |
|
(3.7 |
) |
|
- |
|
|
- |
|
(3.7 |
) |
Management fees – related parties |
|
(11.8 |
) |
|
- |
|
|
- |
|
(11.8 |
) |
General and administrative expenses - non-cash component |
|
(3.2 |
) |
|
- |
|
|
- |
|
(3.2 |
) |
Amortization of dry-docking and special survey costs |
|
(4.8 |
) |
|
- |
|
|
- |
|
(4.8 |
) |
Depreciation |
|
(58.6 |
) |
|
(0.1 |
) |
|
- |
|
(58.7 |
) |
Gain on sale of Vessels, net |
|
1.4 |
|
|
- |
|
|
- |
|
1.4 |
|
Foreign exchange gains |
|
0.1 |
|
|
- |
|
|
- |
|
0.1 |
|
Interest income |
|
1.5 |
|
|
- |
|
|
- |
|
1.5 |
|
Interest and finance costs |
|
(36.5 |
) |
|
- |
|
|
- |
|
(36.5 |
) |
Fair value measurement of equity securities |
|
- |
|
|
- |
|
|
51.1 |
|
51.1 |
|
Income from equity method investments |
|
- |
|
|
- |
|
|
5.0 |
|
5.0 |
|
Other |
|
2.9 |
|
|
- |
|
|
- |
|
2.9 |
|
Loss on derivative instruments |
|
(1.0 |
) |
|
- |
|
|
- |
|
(1.0 |
) |
Net Income |
$ |
102.2 |
|
$ |
0.5 |
|
$ |
56.1 |
$ |
158.8 |
|
|
Six-month period ended June 30, 2022 |
|
Containervessels |
Dry bulkvessels |
Other |
Total |
Voyage revenue |
$ |
380.3 |
|
$ |
178.6 |
|
$ |
- |
$ |
558.9 |
|
Voyage expenses |
|
(4.4 |
) |
|
(15.4 |
) |
|
- |
|
(19.8 |
) |
Voyage expenses – related parties |
|
(5.5 |
) |
|
(2.2 |
) |
|
- |
|
(7.7 |
) |
Vessels’ operating expenses |
|
(84.2 |
) |
|
(49.2 |
) |
|
- |
|
(133.4 |
) |
General and administrative expenses |
|
(4.4 |
) |
|
(2.3 |
) |
|
- |
|
(6.7 |
) |
Management fees – related parties |
|
(13.5 |
) |
|
(8.4 |
) |
|
- |
|
(21.9 |
) |
General and administrative expenses – non-cash component |
|
(2.7 |
) |
|
(1.7 |
) |
|
- |
|
(4.4 |
) |
Amortization of dry-docking and special survey costs |
|
(5.3 |
) |
|
(0.3 |
) |
|
- |
|
(5.6 |
) |
Depreciation |
|
(62.9 |
) |
|
(19.6 |
) |
|
- |
|
(82.5 |
) |
Gain on sale of vessels |
|
17.8 |
|
|
3.5 |
|
|
- |
|
21.3 |
|
Foreign exchange gains |
|
0.4 |
|
|
- |
|
|
- |
|
0.4 |
|
Interest income |
|
0.1 |
|
|
- |
|
|
- |
|
0.1 |
|
Interest and finance costs |
|
(47.2 |
) |
|
(8.0 |
) |
|
- |
|
(55.2 |
) |
Income from equity method investments |
|
- |
|
|
- |
|
|
0.8 |
|
0.8 |
|
Other |
|
0.7 |
|
|
0.9 |
|
|
- |
|
1.6 |
|
Loss on derivative instruments |
|
(0.6 |
) |
|
(0.3 |
) |
|
- |
|
(0.9 |
) |
Net Income |
$ |
168.6 |
|
$ |
75.6 |
|
$ |
0.8 |
$ |
245.0 |
|
|
(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 90.4%, or $265.4
million, to $558.9 million during the six-month period ended June
30, 2022, from $293.5 million during the six-month period June 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 six-month period ended June 30,
2022 compared to the six-month period ended June 30, 2021, partly
off-set by revenue not earned by one container vessel and one dry
bulk vessel sold during the six-month period ended June 30, 2022
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 91.0%,
or $268.8 million, to $564.1 million during the six-month June 30,
2022, from $295.3 million during the six-month June 30, 2021.
Accrued charter revenue for the six-month June 30, 2022 and 2021
was a positive amount of $5.1 million and $2.1 million,
respectively.
Voyage Expenses
Voyage expenses were $19.8 million and $3.1
million for the six-month periods ended June 30, 2022 and 2021,
respectively. Voyage expenses 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 $7.7
million and $4.3 million for the six-month periods ended June 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 $0.8 million and $0.6 million, in the aggregate, for
the six-month periods ended June 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 $133.4 million and
$69.6 million during the six-month periods ended June 30, 2022 and
2021, respectively. Daily vessels’ operating expenses were $6,267
and $5,729 for the six-month periods ended June 30, 2022 and 2021,
respectively. The increase in the daily operating expenses during
the six-month period ended June 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 $6.7
million and $3.7 million during the six-month periods ended June
30, 2022 and 2021, respectively, and both include $1.3 million paid
to a related manager.
Management Fees – related parties
Management fees paid to our related party
managers were $21.9 million and $11.8 million during the six-month
periods ended June 30, 2022 and 2021, respectively.
General and Administrative Expenses – non-cash
component
General and administrative expenses – non-cash
component for the six-month period ended June 30, 2022 amounted to
$4.4 million, representing the value of the shares issued to a
related party manager on March 30, 2022 and June 30, 2022. General
and administrative expenses - non-cash component for the six-month
period ended June 30, 2021 amounted to $3.2 million, representing
the value of the shares issued to a related party manager on March
31, 2021 and on June 30, 2021.
Amortization of Dry-Docking and Special
Survey
Amortization of deferred dry-docking and special
survey costs was $5.6 million and $4.8 million during the six-month
periods ended June 30, 2022 and 2021, respectively. During the
six-month period ended June 30, 2022, nine 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. During the six-month period ended June 30, 2021, eight
vessels underwent and completed their dry-docking and special
survey and one vessel was in the process of completing its
dry-docking and special survey.
Depreciation
Depreciation expense for the six-month periods
ended June 30, 2022 and 2021 was $82.5 million and $58.7 million,
respectively.
Gain on Sale of Vessels, net
During the six-month period ended June 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 six-month period ended June 30, 2021, we recorded a net
gain of $1.4 million from the sale of the container vessels Halifax
Express (vessel classified as held for sale during the fourth
quarter of 2020) and Prosper.
Vessels Held for Sale
During the six-month period ended June 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, 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 six-month period ended June 30,
2022 since each vessel’s fair value less cost to sell exceeded each
vessel’s carrying value.
During the six-month period ended June 30, 2021,
the container vessels Venetiko, Zim New York and Zim Shanghai were
classified as vessels held for sale. No loss on vessels held for
sale was recorded during the six-month period ended June 30, 2021
since each vessel’s fair value less cost to sell exceeded each
vessel’s carrying value.
Interest Income
Interest income amounted to $0.1 million and
$1.5 million for the six-month periods ended June 30, 2022 and
2021, respectively.
Interest and Finance Costs
Interest and finance costs were $55.2 million
and $36.5 million during the six-month periods ended June 30, 2022
and 2021, respectively. The increase is mainly attributable to the
increased average loan balances and increased financing costs
during the six-month period ended June 30, 2022 compared to the
six-month period ended June 30, 2021.
Fair value measurement of equity securities
Fair value measurement of equity securities of
$51.1 million for the six-month period ended June 30, 2021,
represents the difference between the aggregate fair value of
1,221,800 ordinary shares of ZIM that we owned as at June 30, 2021
of $54.9 million compared to the book value of these shares of $3.8
million as of December 31, 2020. 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
six-month period ended June 30, 2022, was $0.8 million ($5.0
million for the six-month period ended June 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 June 30,
2022 and June 30, 2021 six and six companies, respectively, were
jointly owned pursuant to the Framework Deed out of which four and
five companies, respectively, owned container vessels. The
decreased income from equity method investments in the first half
of 2022 compared to the first half of 2021 is mainly attributable
to the decreased number of container vessels jointly owned with
York during the respective periods.
Loss on Derivative Instruments
As of June 30, 2022, we hold 27 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 June 30, 2022, the fair value of these instruments,
in aggregate, amounted to a net asset of $17.4 million. During the
six-month period ended June 30, 2022, a gain of $28.8 million has
been included in OCI and a loss of $0.2 million has been included
in Loss on Derivative Instruments.
Cash Flows
Six-month periods ended June 30, 2022 and
2021
Condensed cash
flows |
Six-month period ended June 30, |
(Expressed in millions of U.S. dollars) |
|
2021 |
|
|
|
2022 |
|
Net Cash Provided by Operating
Activities |
$ |
175.2 |
|
|
$ |
315.4 |
|
Net Cash Used in Investing
Activities |
$ |
(281.5 |
) |
|
$ |
(21.9 |
) |
Net Cash Provided by Financing
Activities |
$ |
263.3 |
|
|
$ |
40.9 |
|
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities
for the six-month period ended June 30, 2022, increased by $140.2
million to $315.4 million, from $175.2 million for the six-month
period ended June 30, 2021. The increase is mainly attributable to
increased cash from operations of $268.8 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 $7.4 million,
by the increased payments for interest (including swap payments) of
$11.0 million during the six-month period ended June 30, 2022
compared to the six-month period ended June 30, 2021 and by the
increased dry-docking and special survey costs of $8.9 million
during the six-month period ended June 30, 2022 compared to the
six-month period ended June 30, 2021.
Net Cash Used in Investing
Activities
Net cash used in investing activities was $21.9
million in the six-month period ended June 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 short-term investments in US Treasury Bills.
Net cash used in investing activities was $281.5
million in the six-month period ended June 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, eight secondhand container vessels and one dry
bulk vessel, (iii) advance payments for the acquisition of two
secondhand container vessels and twelve secondhand dry bulk vessels
and (iv) payments for upgrades for certain of our vessels; partly
off-set by proceeds we received from the sale of two container
vessels.
Net Cash Provided by Financing
Activities
Net cash provided by financing activities was
$40.9 million in the six-month period ended June 30, 2022, which
mainly consisted of (a) $191.4 million net proceeds relating to our
debt financing agreements (including proceeds of $770.4 million we
received from our debt financing agreements), (b) $68.2 million we
paid for dividends to holders of our common stock for the fourth
quarter of 2021 and the first 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 (c) $1.9 million we paid for
dividends to holders of our Series B Preferred Stock, $4.2 million
we paid for dividends to holders of our Series C Preferred Stock,
$4.4 million we paid for dividends to holders of our Series D
Preferred Stock and $5.1 million we paid for dividends to holders
of our Series E Preferred Stock for the period from October 15,
2021 to January 14, 2022 and January 15, 2022 to April 14,
2022.
Net cash provided by financing activities was
$263.3 million in the six-month period ended June 30, 2021, which
mainly consisted of (a) $309.4 million net proceeds relating to our
debt financing agreements (including proceeds we received from the
issuance of €100.0 million unsecured bond on the Athens Exchange),
(b) $18.6 million we paid for dividends to holders of our common
stock for the fourth quarter of 2020 and the first quarter of 2021
and (c) $1.9 million we paid for dividends to holders of our Series
B Preferred Stock, $4.2 million we paid for dividends to holders of
our Series C Preferred Stock, $4.4 million we paid for dividends to
holders of our Series D Preferred Stock and $5.1 million we paid
for dividends to holders of our Series E Preferred Stock for the
period from October 15, 2020 to January 14, 2021 and January 15,
2021 to April 14, 2021.
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of June 30, 2022, we had Cash and cash
equivalents of $688.0 million, consisting of cash, cash equivalents
and restricted cash and $10.0 million invested in short dated US
Treasury Bills (Short-term investments). Furthermore, as of June
30, 2022, our liquidity stood at $854.1 million including (a) our
share of cash amounting to $3.6 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 July 28, 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 Thursday, July 28, 2022 at 10:00 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 August 4, 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:
4253103.
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 76 containerships, with a total
capacity of approximately 557,000 TEU (including five 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 July 28, 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 |
YearBuilt |
Capacity(TEU) |
Current DailyCharter
Rate(1)(U.S. dollars) |
Expiration
ofCharter(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 2025 |
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(3) |
22 |
MSC AMALFI |
MSC |
2014 |
9,403 |
46,300 |
March 2027(4) |
23 |
MSC AJACCIO |
MSC |
2014 |
9,403 |
46,300 |
February 2027(5) |
24 |
MSC ATHENS |
MSC |
2013 |
8,827 |
45,300 |
January 2026(6) |
25 |
MSC ATHOS |
MSC |
2013 |
8,827 |
45,300 |
February 20267) |
26 |
VALOR |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
April 2025 |
27 |
VALUE |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
April 2025 |
28 |
VALIANT |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
June 2025 |
29 |
VALENCE |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
July 2025 |
30 |
VANTAGE |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
September 2025 |
31 |
NAVARINO |
MSC |
2010 |
8,531 |
31,000 |
January 2025 |
32 |
MAERSK KLEVEN |
Maersk/MSC |
1996 |
8,044 |
25,000/41,500 |
June 2026(8) |
33 |
MAERSK KOTKA |
Maersk/MSC |
1996 |
8,044 |
25,000/41,500 |
June 2026(8) |
34 |
MAERSK KOWLOON |
Maersk |
2005 |
7,471 |
18,500 |
August 2025 |
35 |
KURE |
COSCO/MSC |
1996 |
7,403 |
31,000/41,500 |
March 2026(9) |
36 |
METHONI |
Maersk |
2003 |
6,724 |
46,500 |
August 2026 |
37 |
PORTO CHELI |
Maersk |
2001 |
6,712 |
30,075 |
June 2026 |
38 |
YORK(iii) |
Maersk |
2000 |
6,648 |
21,250 |
November 2022(10) |
39 |
ZIM TAMPA |
ZIM |
2000 |
6,648 |
45,000 |
July 2025 |
40 |
SEALAND WASHINGTON(iii) |
Maersk |
2000 |
6,648 |
25,000 |
January 2023 (11) |
41 |
SEALAND MICHIGAN(iii) |
Maersk |
2000 |
6,648 |
25,000 |
October 2022(11) |
42 |
SEALAND ILLINOIS(iii) |
Maersk |
2000 |
6,648 |
25,000 |
October 2022 (11) |
43 |
MAERSK KALAMATA(iii) |
Maersk |
2003 |
6,644 |
25,000 |
December 2022(11) |
44 |
MAERSK KOLKATA |
Maersk/ZIM |
2003 |
6,644 |
25,000/53,000 |
October 2025 (12) |
45 |
MAERSK KINGSTON |
Maersk/ZIM |
2003 |
6,644 |
25,000/53,000 |
October 2025 (12) |
46 |
ARIES |
(*)/(*) |
2004 |
6,492 |
(*)/58,500 |
March 2026(13) |
47 |
ARGUS |
(*)/(*) |
2004 |
6,492 |
(*)/58,500 |
April 2026(14) |
48 |
PORTO KAGIO |
Maersk |
2002 |
5,908 |
28,822 |
June 2026 |
49 |
GLEN CANYON |
ZIM |
2006 |
5,642 |
62,500 |
June 2025 |
50 |
PORTO GERMENO |
Maersk |
2002 |
5,570 |
28,822 |
June 2026 |
51 |
LEONIDIO |
Maersk |
2014 |
4,957 |
14,200 |
December 2024(15) |
52 |
KYPARISSIA |
Maersk |
2014 |
4,957 |
14,200 |
November 2024(15) |
53 |
MEGALOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(16) |
54 |
MARATHOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(16) |
55 |
OAKLAND |
Maersk |
2000 |
4,890 |
24,500 |
March 2023 |
56 |
GIALOVA |
ZIM |
2009 |
4,578 |
25,500 |
April 2024 |
57 |
DYROS |
Maersk |
2008 |
4,578 |
22,750 |
January 2024 |
58 |
NORFOLK |
Maersk |
2009 |
4,259 |
30,000 |
May 2023 |
59 |
VULPECULA |
OOCL/ZIM |
2010 |
4,258 |
22,700/43,250 (on average) |
February 2028(17) |
60 |
VOLANS |
ZIM |
2010 |
4,258 |
24,250 |
April 2024 |
61 |
VIRGO |
Maersk |
2009 |
4,258 |
30,200 |
February 2024 |
62 |
VELA |
OOCL/ZIM |
2009 |
4,258 |
22,700/43,250 (on average) |
January 2028(18) |
63 |
ANDROUSA |
Maersk |
2010 |
4,256 |
22,750 |
May 2023 |
64 |
NEOKASTRO |
CMA CGM |
2011 |
4,178 |
39,000 |
February 2027 |
65 |
ULSAN |
Maersk |
2002 |
4,132 |
34,730 |
January 2026 |
66 |
POLAR ARGENTINA(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
October 2024(19) |
67 |
POLAR BRASIL(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
January 2025(19) |
68 |
LAKONIA |
COSCO |
2004 |
2,586 |
26,500 |
March 2025 |
69 |
SCORPIUS |
Hapag Lloyd |
2007 |
2,572 |
17,750 |
January 2023 |
70 |
ETOILE |
(*) |
2005 |
2,556 |
(*) |
February 2023 |
71 |
AREOPOLIS |
COSCO |
2000 |
2,474 |
26,500 |
April 2025 |
72 |
MONEMVASIA(i) |
Maersk |
1998 |
2,472 |
9,250 |
January 2023(20) |
73 |
ARKADIA(i) |
Swire Shipping |
2001 |
1,550 |
21,500 |
May 2023 |
74 |
MICHIGAN |
MSC |
2008 |
1,300 |
18,700 |
September 2023 |
75 |
TRADER |
(*) |
2008 |
1,300 |
(*) |
October 2024 |
76 |
LUEBECK |
MSC |
2001 |
1,078 |
15,000 |
March 2024 |
(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) |
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. |
(4) |
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. |
(5) |
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. |
(6) |
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. |
(7) |
This charter rate will be earned
by MSC Athos until February 24, 2023. From the aforementioned date
until the expiry of the charter, the daily rate will be
$35,300. |
(8) |
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. |
(9) |
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. |
(10) |
Expiration of charter represents
latest redelivery date. |
(11) |
The daily rate for Sealand
Washington, Sealand Michigan, Sealand Illinois and Maersk Kalamata
is 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. |
(12) |
The current daily rate for Maersk
Kolkata and Maersk Kingston is 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. Upon expiry of their current
employment in October 2022 (estimated on the latest redelivery
date) the vessels will enter into a new charter with ZIM for a
period of 36 to 40 months at a daily rate of $53,000. |
(13) |
Vessel’s daily charter rate will
be $58,500 from March 2023. Until then the vessel is chartered at
an undisclosed rate. |
(14) |
Vessel’s daily charter rate will
be $58,500 from April 2023. Until then the vessel is chartered at
an undisclosed rate. |
(15) |
Charterer has the option to
extend the current time charter for an additional period of 12 to
24 months at a daily rate of $17,000. |
(16) |
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. |
(17) |
The current daily rate for
Vulpecula is $22,700. Upon expiry of its current employment in
February 2023 (estimated on the earliest redelivery date) the
vessel will enter into 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. |
(18) |
The current daily rate for Vela
is $22,700. Upon expiry of its current employment in January 2023
(estimated on the earliest redelivery date) the vessel will enter
into 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. |
(19) |
Charterer has the option to
extend the current time charter for three additional one-year
periods at a daily rate of $21,000. |
(20) |
Expiration of charter represents
latest redelivery date. |
(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 July
28, 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
|
|
Six months ended June 30, |
|
Three months ended June 30, |
(Expressed in thousands of
U.S. dollars, except share and per share amounts) |
|
2021 |
|
2022 |
|
2021 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
REVENUES: |
|
|
|
|
|
|
|
|
Voyage revenue |
$ |
293,495 |
|
$ |
558,937 |
|
$ |
166,770 |
|
$ |
290,927 |
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
Voyage expenses |
|
(3,071 |
) |
|
(19,833 |
) |
|
(2,030 |
) |
|
(11,262 |
) |
Voyage expenses – related
parties |
|
(4,301 |
) |
|
(7,740 |
) |
|
(2,395 |
) |
|
(3,995 |
) |
Vessels’ operating
expenses |
|
(69,600 |
) |
|
(133,351 |
) |
|
(37,821 |
) |
|
(67,604 |
) |
General and administrative
expenses |
|
(3,709 |
) |
|
(6,725 |
) |
|
(1,741 |
) |
|
(3,463 |
) |
Management fees – related
parties |
|
(11,786 |
) |
|
(21,892 |
) |
|
(6,310 |
) |
|
(11,025 |
) |
General and administrative
expenses – non-cash component |
|
(3,207 |
) |
|
(4,360 |
) |
|
(1,768 |
) |
|
(1,808 |
) |
Amortization of dry-docking
and special survey costs |
|
(4,847 |
) |
|
(5,646 |
) |
|
(2,520 |
) |
|
(2,939 |
) |
Depreciation |
|
(58,726 |
) |
|
(82,476 |
) |
|
(31,630 |
) |
|
(41,326 |
) |
Gain on sale of vessels,
net |
|
1,406 |
|
|
21,250 |
|
|
1,666 |
|
|
3,452 |
|
Foreign exchange gains /
(losses) |
|
146 |
|
|
387 |
|
|
(3 |
) |
|
277 |
|
Operating
income |
$ |
135,800 |
|
$ |
298,551 |
|
$ |
82,218 |
|
$ |
151,234 |
|
|
|
|
|
|
|
|
|
|
OTHER INCOME /
(EXPENSES): |
|
|
|
|
|
|
|
|
Interest income |
$ |
1,489 |
|
$ |
138 |
|
$ |
1,122 |
|
$ |
124 |
|
Interest and finance
costs |
|
(36,548 |
) |
|
(55,211 |
) |
|
(20,441 |
) |
|
(30,081 |
) |
Income from equity method
investments |
|
4,951 |
|
|
776 |
|
|
960 |
|
|
488 |
|
Fair value measurement of
equity securities |
|
51,094 |
|
|
- |
|
|
25,157 |
|
|
- |
|
Other |
|
2,983 |
|
|
1,680 |
|
|
1,495 |
|
|
1,205 |
|
Gain / (loss) on derivative
instruments |
|
(1,012 |
) |
|
(910 |
) |
|
105 |
|
|
(983 |
) |
Total other income /
(expenses) |
$ |
22,957 |
|
$ |
(53,527 |
) |
$ |
8,398 |
|
$ |
(29,247 |
) |
Net
Income |
$ |
158,757 |
|
$ |
245,024 |
|
$ |
90,616 |
|
$ |
121,987 |
|
Earnings allocated to
Preferred Stock |
|
(15,448 |
) |
|
(15,448 |
) |
|
(7,854 |
) |
|
(7,854 |
) |
Net Income available
to common stockholders |
$ |
143,309 |
|
$ |
229,576 |
|
$ |
82,762 |
|
$ |
114,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share,
basic and diluted |
$ |
1.17 |
|
$ |
1.85 |
|
$ |
0.67 |
|
$ |
0.92 |
|
Weighted average number of
shares, basic and diluted |
|
122,615,427 |
|
|
124,228,628 |
|
|
122,844,260 |
|
|
124,306,059 |
|
COSTAMARE
INC.Consolidated Balance Sheets
|
|
As of December 31, |
|
As of June 30, |
(Expressed in thousands of U.S. dollars) |
|
2021 |
|
2022 |
ASSETS |
|
(Audited) |
|
(Unaudited) |
CURRENT
ASSETS: |
|
|
|
|
Cash and cash equivalents |
$ |
276,002 |
|
$ |
601,163 |
|
Restricted cash |
|
8,856 |
|
|
11,420 |
|
Short-term investments |
|
- |
|
|
9,963 |
|
Accounts receivable |
|
20,978 |
|
|
26,669 |
|
Inventories |
|
21,365 |
|
|
23,669 |
|
Due from related parties |
|
- |
|
|
1,341 |
|
Fair value of derivatives |
|
- |
|
|
9,207 |
|
Insurance claims
receivable |
|
3,970 |
|
|
5,436 |
|
Asset held for sale |
|
78,799 |
|
|
129,301 |
|
Time charter assumed |
|
198 |
|
|
199 |
|
Accrued charter revenue |
|
7,361 |
|
|
7,524 |
|
Prepayments and other |
|
8,595 |
|
|
10,161 |
|
Total current
assets |
$ |
426,124 |
|
$ |
836,053 |
|
FIXED ASSETS,
NET: |
|
|
|
|
Right-of-use assets |
$ |
191,303 |
|
$ |
- |
|
Vessels and advances, net |
|
3,650,192 |
|
|
3,743,956 |
|
Total fixed assets,
net |
$ |
3,841,495 |
|
$ |
3,743,956 |
|
NON-CURRENT
ASSETS: |
|
|
|
|
Equity method investments |
$ |
19,872 |
|
$ |
19,520 |
|
Deferred charges, net |
|
31,859 |
|
|
45,938 |
|
Accounts receivable,
non-current |
|
5,076 |
|
|
5,251 |
|
Restricted cash |
|
68,670 |
|
|
75,386 |
|
Fair value of derivatives,
non-current |
|
3,429 |
|
|
25,794 |
|
Accrued charter revenue,
non-current |
|
8,183 |
|
|
7,144 |
|
Time charter assumed,
non-current |
|
667 |
|
|
568 |
|
Other non-current assets |
|
1,666 |
|
|
- |
|
Total
assets |
$ |
4,407,041 |
|
$ |
4,759,610 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
Current portion of long-term
debt |
$ |
272,365 |
|
$ |
373,750 |
|
Accounts payable |
|
18,865 |
|
|
18,795 |
|
Due to related parties |
|
1,694 |
|
|
937 |
|
Finance lease liabilities |
|
16,676 |
|
|
- |
|
Accrued liabilities |
|
27,304 |
|
|
49,758 |
|
Unearned revenue |
|
23,830 |
|
|
26,040 |
|
Fair value of derivatives |
|
6,876 |
|
|
3,557 |
|
Other current liabilities |
|
2,417 |
|
|
2,668 |
|
Total current
liabilities |
$ |
370,027 |
|
$ |
475,505 |
|
NON-CURRENT
LIABILITIES |
|
|
|
|
Long-term debt, net of current
portion |
$ |
2,169,718 |
|
$ |
2,366,391 |
|
Finance lease liabilities, net
of current portion |
|
99,689 |
|
|
- |
|
Fair value of derivatives, net
of current portion |
|
7,841 |
|
|
15,153 |
|
Unearned revenue, net of
current portion |
|
33,867 |
|
|
34,578 |
|
Total non-current
liabilities |
$ |
2,311,115 |
|
$ |
2,416,122 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
STOCKHOLDERS’
EQUITY: |
|
|
|
|
Preferred stock |
$ |
- |
|
$ |
- |
|
Common stock |
|
12 |
|
|
12 |
|
Treasury stock |
|
- |
|
|
(52,356 |
) |
Additional paid-in
capital |
|
1,386,636 |
|
|
1,413,542 |
|
Retained earnings |
|
341,482 |
|
|
480,202 |
|
Accumulated other
comprehensive income / (loss) |
|
(2,231 |
) |
|
26,583 |
|
Total stockholders’
equity |
$ |
1,725,899 |
|
$ |
1,867,983 |
|
Total liabilities and
stockholders’ equity |
$ |
4,407,041 |
|
$ |
4,759,610 |
|
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