Costamare Inc. (NYSE:CMRE) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET

Company Participants

Gregory Zikos - CFO

Conference Call Participants

Dylan O'Malley - Stifel
Climent Molins - Value Investor's Edge

Operator

Thank you for standing by, ladies and gentlemen, and welcome to the Costamare Inc. Conference Call on the Second Quarter 2024 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’ll be a presentation followed by a question-and-answer session [Operator Instructions] I must advise you that this conference is being recorded today, Wednesday, July 31, 2024.

We'd like to remind you that this conference call contains forward-looking statements. Please take a moment to read Slide number 2 of the presentation, which contains the forward-looking statements.

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

Gregory Zikos

Thank you, and good morning, ladies and gentlemen. During the second quarter of the year, the company generated net income of about $91 million. As of quarter end, liquidity was above $1.1 billion. In the containership sector, continued vessel diversions around Africa and an early peak season, with higher-than-expected cargo demand have resulted in charter rates remaining on an upward trajectory against the backdrop of short supply of prompt tonnage.

During the quarter, we chartered on a forward basis seven containerships for a minimum period of between two to three years. The new charter agreements are expected to generate incremental contracted revenues of above $220 million.

Our fleet employment stands at 100% and 88% for '24 and '25, respectively, and total contracted revenues amount to $2.4 billion, with the remaining time charter duration of 3.5 years. On the dry bulk side, we are now progressing with our strategy to renew the owned fleet and increase its average size having concluded the sale of one 2011-built Handysize and agreed the sale of one 2009-built Supramax vessel while simultaneously acquiring two 2012-built Capesize ships.

CBI, our dry bulk trading platform is commercially managing a fleet of 54 ships, the majority of which are on index-linked charter in agreements. As mentioned in the past, we have a long-term commitment to the sector which has been a strategic decision for us.

Finally, regarding Neptune Maritime Leasing, the platform has been steadily growing, having currently funded 25 shipping assets for a total amount of approximately $285 million on the back of a healthy pipeline.