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    Costamare (CMRE)

    Q2 2024 Earnings Summary

    Reported on Apr 21, 2025 (Before Market Open)
    Pre-Earnings Price$10.36Last close (Jul 30, 2024)
    Post-Earnings Price$10.74Open (Jul 31, 2024)
    Price Change
    $0.38(+3.67%)
    • Selective Vessel Acquisitions: The company is strategically acquiring larger vessels, having already purchased 6 new ships (including Capesize and Ultramax), which were acquired at attractive prices, positioning the fleet for stronger future performance.
    • Healthy Containership Charter Rates: The forward-based charters for 7 containerships are executed at healthy rates in the mid-30s, supporting robust contracted revenue growth.
    • Proactive Capital Management and Hedging: The firm is actively managing its capital by redeeming expensive preferred stock and using FFAs as hedging tools, which underscores its commitment to optimizing cost and mitigating risks.
    • Uncertainty in capital allocation: The executives expressed caution over whether to redeem additional expensive Preferred Stock, leaving future capital allocation decisions unclear and potentially affecting financial flexibility.
    • Slowed dry bulk purchase activity: The cautious approach in acquiring vessels, with an emphasis on price sensitivity and waiting for attractive market conditions, may indicate underlying market weakness in the dry bulk segment.
    • Increased reliance on hedging: The strategy to secure fixed rate charters and use FFAs for hedging exposes the company to potential risks if market conditions shift unfavorably, limiting upside if rates improve.
    1. Preferred Redemption
      Q: Redeem additional preferred or prepay debt?
      A: Management explained that after redeeming their Series E Preferred—yielding annual cash savings of $10.1 million—any further redemptions, including the second most expensive series, will be decided by the Board based on market conditions and available opportunities.

    2. Dry Bulk Outlook
      Q: Why has dry bulk purchasing slowed this year?
      A: Management noted that they’ve acquired 6 larger vessels at attractive prices while remaining price sensitive; they plan to dispose of smaller ships when pricing is favorable, keeping a cautious pace in a fluctuating market.

    3. CBI Strategy
      Q: Fixed rate versus index charter strategy?
      A: Management indicated that the slight increase in fixed-rate charters was due to attractive individual deals, and they continue to use FFAs for hedging while staying flexible as market conditions evolve.

    4. Charter Rates
      Q: What are current containership charter rates?
      A: Management did not detail exact numbers but mentioned that for a 2000-built vessel, charter rates have been set in the mid-30s, reflecting healthy market levels.

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