Costamare reported third-quarter 2019 results that beat analysts’ expectations as the container ship lessor said the supply of post-panamax ships is tightening going into the end of 2019.
Costamare reported adjusted net income to common shareholders of $30.9 million for the third quarter, tripling the figure reported a year earlier.
Adjusted earnings per share of $0.26 handily beat estimates of a $0.19-per-share profit in the quarter.
“During the third quarter of the year, the company delivered profitable results. As was the case in the previous quarter, net income and earnings per share more than doubled, boosted by increased charter rates and the addition of new ships,” said Gregory Zikos, chief financial officer of the Monaco-based Costamare.
Including one-time expenses, the company reported $28 million in net income to common shareholders.
Revenue from chartering container ships to liner operators came in at $123.6 million for the quarter, a gain of 35%.
The company said charter revenue was higher thanks to the addition of four new container ships to its fleet and a higher number of operating days for the company’s 60 vessels.
The company extended or entered charter agreements for four post-panamax vessels during the quarter, with an additional nine vessels below 5,500 twenty-foot equivalent units (TEUs) in capacity seeing charters extended.
Costamare said charter rates for the larger container ships continued to improve and there is “limited supply available for the post-panamax sizes” above 5,500 TEUs.
“We have 18 post-panamax ships coming off charter over the next year, which positions us favorably, should market momentum continue,” Zikos said.