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Costamare Q2 profit falls 27.9pc to US$31.9 million, revenues off 4.9pc

NEW YORK listed Greek ship owning lessor Costamare's second quarter profit fell 27.9 per cent year on year to US$31.9 million, drawn on revenues of $117.9 million, down 4.9 per cent.

The company's first half profit fell 9.3 per cent to $64 million year on year, drawn on revenues of $245.5 million down 0.5 per cent.

"During the second quarter the company continued to deliver solid and profitable results," said chief financial officer Gregory Zikos.

"In a challenging market our main goal is to preserve liquidity and strengthen our balance sheet," he said.

The company took delivery of the 14,424-TEU Triton in May and Titan in June, part of a joint venture with York and subject to sale and leaseback transactions with Chinese financial institutions.

The vessels commenced their 10-year time charters with Evergreen with Costamare holding a 40 per cent interest in the entities that own each vessel, said the statement accompanying the interim results.

The company agreed to extend the charters of the 4,890-TEU Oakland Express, Halifax Express and Singapore Express, built in 2000, with Hapag-Lloyd for a period expiring at the charterer's option during the period from November 2016 through June 2017, starting from September 8, October 25 and July 14, respectively at $6,300 at day.

The company also agreed to extend the charter of the 2004-built, 4,992-TEU Zim Piraeus with Zim for a period of five to eight months starting from August 1 at a daily rate of $5,350.

It also extended the charter of the 1992-built, 3,351-TEU Marina with Evergreen for a period expiring at the charterer's option during the period from June 10 through November 30 at a daily rate of $6,000.

Costamare also agreed to charter the 1998-built 3,842-TEU Itea with ACL for 70 to 75 days starting June 30 at a daily rate of $6,250.

It also chartered the 2000-built, 1,645-TEU Neapolis with Evergreen for a period of six to nine months starting from July 11 at a daily rate of $6,900.

It also agreed to charter the 1996-built, 1,504-TEU Prosper with Evergreen for a period of three to six months from May 15 at $6,600 a day.

Said Mr Zikos, the CFO: "We secured funding for our first two 11,000-TEU newbuildings, minimising our remaining capital commitments and we have entered into new debt transactions financing debt free and refinancing existing assets at competitive terms.

"We continue to employ our vessels at favourable rates despite adverse market conditions, having chartered in total eight ships opening during the last three months," he said.

"Regarding our new building programme, we have accepted delivery, as per schedule, of the first two out of the five 14,000-TEU vessels, which have commenced their 10-year charter.

"Finally, we implemented a dividend reinvestment plan available to all common stock holders. As long term committed shareholders, members of the founding family, currently controlling an interest of about 65 per cent in the aggregate, have each decided to reinvest in full the second quarter cash dividend.