CMRE - Earnings call transcript Q1 2024

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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.

remind this to forward-looking call like statements. would you conference that contains We moment #X read which take to Please a Slide forward-looking contains statements. of the presentation, the

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

Gregory Zikos

ladies good gentlemen. Thank morning, you, and and

quarter year, the about generated of the net first During million. company income $XX of the

billion. As end, of liquidity quarter was close to $X.X

was of to rates In seen significant what end sector, levels the fallen has charter have during quarter last containership first Demolition the from year. the of experienced below improvement XXXX.

is the Although charter for main have market. generally cargo improved volumes disruption improved, in the Red Sea the reason

We have remaining duration of XXXX, our and respectively, of proactively generating X.X contracted years. time XX% charter $X.X secured a for and revenues fleet with XXXX XX% containership for of deployment billion

dry similar-sized bulk we average its to Capesize vessels delivery part and have of vessels and acquire ships with ship. more and XX as size, fleet total smaller-sized the XX total, side, X about with our of disposed accepted renew average of X age years one On strategy increase of age we have years. to agreed an the of XX.X In average a an acquired Capesize of

continue vessels owned dry a managing while spot basis, trading trade Our bulk platform fleet XX to ships. on of the a commercially is

has As mentioned which decision the a been in sector, the past, bulk strategic we us. have to a long-term dry commitment for

having steadily quarters. on Regarding coming pipeline leasing Neptune over the healthy Maritime a growing, for concluded of extending XX Leasing, been has in back platform transactions ships total the the

results. $X.XX net can per Net million you income Slide was or Adjusted about quarter or $X.XX per the income first $XX was roughly Moving slide quarter now to On our $XX X, share. presentation. for share. million the see

Our at about $X.X liquidity stands billion.

our In we having duration our XX a charter are X.X entered into continue release. since side, $X.X agreements all years. our and than for 'XX XX% earnings revenues last vessels days XX% X, parallel, in contracted of with more TEU-weighted market, 'XX, revenue containership remaining our spot while dry fixed bulk for the are on Slide billion chartering to the

do strategy execute its our renew size. increase on we X, Slide to fleet our and

quarters, an one age acquired Capesize of and During XX average average X the XX smaller we an with years. disposed also of ship years. Ultramax have we And age last vessels with of XX have

shows S&P activity X since last detail Slide more the release. earnings our in

have we On majority million. a fleet going Slide with [ we and XX and have charted X through platform, forward. NML sale vessels regarding healthy very the (sic) X has leaseback our transactions invested XX of leasing already around Slide assets agreements. has financed index-linked on the ] period inception, $XXX CBI, in pipeline being Since

hunting Moving vessel financing through to Slide We have for acquisitions million roughly of $XXX X. available do licenses.

uninterrupted a In we long, continue addition, sponsor have boosted record dividend track by strong to support.

X. Moving to Slide

Our look on $X.X about at ability gives healthy to This billion. a liquidity the basis. liquidity the company for stands opportunities grow us to

disruption. The rising having across Sea capacity at at from the Moving idle containership XX. X.X%. rates have in to lately the Charter levels all market remains low segments, benefited been Red Slide

XX, Slide Moving the to final slide.

last of You the recent however, is in the fleet. volatile, trading and higher the remain market book spot forward quarter Charter first market. X% about bulk can at trends see the rates of than The dry total year. order

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

Operator

question Nolan first line comes Your Stifel. of Instructions] [Operator the Ben from with

Unknown Analyst

the going additional what [ actually expectation for wanted ] on Neptune putting ask for I is capital into to forward is Leasing. Prinella This Ben.

Gregory Zikos

to back figure million we leverage, equity million investing around have invested going our of up over already $XXX The be Yes. to the of I we're mean, going for equity. next of we're months. press be receiving Neptune Leasing, that in excludes announced have $XXX release which we like to

So to the be going It's committed. the leverage actually amount lower. actually net invested back is after

that invest perspective, definitely and can could our even an equity commitment, I from to say leverage $XXX this we go equity. million So amount back higher. strategy could And more subject of

case we north and feel also a problem there wouldn't that we that our risk in would deals makes Now from that. we like have are in figure considering perspective, to sense a this releasing liquidity, return go case of

premature a this bit However, is now.

that As makes more risk grow than considering enough to the provide which of platform, I capacity think this involved. sense we have today, further also returns

Operator

The next Value Investor's Molins Climent Edge. Instructions] question with [Operator is from

Climent Molins

I wanted start to bulk fleet. dry by the asking about

while Capesize smaller you year, exposure past focused expanding the vessels. on some Over divesting your

forward? increased have expect but we should values significantly Asset going lately, additional acquisitions

Gregory Zikos

have Look, now Capesize and vessels to up X we Ultramax. bought one

you more have We the reason values applies up, bought for that buildings. been rightly and vessel exactly the asset for new mentioned same going haven't

are So sensitive regarding price. we very the acquisition

We to there going you're correction sit on to If wait. a the more for is us most justified don't S&P reason is there hurry. to that in on will have see probably And and numbers. transactions. no the grow us deals based into be Otherwise, we market, cannot entering

on but is opposite. the to no growth there predetermined depends quite rate market it meet, So need conditions, that we

upside to cover that well. Our for they our goal into that enter do transactions make do our downside, is course, leaving shareholders of and sense some as

Climent Molins

most currently market? assume the operated it dry that of are fair in is the And spot vessels to

Gregory Zikos

yes. being, time the For

to about we dry up ships. been I now, mean in our bulk talk You market. spot the operating old have them

we sense no like conditions. period, we of some There the However, then a like view to rates, rule. market fixed in consider. If again, them is is could take it predetermined make it subject to is lock for something could this

is circumstances. flexible, market subject this are to and We

[indiscernible] them of prices in where the vessels was bought of bought, summer or XXXX majority of the the most much those dry were lower. Also, we bulk

low. ships, by breakeven and they those quite So leverage, default, have the levels are low

like no So cash a minimum and breakeven or are there to ships lenders from requirements no the our a there charter restrictions, at perspective are from rate.

flexibility. the have We

liquidity. the also we seen, have you've As

sense, chartered going out remains And going be how might market It the we're periods. I'm what the afraid go be to ships to our is be. but and this point, to seen, be forecast I for there, at yes, makes cannot is in going of to So decision future if that the it opportunistic. some

Climent Molins

And final me. question from

containership to currently elevated On you still remains fundamentals? Or somewhat seeing underlying relative values you side, opportunities? asset any are do believe the

Gregory Zikos

think a of the looking ships, for the years those the considering got opportunities are. look to I also new are ago. bidding comparing prices, that containerships, it if where at Also buildings there they you levels for think historically, we lot some don't see yes, values prices at prices or new asset we I high secondhand the still at

and see some take may are time correlated after rates values I which until some it correction. think

see now does considering our for we risk-reward make So don't that something sense approach. right us,

So there, wait. and sit we

mentioned, where proactively our close started is already our visibility most forward which like XX% literally which we fleet us to What great next a fleet we been have for at of provides on with chartered a for to very all with basis close coverage doing, 'XX have a actually and is solid going as year, XX%, charter XXX% forward.

Operator

I further to back [Operator no over Instructions] call remarks. for time, Seeing closing Zikos at the like to pass Mr. would his questions this

Gregory Zikos

next we're in Thank I dialing Thank and going our you conference Costamare today. much. for soon results you your during much very to call. very hope interest speak again for in

Operator

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

your now disconnect may lines. You

Costamare (CMRE) 10 May 242024 Q1 Earnings call transcript