• Net Income: $75.5 million for the third quarter.
• Adjusted Net Income: $81 million or 68 per share.
• Liquidity: Over $1 billion.
• Total Contracted Revenues: $2.3 billion with a weighted remaining duration of 3.3 years.
• Incremental Contracted Revenues: $165 million from new charter agreements.
• Committed Funding for Shipping Assets: $410 billion.
• Available Financing for Acquisitions: $94 million.

• Warning! GuruFocus has detected 5 Warning Signs with CMRE.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Costamare Inc (NYSE:CMRE) generated a net income of approximately $80 million for the third quarter of 2024.
• The company maintains strong liquidity with over $1 billion available.
• New charter agreements are expected to generate incremental contracted revenues of above $165 million.
• Total contracted revenues amount to $2.3 billion with a weighted remaining duration of 3.3 years.
• The company is progressing with its strategy to renew its fleet, acquiring newer vessels while disposing of older ones.

Negative Points

• The early redemption of a EUR100 million bond was driven by tax and legal implications, despite its competitive interest rate.
• There are reports of personnel changes within the dry bulk business, raising questions about stability.
• Asset prices for new containerships and dry bulk vessels are considered high, limiting acquisition opportunities.
• The dividend policy remains uncertain, with no clear indication of an increase despite improved cash flow visibility.
• The dry bulk market has not performed well in 2024, leading to cautious investment in this sector.

Q & A Highlights

Q: What drove the early redemption of the EUR100 million Greek bonds? A: Gregory G. Zikos, Chief Financial Officer and Director: The early redemption was due to tax implications related to pillar two, as the bond was issued by a European Union subsidiary. Despite the early redemption, the bond was used for nearly four years at a competitive 2.7% cost.

Q: How is Costamare Inc. approaching the dry bulk business and the CB I trading platform? A: Gregory G. Zikos, Chief Financial Officer and Director: The company views the dry bulk ownership and CB I trading platform as complementary activities and intends to continue investing in them. Personnel changes have occurred for various reasons but do not affect the company's commitment to the dry bulk business.

Q: With improved cash flow visibility, is there any consideration to increase the dividend from 11.5 per quarter? A: Gregory G. Zikos, Chief Financial Officer and Director: Dividend decisions are made by the board, and while there is flexibility to revise the policy, no specific plans were disclosed. The company has previously issued one-off dividends and share buybacks.

Q: What is Costamare's strategy regarding asset pricing and fleet expansion in the dry bulk sector? A: Gregory G. Zikos, Chief Financial Officer and Director: The company is cautious about asset prices, particularly for capes, which may be overpriced. Costamare is opportunistic in buying and selling, focusing on maintaining a balanced fleet size without unnecessary expansion.

Q: Is there interest in acquiring modern tonnage in the containership sector? A: Gregory G. Zikos, Chief Financial Officer and Director: Currently, there are no new building commitments due to high asset prices. The company is cautious about assuming excessive residual value risk and is focused on generating cash flow from existing assets.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.