Earnings call transcript Q4 2022

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Operator

Thank you for standing by ladies and gentlemen and welcome to the Costamare Inc. Conference Call on the Fourth Quarter 2022 Financial Results.

We have with us Mr. Gregory Zikos, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. presentation a a session. be will followed question-and-answer by There [Operator Instructions]

you you I We is remind to call read that the a being two which Please advise forward-looking would this statements. contains recorded to slide XXXX. conference moment Xth, contains this must the take statements. conference February today like of number that presentation Wednesday, forward-looking

Please the And to your Zikos. now Mr. pass floor go will sir. I today, ahead speaker

Gregory Zikos

a ships, been year ladies vessels of and generated gentlemen. With you fleet for net million. Thank good a has Costamare. and morning including XXXX XX the income record of XXX $XXX dry about bulk company

the around of end liquidity year, $XXX of stood million. at As the

upon favorable conditions demand congestion. side, and continue impact normalized logistical the return rates strong containership to reduced by market disruptions capacity was result and tied values asset demand the charter sector, as second year half, XXXX a up the drawing of previously while with and during the unique with On half a the of first cargo

We containerships year, contracted with secondhand incremental weighted billion added than to time during of remaining duration of amount years. total charter X.X chartered average more revenues which million. revenues of $XXX a the $X.X about Total the contracted XX

above at are time, employment some market prices of off covered charter same XXXX process have on We between tonnage a the we are of the a long-term XX% we coming containerships fixed for XXXX. of tight a arranged older for proactively and XXXX environment. number forward basis in and during disposing At

for the up is on shareholders. grow $XXX previously negative operated of million, our announced returns basis, the business our side, bulk quarter. new to the On bulk dry the prudent healthy commitment platform commenced a during realizing With a goal to operations dry

acceptable returns back potential pursuing liquidity sector provide have advanced risk investment coverage, of actively the that our and to the new are the in levels. increased at charter we containing opportunities shipping On

Moving On year see results. slide slide presentation. the our you our best the since annual three, was now to listing. can XXXX

was $X.X million $X.X around or For year share, $XXX ended, adjusted net income income the while above was million or per net $XXX share. per

liquidity year-end around million. year-over-year $XXX $XXX almost to up million Our by is

we venture the Costamare quarter, Bulkers setup of in a vessels four, COAs charter Slide announced and out CBI trade will bunker during and the dry previous called FFAs enter new Inc. and into swaps. bulk

now, already million. million invested Until we have $XXX a $XXX commitment another with for

enter Over the COAs and last months, and vessels we XX numerous into fixed FFAs.

refinancing leverage. you maturities. $XXX arrangements, X, material million them extension to improvement increase slide with were funding any significant On cost can and of which an on our the of amounted update without roughly in see Most of coupled

continue Our corporate remains maintain a strong and to below leverage XX% sheet. balance we

Slide X.

chartering the market XX continue vessels We since our release. bulk last dry charter in spot earnings all ships our to

On revenue remaining to four the while XXXX at our fixed TEU-weighted side, charter above contracted up the container and XX% for years. are billion our with stays $X.X of XX% for duration revenues time XXXX

incremental containerships billion. Lastly, contracted we than revenues more XX $X.X with of fixed

demand in market reduced XXXX market bulk The QX return normalized the also half has signs, the to Slide onwards. year and has market The X. second the weakened mostly congestion. from significant dry and previously charter capacity due cargo by up containership FFA especially strategy of tied of the indicates

support. interactive to track dividend strong Finally, boosted we continue and sponsor record have by a long

company grow significantly basis. $XXX starting liquidity On has year-over-year for opportunities at ability on million. our to us increased the the X, to healthy a liquidity look This gives slide around

to the next Moving slide.

average $XX you our XXX $X.XX of We adjusted quarter see snapshot results. Here about and fourth ending per can a XXXX of or an million our share. vessels had

non-recurring losses consideration take Our for non-cash or accounting or charter items. good and gains items other the into revenues, impairments following the figures passive adjusted disposals

the market. slide we're the last On discussing

Moving been latest have X.X%. a The periods been conferencing to pictures concluded lower that at Box normalized XX. have levels. reached rates capacity have has consulted high historically rate. from slide The idle

recent been is can at trends On ordering under bulk where see order slide the and rates book continues have be The dry subdued. the pressure. X.X% fleet market total to XX, you new of

With presentation that, take we our questions. Thank take we can we conclude can Operator, questions and can now you. now.

Operator

your Chris of And Please the ahead. [Operator line Instructions] from go from first Citigroup. question Wetherbee comes

Chris Wetherbee

side. about taking charterers. question. take for Maybe on the your discussions the I Thanks could shipping hi. curious on we start Yes, container with was

give in having move you know can we instances I with degree of been a XXXX. where of a this earlier Obviously But fallen what box sort the you've broadly think Maersk we have customers, some heard of rates a dynamic sense through of morning from have like? conversations -- precipitously. that coverage overall you as So strong us I speaking and degree feels your

get of the to a development as sort or maybe of want of be the about next sense over course the I we couple next couple So should years? of charter think thinking how of quarters we about

Gregory Zikos

you Thanks. for Chris. good morning, Thank Okay. that and

the in with but got was to the et be So some cetera. be point At expected. a charter to targeting, softening things. it something and congestion the financial is cargo inflation-related reduced it's or demand for box lot of have have a of then seen couple may charter both market, it rates also is that the in reasons, we Look, rates,

Now, option. for to the of and opening trend same a ships and as from we We you that we are shorter have extension are of two options time falling, see this been after. XXX% pretty we don't fixed the year, apart charters there been shorter, for see fact is year and lot back XX% again to said, three the and months charter that have close the period that the rates has picture for the much at

there like seen same will yet. definitely predict say market we haven't at I is although asset I for correlation, softening go. time that, level, being, but seen Now, have cannot being it All the how the some not values the we

of the feel comfortable our with we rates, of than more regarding and first all, So credit the quality standing charterers. charter

couple Also, our been they liquidity. years. considering the secondly, that, side, over of our And last you profitable saw the from fact have extremely

So we are tell in in market going that feel we and levels, I being, at sit might can that, the which when we you we like, be there interesting. to be But asset values case a pause, time the of wait. we find for containership as buyer.

Chris Wetherbee

Okay.

about liquidity have I you as the area in currently? opinion most Okay. to in then slide capital X. thoughts That's ask market, attractive guess, back, is come are wanted on helpful. I bit terms your the little of a your highlighted in And deploying maybe and what what ample Obviously, you just

back little of will the how curious bit see be, kind you kind broader of does sense kind plays of and a So it use where best macro out? think that to or the of sit capital make

Gregory Zikos

we the mentioned of Yeah. and Look, that, both new values I But correlated at it this what take time, when some side answer see part look asset today, on just is may to would sort for building. again. also of being charter half rates containership the for is and we second

going area market be again, guess, So justify should prices we're I active, that, that. this the is one to

also the dry applies bulk for second The fleet.

interest But it's prices, going a which values ships sense, timing. in have So of case, think reached will feel position and be the become deploy quite capital this a we makes they should at that to don't asset we still, again. level ourselves have opportunistic where we buying

So and it's ship containers. acquisitions both dry bulk

is we you've area other $XXX some go seen finally, allocated looking we to trading have to million bulk up not that, are that's at another started which As to have This million. now yet. dry platform we been the $XXX And have have materialized investing. initiatives, up going we

deployed So, concluded not yet. on yet I reasons and some But legal they're initiatives, we as well. our could not liquidity that for them for cannot both part we two are disclose because so other where also they're of feel material reasons, working be

building you values if sit levels to asset dry that any offered don't were at and remind in to we that, see even not side, we're ships. well. back as I containership any will simply levels containership if put the asset at years, make were orders rates we charter at the didn't prices sense over market high prices However, couple the side, new on of in high have the prohibitive, because be and both simply that we we also felt the going last bulk the buying saw we coming

we So time. our will take

are feel We we we will when patient like should and wait. be we

Chris Wetherbee

it I helpful. That's guess, I Okay. one maybe for me before final turn over.

liquidity how to influence reserves with and to of, of need terms that? the curious be terms of potentially how trading higher about degree the that risk I the business capital able think liquidity you platform, maintain to you to about are in manage a associated kind might Just cash in balances? going guess, of in

Gregory Zikos

to our Yeah. up The to that's million. $XXX there it. And see it's going we way equity now, it be

more and than liquidity our mind the cover don't risk. I would go what are if that how our goes. mind business we if million business course, have market let's it order Of those in have is can exposure we what But be grows today you to manage you be higher. in potential, $XXX today in our we enough But going this surprised and that see more and see needs and to in think

$XXX we should north comfortable is if sense I feel in that more we feel But is feel easily thing if market. of allocate that could setup. We it whole a we The as potential justified. we is It million today. is see limit. just not And make that something we this said, and the with what go

Chris Wetherbee

it. color. helpful Appreciate very That's okay. for Okay, the this time morning. Thanks

Gregory Zikos

nice Thank Sure. day. a Thank you. you. Have

Operator

with Next go question Nokta ahead. comes from Omar Please Jefferies.

Omar Nokta

afternoon. Hi, you. update. the for Good Thank Thanks Greg.

Gregory Zikos

Omar. Hi,

Omar Nokta

on fleet about just and bulk wanted trading maybe Hi. the dry operation. discussion I the the last follow-up to

quickly should asset to very -- now past base the thinking capes long? today for maybe your How here we and referred You've about owned those? you maybe XX risk Kamsarmax, XX the or how chartered of which the obviously the think term? I just how in be the those How longer they And we building these those in guess short-term duration, and from they moved the nine up Are vessels? you've Are should release. over about in months charters? perspective portfolio and sit

Gregory Zikos

ships Yeah, the is asset in trading which light. target the platform,

between But two of be will the them most delivered of all next charter them not period delivered all, years. been of have quarters. be to First couple three could of the over

are However, on them most index. of

So strictly an it based on market have is market index what charter terms. exposure, real when get you pay And index, the speaking paying. you ship no there COA you is the because is a on

three have However, having for today years. vessels And those with to both the fixed to it's said again on in we I -- they are for combination index future them a your most charter going of to based answer period. a of period or in And are most of ships be may But that rate, rating guess. the up question, rate.

Omar Nokta

That's Okay. helpful.

-- them good they're the effectively do have you know saying basically spread? to the can other index that And side on based. you where capture you So were you COAs have covering then

Gregory Zikos

Correct.

same both in well We position have two started employing order to order also And ways. have in ourselves. as the to time, at and FFAs we hedge

we've are We've vessels going especially delivered to be FFAs. that the So done done COAs, for now.

them in, index. of hedging. we for the also bunker We most have XX will vessels exposure, bank be chartered doing And on

Omar Nokta

given Thank of about capital kind the needs right fleet? in the a operation? on to of, that that number that certain be the that is the is that putting that Okay. a And it just or be have into point? you liquidity the could Is maybe is or XX to trading then you. size -- size the a ships you're fleet What are starting forth there

Gregory Zikos

that committed this Yes. a were ships couple say. of would No next the months, starting and is over I those point

meaningful you equity I as of the this than XXX to said we XX to size feel a commitment, think business at could is sense I course subject easily or some go million easily. if we that, rather have to $XXX of operated. sooner threshold later, market reach And This XXX the ships need being because stage in well. why could could it conditions, earlier makes we of the total go higher

or XX than So of in rather higher even also sooner future north it also definitely against -- And it XXX be the could it will that. XXX could go later. to

Omar Nokta

maybe that you just Okay. containers? helpful. of a And outside That's on. comment the were reference just you bulk assume quick -- at that to very looking couple Can dry the were on maybe follow-up we can't initiatives made you of those one and

Gregory Zikos

I giving be containers to thing. in idea not say I'm I -- within going it's that whatever you the say, cannot I the and I shipping. Well, going it's dry it bulk to same an if comment if partly be say will

comment be shipping So I'm afraid I to going related. it's cannot all at

reasons going both cannot is to it's on for the comment course, concluded something and not this But more is not simple I legal that for aviation. reason be yet. Of that.

Omar Nokta

I Greg. will over. appreciate I it Okay. turn

Gregory Zikos

Thank Sure. you.

Operator

Climent [Operator go comes question next Edge. Please Molins Instructions] Your with Investor's from ahead. Value

Climent Molins

Good morning. Thank you for taking question. my

Gregory Zikos

Good morning.

Climent Molins

to given this returns, And additional discount clear pursue do the if your balance wondering shareholder shares especially, was position additional considering I solid opportunities acquisitions financial with potential you significant at? trading want been You've to arise. plan are spending attractive to NAV you how

Gregory Zikos

It's allocation, Yes. we question. the share a and I increased extra also which out about rule past. in buybacks is And past often. payment. also fair we we the and And a had dividend question did the capital quite comes one-off cannot the this in dividend

of very excluding would the bulk values example, we buybacks vessels, time buildings for if justify segment for acquisitions we further second sense circumstances being, now either change. make we in earlier that the acquisitions look asset without part this mentioned I follow but for feel something carefully time same timely should dry the sort the is At containership of, however, or as share very, and the market

Climent Molins

you. for That’s Make all Thanks from color. me. Thank sense. the

Gregory Zikos

Thanks Thank a lot. you.

Operator

This floor question-and-answer pass session. concludes like the would I now closing his Mr. for Zikos today's to remarks. to

Gregory Zikos

in your our speaking for much next today. you you. for dialing again very Thank results look call. interest to and forward Costamare with quarterly in Thank you during We

Operator

for conference you. Thank Thank our participating. today. does conclude you That for all

You may disconnect. now

Costamare (CMRE) 8 Feb 232022 Q4 Earnings call transcript