Costamare Inc. (NYSE:CMRE) Q3 2022 Earnings Conference Call November 2, 2022 9:00 AM ET

Company Participants

Gregory Zikos - Chief Financial Officer

Conference Call Participants

Eli - Citigroup

Omar Nokta - Jefferies

Macalla Rogers - Stifel

Climent Molins - Value Investor's Edge

Operator

Thank you for standing by, ladies and gentlemen, and welcome to the Costamare Incorporated conference call on the third 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. There will be a presentation followed by a question and answer session, at which time if you wish to ask a question, please press star then one on your telephone keypad and wait for your name to be announced.

I must advise you that this conference is being recorded today, Wednesday, November 2, 2022.

We would like to remind you that this conference call contains forward-looking statements. Please take a moment to read Slide No. 2 of the presentation, which contains the forward-looking statements.

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

Gregory Zikos

Thank you and good morning ladies and gentlemen.

During the third quarter, revenues reached approximately $290 million and adjusted net income reached $107 million compared to $216 million and $82 million for the same period last year. As of quarter end, cash balances and short term investments stood at around $745 million and total liquidity, including interim credit lines, was about $890 million.

Focusing on increasing visibility into our contracted cash flow base, we have recently chartered with a leading liner company a total of 11 containerships with existing charters recently expanding into 2023 and 2025. Seven of those vessels were chartered for a period ranging from four to five years starting from 2025 onwards, and the remaining ships were chartered for a period ranging from two to three years with [indiscernible] starts in 2023 and 2024. The new charters increase our contracted revenues by about $420 million and result in incremental charter covers of about 4.5 years.

Regarding the container market, cargo volumes have been softening across several trade lanes with energy costs and inflation impacting consumer spending. Fixing activity has been at low levels and the majority of new fixtures are for short-term employment. Charter rates have been under pressure, although they do remain at profitable levels.

On the dry bulk market, rates for our vessel sizes remain profitable, especially for owners who entered the market the year before. We feel comfortable with the long term supply and demand dynamics of this sector and we view any potential shortening of asset values as a compelling buying opportunity. On the back of our increased liquidity and container charter coverage, we are focused on new investment opportunities in the shipping sector that have the potential to provide enhanced returns at acceptable risk levels.