Costamare Inc.

Thank you for standing by, ladies and gentlemen, and welcome to the Castamare Inc. conference call on the first quarter 2025 financial results. We have with us 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 1 on your telephone keypad and wait for your name to be announced. I must advise you that this conference is being recorded today, Thursday, May 8, 2025. 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. Zikos. Please go ahead, sir.

Thank you, and good morning, ladies and gentlemen. During the first quarter of the year, the company generated net income of about $95 million. As announced on May 7, we have successfully completed the spin-off of Costamare Bulkers, which encompasses the 37 owned rival vessels, as well as the CBI operating platform. Costamare Inc. remains the sole shareholder of the 68 containerships, as well as the controlling shareholder of Neptune Maritime Blazing. This business separation unlocks hidden value and better positions the two separate listed companies to pursue distinct operating and strategic initiatives in the container ship and the dry park sectors. Regarding the container ship market, while geopolitical challenges and economic uncertainties impact global trade, demand for container ship vessels has had to now maintain momentum. The commercially idle fleet remains below 1%, indicating a fully employed market. Regarding the proposed USTR fees, fleet redeployments and network reorganizations may initially result in inefficiencies boosting finance demand. Our contingency fleet employment stands at 100% and 73% for 2025 and 2026, respectively. Total contracted revenues amount to 2.3 billion, with the remaining time for the duration of 3.3 years. For the dry bulk sector, both Cape size and Panamax markets experienced a challenging start of the year. The Cape market rebounded strongly in March, supported by improved Australian-Brazil iron ore shipments and di-term pressure availability. The Panamax activity picked up, as expected, post-Chinese New Year, supported by recovering grain flows. Finally, with regards to Neptune high-time leasing, the leasing platform. Total investments and commitments are exceeding $530 million with a healthy pipeline. Moving now to the slides presentation. On slide 3, you can see our first quarter results. Net income for the quarter was $95 million or $0.79 per share. Adopted net income was $73 million or $0.61 per share. Our liquidity stands at above $1 billion. We have concluded successfully the spin-off of our dry park business. Every Costa Mare Inc. shareholder will be receiving as dividend one share of Costa Mare Parkers for every five shares of Costa Mare Inc. Turning to the condensate side, our revenues days are fixed, as already mentioned, 100% for 2025 and 73% for 2026, while our contracted revenues are 2.3 billion, with a TEU weighted remaining time for the duration of about 3.3 years. Slide 5. Regarding our SMP activity for the span of dry business, we have concluded the sale of one Panamax ship and agreed to sell one handy-sized vessel. Vessel proceeds are expected to be used for the acquisition of larger vessels subject to market conditions. Slide 6. Regarding our financing arrangements, we have refinanced the Oncogenesis vessel with no increased leverage but with a maturity extension. The remaining company has no major maturity until 2027. On the dry park side, we have prepared $150 million of bank debt, and we have entered into a new hunting license facility of up to $100 million for financing of future acquisitions. Moving to slide seven, regarding the CBI fleet, we have chartered in 48 period ships, with the majority of the fleet being on index link agreements. On our leasing platform, we have invested around $123 million. NML is financing 41 assets for a total amount of $530 million. Moving to slide 8, charter rates in the contingency market remain at firm levels. Possible large-scale fleet redeployments due to the proposed USDR fees may create inefficiencies favorable to the current strong market dynamics. The hourly fleet remains at low levels at around 0.5%, indicating a fully employed market. And finally, on slide 9, you can see the recent drive-by market trends in the spot and forward markets. Charter rates have recovered from their lows seen in February. The order book is at around 10% of the total fleet. With that, we conclude our presentation, and we can now take questions. Thank you. Operator, we can take questions now.

Thank you. As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad and wait for your name to be announced. If you wish to cancel your request, please press star 2. Again, that's star 1 to ask a question. At this time, we will pause momentarily to assemble our roster. Again, to ask a question, you may press star and then the number one on your telephone keypad. Seeing no questions at this time, I would like to pass the call back to Mr. Zekos for closing remarks.

Thank you for dialing in today and for your interest in Costa Mare. We're looking forward to speaking with you again in the next quarterly results call. Thank you. Operator, I think we have concluded. Thank you.

Thank you. That does conclude our conference for today. Thank you all for participating. You may now disconnect your lines.