Costamare Inc.

Thank you for standing by, ladies and gentlemen, and welcome to the Costamare, Inc. conference call on the third quarter 2024 financial results. We have with us today Mr. Gregory Zekos, 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 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. I must advise you that this conference is being recorded today, Friday, November 1st, 2024. We would like to remind you that this conference call contains forward-looking statements. Please take a moment to read slide number two of the presentation, which contains the forward-looking statements. And I will now pass the floor to your speaker today, Mr. Zicos. Please go ahead, sir.

Thank you, and good morning, ladies and gentlemen. During the third quarter of the year, the company generated net income of about $80 million. As of quarter end, liquidity was above $1 billion. In the alternative sector, with added investors of less than 1%, the fleet can still be considered as fully employed. The market is split between the larger sizes, which do remain in limited supply, and smaller vessels, where the availability of tonnage is greater. As the pool of bigger tonnages is unable to meet demands, charter rates continue to evolve at firm levels. During the quarter, we chart with seven containerships at healthy levels. The new charter agreements are expected to generate incremental contracted revenues of above $165 million. ECO-Tennessee fleet employment stands at 100% and 94% for 2024 and 2025, respectively. Total contracted revenues amount to $2.3 billion, with a remaining time-sharded duration of 3.3 years. On the Diabalk side, we are now progressing with our strategy to renew the own fleet and decrease its average size. During the quarter, we agreed to acquire two 2014 and 2015-built Ultramax vessels, and one 2011 built cage size ship, while at the same time progressing with the disposal of smaller donors. TBI manages a fleet of 56 ships, the majority of which are on index-linked chartering agreements. We have a long-term commitment to the sector and we view the Bethel owning and the trading platform as highly complementary activities. Finally, with regards to next-in-line time leasing, the platform continues to grow with committed funding for 32 shipping assets, reflecting total funding commitments of above $410 million on the back of a healthy pipeline. Moving now to the slide presentation. On slide three, you can see our three-quarter results. Net income for the quarter was $75.5 million, or $0.62 per share. Adjusted net income was 81 million or 68 cents per share. Our liquidity stands at over $1 billion. Turning into slide four, regarding our SFB activity, we have agreed to acquire one Cape size and two Ultramax dry bag sheets. In parallel, we have concluded the sale of two Supra Max vessels and agreed to sell one anti-size ship. Slide five. On the chartering side, we have chartered several contenders with incremental contracted revenues of above $165 million. Our revenue dates are fixed 100% for 2024 and 94% for 2025, while our contracted revenues are $2.3 billion with a TU-weighted remaining duration of 3.3 years. In parallel, we continue to charter all our drivable pressures in the sport market, having entered into more than 30 chartering agreements since our last earnings release. Slide 6. Regarding our financing arrangements, we will fully prepare with cash on hand the 100 million unsecured bonds issued by Costa Maria Participations. In addition, we have agreed to refinance our dry bulk fleet without an increase in leverage. This deal is coupled with improvement of anti-cost and taxation of maturities. Finally, we have roughly available 94 million for financing of special acquisitions. Slide 7. Regarding CBI, we have chartered 56 period vessels, with the majority of the fleet being on index-linked agreements. On our leasing platform, we have already invested around $123 million. NML continues to grow with funding for 32 ships and has a very healthy pipeline. Slide 8. On this slide, you can see our liquidity exceeding $1 billion. This gives us the ability to look for opportunities to grow the company on a healthy basis. Slide 9. To average, the contingency market continues to evolve at very firm levels, especially in the larger segments, despite the recent decrease in box rates. The continued ejection of new building capacity, though, remains the principal threat of the market. The idle fleet remains at low levels of 0.8%. Moving to the final slide, then, you can see there is a dry bulk market trend in the sport and forward markets. The dry bulk order book stands at 10.3% of the total fleet. With that, we can conclude our presentation, and we can now take questions. Thank you. Megan, we can take questions now.

Thank you. As a reminder, if you would like to ask a question, please press star then 1 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 then one to ask a question. And your first question comes from the line of Omar Nocta with Jefferies. Please go ahead.