Q1 2026 Costamare Inc Earnings Call
Operator: Thank you for standing by, ladies and gentlemen, and welcome to the Costamare Inc Conference Call on the Q1 2026 Financial Results. We have with us Mr. Gregory Zikos, Chief Financial Officer of the company. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. At which at that time, if you wish to ask a question, please press star then one on your telephone keypad and wait for your name to be announced.
Speaker #2: At this time, all participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. At which, at that time, if you wish to ask a question, please press star, then one, on your telephone keypad, and wait for your name to be announced.
Speaker #2: I must advise you that this conference call is being recorded today. Wednesday, April 29th, 2026. We would like to remind you that this conference call contains forward-looking statements.
Operator: I must advise you that this conference call is being recorded today, Wednesday, 29 April 2026. We would like to remind you that this conference call contains forward-looking statements. Please take a moment to read slide 2 on the presentation, which contains the forward-looking statements. I will now pass the floor over to your speaker today, Mr. Zikos. Please go ahead, sir.
Operator: I must advise you that this conference call is being recorded today, Wednesday, 29 April 2026. We would like to remind you that this conference call contains forward-looking statements. Please take a moment to read slide two on the presentation, which contains the forward-looking statements. I will now pass the floor over to your speaker today, Mr. Zikos. Please go ahead, sir.
Speaker #2: Please take a moment to read slide number two on the presentation, which contains the forward-looking statements. And I will now pass the floor over to your speaker today, Mr. Zikos.
Speaker #2: Please go ahead, sir. Thank you. And good morning, ladies and gentlemen. During the first quarter of the year, the company generated an income of about $75 million.
Gregory Zikos: Thank you and good morning, ladies and gentlemen. During Q1 of the year, the company generated net income of about $75 million. Total liquidity amounted to about $645 million. Executing on our strategy of renewing the fleet and securing long-term cash flows from high-quality counterparties, we have ordered a total of 16 new buildings from first-class Chinese shipyards. 12 of the ships are 9,200 TEUs and 4 3,100 TEUs capacity. The vessels are expected to be delivered between Q4 2027 and Q2 2030. Upon delivery, all ships will commence long-term charters with COSCO Shipping of 15 and 8 years for the 12 9,000 TEU ships and the 4 3,100 TEU vessels respectively.
Gregory Zikos: Thank you and good morning, ladies and gentlemen. During Q1 of the year, the company generated net income of about $75 million. Total liquidity amounted to about $645 million. Executing on our strategy of renewing the fleet and securing long-term cash flows from high-quality counterparties, we have ordered a total of 16 new buildings from first-class Chinese shipyards.
Speaker #2: Total liquidity amounted to about $645 million. Executing on our strategy of renewing the fleet and securing long-term cash flows from high-quality counterparties, we have ordered a total of 16 new buildings from first-class Chinese shipyards.
Speaker #2: Twelve of the ships are 9,200 EUs and four 3,100 EUs capacity. The vessels are expected to be delivered between the fourth quarter of 2027, and the second quarter of 2030.
Gregory Zikos: 12 of the ships are 9,200 TEUs and 4 3,100 TEUs capacity. The vessels are expected to be delivered between Q4 2027 and Q2 2030. Upon delivery, all ships will commence long-term charters with COSCO SHIPPING of 15 and eight years for the 12 9,000 TEU ships and the 4 3,100 TEU vessels respectively.
Speaker #2: Upon delivery, all ships will commence long-term charges with Costco shipping of 15 and 8 years. For the 12, 9,000 EU ships and the four 3,100 EU vessels, respectively.
Speaker #2: We are pleased to expand our valued and long-lasting relationship with Costco through the completion of our latest 16 new building transaction. Incremental contracted revenues from the new charges amount to about 2.8 billion.
Gregory Zikos: We are pleased to expand our value, the long-lasting relationship with COSCO through the completion of our latest 16 new building transaction. Incremental contracted revenues for the new charters amount to about $2.8 billion. The acquisitions will be funded with equity and debt. Pre- and post-delivery financing for a term of up to 15 years has been arranged for all 16 ships with two leading Chinese financial institutions. In addition to the above, we have agreed to acquire 2 secondhand 5,600 TEU vessels built in 2001. The acquisitions are expected to be completed in Q4 2026, upon which each vessel shall commence a 42-month time charter with a leading line operator. As a consequence, total contracted revenues have reached $6.2 billion, with the remaining time charter duration of 6.1 years.
Gregory Zikos: We are pleased to expand our value, the long-lasting relationship with COSCO through the completion of our latest 16 new building transaction. Incremental contracted revenues for the new charters amount to about $2.8 billion. The acquisitions will be funded with equity and debt. Pre- and post-delivery financing for a term of up to 15 years has been arranged for all 16 ships with two leading Chinese financial institutions. In addition to the above, we have agreed to acquire 2 secondhand 5,600 TEU vessels built in 2001. The acquisitions are expected to be completed in Q4 2026, upon which each vessel shall commence a 42-month time charter with a leading line operator. As a consequence, total contracted revenues have reached $6.2 billion, with the remaining time charter duration of 6.1 years.
Speaker #2: The acquisitions will be funded with equity and debt. Pre- and post-delivery financing for a tenor of up to 15 years has been arranged for all 16 ships, with two leading Chinese finance institutions.
Speaker #2: In addition to the above, we have agreed to acquire two second-hand 5,600 EU vessels built in 2001. The acquisitions are expected to be completed in Q4 '26, upon which each vessel shall commence a 42-month time charter with a leading line operator.
Speaker #2: As a consequence, total contracted revenues have reached 6.2 billion, with the remaining time charter duration of 6.1 years. In light of the above, management is pleased to recommend to the board of directors to increase the quarterly dividend per share from 11.5 to 12.5 cents.
Gregory Zikos: In light of the above, management is pleased to recommend to the board of directors to increase the quarterly dividend per share from $0.115 to $0.125. While rewarding our shareholders as a result of increased cash flows, profitability, and visibility, the payment of that dividend is not expected to affect our capacity to continue growing on a healthy basis in a volatile market environment. Moving now to the slide presentation. On the first slide you can see our Q1 results. Adjusted net income for the quarter was $76 million or $0.63 per share. Net income for the quarter was $75 million or $0.62 per share. Our liquidity stands at above $640 million. Management has announced the intention to recommend a dividend increase to the board.
Gregory Zikos: In light of the above, management is pleased to recommend to the board of directors to increase the quarterly dividend per share from $0.115 to $0.125. While rewarding our shareholders as a result of increased cash flows, profitability, and visibility, the payment of that dividend is not expected to affect our capacity to continue growing on a healthy basis in a volatile market environment. Moving now to the slide presentation. On the first slide you can see our Q1 results. Adjusted net income for the quarter was $76 million or $0.63 per share. Net income for the quarter was $75 million or $0.62 per share. Our liquidity stands at above $640 million. Management has announced the intention to recommend a dividend increase to the board.
Speaker #2: While rewarding our shareholders as a result of increased cash flows, profitability, and visibility, the payment of that dividend is not expected to affect our capacity to continue growing on a healthy basis in a volatile market environment.
Speaker #2: Moving now to the slide presentation, on the first slide, you can see our first quarter results. Adjusted net income for the quarter was $76 million, or $0.63 per share.
Speaker #2: Net income for the quarter was 75 million or 62 cents per share. Our liquidity stands at above 640 million. Management has announced its intention to recommend a dividend increase to the board.
Speaker #2: Subject to approval, the quarterly dividend would increase from 11.5 to 12.5 cents per share, starting with the second quarter of 2026. Slide four, we have concluded new building contracts for 16 containers with expected deliveries between Q4 '27 and Q2, 2030, bringing the total number of our vessels under construction to 22.
Gregory Zikos: Subject to approval, the quarterly dividend would increase from $0.115 to $0.125 per share, starting with Q2 2026. Slide four. We have concluded new building contracts for 16 containerships with expected deliveries between Q4 2027 and Q2 2030, bringing the total number of our vessels under construction to 22. Upon delivery, each vessel will commence a long-term charter with a leading liner company. We have already arranged pre and post-delivery financing for all the newbuildings. Slide five. Here we show our new building program. In total, we now have 22 vessels under construction, increasing the weighted average duration of our chartered book by about 2 years. All our new buildings have long-term employment and signed pre and post-delivery financing already in place. Slide six.
Gregory Zikos: Subject to approval, the quarterly dividend would increase from $0.115 to $0.125 per share, starting with Q2 2026. Slide four. We have concluded new building contracts for 16 containerships with expected deliveries between Q4 2027 and Q2 2030, bringing the total number of our vessels under construction to 22. Upon delivery, each vessel will commence a long-term charter with a leading liner company. We have already arranged pre and post-delivery financing for all the newbuildings. Slide five. Here we show our new building program. In total, we now have 22 vessels under construction, increasing the weighted average duration of our chartered book by about 2 years. All our new buildings have long-term employment and signed pre and post-delivery financing already in place. Slide six.
Speaker #2: Upon delivery, each vessel will commence a long-term charter with a leading line accompanying. We have already arranged pre- and and post-delivery financing for all the new buildings.
Speaker #2: Slide five, here we show our new building program. In total, we now have 22 vessels under construction, increasing the weighted average duration of our chartered book by about two years.
Speaker #2: All our new buildings have long-term employment and signed pre- and post-delivery financing already in place. Slide six, this slide highlights the effect of the new building program on our fleet age.
Gregory Zikos: This slide highlights the effect of the new building program on our fleet age. By 2030, the program reduces average fleet age by about 3.7 years compared to the average age of our fleet had we not entered in the new building contracts. Slide 7. Regarding S&P activity, we have agreed to acquire 2 secondhand 5,600 TEU capacity containerships with expected delivery in Q4 2026. Upon delivery, each vessel shall commence a 42-month time charter with a leading liner. Both acquisitions are expected to be financed with debt and cash on hand. On the employment side, our revenue days are fixed 97% for 2026 and 94% for 2027, while our contracted revenues are $6.2 billion, with a TEU weighted remaining time charter duration of 6.1 years. Moving to the last slide.
Gregory Zikos: This slide highlights the effect of the new building program on our fleet age. By 2030, the program reduces average fleet age by about 3.7 years compared to the average age of our fleet had we not entered in the new building contracts. Slide 7. Regarding S&P activity, we have agreed to acquire 2 secondhand 5,600 TEU capacity containerships with expected delivery in Q4 2026. Upon delivery, each vessel shall commence a 42-month time charter with a leading liner. Both acquisitions are expected to be financed with debt and cash on hand. On the employment side, our revenue days are fixed 97% for 2026 and 94% for 2027, while our contracted revenues are $6.2 billion, with a TEU weighted remaining time charter duration of 6.1 years. Moving to the last slide.
Speaker #2: By 2030, the program reduces average fleet age by about 3.7 years, compared to the average age of our fleet, had we not entered in the new building contracts.
Speaker #2: Slide seven, regarding SAP activity, we have agreed to acquire two second-hand 5,600 EU capacity container ships, with expected delivery in Q4 '26. Upon delivery, each vessel shall commence a 42-month time charter with a leading liner.
Speaker #2: Both acquisitions are expected to be financed with debt and cash on hand. On the employment side, our revenue days are fixed 97% for '26 and 94% for '27, while our contracted revenues are 6.2 billion, with a TEU weighted remaining time charter duration of 6.1 years.
Speaker #2: And moving to the last slide, charter ages and the container ship market remain at robust levels. The added fleet remains at very low levels, at 1%, indicating a fully employed market.
Gregory Zikos: Charter rates in the containership market remain at robust levels. The added fleet remains at very low levels at 1%, indicating a fully employed market. With that, we conclude our presentation, and we can now take questions. Thank you. Operator, we can take questions now.
Gregory Zikos: Charter rates in the containership market remain at robust levels. The added fleet remains at very low levels at 1%, indicating a fully employed market. With that, we conclude our presentation, and we can now take questions. Thank you. Operator, we can take questions now.
Speaker #2: With that, we can conclude our presentation, and we can now take and we can now take questions. Thank you. Operator, we can take questions now.
Speaker #3: Thank you. As a reminder, if you were list if you would wish to ask a question, please press star then one on your telephone keypad, and wait for your name to be announced.
Operator: Thank you. As a reminder, if you would wish to ask a question, please press star then one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press star then two. That's star one to ask a question. As there are no further questions, I would like to pass the call over to Mr. Zikos for any closing remarks.
Operator: Thank you. As a reminder, if you would wish to ask a question, please press star then one on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press star then two. That's star one to ask a question. As there are no further questions, I would like to pass the call over to Mr. Zikos for any closing remarks.
Speaker #3: If you wish to cancel your request, please press star, then two. That's star one to ask a question. As a renewed further questions, I would like to pass a call over to Mr. Zikos for any closing remarks.
Speaker #2: Thank you for dialing in and for your interest in the Costamare Q1 results call. we're looking forward to speaking with you again during the next quarterly results call.
Gregory Zikos: Thank you for dialing in and for your interest in the Costamare Q1 results call. We're looking forward to speaking with you again during the next quarterly results call. Thank you. Operator, we can conclude the call now.
Gregory Zikos: Thank you for dialing in and for your interest in the Costamare Q1 results call. We're looking forward to speaking with you again during the next quarterly results call. Thank you. Operator, we can conclude the call now.
Speaker #2: Thank you. Operator, we can conclude the call now.
Operator: Thank you. That does conclude our conference for today. Thank you all for your participation. You may now disconnect.
Operator: Thank you. That does conclude our conference for today. Thank you all for your participation. You may now disconnect.
