Improved charters for a string of vessels have propelled Costamare to stronger than forecast second-quarter results.
The deals — including a 60% rise for a quintet of vessels with Cosco — were secured alongside the refinancing of over $450m in debt.
New York-listed Costamare has also closed funding to install scrubbers on five vessels, its second-quarter report revealed.
Scrubber boost
Greg Zikos, chief financial officer of Costamare, said: “Charter rates for the larger containerships continued to improve, boosted by service upgrades and a reduction in supply due to scrubber fittings.”
“We have chartered in total 18 vessels over the last months benefiting from a rising market in the larger asset classes.”
Cosco’s extension of the 9,500-teu Cosco Guangzhou, Cosco Ningbo, Cosco Beijing, Cosco Yantian and Cosco Hellas (all built 2006) was the standout development among the new charters revealed in the company’s second-quarter report.
Previously, the ships had been on charter at $17,900 per day, but their new deals running from the third quarter of this year to June and July 2020 are worth $28,900 per day.
Maersk Line’s extended deal for the 7,400-teu Maersk Kawasaki (built 1997) is also notable given the ship’s age and the rate rise from $12,100 per day to $17,050 per day through until February or March next year.
Another veteran, the 7,400-teu Kure (built 1996), has been fixed to Cosco at $21,500 per day for the next nine to 11 months, up by one-third from its previous deal.
The New York-listed owner has also chartered five 8,800-teu boxships to Hapag-Lloyd for three years at $34,500 per day.
These charters will commence between April 2020 and January 2021 after the vessels are redelivered by Evergreen.
The contracts were disclosed at the end of a quarter that saw Costamare clock up an adjusted profit of $26.2m, taking its profit for the year to $39.8m.
Adjusted earnings per share of $0.23 were ahead of the $0.14 per share forecast by analysts on Wall Street.
Costamare, in which the Constantakopoulos family is the largest shareholder, has inked fresh finance deals worth $460m extending original maturities by an average period of four years.
The package includes a $227m refinancing of two loan facilities due next year, which now run into 2025, a $178m refinancing of three sale-and-leaseback facilities by leading European institutions and 100% financing for a previously announced plan to fit scrubbers on five ships.
Costamare also confirmed the scrap sale of the 2,500-teu Elafonisos (built 1999), which it co-owned with York Capital.
The shipowner and its long-term finance partner still have joint interests in 10 vessels.
