Exhibit 99.2
Financial Report
Results of Operations
Three-month period ended September 30, 2021
compared to the three-month period ended September 30, 2020
During the three-month periods ended September
30, 2021 and 2020, we had an average of 91.7 and 59.5 vessels, respectively, in our fleet.
In the three-month period ended September 30,
2021, we accepted delivery of the secondhand container vessel Gialova with a TEU capacity of 4,578 and we sold the container vessel
Venetiko with a TEU capacity of 5,928. Furthermore, during the three-month period ended September 30, 2021, we accepted delivery
of 27 secondhand dry bulk vessels (Eracle, Peace, Bernis, Sauvan, Verity, Pride, Alliance,
Manzanillo, Dawn, Acuity, Seabird, Discovery, Aeolian, Comity, Clara, Serena,
Merida, Progress, Miner, Parity, Uruguay, Resource, Konstantinos, Taibo, Thunder,
Athena and Farmer) with an aggregate DWT of 1,337,162.
In the three-month period ended September 30,
2020, we accepted delivery of the newbuild container vessels YM Triumph, YM Truth and YM Totality with an aggregate TEU
capacity of 38,070 and the secondhand container vessel Scorpius (ex. JPO Scorpius) with a TEU capacity of 2,572. Additionally,
we sold the container vessels Kawasaki, Kokura and Zagora with an aggregate TEU capacity of 15,968.
In the three-month periods ended September 30,
2021 and 2020, our fleet ownership days totaled 8,434 and 5,478 days, respectively. Ownership days are one of the primary drivers of voyage
revenue and vessels’ operating expenses and represent the aggregate number of days in a period during which each vessel in our fleet
is owned.
Consolidated Financial Results and vessels’
operational data
(Expressed in millions of U.S. dollars, except percentages) | |
Three-month period
ended September 30,
| |
| |
Percentage |
| | |
|
2020 |
|
|
|
2021 |
| |
Change | |
Change |
| Voyage revenue | |
$ | 107.9 | | |
$ | 216.2 | | |
$ | 108.3 | | |
| 100.4 | % |
| Voyage expenses | |
| (2.4 | ) | |
| (4.4 | ) | |
| 2.0 | | |
| 83.3 | % |
| Voyage expenses – related parties | |
| (1.6 | ) | |
| (3.0 | ) | |
| 1.4 | | |
| 87.5 | % |
| Vessels’ operating expenses | |
| (30.2 | ) | |
| (49.7 | ) | |
| 19.5 | | |
| 64.6 | % |
| General and administrative expenses | |
| (1.5 | ) | |
| (2.3 | ) | |
| 0.8 | | |
| 53.3 | % |
| Management fees – related parties | |
| (5.5 | ) | |
| (8.2 | ) | |
| 2.7 | | |
| 49.1 | % |
| General and administrative expenses - non-cash component | |
| (0.9 | ) | |
| (2.3 | ) | |
| 1.4 | | |
| 155.6 | % |
| Amortization of dry-docking and special survey costs | |
| (2.2 | ) | |
| (2.7 | ) | |
| 0.5 | | |
| 22.7 | % |
| Depreciation | |
| (25.9 | ) | |
| (37.3 | ) | |
| 11.4 | | |
| 44.0 | % |
| Gain /(loss) on sale / disposal of vessels | |
| (0.4 | ) | |
| 16.7 | | |
| 17.1 | | |
| n.m. | |
| Interest income | |
| 0.3 | | |
| 0.1 | | |
| (0.2 | ) | |
| (66.7 | %) |
| Interest and finance costs | |
| (16.1 | ) | |
| (24.2 | ) | |
| 8.1 | | |
| 50.3 | % |
| Change in fair value measurement of equity securities | |
| - | | |
| 7.1 | | |
| 7.1 | | |
| n.m. | |
| Income from equity method investments | |
| 4.0 | | |
| 7.1 | | |
| 3.1 | | |
| 77.5 | % |
| Dividend income from investment in equity securities | |
| - | | |
| 1.8 | | |
| 1.8 | | |
| n.m. | |
| Other | |
| 0.1 | | |
| 0.5 | | |
| 0.4 | | |
| n.m. | |
| Loss on derivative instruments | |
| (0.4 | ) | |
| (0.2 | ) | |
| (0.2 | ) | |
| (50.0 | %) |
| Net Income | |
$ | 25.2 | | |
$ | 115.2 | | |
| | | |
| | |
(Expressed in millions of U.S. dollars, except percentages) | |
Three-month period
ended September 30,
| |
| |
Percentage |
| | |
|
2020 |
|
|
|
2021 |
| |
Change | |
Change |
| Voyage revenue | |
$ | 107.9 | | |
$ | 216.2 | | |
$ | 108.3 | | |
| 100.4 | % |
| Accrued charter revenue | |
| 8.2 | | |
| 1.0 | | |
| (7.2 | ) | |
| (87.8 | %) |
| Amortization of time charter assumed | |
| - | | |
| (0.1 | ) | |
| (0.1 | ) | |
| n.m. | |
| Voyage revenue adjusted on a cash basis (1) | |
$ | 116.1 | | |
$ | 217.1 | | |
$ | 101.0 | | |
| 87.0 | % |
Vessels’ operational data | |
Three-month period
ended September 30,
| |
| |
Percentage |
| | |
|
2020 |
|
|
|
2021 |
| |
Change | |
Change |
| Average number of vessels | |
| 59.5 | | |
| 91.7 | | |
| 32.2 | | |
| 54.1 | % |
| Ownership days | |
| 5,478 | | |
| 8,434 | | |
| 2,956 | | |
| 54.0 | % |
| Number of vessels under dry-docking | |
| 2 | | |
| 5 | | |
| 3 | | |
| | |
Segmental Financial Summary
| Three-month period ended September 30, 2021 |
| | |
Container vessels | |
Dry bulk vessels | |
Other | |
Total |
| | |
| |
| |
| |
|
| Voyage revenue | |
$ | 182.4 | | |
$ | 33.8 | | |
$ | - | | |
$ | 216.2 | |
| Voyage expenses | |
| (2.4 | ) | |
| (2.0 | ) | |
| - | | |
| (4.4 | ) |
| Voyage expenses – related parties | |
| (2.6 | ) | |
| (0.4 | ) | |
| - | | |
| (3.0 | ) |
| Vessels’ operating expenses | |
| (40.8 | ) | |
| (8.9 | ) | |
| - | | |
| (49.7 | ) |
| General and administrative expenses | |
| (1.9 | ) | |
| (0.4 | ) | |
| - | | |
| (2.3 | ) |
| Management fees – related parties | |
| (6.6 | ) | |
| (1.6 | ) | |
| - | | |
| (8.2 | ) |
| General and administrative expenses - non-cash component | |
| (1.9 | ) | |
| (0.4 | ) | |
| - | | |
| (2.3 | ) |
| Amortization of dry-docking and special survey costs | |
| (2.7 | ) | |
| - | | |
| - | | |
| (2.7 | ) |
| Depreciation | |
| (33.7 | ) | |
| (3.6 | ) | |
| - | | |
| (37.3 | ) |
| Gain on sale / disposal of vessels | |
| 16.7 | | |
| - | | |
| - | | |
| 16.7 | |
| Interest income | |
| 0.1 | | |
| - | | |
| - | | |
| 0.1 | |
| Interest and finance costs | |
| (22.9 | ) | |
| (1.3 | ) | |
| - | | |
| (24.2 | ) |
| Change in fair value measurement of equity securities | |
| - | | |
| - | | |
| 7.1 | | |
| 7.1 | |
| Income from equity method investments | |
| - | | |
| - | | |
| 7.1 | | |
| 7.1 | |
| Dividend income from investment in equity securities | |
| - | | |
| - | | |
| 1.8 | | |
| 1.8 | |
| Other | |
| 0.5 | | |
| - | | |
| - | | |
| 0.5 | |
| Loss on derivative instruments | |
| (0.2 | ) | |
| - | | |
| - | | |
| (0.2 | ) |
| Net Income | |
$ | 84.0 | | |
$ | 15.2 | | |
$ | 16.0 | | |
$ | 115.2 | |
(1) Voyage revenue adjusted on a cash basis is
not a recognized measurement under U.S. generally accepted accounting principles (“GAAP”). Refer to “Financial Summary”
below for the reconciliation of Voyage revenue adjusted on a cash basis.
Voyage Revenue
Voyage revenue increased by
100.4%, or $108.3 million, to $216.2 million during the three-month period ended September 30, 2021, from $107.9 million during the three-month
period ended September 30, 2020. The increase is mainly attributable to (i) revenue earned by five container vessels acquired during the
second half of 2020 as well as the 16 container vessels and 26 dry bulk vessels acquired during the nine-month period ended September
30, 2021 and (ii) increased charter rates in certain of our container vessels, partly off-set by revenue not earned by two container vessels
sold during the second half of 2020 and three container vessels sold during the nine-month period ended September 30, 2021.
Voyage revenue adjusted on
a cash basis (which eliminates non-cash “Accrued charter revenue”) increased by 87.0%, or $101.0 million, to $217.1 million
during the three-month period ended September 30, 2021, from $116.1 million during the three-month period ended September 30, 2020. Accrued
charter revenue for the three-month periods ended September 30, 2021 and 2020 was a positive amount of $1.0 million and $8.2 million,
respectively.
Voyage Expenses
Voyage expenses were $4.4
million and $2.4 million for the three-month periods ended September 30, 2021 and 2020, respectively. Voyage expenses mainly include (i)
off-hire expenses of our vessels, primarily related to fuel consumption and (ii) third party commissions.
Voyage Expenses – related parties
Voyage expenses – related
parties were $3.0 million and $1.6 million for the three-month periods ended September 30, 2021 and 2020, respectively. Voyage expenses
– related parties represent (i) fees of 1.25% in the aggregate on voyage revenues charged by a related manager and a service provider
and (ii) charter brokerage fees (in respect of our container vessels) payable to two related charter brokerage companies for an amount
of approximately $0.3 million and $0.3 million, in the aggregate, for the three-month periods ended September 30, 2021 and 2020, respectively.
Vessels’ Operating Expenses
Vessels’ operating expenses,
which also include the realized gain under derivative contracts entered into in relation to foreign currency exposure, were $49.7 million
and $30.2 million during the three-month periods ended September 30, 2021 and 2020, respectively. Daily vessels’ operating expenses
were $5,895 and $5,520 for the three-month periods ended September 30, 2021 and 2020, respectively. The increase in the daily operating
expenses over the two quarters is mainly attributed to increased one-time predelivery expenses for the acquisition of dry bulk vessels
and increased crew costs related to Covid-19 pandemic measures. Daily operating expenses are calculated as vessels’ operating expenses
for the period over the ownership days of the period.
General and Administrative Expenses
General and administrative
expenses were $2.3 million and $1.5 million during the three-month periods ended September 30, 2021 and 2020, respectively, and both include
$0.63 million paid to a related manager.
Management Fees – related parties
Management fees paid to our
related party managers were $8.2 million and $5.5 million during the three-month periods ended September 30, 2021 and 2020, respectively.
General and Administrative Expenses - non-cash
component
General and
administrative expenses - non-cash component for the three-month period ended September 30, 2021 amounted to $2.3 million,
representing the value of the shares issued to a related party manager on September 30, 2021. General and administrative expenses -
non-cash component for the three-month period ended September 30, 2020 amounted to $0.9 million, representing the value of the
shares issued to a related party manager on September 30, 2020.
Amortization of Dry-Docking and Special Survey
Amortization of deferred dry-docking
and special survey costs was $2.7 million and $2.2 million during the three-month periods ended September 30, 2021 and 2020, respectively.
During the three-month period ended September 30, 2021, two vessels underwent and completed their dry-docking and special survey and three
vessels were in the process of completing their dry-docking and special survey. During the three-month period ended September 30, 2020,
two vessels underwent and completed their dry-docking and special survey.
Depreciation
Depreciation expense for the
three-month periods ended September 30, 2021 and 2020 was $37.3 million and $25.9 million, respectively.
Gain / (loss) on Sale / Disposal of Vessels
During the three-month period
ended September 30, 2021, we recorded a gain of $16.5 million from the sale of the container vessel Venetiko, which was classified
as vessel held for sale as at June 30, 2021 (initially classified as vessel held for sale as of March 31, 2021) and an additional gain
of $0.2 million from the sale of the container vessel Halifax Express, which was sold in the first half of 2021.
During the three-month period
ended September 30, 2020, we recorded an additional loss of $0.4 million, in the aggregate, from the sale of the container vessel Zagora
which was classified as vessel held for sale as at December 31, 2019 and from the sale of the container vessels Kawasaki and Kokura
which were classified as vessels held for sale as at June 30, 2020.
Loss on Vessels Held for Sale
During the three-month period
ended September 30, 2021, the container vessels ZIM New York, and ZIM Shanghai were classified as vessels held for sale
(initially classified as vessel held for sale as of June 30, 2021). No loss on vessels held for sale was recorded during the third quarter
of 2021, since each vessel’s estimated market value exceeded each vessel’s carrying value.
Interest Income
Interest income amounted to
$0.1 million and $0.3 million for the three-month periods ended September 30, 2021 and 2020, respectively.
Interest and Finance Costs
Interest and finance costs
were $24.2 million and $16.1 million during the three-month periods ended September 30, 2021 and 2020, respectively. The increase is mainly
attributable to the increased average loan balances during the three-month period ended September 30, 2021 compared to the three-month
period ended September 30, 2020, partly off-set by decreased financing cost during the three-month period ended September 30, 2021 compared
to the three-month period ended September 30, 2020.
Swaps’ Breakage Costs
During the three-month period
ended September 30, 2020, we terminated two interest rate derivative instruments that qualified for hedge accounting and we paid the counterparties
breakage costs in the amount of $0.006 million in the aggregate.
Change in Fair Value of Equity securities/
Dividend income from investment in equity securities
Change in fair value of equity
securities of $7.1 million for the three-month period ended September 30, 2021, represents the difference between the aggregate fair value
of 1,221,800 ordinary shares of ZIM that we owned as at September 30, 2021 compared to the fair value of such shares as of June 30, 2021.
ZIM completed its initial public offering and listing on the New York Stock Exchange of its ordinary shares on January 27, 2021. Furthermore,
in the three-month period ended September 30, 2021 we received a special dividend from ZIM in the amount of $1.8 million.
Income from Equity Method Investments
During the three-month period
ended September 30, 2021, we recorded an income from equity method investments of $7.1 million representing our share of the income in
jointly owned companies pursuant to the Framework Deed dated May 15, 2013, as amended and restated (the “Framework Deed”),
with York. As of September 30, 2021, six companies are jointly owned with York (of which, four companies currently own container vessels).
During the three-month period ended September 30, 2020, we recorded an income from equity method investments of $4.0 million relating
to investments under the Framework Deed.
Loss on Derivative Instruments
The fair value of our ten
interest rate derivative instruments and our two cross currency rate swaps which were outstanding as of September 30, 2021 equates to
the amount that would be paid by us or to us should those instruments be terminated. As of September 30, 2021, the fair value of these
ten interest rate derivative instruments and two cross currency rate swaps, in aggregate, amounted to a liability of $13.4 million. The
change in the fair value of the interest rate derivative instruments and cross currency rate swaps that qualified for hedge accounting
is recorded in “Other Comprehensive Income” (“OCI”) and reclassified into earnings in the same period or periods
during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of
the hedged item while the change in the fair value of the interest rate derivatives, representing hedge components excluded from the assessment
of effectiveness are recognized currently in earnings and are presented in Gain/(Loss) on Derivative Instruments. The change in the fair
value of the interest rate derivative instruments that did not qualify for hedge accounting is recorded in Gain/(Loss) on Derivative Instruments.
For the three-month period ended September 30, 2021, a loss of $1.5 million has been included in OCI and a loss of $0.1 million has been
included in Loss on derivative instruments in the consolidated statement of income, resulting from the fair market value change of the
interest rate derivative instruments during the three-month period ended September 30, 2021.
Cash Flows
Three-month periods ended September 30, 2021 and 2020
| Condensed cash flows | |
Three-month period ended September 30, |
| (Expressed in millions of U.S. dollars) | |
2020 | |
2021 |
| Net Cash Provided by Operating Activities | |
$ | 66.7 | | |
$ | 125.9 | |
| Net Cash Used in Investing Activities | |
$ | (23.3 | ) | |
$ | (395.8 | ) |
| Net Cash Provided by / (Used in) Financing Activities | |
$ | (57.2 | ) | |
$ | 219.3 | |
Net Cash Provided by Operating Activities
Net cash flows provided by
operating activities for the three-month period ended September 30, 2021, increased by $59.2 million to $125.9 million, from $66.7 million
for the three-month period ended September 30, 2020. The increase is mainly attributable to increased cash from operations of $101.0 million,
partly off-set by the unfavorable change in working capital position, excluding the current portion of long-term debt and the accrued
charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis) of
$16.4 million, by the increased payments for interest (including swap payments) of $4.6 million during the three-month period ended September
30, 2021 compared to the three-month period ended September 30, 2020 and by increased dry-docking and special survey costs of $0.8 million
during the three-month period ended September 30, 2021 compared to the three-month period ended September 30, 2020.
Net Cash Used in Investing Activities
Net cash used in investing
activities was $395.8 million in the three-month period ended September 30, 2021, which mainly consisted of (i) payments for the acquisition
of 10 secondhand dry bulk vessels, (ii) settlement payments for the delivery of one container vessel and 15 secondhand dry bulk vessels,
(iii) advance payments for the acquisition of five secondhand dry bulk vessels, (iv) payments for the acquisition of the equity interest
of sixteen companies (which owned or had committed to acquire dry bulk vessels) owned by our Chairman and Chief Executive Officer, Konstantinos
Konstantakopoulos in accordance with the Share and Purchase agreement dated June 14, 2021 (agreed to acquire the equity interest of these
companies at cost with no mark-up or premium payable to Mr. Konstantakopoulos or his affiliated entities) and (v) payments for upgrades
for certain of our container and dry bulk vessels, partly off-set by proceeds we received from the sale of one container vessel and by
return of capital we received from one entity jointly -owned with York pursuant to the Framework Deed.
Net cash used in investing
activities was $23.3 million in the three-month period ended September 30, 2020, which mainly consisted of payments for upgrades for certain
of our container vessels and payments for the delivery of three newbuild container vessels and one container secondhand vessel, partly
off-set by proceeds we received from the sale of three container vessels.
Net Cash Provided by / (Used in) Financing
Activities
Net cash provided by financing
activities was $219.3 million in the three-month period ended September 30, 2021, which mainly consisted of (a) $240.6 million net proceeds
relating to our debt financing agreements (including proceeds of $300.9 million we received from our debt financing agreements), (b) $10.8
million we paid for dividends to holders of our common stock for the second quarter of 2021 and (c) $0.9 million we paid for dividends
to holders of our 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock (“Series B Preferred Stock”), $2.1 million
we paid for dividends to holders of our 8.500% Series C Cumulative Redeemable Perpetual Preferred Stock (“Series C Preferred Stock”),
$2.2 million we paid for dividends to holders of our 8.75% Series D Cumulative Redeemable Perpetual Preferred Stock (“Series D Preferred
Stock”) and $2.5 million we paid for dividends to holders of our 8.875% Series E Cumulative Redeemable Perpetual Preferred Stock
(“Series E Preferred Stock”) for the period from April 15, 2021 to July 14, 2021.
Net cash used in financing
activities was $57.2 million in the three-month period ended September 30, 2020, which mainly consisted of (a) $32.7 million net payments
relating to our debt financing agreements, (b) $9.3 million we paid for dividends to holders of our common stock for the second quarter
of 2020 and (c) $0.9 million we paid for dividends to holders of our 7.625% Series B Preferred Stock, $2.1 million we paid for dividends
to holders of our 8.500% Series C Preferred Stock, $2.2 million we paid for dividends to holders of our 8.75% Series D Preferred Stock
and $2.5 million we paid for dividends to holders of our 8.875% Series E Preferred Stock for the period from April 15, 2020 to July 14,
2020.
Nine-month period ended September 30, 2021
compared to the nine-month period ended September 30, 2020
During the nine-month periods ended September
30, 2021 and 2020, we had an average of 75.4 and 59.9 vessels, respectively, in our fleet.
In the nine-month period ended September 30, 2021,
(i) we accepted delivery of the newbuild container vessels YM Target and YM Tiptop with an aggregate TEU capacity of 25,380,
the secondhand container vessels Aries, Argus, Glen Canyon, Androusa, Norfolk, Porto Cheli,
Porto Kagio, Porto Germeno and Gialova with an aggregate TEU capacity of 49,909 and we sold the container vessels
Halifax Express, Prosper and Venetiko with an aggregate TEU capacity of 12,322 and (ii) we acquired (a) the 75% equity
interest of York Capital Management in each of the 11,010 TEU container vessels Cape Kortia and Cape Sounio and (b) the
51% equity interest of York Capital Management in each of the 11,010 TEU container vessels Cape Tainaro, Cape Artemisio and
Cape Akritas and as a result we obtained 100% of the equity interest in each of these five vessels.
Furthermore, in the nine-month period ended September
30, 2021, we acquired all of the equity interest of sixteen companies (which owned or had committed to acquire dry bulk vessels) owned
by our Chairman and Chief Executive Officer, Konstantinos Konstantakopoulos. We agreed to acquire these companies from Mr. Konstantakopoulos
at cost with no mark-up or premium payable to Mr. Konstantakopoulos or his affiliated entities. Mr. Konstantakopoulos will not receive
a profit as a result of the acquisition. Fifteen of the dry bulk vessels (Pegasus, Builder, Adventure, Eracle,
Peace, Sauvan, Pride, Alliance, Manzanillo, Acuity, Seabird, Aeolian, Comity,
Athena and Farmer) that were part of the acquisition with an aggregate DWT of 850,163, were delivered to us during the nine-month
period ended September 30, 2021. In addition, in the nine-month period ended September 30, 2021, we accepted delivery of another fifteen
secondhand dry bulk vessels (Bernis, Verity, Dawn, Discovery, Clara, Serena, Merida, Progress,
Miner, Parity, Uruguay, Resource, Konstantinos, Taibo and Thunder) with an aggregate
DWT of 659,021.
In the nine-month periods ended September 30,
2020, we accepted delivery of the newbuild vessels YM Triumph, YM Truth and YM Totality with an aggregate TEU capacity of
38,070 and the secondhand vessels Virgo (ex. JPO Virgo) and Scorpius (ex. JPO Scorpius) with a TEU capacity
of 6,830; and we sold the vessels Neapolis, Kawasaki, Kokura and Zagora with an aggregate TEU capacity of 17,613.
In the nine-month periods ended September 30,
2021 and 2020, our fleet ownership days totaled 20,583 and 16,413 days, respectively. Ownership days are one of the primary drivers of
voyage revenue and vessels’ operating expenses and represent the aggregate number of days in a period during which each vessel in
our fleet is owned.
Consolidated Financial Results and vessels’
operational data (1)
(Expressed in millions of U.S. dollars, except percentages) | |
Three-month period
ended September 30,
| |
| |
Percentage |
| | |
|
2020 |
|
|
|
2021 |
| |
Change | |
Change |
| Voyage revenue | |
$ | 341.2 | | |
$ | 509.7 | | |
$ | 168.5 | | |
| 49.4 | % |
| Voyage expenses | |
| (6.4 | ) | |
| (7.5 | ) | |
| 1.1 | | |
| 17.2 | % |
| Voyage expenses – related parties | |
| (4.7 | ) | |
| (7.3 | ) | |
| 2.6 | | |
| 55.3 | % |
| Vessels’ operating expenses | |
| (85.0 | ) | |
| (119.3 | ) | |
| 34.3 | | |
| 40.4 | % |
| General and administrative expenses | |
| (5.3 | ) | |
| (6.0 | ) | |
| 0.7 | | |
| 13.2 | % |
| Management fees – related parties | |
| (16.0 | ) | |
| (19.9 | ) | |
| 3.9 | | |
| 24.4 | % |
| General and administrative expenses - non-cash component | |
| (2.4 | ) | |
| (5.5 | ) | |
| 3.1 | | |
| 129.2 | % |
| Amortization of dry-docking and special survey costs | |
| (6.8 | ) | |
| (7.6 | ) | |
| 0.8 | | |
| 11.8 | % |
| Depreciation | |
| (81.6 | ) | |
| (96.0 | ) | |
| 14.4 | | |
| 17.6 | % |
| Gain / (loss) on sale / disposal of vessels, net | |
| (65.3 | ) | |
| 18.1 | | |
| 83.4 | | |
| n.m. | |
| Loss on vessels held for sale | |
| (14.4 | ) | |
| - | | |
| 14.4 | | |
| n.m. | |
| Vessels’ impairment loss | |
| (31.6 | ) | |
| - | | |
| 31.6 | | |
| n.m. | |
| Foreign exchange gains / (losses) | |
| (0.2 | ) | |
| 0.2 | | |
| 0.4 | | |
| n.m. | |
| Interest income | |
| 1.5 | | |
| 1.6 | | |
| 0.1 | | |
| 6.7 | % |
| Interest and finance costs | |
| (51.5 | ) | |
| (60.8 | ) | |
| 9.3 | | |
| 18.1 | % |
| Fair value measurement of equity securities | |
| - | | |
| 58.1 | | |
| 58.1 | | |
| n.m. | |
| Income from equity method investments | |
| 12.2 | | |
| 12.0 | | |
| (0.2 | ) | |
| (1.6 | %) |
| Dividend income from investment in equity securities | |
| - | | |
| 1.8 | | |
| 1.8 | | |
| n.m. | |
| Other | |
| 0.5 | | |
| 3.6 | | |
| 3.1 | | |
| n.m. | |
| Loss on derivative instruments | |
| (2.4 | ) | |
| (1.2 | ) | |
| (1.2 | ) | |
| (50.0 | %) |
| Net Income / (Loss) | |
$ | (18.2 | ) | |
$ | 274.0 | | |
| | | |
| | |
(Expressed in millions of U.S. dollars, except percentages) | |
Three-month period
ended September 30,
| |
| |
Percentage |
| | |
|
2020 |
|
|
|
2021 |
| |
Change | |
Change |
| Voyage revenue | |
$ | 341.2 | | |
$ | 509.7 | | |
$ | 168.5 | | |
| 49.4 | % |
| Accrued charter revenue | |
| 15.9 | | |
| 3.2 | | |
| (12.7 | ) | |
| (79.9 | %) |
| Amortization of time charter assumed | |
| 0.2 | | |
| (0.5 | ) | |
| (0.7 | ) | |
| n.m. | |
| Voyage revenue adjusted on a cash basis (2) | |
$ | 357.3 | | |
$ | 512.4 | | |
$ | 155.1 | | |
| 43.4 | % |
Vessels’ operational data | |
Three-month period
ended September 30,
| |
| |
Percentage |
| | |
|
2020 |
|
|
|
2021 |
| |
Change | |
Change |
| Average number of vessels | |
| 59.9 | | |
| 75.4 | | |
| 15.5 | | |
| 25.9 | % |
| Ownership days | |
| 16,413 | | |
| 20,583 | | |
| 4,170 | | |
| 25.4 | % |
| Number of vessels under dry-docking | |
| 9 | | |
| 14 | | |
| 5 | | |
| | |
Segmental Financial Summary (1)
| Nine-month period ended September 30, 2021 |
| | |
Container vessels | |
Dry bulk vessels | |
Other | |
|
Total |
|
| Voyage revenue | |
$ | 475.1 | | |
$ | 34.6 | | |
$ | - | | |
$ | 509.7 | |
| Voyage expenses | |
| (5.4 | ) | |
| (2.1 | ) | |
| - | | |
| (7.5 | ) |
| Voyage expenses – related parties | |
| (6.9 | ) | |
| (0.4 | ) | |
| - | | |
| (7.3 | ) |
| Vessels’ operating expenses | |
| (110.2 | ) | |
| (9.1 | ) | |
| - | | |
| (119.3 | ) |
| General and administrative expenses | |
| (5.6 | ) | |
| (0.4 | ) | |
| - | | |
| (6.0 | ) |
| Management fees – related parties | |
| (18.3 | ) | |
| (1.6 | ) | |
| - | | |
| (19.9 | ) |
| General and administrative expenses - non-cash component | |
| (5.0 | ) | |
| (0.5 | ) | |
| - | | |
| (5.5 | ) |
| Amortization of dry-docking and special survey costs | |
| (7.6 | ) | |
| - | | |
| - | | |
| (7.6 | ) |
| Depreciation | |
| (92.3 | ) | |
| (3.7 | ) | |
| - | | |
| (96.0 | ) |
| Gain on sale / disposal of vessels, net | |
| 18.1 | | |
| - | | |
| - | | |
| 18.1 | |
| Foreign exchange gains | |
| 0.2 | | |
| - | | |
| - | | |
| 0.2 | |
| Interest income | |
| 1.6 | | |
| - | | |
| - | | |
| 1.6 | |
| Interest and finance costs | |
| (59.5 | ) | |
| (1.3 | ) | |
| - | | |
| (60.8 | ) |
| Fair value measurement of equity securities | |
| - | | |
| - | | |
| 58.1 | | |
| 58.1 | |
| Income from equity method investments | |
| - | | |
| - | | |
| 12.0 | | |
| 12.0 | |
| Dividend income from investment in equity securities | |
| - | | |
| - | | |
| 1.8 | | |
| 1.8 | |
| Other | |
| 3.6 | | |
| - | | |
| - | | |
| 3.6 | |
| Loss on derivative instruments | |
| (1.2 | ) | |
| - | | |
| - | | |
| (1.2 | ) |
| Net Income | |
$ | 186.6 | | |
$ | 15.5 | | |
$ | 71.9 | | |
$ | 274.0 | |
(1) The results of dry bulk vessels are included
from June 14, 2021. Prior to that, our results were attributable to container vessels only.
(2) Voyage revenue adjusted on a cash basis is
not a recognized measurement under U.S. generally accepted accounting principles (“GAAP”). Refer to “Financial Summary”
below for the reconciliation of Voyage revenue adjusted on a cash basis.
Voyage Revenue
Voyage revenue increased by
49.4%, or $168.5 million, to $509.7 million during the nine-month period ended September 30, 2021, from $341.2 million during the nine-month
period ended September 30, 2020. The increase is mainly attributable to (i) revenue earned by five container vessels acquired during the
second half of 2020 as well as the 16 container vessels and 26 dry bulk vessels acquired during the nine-month period ended September
30, 2021, (ii) increased charter rates in certain of our container vessels during the nine-month period ended September 30, 2021 compared
to the nine-month period ended September 30, 2020, partly off-set by revenue not earned by five container vessels sold during the year
ended December 31, 2020 and three container vessels sold during the nine-month period ended September 30, 2021.
Voyage revenue adjusted on
a cash basis (which eliminates non-cash “Accrued charter revenue”), increased by 43.4%, or $155.1 million, to $512.4 million
during the nine-month period ended September 30, 2021, from $357.3 million during the nine-month period ended September 30, 2020. Accrued
charter revenue for the nine-month periods ended September 30, 2021 and 2020 was a positive amount of $3.2 million and $15.9 million,
respectively.
Voyage Expenses
Voyage expenses were $7.5
million and $6.4 million for the nine-month periods ended September 30, 2021 and 2020, respectively. Voyage expenses mainly include (i)
off-hire expenses of our vessels, primarily related to fuel consumption and (ii) third party commissions.
Voyage Expenses – related parties
Voyage expenses – related
parties were $7.3 million and $4.7 million for the nine-month periods ended September 30, 2021 and 2020, respectively. Voyage expenses
– related parties represent (i) fees of 1.25% in the aggregate on voyage revenues charged by a related manager and a service provider
and (ii) charter brokerage fees (in respect of our container vessels) payable to two related charter brokerage companies for an amount
of approximately $0.9 million and $0.5 million, in the aggregate, for the nine-month periods ended September 30, 2021 and 2020, respectively.
Vessels’ Operating Expenses
Vessels’ operating expenses,
which also include the realized gain under derivative contracts entered into in relation to foreign currency exposure, were $119.3 million
and $85.0 million during the nine-month periods ended September 30, 2021 and 2020, respectively. Daily vessels’ operating expenses
were $5,797 and $5,179 for the nine-month periods ended September 30, 2021 and 2020, respectively. The increase in the daily operating
expenses over the two nine-month periods is mainly attributed to increased one-time predelivery expenses for the acquisition of dry bulk
vessels and increased crew costs related to Covid-19 pandemic measures. Daily operating expenses are calculated as vessels’ operating
expenses for the period over the ownership days of the period.
General and Administrative Expenses
General and administrative
expenses were $6.0 million and $5.3 million during the nine-month periods ended September 30, 2021 and 2020, respectively, and both include
$1.9 million paid to a related manager.
Management Fees – related parties
Management fees paid to our
related party managers were $19.9 million and $16.0 million during the nine-month periods ended September 30, 2021 and 2020, respectively.
General and Administrative Expenses - non-cash
component
General and administrative
expenses - non-cash component for the nine-month period ended September 30, 2021 amounted to $5.5 million, representing the value of the
shares issued to a related party manager on March 31, 2021, on June 30, 2021 and September 30, 2021. General and administrative expenses
- non-cash component for the nine-month period ended September 30, 2020 amounted to $2.4 million, representing the value of the shares
issued to a related party manager on March 30, 2020, June 30, 2020 and September 30, 2020.
Amortization of Dry-Docking and Special Survey
Amortization of deferred dry-docking
and special survey costs was $7.6 million and $6.8 million during the nine-month periods ended September 30, 2021 and 2020, respectively.
During the nine-month period ended September 30, 2021, 11 vessels underwent and completed their dry-docking and special survey and three
vessels were in the process of completing their dry-docking and special survey. During the nine-month period ended September 30, 2020,
nine vessels underwent and completed their dry-docking and special survey.
Depreciation
Depreciation expense for the
nine-month periods ended September 30, 2021 and 2020 was $96.0 million and $81.6 million, respectively.
Gain / (loss) on Sale / Disposal of Vessels,
net
During the nine-month period
ended September 30, 2021, we recorded a net gain of $18.1 million from the sale of the container vessels Prosper (asset held for
sale as at March 31, 2021), Halifax Express (asset held for sale as at December 31, 2020) and Venetiko (asset held for sale
as at March 31, 2021 and June 30, 2021). During the nine-month period ended September 30, 2020, we recorded an aggregate net loss of $65.3
million from the sale of the container vessels Kawasaki, Kokura, Neapolis and Zagora. Neapolis and Zagora were classified
as assets held for sale as at December 31, 2019.
Loss on vessels held for sale
During the nine-month
period ended September 30, 2021, the container vessels ZIM New York and ZIM Shanghai were classified as vessels held
for sale (initially classified as vessels’ held for sale on June 30, 2021). No loss on vessels held for sale was recorded
during the nine-month period ended September 30, 2021, since each vessel’s estimated market value exceeded each vessel’s
carrying value. During the nine-month period ended September 30, 2020, we recorded a loss on vessels held for sale of $14.4 million
representing the expected loss from sale of the container vessel Singapore Express during the next twelve-month period.
Vessels’ impairment loss
During the nine-month period
ended September 30, 2021 no impairment loss was recorded. During the nine-month period ended September 30, 2020, we recorded an impairment
loss in relation to five of our container vessels in the amount of $31.6 million, in the aggregate.
Interest Income
Interest income amounted to
$1.6 million and $1.5 million for the nine-month periods ended September 30, 2021 and 2020, respectively.
Interest and Finance Costs
Interest and finance costs
were $60.8 million and $51.5 million during the nine-month periods ended September 30, 2021 and 2020, respectively. The increase is mainly
attributable to the increased average loan balances during the nine-month period ended September 30, 2021 compared to the nine-month period
ended September 30, 2020, partly off-set by the decreased financing cost during the nine-month period ended September 30, 2021 compared
to the nine-month period ended September 30, 2020.
Swaps’ Breakage Costs
During the nine-month period
ended September 30, 2020, we terminated two interest rate derivative instruments that qualified for hedge accounting and we paid the counterparties
breakage costs in the amount of $0.006 million in the aggregate.
Fair value measurement of equity securities
/ Dividend income from investment in equity securities
Fair value measurement of
equity securities of $58.1 million for the nine-month period ended September 30, 2021, represents the difference between the aggregate
fair value of 1,221,800 ordinary shares of ZIM that we owned as at September 30, 2021 of $61.9 million compared to the book value of these
shares of $3.8 million as of December 31, 2020. ZIM completed its initial public offering and listing on the New York Stock Exchange of
its ordinary shares on January 27, 2021. Furthermore, in the nine-month period ended September 30, 2021, we received a special dividend
from ZIM in the amount of $1.8 million.
Income from Equity Method Investments
During the nine-month period
ended September 30, 2021, we recorded an income from equity method investments of $12.0 million representing our share of the income in
jointly owned companies pursuant to the Framework Deed dated May 15, 2013, as amended and restated (the “Framework Deed”),
with York. Since late March 2021, we have held 100% of the equity interest in five previously jointly owned companies with York, and since
then these five companies are consolidated in our consolidated financial statements. As of September 30, 2021, six companies are jointly
owned with York (of which, four companies currently own container vessels). During the nine-month period ended September 30, 2020, we
recorded an income from equity method investments of $12.2 million relating to investments under the Framework Deed.
Loss on Derivative Instruments
The fair value of our ten
interest rate derivative instruments and our two cross currency rate swaps which were outstanding as of September 30, 2021 equates to
the amount that would be paid by us or to us should those instruments be terminated. As of September 30, 2021, the fair value of these
twelve derivative instruments, in aggregate, amounted to a liability of $13.4 million. The change in the fair value of the interest rate
derivative instruments and cross currency rate swaps that qualified for hedge accounting is recorded in “Other Comprehensive Income”
(“OCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings
and is presented in the same income statement line item as the earnings effect of the hedged item while the change in the fair value of
the interest rate derivatives representing hedge components excluded from the assessment of effectiveness are recognized currently in
earnings and are presented in Gain/(Loss) on Derivative Instruments. The change in the fair value of the interest rate derivative instruments
that did not qualify for hedge accounting is recorded in Gain/(Loss) on Derivative Instruments. For the nine-month period ended September
30, 2021, a loss of $0.6 million has been included in OCI and a loss of $0.3 million has been included in Loss on derivative instruments
in the consolidated statement of income, resulting from the fair market value change of the interest rate derivative instruments during
the nine-month period ended September 30, 2021.
Cash Flows
Nine-month periods ended September 30, 2021 and 2020
| Condensed cash flows | |
Nine-month period ended September 30, |
| (Expressed in millions of U.S. dollars) | |
2020 | |
2021 |
| Net Cash Provided by Operating Activities | |
$ | 205.9 | | |
$ | 301.1 | |
| Net Cash Used in Investing Activities | |
$ | (21.7 | ) | |
$ | (677.2 | ) |
| Net Cash Provided by / (Used in) Financing Activities | |
$ | (192.7 | ) | |
$ | 482.6 | |
Net Cash Provided by Operating Activities
Net cash flows provided by
operating activities for the nine-month period ended September 30, 2021, increased by $95.2 million to $301.1 million, from $205.9 million
for the nine-month period ended September 30, 2020. The increase is mainly attributable to increased cash from operations of $155.2 million,
partly off-set by the unfavorable change in working capital position, excluding the current portion of long-term debt and the accrued
charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis) of
$7.8 million, by the increased payments for interest (including swap payments) of $5.9 million during the nine-month period ended September
30, 2021 compared to the nine-month period ended September 30, 2020 and by the increased dry-docking and special survey costs of $3.3
million during the nine-month period ended September 30, 2021 compared to the nine-month period ended September 30, 2020.
Net Cash Provided Used in Investing Activities
Net cash used in investing
activities was $677.2 million in the nine-month period ended September 30, 2021, which mainly consisted of (i) net payments for the acquisition
of the 75% equity interest in two companies and of the 51% equity interest in three companies, previously jointly owned with York pursuant
to the Framework Deed, (ii) payments for the delivery of two newbuild container vessels, nine secondhand container vessels and 28 dry
bulk vessels, (iii) advance payments for the acquisition of one secondhand container vessel and six secondhand dry bulk vessels (iv) payments
for the acquisition of the equity interest of sixteen companies (which owned or had committed to acquire dry bulk vessels) owned by our
Chairman and Chief Executive Officer, Konstantinos Konstantakopoulos in accordance with the Share and Purchase agreement dated June 14,
2021 (agreed to acquire the equity interest of these companies at cost with no mark-up or premium payable to Mr. Konstantakopoulos or
his affiliated entities) and (v) payments for upgrades for certain of our container and dry bulk vessels, partly off-set by proceeds we
received from the sale of three container vessels and by return of capital we received from one entity jointly -owned with York pursuant
to the Framework Deed.
Net cash used in investing
activities was $21.7 million in the nine-month period ended September 30, 2020, which mainly consisted of payments for upgrades for certain
of our container vessels and payments for the delivery of three newbuild container vessels and two second hand container vessels, partly
off-set by proceeds we received from the sale of four of our container vessels and by return of capital we received from nine entities
jointly -owned with York pursuant to the Framework Deed.
Net Cash Provided by / (Used in) Financing
Activities
Net cash provided by financing
activities was $482.6 million in the nine-month period ended September 30, 2021, which mainly consisted of (a) $550.0 million net proceeds
relating to our debt financing agreements (including proceeds we received (i) from the issuance of €100.0 million unsecured bond
on the Athens Exchange and (ii) from our debt financing agreements of an amount of $944.0 million), (b) $29.6 million we paid for dividends
to holders of our common stock for the fourth quarter of 2020, the first quarter of 2021 and the second quarter of 2021 and (c) $2.8 million
we paid for dividends to holders of our Series B Preferred Stock, $6.3 million we paid for dividends to holders of our Series C Preferred
Stock, $6.6 million we paid for dividends to holders of our Series D Preferred Stock and $7.5 million we paid for dividends to holders
of our Series E Preferred Stock for the periods from October 15, 2020 to January 14, 2021, January 15, 2021 to April 14, 2021 and April
15, 2021 to July 14, 2021.
Net cash used in financing
activities was $192.7 million in the nine-month period ended September 30, 2020, which mainly consisted of (a) $133.2 million net payments
relating to our debt financing agreements, (b) $25.2 million we paid for dividends to holders of our common stock for the fourth quarter
of 2019, the first quarter of 2020 and the second quarter of 2020 and (c) $2.8 million we paid for dividends to holders of our 7.625%
Series B Preferred Stock, $6.3 million we paid for dividends to holders of our 8.500% Series C Preferred Stock, $6.6 million we paid for
dividends to holders of our 8.75% Series D Preferred Stock and $7.5 million we paid for dividends to holders of our 8.875% Series E Preferred
Stock for the period from October 15, 2019 to January 14, 2020, January 15, 2020 to April 14, 2020 and April 15, 2020 to July 14, 2020.
Liquidity and Unencumbered Vessels
Cash and cash equivalents
As of September 30, 2021,
we had a total cash liquidity of $298.4 million, consisting of cash, cash equivalents and restricted cash.
Debt-free vessels
As of October 26, 2021, the following vessels were
free of debt.
Unencumbered Vessels
(Refer to fleet list for full details)
| Vessel Name | |
Year
Built | |
TEU / DWT
Capacity |
| Containerships | |
| | | |
| | |
| ETOILE | |
| 2005 | | |
| 2,556 | |
| MICHIGAN | |
| 2008 | | |
| 1,300 | |
| MONEMVASIA (*) | |
| 1998 | | |
| 2,472 | |
| ARKADIA (*) | |
| 2001 | | |
| 1,550 | |
| Dry Bulk Vessels | |
| | | |
| | |
| CURACAO | |
| 2011 | | |
| 57,937 | |
| ROSE | |
| 2008 | | |
| 76,619 | |
(*) Vessels acquired pursuant to the Framework
Deed with York.
Conference Call details:
On Wednesday, October 27, 2021 at 8:30 a.m. EST,
Costamare’s management team will hold a conference call to discuss the financial results. Participants should dial into the call
10 minutes before the scheduled time using the following numbers: 1-844-887-9405 (from the US), 0808-238-9064 (from the UK) or +1-412-317-9258
(from outside the US and the UK). Please quote “Costamare”. A replay of the conference call will be available until November
3, 2021. The United States replay number is +1-877-344-7529; the standard international replay number is +1-412-317-0088; and the access
code required for the replay is: 10161631.
Live webcast:
There will also be a simultaneous live webcast
over the Internet, through the Costamare Inc. website (www.costamare.com). Participants to the live webcast should register on the website
approximately 10 minutes prior to the start of the webcast.
About Costamare Inc.
Costamare Inc. is one of the world’s leading
owners and providers of containerships for charter. The Company has 47 years of history in the international shipping industry and a fleet
of 78 containerships, with a total capacity of approximately 565,000 TEU (including one secondhand vessel that we have agreed to acquire
and one vessel that we have agreed to sell) and 37 dry bulk vessels with a total capacity of approximately 1,910,000 DWT (including three
secondhand vessels that we have agreed to acquire). Four of our containerships have been acquired pursuant to the Framework Deed with
York by vessel-owning joint venture entities in which we hold a minority equity interest. The Company’s common stock, Series B Preferred
Stock, Series C Preferred Stock, Series D Preferred Stock and Series E Preferred Stock trade on the New York Stock Exchange under the
symbols “CMRE”, “CMRE PR B”, “CMRE PR C”, “CMRE PR D” and “CMRE PR E”, respectively.
Forward-Looking Statements
This earnings release contains “forward-looking
statements”. In some cases, you can identify these statements by forward-looking words such as “believe”, “intend”,
“anticipate”, “estimate”, “project”, “forecast”, “plan”, “potential”,
“may”, “should”, “could”, “expect” and similar expressions. These statements are not historical
facts but instead represent only Costamare’s belief regarding future results, many of which, by their nature, are inherently uncertain
and outside of Costamare’s control. It is possible that actual results may differ, possibly materially, from those anticipated in
these forward-looking statements. For a discussion of some of the risks and important factors that could affect future results, see the
discussion in the Company’s Annual Report on Form 20-F (File No. 001-34934) under the caption “Risk Factors” and the
Company’s Results for the Second Quarter and Six-Months Ended June 30, 2021 on Form 6-K (filed on July 28, 2021 with the SEC) under
the caption “Risk Factor Update”.
Company Contacts:
Gregory Zikos - Chief Financial Officer
Konstantinos Tsakalidis - Business Development
Costamare Inc., Monaco
Tel: (+377) 93 25 09 40
Email: ir@costamare.com
Fleet List
The tables below provide additional information,
as of October 26, 2021, about our fleet of containerships, including the vessel that we have agreed to acquire, the vessel we have agreed
to sell, the vessels acquired pursuant to the Framework Deed and those vessels subject to sale and leaseback agreements. Each vessel is
a cellular containership, meaning it is a dedicated container vessel.
|
|
Vessel Name |
Charterer |
Year Built |
Capacity (TEU) |
Current Daily Charter Rate(1) (U.S. dollars) |
Expiration of Charter(2) |
| 1 |
TRITON(ii) |
Evergreen |
2016 |
14,424 |
(*) |
March 2026 |
| 2 |
TITAN(ii) |
Evergreen |
2016 |
14,424 |
(*) |
April 2026 |
| 3 |
TALOS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
July 2026 |
| 4 |
TAURUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
| 5 |
THESEUS(ii) |
Evergreen |
2016 |
14,424 |
(*) |
August 2026 |
| 6 |
YM TRIUMPH(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
May 2030 |
| 7 |
YM TRUTH(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
May 2030 |
| 8 |
YM TOTALITY(ii) |
Yang Ming |
2020 |
12,690 |
(*) |
July 2030 |
| 9 |
YM TARGET(ii) |
Yang Ming |
2021 |
12,690 |
(*) |
November 2030 |
| 10 |
YM TIPTOP(ii) |
Yang Ming |
2021 |
12,690 |
(*) |
March 2031 |
| 11 |
CAPE AKRITAS |
MSC |
2016 |
11,010 |
33,000 |
August 2031 |
| 12 |
CAPE TAINARO |
MSC |
2017 |
11,010 |
33,000 |
April 2031 |
| 13 |
CAPE KORTIA |
MSC |
2017 |
11,010 |
33,000 |
August 2031 |
| 14 |
CAPE SOUNIO |
MSC |
2017 |
11,010 |
33,000 |
April 2031 |
| 15 |
CAPE ARTEMISIO |
Hapag Lloyd |
2017 |
11,010 |
36,650 |
March 2025 |
| 16 |
COSCO GUANGZHOU |
COSCO/(*) |
2006 |
9,469 |
30,900/72,700 |
April 2025(3) |
| 17 |
COSCO NINGBO |
COSCO/(*) |
2006 |
9,469 |
30,900/72,700 |
April 2025(3) |
| 18 |
YANTIAN |
COSCO |
2006 |
9,469 |
39,600 |
February 2024 |
| 19 |
COSCO HELLAS |
COSCO |
2006 |
9,469 |
39,600 |
February 2024 |
| 20 |
BEIJING |
COSCO |
2006 |
9,469 |
39,600 |
March 2024 |
| 21 |
MSC AZOV |
MSC |
2014 |
9,403 |
46,300 |
December 2026(4) |
| 22 |
MSC AMALFI |
MSC |
2014 |
9,403 |
46,300 |
March 2027(5) |
| 23 |
MSC AJACCIO |
MSC |
2014 |
9,403 |
46,300 |
February 2027(6) |
| 24 |
MSC ATHENS(ii) |
MSC |
2013 |
8,827 |
45,300 |
January 2026(7) |
| 25 |
MSC ATHOS(ii) |
MSC |
2013 |
8,827 |
45,300 |
February 2026(8) |
| 26 |
VALOR |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
April 2025 |
| 27 |
VALUE |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
April 2025 |
| 28 |
VALIANT |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
June 2025 |
| 29 |
VALENCE |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
July 2025 |
| 30 |
VANTAGE |
Hapag Lloyd |
2013 |
8,827 |
32,400 |
September 2025 |
| 31 |
NAVARINO |
MSC |
2010 |
8,531 |
31,000 |
January 2025 |
| 32 |
MAERSK KLEVEN |
Maersk |
1996 |
8,044 |
25,000 |
June 2023(9) |
| 33 |
MAERSK KOTKA |
Maersk |
1996 |
8,044 |
25,000 |
June 2023(9) |
| 34 |
MAERSK KOWLOON |
Maersk |
2005 |
7,471 |
16,000 |
June 2022(10) |
| 35 |
KURE |
COSCO |
1996 |
7,403 |
31,000 |
March 2023 |
| 36 |
MSC METHONI |
MSC/Maersk |
2003 |
6,724 |
29,000/46,500 |
July 2026(11) |
| 37 |
PORTO CHELI |
Maersk |
2001 |
6,712 |
30,075 |
June 2026 |
| 38 |
YORK |
Maersk |
2000 |
6,648 |
21,250 |
August 2022 |
| 39 |
KOBE |
RCL Feeder/ZIM |
2000 |
6,648 |
14,500/45,000 |
July 2025(12) |
| 40 |
SEALAND WASHINGTON |
Maersk |
2000 |
6,648 |
25,000 |
December 2022 (13) |
| 41 |
SEALAND MICHIGAN |
Maersk |
2000 |
6,648 |
25,000 |
October 2022(13) |
| 42 |
SEALAND ILLINOIS |
Maersk |
2000 |
6,648 |
25,000 |
October 2022 (13) |
| 43 |
MAERSK KOLKATA |
Maersk |
2003 |
6,644 |
25,000 |
October 2022 (13) |
|
|
Vessel Name |
Charterer |
Year Built |
Capacity (TEU) |
Current Daily Charter Rate(1) (U.S. dollars) |
Expiration of Charter(2) |
| 44 |
MAERSK KINGSTON |
Maersk |
2003 |
6,644 |
25,000 |
October 2022 (13) |
| 45 |
MAERSK KALAMATA |
Maersk |
2003 |
6,644 |
25,000 |
October 2022 (13) |
| 46 |
ARIES |
ONE |
2004 |
6,492 |
(*) |
December 2022 |
| 47 |
ARGUS |
ONE |
2004 |
6,492 |
(*) |
January 2023 |
| 48 |
PORTO KAGIO |
Maersk |
2002 |
5,908 |
28,822 |
June 2026 |
| 49 |
GLEN CANYON |
ONE/ZIM |
2006 |
5,642 |
(*)/62,500 |
July 2025(14) |
| 50 |
PORTO GERMENO |
Maersk |
2002 |
5,570 |
28,822 |
June 2026 |
| 51 |
ZIM NEW YORK(iii) |
ZIM |
2002 |
4,992 |
- |
Vessel scheduled to be sold |
| 52 |
LEONIDIO(ii) |
Maersk |
2014 |
4,957 |
14,200 |
December 2024(15) |
| 53 |
KYPARISSIA(ii) |
Maersk |
2014 |
4,957 |
14,200 |
November 2024(15) |
| 54 |
MEGALOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(16) |
| 55 |
MARATHOPOLIS |
Maersk |
2013 |
4,957 |
13,500 |
July 2025(16) |
| 56 |
OAKLAND |
Maersk |
2000 |
4,890 |
24,500 |
March 2023 |
| 57 |
GIALOVA |
ZIM |
2009 |
4,578 |
25,500 |
April 2024 |
| 58 |
NORFOLK |
Maersk |
2009 |
4,259 |
30,000 |
May 2023 |
| 59 |
VULPECULA |
OOCL |
2010 |
4,258 |
22,700 |
February 2023 |
| 60 |
VOLANS |
ZIM |
2010 |
4,258 |
24,250 |
April 2024 |
| 61 |
VIRGO |
Maersk |
2009 |
4,258 |
30,200 |
February 2024 |
| 62 |
VELA |
OOCL |
2009 |
4,258 |
22,700 |
January 2023 |
| 63 |
ANDROUSA |
Maersk |
2010 |
4,256 |
22,750 |
May 2023 |
| 64 |
NEOKASTRO |
(*)/CMA
CGM |
2011 |
4,178 |
(*)/
39,000 |
January 2027(17) |
| 65 |
ULSAN |
Maersk |
2002 |
4,132 |
34,730 |
January 2026 |
| 66 |
POLAR ARGENTINA(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
October 2024 |
| 67 |
POLAR BRASIL(i)(ii) |
Maersk |
2018 |
3,800 |
19,700 |
January 2025 |
| 68 |
LAKONIA |
COSCO |
2004 |
2,586 |
26,500 |
March 2025(18) |
| 69 |
SCORPIUS |
Hapag Lloyd |
2007 |
2,572 |
17,750 |
January 2023 |
| 70 |
ETOILE |
(*) |
2005 |
2,556 |
(*) |
February 2023 |
| 71 |
AREOPOLIS |
COSCO |
2000 |
2,474 |
26,500 |
April 2025(19) |
| 72 |
MONEMVASIA(i) |
Maersk |
1998 |
2,472 |
9,250 |
November 2022(20) |
| 73 |
MESSINI |
(*) |
1997 |
2,458 |
18,000 |
January 2022 |
| 74 |
ARKADIA(i) |
China Navigation |
2001 |
1,550 |
21,500 |
May 2023 |
| 75 |
MICHIGAN |
MSC |
2008 |
1,300 |
18,700 |
September 2023 |
| 76 |
TRADER |
(*) |
2008 |
1,300 |
(*) |
October 2024 |
| 77 |
LUEBECK |
MSC |
2001 |
1,078 |
15,000 |
March 2024(21) |
Containership agreed to be acquired within
2021
|
|
Vessel Name |
Vessel Capacity (TEU) |
|
Year Built |
Charterer |
Agreed Daily Charter Rate (U.S. dollars) |
Charter Tenor |
| 1 |
CO KOBE (tbr. DYROS) |
4,578 |
|
2008 |
Maersk |
22,750 |
24.5 – 27.5 months from vessel’s delivery to the charterer |
| (1) | Daily charter rates are gross, unless stated otherwise. Amounts set out for current daily charter rate
are the amounts contained in the charter contracts. |
| (2) | Charter terms and expiration dates are based on the earliest date charters (unless otherwise noted) could
expire. |
| (3) | Upon redelivery of each vessel from COSCO between April 2022 and July 2022, each vessel will commence
a charter for a period of 36 to 39 months at a daily rate of $72,700. Until then the daily charter rate of Cosco Guangzhou and
Cosco Ningbo will be $30,900. |
| (4) | This charter rate will be earned by MSC Azov until December 2, 2023. From the aforementioned date
until the expiry of the charter, the daily rate will be $35,300. |
| (5) | This charter rate will be earned by MSC Amalfi until March 16, 2024. From the aforementioned date
until the expiry of the charter, the daily rate will be $35,300. |
| (6) | This charter rate will be earned by MSC Ajaccio until February 1, 2024. From the aforementioned
date until the expiry of the charter, the daily rate will be $35,300. |
| (7) | This charter rate will be earned by MSC Athens until January 29, 2023. From the aforementioned
date until the expiry of the charter, the daily rate will be $35,300. |
| (8) | This charter rate will be earned by MSC Athos until February 24, 2023. From the aforementioned
date until the expiry of the charter, the daily rate will be $35,300. |
| (9) | The daily rate of each of Maersk Kleven and Maersk Kotka is a base rate of $17,000, adjusted
pursuant to the terms of a 50:50 profit/loss sharing mechanism based on market conditions with a minimum charter rate of $12,000 and a
maximum charter rate of $25,000. |
| (10) | Charterer has the option to extend the current time charter from June 2022, for a period expiring between
August 2025 and November 2025 at a daily rate of $18,500. |
| (11) | Upon redelivery of MSC Methoni from MSC (expected in November 2021), the vessel will commence
a charter with Maersk at a daily rate of $46,500. Until then the daily charter rate will be $29,000. |
| (12) | Upon redelivery of Kobe from RCL Feeder (expected in November 2021), the vessel will commence
a charter with ZIM at a daily rate of $45,000. Until then the daily charter rate will be $14,500. |
| (13) | The daily rate for Sealand Washington, Sealand Michigan, Sealand Illinois, Maersk Kolkata, Maersk Kingston
and Maersk Kalamata is a base rate of $16,000, adjusted pursuant to the terms of a 50:50 profit/loss sharing mechanism based on
market conditions with a minimum charter rate of $12,000 and a maximum charter rate of $25,000. Expiration of charter represents latest
redelivery date. |
| (14) | Upon redelivery of Glen Canyon from ONE (expected between February 2022 and April 2022),
the vessel will commence a charter with ZIM at a daily rate of $62,500. |
| (15) | Charterer has the option to extend the current time charter for an additional period of 12 to 14 months
at a daily rate of $17,000. |
| (16) | Charterer has the option to extend the current time charter for an additional period of approximately
24 months at a daily rate of $14,500. |
| (17) | Upon redelivery of Neokastro from
her current charterer (expected between December 2021 and February 2022), the vessel will
commence a charter with CMA CGM at a daily rate of $39,000. |
| (18) | This charter rate will be earned by Lakonia from April 24, 2022. Until then the daily charter rate
will be $17,300. |
| (19) | This charter rate will be earned by Areopolis from May 3, 2022. Until then the daily charter rate
will be $17,300. |
| (20) | Expiration of charter represents latest redelivery date. |
| (21) | This charter rate will be earned by Luebeck from March 19, 2022. Until then the daily charter rate
will be $7,750. |
| (i) | Denotes vessels acquired pursuant to the Framework Deed. The Company holds an equity interest of 49% in
each of the vessel-owning entities. |
| (ii) | Denotes vessels subject to a sale and leaseback transaction. |
| (iii) | Denotes vessels that we have agreed to sell. |
(*) Denotes
charterer’s identity and/or current daily charter rates and/or charter expiration dates, which are treated as confidential.
The tables below provide additional information,
as of October 26, 2021, about our fleet of dry bulk vessels, including the vessels that we have agreed to acquire.
|
|
Vessel Name |
Year Built |
Capacity (DWT) |
Current Daily Charter Rate(1) (U.S. dollars) |
Expiration of Charter(2) |
| 1 |
AEOLIAN |
2012 |
83,478 |
39,000 |
December 2021 |
|
| 2 |
BUILDER |
2012 |
81,541 |
25,000 |
November 2021 |
|
| 3 |
FARMER |
2012 |
81,541 |
38,300 |
December 2021 |
|
| 4 |
SAUVAN |
2010 |
79,700 |
30,250 |
November 2021 |
|
| 5 |
ROSE |
2008 |
76,619 |
- |
Open |
| 6 |
SEABIRD |
2016 |
63,553 |
40,750 |
November 2021 |
| 7 |
DAWN |
2018 |
63,530 |
10,500 |
December 2021(3) (4) |
| 8 |
ERACLE |
2012 |
58,018 |
30,000 |
November 2021 |
| 9 |
CURACAO |
2011 |
57,937 |
39,000 |
December 2021 |
| 10 |
URUGUAY |
2011 |
57,937 |
35,000 |
November 2021 |
| 11 |
ATHENA |
2012 |
57,809 |
35,000 |
November 2021 |
| 12 |
THUNDER |
2009 |
57,334 |
40,750 |
October 2021 |
| 13 |
SERENA |
2010 |
57,266 |
98.25% participation to the BSI58 performance(5) |
May 2022 |
| 14 |
PEGASUS |
2011 |
56,726 |
26,150 |
November 2021 |
| 15 |
MERIDA |
2012 |
56,670 |
42,000 |
November 2021 |
| 16 |
CLARA |
2008 |
56,557 |
47,000 |
November 2021 |
| 17 |
PEACE |
2006 |
55,709 |
98.5% participation to the BSI58 performance(5) |
July 2022 |
| 18 |
PRIDE |
2006 |
55,705 |
34,500 |
November 2021 |
| 19 |
COMITY |
2010 |
37,302 |
100% participation to the BHSI38 performance(6) |
July 2022(3) |
| 20 |
VERITY |
2012 |
37,163 |
100% participation to the BHSI38 performance(6) |
March 2022(3) |
| 21 |
PARITY |
2012 |
37,152 |
102% participation to the BHSI38 performance(6) |
December 2022 |
| 22 |
ACUITY |
2011 |
37,149 |
30,900 |
November 2021 |
| 23 |
EQUITY |
2013 |
37,071 |
32,500 |
November 2021 |
| 24 |
DISCOVERY |
2012 |
37,019 |
47,000 |
November 2021 |
| 25 |
TAIBO |
2011 |
35,112 |
- |
Vessel in dry dock |
| 26 |
BERNIS |
2011 |
34,627 |
25,250 |
November 2021 |
| 27 |
MANZANILLO |
2010 |
34,426 |
48,750 |
November 2021 |
| 28 |
ADVENTURE |
2011 |
33,755 |
7,500 |
December 2021(3) (4) |
| 29 |
ALLIANCE |
2012 |
33,751 |
8,150 |
December 2021(3) (4) |
| 30 |
CHARM |
2010 |
32,527 |
91% participation to the BHSI38 performance(6) |
February 2022(3) |
| 31 |
PROGRESS |
2011 |
32,400 |
- |
Open |
| 32 |
MINER |
2010 |
32,300 |
- |
Vessel in dry dock |
| 33 |
KONSTANTINOS |
2012 |
32,178 |
19,500 |
November 2021(3) (4) |
| 34 |
RESOURCE |
2010 |
31,776 |
27,500 |
November 2021 |
Dry Bulk vessels agreed to be acquired
within 2021
|
|
Vessel Name |
Year Built |
Capacity (DWT) |
Current Daily Charter Rate(1) (U.S. dollars) |
Expiration of Charter(2) |
| 1 |
JAIGARH (tbr. GRENETA) |
2010 |
82,166 |
- |
- |
| 2 |
BULK TITAN (tbr. TITAN I) |
2009 |
58,090 |
- |
- |
| 3 |
DARYA LAKSHMI (tbr. BERMONDI) |
2009 |
55,469 |
- |
- |
| (1) | Daily charter rates are gross, unless stated otherwise. |
| (2) | Charter terms and expiration dates are based on the earliest date charters (unless otherwise noted) could
expire. |
| (3) | Vessels acquired/agreed to be acquired, with a time charter agreed by the previous owners. |
| (4) | Latest redelivery date. |
| (5) | Gross daily charter rate linked to the Baltic Exchange Supramax Index (“BSI58’’). |
| (6) | Gross daily charter rate linked to the Baltic Exchange Handysize Index (“BHSI38’’). |
Consolidated Statements of Income
| | |
Nine-months ended September 30, | |
Three-months ended September 30, |
| (Expressed in thousands of U.S. dollars, except share and per share amounts) | |
2020 | |
2021 | |
2020 | |
2021 |
| | |
Unaudited |
| | |
| |
| |
| |
|
| REVENUES: | |
| | | |
| | | |
| | | |
| | |
| Voyage revenue | |
$ | 341,176 | | |
$ | 509,721 | | |
$ | 107,903 | | |
$ | 216,226 | |
| | |
| | | |
| | | |
| | | |
| | |
| EXPENSES: | |
| | | |
| | | |
| | | |
| | |
| Voyage expenses | |
| (6,383 | ) | |
| (7,480 | ) | |
| (2,380 | ) | |
| (4,409 | ) |
| Voyage expenses – related parties | |
| (4,753 | ) | |
| (7,339 | ) | |
| (1,623 | ) | |
| (3,038 | ) |
| Vessels' operating expenses | |
| (84,999 | ) | |
| (119,316 | ) | |
| (30,241 | ) | |
| (49,716 | ) |
| General and administrative expenses | |
| (5,301 | ) | |
| (5,960 | ) | |
| (1,543 | ) | |
| (2,251 | ) |
| Management fees - related parties | |
| (16,023 | ) | |
| (19,939 | ) | |
| (5,502 | ) | |
| (8,153 | ) |
| General and administrative expenses - non-cash component | |
| (2,416 | ) | |
| (5,523 | ) | |
| (908 | ) | |
| (2,316 | ) |
| Amortization of dry-docking and special survey costs | |
| (6,765 | ) | |
| (7,564 | ) | |
| (2,228 | ) | |
| (2,717 | ) |
| Depreciation | |
| (81,618 | ) | |
| (96,010 | ) | |
| (25,881 | ) | |
| (37,284 | ) |
| Gain / (Loss) on sale / disposal of vessels, net | |
| (65,260 | ) | |
| 18,075 | | |
| (432 | ) | |
| 16,669 | |
| Loss on vessels held for sale | |
| (14,359 | ) | |
| - | | |
| - | | |
| - | |
| Vessels’ impairment loss | |
| (31,577 | ) | |
| - | | |
| - | | |
| - | |
| Foreign exchange gains / (losses) | |
| (203 | ) | |
| 147 | | |
| 4 | | |
| 1 | |
| Operating income | |
$ | 21,519 | | |
$ | 258,812 | | |
$ | 37,169 | | |
$ | 123,012 | |
| | |
| | | |
| | | |
| | | |
| | |
| OTHER INCOME / (EXPENSES): | |
| | | |
| | | |
| | | |
| | |
| Interest income | |
$ | 1,464 | | |
$ | 1,554 | | |
$ | 377 | | |
$ | 65 | |
| Interest and finance costs | |
| (51,452 | ) | |
| (60,793 | ) | |
| (16,085 | ) | |
| (24,245 | ) |
| Swaps’ breakage cost | |
| (6 | ) | |
| - | | |
| (6 | ) | |
| - | |
| Income from equity method investments | |
| 12,201 | | |
| 12,005 | | |
| 3,960 | | |
| 7,054 | |
| Fair value measurement / Change in fair value of equity securities | |
| - | | |
| 58,144 | | |
| - | | |
| 7,050 | |
| Dividend income from investment in equity securities | |
| - | | |
| 1,833 | | |
| - | | |
| 1,833 | |
| Other | |
| 468 | | |
| 3,631 | | |
| 160 | | |
| 648 | |
| Loss on derivative instruments | |
| (2,392 | ) | |
| (1,219 | ) | |
| (326 | ) | |
| (207 | ) |
| Total other income / (expenses) | |
$ | (39,717 | ) | |
$ | 15,155 | | |
$ | (11,920 | ) | |
$ | (7,802 | ) |
| Net Income / (Loss) | |
$ | (18,198 | ) | |
$ | 273,967 | | |
$ | 25,249 | | |
$ | 115,210 | |
| Earnings allocated to Preferred Stock | |
| (23,315 | ) | |
| (23,302 | ) | |
| (7,854 | ) | |
| (7,854 | ) |
| Gain on retirement of Preferred Stock | |
| 619 | | |
| - | | |
| - | | |
| - | |
| Net Income / (Loss) available to common stockholders | |
$ | (40,894 | ) | |
$ | 250,665 | | |
$ | 17,395 | | |
$ | 107,356 | |
| | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
| Earnings / (Losses) per common share, basic and diluted | |
$ | (0.34 | ) | |
$ | 2.04 | | |
$ | 0.14 | | |
$ | 0.87 | |
| Weighted average number of shares, basic and diluted | |
| 120,319,521 | | |
| 122,845,943 | | |
| 121,094,924 | | |
| 123,299,457 | |
COSTAMARE INC.
Consolidated Balance Sheets
| | |
As of December 31, | |
As of September 30, |
| (Expressed in thousands of U.S. dollars) | |
2020 | |
2021 |
| ASSETS | |
| (Audited) | | |
| (Unaudited) | |
| CURRENT ASSETS: | |
| | | |
| | |
| Cash and cash equivalents | |
$ | 143,922 | | |
$ | 221,358 | |
| Restricted cash | |
| 4,998 | | |
| 8,789 | |
| Accounts receivable | |
| 8,249 | | |
| 16,988 | |
| Inventories | |
| 10,455 | | |
| 18,476 | |
| Due from related parties | |
| 1,623 | | |
| - | |
| Fair value of derivatives | |
| 460 | | |
| - | |
| Insurance claims receivable | |
| 883 | | |
| 1,216 | |
| Asset held for sale | |
| 12,416 | | |
| 44,931 | |
| Time charter assumed | |
| 191 | | |
| 199 | |
| Investment in equity securities | |
| - | | |
| 61,945 | |
| Prepayments and other | |
| 8,853 | | |
| 7,100 | |
| Total current assets | |
$ | 192,050 | | |
$ | 381,002 | |
| FIXED ASSETS, NET: | |
| | | |
| | |
| Right-of-use assets | |
$ | 199,098 | | |
$ | 193,268 | |
| Vessels and advances, net | |
| 2,450,510 | | |
| 3,517,248 | |
| Total fixed assets, net | |
$ | 2,649,608 | | |
$ | 3,710,516 | |
| NON-CURRENT ASSETS: | |
| | | |
| | |
| Equity method investments | |
$ | 78,227 | | |
$ | 19,018 | |
| Deferred charges, net | |
| 27,682 | | |
| 35,430 | |
| Accounts receivable, non-current | |
| 3,896 | | |
| 4,876 | |
| Restricted cash | |
| 42,976 | | |
| 68,211 | |
| Fair value of derivatives, non-current | |
| - | | |
| 468 | |
| Time charter assumed, non-current | |
| 839 | | |
| 716 | |
| Debt securities, held to maturity (Net of allowance for credit losses of $569 as of December 31, 2020) | |
| 6,813 | | |
| - | |
| Other non-current assets | |
| 8,425 | | |
| 3,332 | |
| Total assets | |
$ | 3,010,516 | | |
$ | 4,223,569 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| CURRENT LIABILITIES: | |
| | | |
| | |
| Current portion of long-term debt | |
$ | 147,137 | | |
$ | 270,277 | |
| Accounts payable | |
| 7,582 | | |
| 12,512 | |
| Due to related parties | |
| 432 | | |
| 2,788 | |
| Finance lease liabilities | |
| 16,495 | | |
| 16,629 | |
| Accrued liabilities | |
| 17,621 | | |
| 25,210 | |
| Unearned revenue | |
| 11,893 | | |
| 16,932 | |
| Fair value of derivatives | |
| 3,440 | | |
| 8,439 | |
| Other current liabilities | |
| 2,374 | | |
| 2,519 | |
| Total current liabilities | |
$ | 206,974 | | |
$ | 355,306 | |
| NON-CURRENT LIABILITIES | |
| | | |
| | |
| Long-term debt, net of current portion | |
$ | 1,305,076 | | |
$ | 2,149,477 | |
| Finance lease liabilities, net of current portion | |
| 116,366 | | |
| 103,882 | |
| Fair value of derivatives, net of current portion | |
| 3,653 | | |
| 5,901 | |
| Unearned revenue, net of current portion | |
| 29,627 | | |
| 32,797 | |
| Total non-current liabilities | |
$ | 1,454,722 | | |
$ | 2,292,057 | |
| COMMITMENTS AND CONTINGENCIES | |
| | | |
| | |
| STOCKHOLDERS’ EQUITY: | |
| | | |
| | |
| Preferred stock | |
$ | - | | |
$ | - | |
| Common stock | |
| 12 | | |
| 12 | |
| Additional paid-in capital | |
| 1,366,486 | | |
| 1,381,270 | |
| Retained earnings / (Accumulated deficit) | |
| (9,721 | ) | |
| 202,306 | |
| Accumulated other comprehensive loss | |
| (7,957 | ) | |
| (7,382 | ) |
| Total stockholders’ equity | |
$ | 1,348,820 | | |
$ | 1,576,206 | |
| Total liabilities and stockholders’ equity | |
$ | 3,010,516 | | |
$ | 4,223,569 | |
Financial Summary
| | |
| |
| |
| |
|
| | |
Nine-month period ended September 30, | |
Three-month period ended September 30, |
| (Expressed in thousands of U.S. dollars, except share and per share data) | |
2020 | |
2021 | |
2020 | |
2021 |
| | |
| |
| |
| |
|
| | |
| |
| |
| |
|
| Voyage revenue | |
$ | 341,176 | | |
$ | 509,721 | | |
$ | 107,903 | | |
$ | 216,226 | |
| Accrued charter revenue (1) | |
$ | 15,942 | | |
$ | 3,170 | | |
$ | 8,221 | | |
$ | 1,024 | |
| Amortization of Time-charter assumed | |
$ | 144 | | |
$ | (463 | ) | |
$ | 49 | | |
$ | (118 | ) |
| Voyage revenue adjusted on a cash basis (2) | |
$ | 357,262 | | |
$ | 512,428 | | |
$ | 116,173 | | |
$ | 217,132 | |
| | |
| | | |
| | | |
| | | |
| | |
| Adjusted Net Income available to common stockholders (3) | |
$ | 91,005 | | |
$ | 177,802 | | |
$ | 26,740 | | |
$ | 81,540 | |
| Weighted Average number of shares | |
| 120,319,521 | | |
| 122,845,943 | | |
| 121,094,924 | | |
| 123,299,457 | |
| Adjusted Earnings per share (3) | |
$ | 0.76 | | |
$ | 1.45 | | |
$ | 0.22 | | |
$ | 0.66 | |
| | |
| | | |
| | | |
| | | |
| | |
| Net Income / (Loss) | |
$ | (18,198 | ) | |
$ | 273,967 | | |
$ | 25,249 | | |
$ | 115,210 | |
| Net Income / (Loss) available to common stockholders | |
$ | (40,894 | ) | |
$ | 250,665 | | |
$ | 17,395 | | |
$ | 107,356 | |
| Weighted Average number of shares | |
| 120,319,521 | | |
| 122,845,943 | | |
| 121,094,924 | | |
| 123,299,457 | |
| Earnings / (Losses) per share | |
$ | (0.34 | ) | |
$ | 2.04 | | |
$ | 0.14 | | |
$ | 0.87 | |
(1) Accrued charter revenue represents the difference
between cash received during the period and revenue recognized on a straight-line basis. In the early years of a charter with escalating
charter rates, voyage revenue will exceed cash received during the period and during the last years of such charter cash received will
exceed revenue recognized on a straight-line basis.
(2) Voyage revenue adjusted on a cash basis represents
Voyage revenue after adjusting for non-cash “Accrued charter revenue” recorded under charters with escalating charter rates.
However, Voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles (“GAAP”).
We believe that the presentation of Voyage revenue adjusted on a cash basis is useful to investors because it presents the charter revenue
for the relevant period based on the then current daily charter rates. The increases or decreases in daily charter rates under our charter
party agreements are described in the notes to the “Fleet List” above.
(3) Adjusted Net Income available to common stockholders
and Adjusted Earnings per Share are non-GAAP measures. Refer to the reconciliation of Net Income to Adjusted Net Income.
Non-GAAP Measures
The Company reports its financial results in accordance
with U.S. GAAP. However, management believes that certain non-GAAP financial measures used in managing the business may provide users
of these financial measures additional meaningful comparisons between current results and results in prior operating periods. Management
believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because
they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also
uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance.
The tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and the
nine-month periods ended September 30, 2021 and 2020. Non-GAAP financial measures should be viewed in addition to, and not as an alternative
for, voyage revenue or net income as determined in accordance with GAAP. Non-GAAP financial measures include (i) Voyage revenue adjusted
on a cash basis (reconciled above), (ii) Adjusted Net Income available to common stockholders and (iii) Adjusted Earnings per Share.
Reconciliation of Net Income to Adjusted Net Income available to
common stockholders and Adjusted Earnings per Share
| | |
Nine-month period ended September 30, | |
Three-month period ended September 30, |
| (Expressed in thousands of U.S. dollars, except share and per share data) | |
2020 | |
2021 | |
2020 | |
2021 |
| | |
| |
|
| Net Income / (Loss) | |
$ | (18,198 | ) | |
$ | 273,967 | | |
$ | 25,249 | | |
$ | 115,210 | |
| Earnings allocated to Preferred Stock | |
| (23,315 | ) | |
| (23,302 | ) | |
| (7,854 | ) | |
| (7,854 | ) |
| Gain on retirement of Preferred Stock | |
| 619 | | |
| - | | |
| - | | |
| - | |
| Net Income / (Loss) available to common stockholders | |
| (40,894 | ) | |
| 250,665 | | |
| 17,395 | | |
| 107,356 | |
| Accrued charter revenue | |
| 15,942 | | |
| 3,170 | | |
| 8,221 | | |
| 1,024 | |
| General and administrative expenses - non-cash component | |
| 2,416 | | |
| 5,523 | | |
| 908 | | |
| 2,316 | |
| Amortization of Time charter assumed | |
| 144 | | |
| (463 | ) | |
| 49 | | |
| (118 | ) |
| Realized (gain) / loss on Euro/USD forward contracts (1) | |
| (488 | ) | |
| 26 | | |
| (410 | ) | |
| 200 | |
| Vessels’ impairment loss | |
| 31,577 | | |
| - | | |
| - | | |
| - | |
| (Gain) / loss on sale / disposal of vessels, net | |
| 65,260 | | |
| (18,075 | ) | |
| 432 | | |
| (16,669 | ) |
| Non-recurring, non-cash write-off of loan deferred financing costs | |
| 478 | | |
| 363 | | |
| - | | |
| - | |
| Loss on vessels held for sale | |
| 14,359 | | |
| - | | |
| - | | |
| - | |
| Gain on sale / disposal of vessel by a jointly owned company with York included in equity gain on investments | |
| - | | |
| (5,726 | ) | |
| - | | |
| (5,726 | ) |
| Swap’s breakage costs | |
| 6 | | |
| - | | |
| 6 | | |
| - | |
| Loss on derivative instruments, excluding interest accrued and realized on non-hedging derivative instruments | |
| 2,205 | | |
| 1,219 | | |
| 139 | | |
| 207 | |
| Fair value measurement / Change in fair value of equity securities | |
| - | | |
| (58,144 | ) | |
| - | | |
| (7,050 | ) |
| Other non-recurring, non-cash items | |
| - | | |
| (756 | ) | |
| - | | |
| - | |
| Adjusted Net Income available to common stockholders | |
$ | 91,005 | | |
$ | 177,802 | | |
$ | 26,740 | | |
$ | 81,540 | |
| Adjusted Earnings per Share | |
$ | 0.76 | | |
$ | 1.45 | | |
$ | 0.22 | | |
$ | 0.66 | |
| Weighted average number of shares | |
| 120,319,521 | | |
| 122,845,943 | | |
| 121,094,924 | | |
| 123,299,457 | |
Adjusted Net Income available to common stockholders
and Adjusted Earnings per Share represent Net Income after earnings allocated to preferred stock and gain on retirement of preferred stock,
but before non-cash “Accrued charter revenue” recorded under charters with escalating charter rates, realized (gain)/loss
on Euro/USD forward contracts, vessels’ impairment loss, (gain)/loss on sale / disposal of vessels, net, loss on vessels held for
sale, gain on sale / disposal of vessel by a jointly owned company with York included in equity gain on investments, fair value measurement
of equity securities / change in fair value of equity securities, swap’s breakage costs, non-recurring, non-cash write-off of loan
deferred financing costs, general and administrative expenses - non-cash component, non-cash changes in fair value of derivatives and
other non-recurring, non-cash items. “Accrued charter revenue” is attributed to the timing difference between the revenue
recognition and the cash collection. However, Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are
not recognized measurements under U.S. GAAP. We believe that the presentation of Adjusted Net Income available to common stockholders
and Adjusted Earnings per Share are useful to investors because they are frequently used by securities analysts, investors and other interested
parties in the evaluation of companies in our industry. We also believe that Adjusted Net Income available to common stockholders and
Adjusted Earnings per Share are useful in evaluating our ability to service additional debt and make capital expenditures. In addition,
we believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our operating
performance and liquidity position compared to that of other companies in our industry because the calculation of Adjusted Net Income
available to common stockholders and Adjusted Earnings per Share generally eliminates the effects of the accounting effects of capital
expenditures and acquisitions, certain hedging instruments and other accounting treatments, items which may vary for different companies
for reasons unrelated to overall operating performance and liquidity. In evaluating Adjusted Net Income available to common stockholders
and Adjusted Earnings per Share, you should be aware that in the future we may incur expenses that are the same as or similar to some
of the adjustments in this presentation. Our presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings
per Share should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
(1) Items to consider for comparability include
gains and charges. Gains positively impacting Net Income available to common stockholders are reflected as deductions to Adjusted Net
Income available to common stockholders. Charges negatively impacting Net Income available to common stockholders are reflected as increases
to Adjusted Net Income available to common stockholders.
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