Costamare profits sink 38 percent in Q2

Gregory Zikos, CFO of the Athens-based containership lessor, attributed the decline primarily to a seasonal softening of demand.    Costamare Inc. in the second quarter of 2018 saw its net income plummet nearly 38 percent to $14.3 million compared with the same three-month period the previous year, according to the company’s most recent financial statements.
   The Athens-based containership owner and lessor posted earnings per share of $0.06, compared with $0.18 in second quarter 2017, as voyage revenues declined 13.8 percent to $105 million.
   During the quarter, Costamare accepted delivery of two secondhand containerships, the Michigan and Trader, with an aggregate capacity of 2,600 TEUs, and sold the 3,842-TEU Itea, giving it an average of 54.4 vessels in its fleet, compared with an average of 52.5 the previous year. The company also placed an order for five new 12,000-TEU vessels, which are slated for charter to Taiwanese container carrier Yang Ming.
   Costamare Chief Financial Officer Gregory Zikos attributed the decline in earnings primarily to a seasonal softening of demand, but noted several new vessel charter agreements signed during the quarter as an indication of positive momentum.
   “During the second quarter the company delivered profitable results,” he said. “As already announced, we entered into a ten-year charter agreement with Yang Ming for five 12,690-TEU new buildings to be delivered between the second quarter of 2020 and the second quarter of 2021. Last week we finalized the debt financing of the two recently acquired 4,957 TEU wide-beam vessels with a leading European financial institution. We have accepted delivery of the first ship, which commenced its 7-year charter to Maersk.
   “As common during this period of the year, the market has softened over the last few weeks, and a falling demand for tonnage has pushed up the idle fleet,” added Zikos. “However, we have chartered 27 ships during the quarter, including our recent acquisitions.”
   For the first six months of 2018, Costamare reported a net income of $33.5 million ($0.17 per share) on $210.5 million in revenues, year-over-year declines of 27.3 percent and 12.9 percent, respectively.