Costamare(US:CMRE)2025-11-04 14:30Financial Data and Key Metrics Changes - The company generated net income of approximately $99 million for the third quarter, with additional net income reported at $98 million or $0.81 per share, and net income for the quarter around $93 million or $0.77 per share [2][3][4] - Total contracted revenues amount to $2.6 billion, with a remaining time charter duration of about 3.2 years [3][4] - Liquidity stands at about $560 million [4] Business Line Data and Key Metrics Changes - The company remains the sole shareholder of 69 containerships and the controlling shareholder of Neptune Maritime Leasing [2] - Eight vessels have been fixed with a forward start for periods ranging from 12 to 38 months, resulting in increased contracted revenues of about $310 million [2][4] - The fleet deployment is at 100% for 2025 and 80% for 2026 [2][4] Market Data and Key Metrics Changes - The charter market remains strong with an idle fleet of less than 1%, indicating a fully employed market [3][5] - Charter rates in the containership market are stable and healthy, supported by a vessel shortage and steady demand [3][5] - The positive outcome from trade discussions between the U.S. and China is expected to contribute to increased global trade flows [3] Company Strategy and Development Direction - The company has concluded newbuild contracts for two additional 3,100 TEU containerships, bringing the total newbuilding orders to six, with expected delivery in Q1 2028 [4] - The company is focusing on both newbuildings and potential second-hand acquisitions, indicating a proactive approach to fleet expansion [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that the charter market remains healthy, with demand for ships easily absorbed, despite geopolitical events that may affect future conditions [10][11] - There is uncertainty regarding the sustainability of recent increases in freight rates, which may be influenced by external factors such as geopolitical tensions [17][19] Other Important Information - Neptune Maritime Leasing has funded or committed to fund 50 shipping assets for a total amount exceeding $650 million [3][5] - The company maintains a long uninterrupted dividend track record [5] Q&A Session Summary Question: How has chartering activity developed over the past couple of months? - Management indicated that box rates have been increasing, particularly on the US West Coast trade route, and that there is a shortage of ships, leading to a healthy charter market [10] Question: Is the recent increase in freight rates sustainable? - Management acknowledged that the increase may be due to front-running and cannot predict long-term sustainability, as historical trends show a negative trajectory [17][19] Question: Can you discuss the acquisition of the second-hand vessel and future opportunities? - The acquisition was a structured sale-and-leaseback deal with Maersk, and management expressed that there may be more opportunities in the future [12] Question: What is the likelihood of Maersk exercising charter options? - Management stated that it is up to the charterer to decide based on market conditions, and they have conservatively factored in a one-year time charter period [19]