Yahoo Finance Costamare Inc. (NYSE:CMRE) Q1 2024 Earnings Call Transcript
Costamare Inc. (NYSE:CMRE) Q1 2024 Earnings Call Transcript May 10, 2024
Costamare Inc. beats earnings expectations. Reported EPS is $0.63, expectations were $0.6. Costamare Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Thank you for standing by ladies and gentlemen and welcome to the Costamare Inc. Conference Call on the First Quarter 2024 Financial Results. We have with us Mr. Gregory Zikos, Chief Financial Officer of the company. [Operator Instructions] I must advise you that this conference is being recorded today, Friday, May 10, 2024. We would like to remind you that this conference call contains forward-looking statements. Please take a moment to read slide number two of the presentation which contains the forward-looking statements. And I will now pass the floor to your speaker today, Mr. Zikos. Please go ahead sir.
Gregory Zikos: Thank you, and good morning ladies and gentlemen. During the first quarter of the year, the company generated net income of about $94 million. As of quarter end, liquidity was close to $1.1 billion. In the containership sector, charter rates have seen significant improvement from the end of last year. Demolition has fallen to levels below what was experienced during the first quarter of 2023. Although, cargo volumes have generally improved, the disruption in Red Sea is the main reason for the improved charter market. We have proactively secured deployment for 97% and 80% of our containership fleet for 2024 and 2025 respectively, generating contracted revenues of $2.3 billion with a remaining time charter duration of 3.4 years.
On the dry bulk side, as part of our strategy to renew the fleet and increase its average size, we have agreed to acquire two more Capesize vessels and accepted delivery of one similar-sized ship. In total, we have acquired five Capesize vessels with an average age of about 12.5 years and disposed of a total of 10 smaller-sized ships, with an average age of 14 years. Our owned dry bulk vessels continue to trade on a spot basis, while the trading platform is commercially managing a fleet of 54 ships. As mentioned in the past, we have a long-term commitment to the dry bulk sector which has been a strategic decision for us. Regarding Neptune Maritime Leasing, the platform has been steadily growing having concluded leasing transactions for 24 ships in total on the back of a healthy pipeline extending over the coming quarters.
Moving now to the slide presentation. On Slide 3, you can see our first quarter results. Net income for the quarter was roughly $94 million or $0.79 per share. Adjusted net income was about $75 million or $0.63 per share. Our liquidity stands at about $1.1 billion. Slide 4. On the containership side, our revenue days are fixed 97% for '24 and 80% for '25, while our contracted revenues are $2.3 billion with a TEU-weighted remaining duration of 3.4 years. In parallel, we continue to charter all our dry bulk vessels in the spot market, having entered into more than 30 chartering agreements since our last earnings release. Slide 5. We do execute on our strategy to renew our fleet and increase its size. During the last quarters, we have acquired five Capesize and one Ultramax ship with an average age of 12 years.
And we also have disposed of 10 smaller vessels with an average age of 14 years. Slide 6 shows in more detail the S&P activity since our last earnings release. Slide 5 [ph], regarding CBI we have charted in 54 period vessels with the majority of the fleet being on index-linked agreements. On our leasing platform, we have already invested around $120 million. Since inception, NML has financed 24 assets through sale and leaseback transactions and has a very healthy pipeline going forward. Moving to Slide 8. We do have roughly available $116 million for financing of vessel acquisitions through hunting licenses. In addition, we continue to have a long uninterrupted dividend track record, boosted by strong sponsor support. Moving to Slide 9. Our liquidity stands at about $1.1 billion.
This liquidity gives us the ability to look for opportunities to grow the company on a healthy basis. Moving to Slide 10. Charter rates in the containership market have been rising lately across all segments, having benefited from the Red Sea disruption. The idle capacity remains at low levels at 0.6%. Moving to Slide 11, the final slide. You can see the recent dry bulk market trends in the spot and forward market. Charter rates remain volatile, however, trading higher than the first quarter of last year. The order book is at about 9% of the total fleet. With that, we conclude our presentation, and we can now take questions. Thank you. Operator, we can take questions now.
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