Costamare (CMRE) 1 Nov 24 2024 Q3 Earnings call transcript

Costamare Inc., a leading global shipping company, recently held its Q3 2024 earnings call, providing investors and stakeholders with valuable insights into its financial performance and future prospects. Here are the key takeaways from the call.

Financial Performance

During the third quarter, Costamare generated a net income of $80 million, with liquidity exceeding $1 billion. The company's containership fleet remains fully employed, with charter rates continuing to evolve at healthy levels, especially in larger segments. The dry bulk side is also progressing well, with the company acquiring two Capesize and two Ultramax vessels, while disposing of smaller tonnage. This strategy aims to decrease the average size of the owned fleet and improve its overall performance.

Strategic Moves

Costamare's strategic moves include the acquisition of two 2014 and 2015-built Ultramax vessels and two 2011-built Capesize ships, as well as the sale of two Supramax vessels and one Handysize ship. These moves reflect the company's commitment to the dry bulk sector and its strategic approach to fleet management. Furthermore, the company's leasing platform, Neptune Maritime Leasing, continues to grow, with committed funding for 32 shipping assets, reflecting a total funding commitment of about $410 million.

Investor Questions

During the question-and-answer session, investors raised several key concerns, including the early redemption of Greek bonds, the future of the dry bulk business, and the company's asset pricing and acquisition strategy. The management provided detailed responses, highlighting the tax implications of the bond redemption and the long-term commitment to the dry bulk business, including the trading platform. The company also expressed caution regarding asset pricing for newbuilding containerships and dry bulk vessels, indicating a conservative approach to fleet renewal and acquisition.

Future Outlook

The earnings call provided a positive outlook for Costamare's future, with a focus on continued investment in the dry bulk business and the leasing platform. The company's liquidity exceeding $1 billion positions it well for future growth opportunities. However, challenges remain, including the ongoing injection of newbuilding capacity in the containership market and the dry bulk order book standing at 10.3% of the total fleet.

In conclusion, Costamare's Q3 2024 earnings call offered valuable insights into the company's financial performance, strategic moves, and future prospects. The company's commitment to the dry bulk sector, strategic fleet management, and focus on liquidity position it well for future growth. However, challenges remain, and investors will be closely watching the company's ability to navigate these challenges and capitalize on opportunities in the dynamic shipping market.