Bruce Barnard, Special Correspondent | Oct 27, 2011 10:09AM EDT
Costamare boosted third quarter revenue by nearly 13 percent from a year to $99.9 million, as the Greek container ship owner signed a loan facility that could finance expansion of one of the world’s biggest charter fleets.
The NYSE-listed company’s profit declined to $17.4 million from $23.8 million. Profit jumped to $30.9 million from $25 million after stripping out book losses on derivatives and other items.
The Athens-based company signed a loan facility for up to $120 million with a major European financial institution using some of its debt-free ships as collateral. The facility, which is available through the third quarter of 2012, is for general corporate purposes and fleet expansion.
The company expects a “limited” financial impact from the running aground of its container ship Rena off the New Zealand coast on October 5 because it has insurance cover for the incident. The 3,032 20-foot equivalent units vessel, which was on a five-year charter to Mediterranean Shipping Co, has been declared a constructive total loss for insurance purposes.
Costamare has now concluded funding for all ships on order. “The latest loan agreements signed with European, Asian and U.S. banks provide for 80 percent leverage at very attractive terms,” said Chief Financial Officer Gregory Zikos.
Costamare has a fleet of 60 ships, including 10 on order and one second-hand unit to be delivered, with a combined capacity of about 330,000 20-foot equivalent container units.
-- Contact Bruce Barnard at brucebarnard47@hotmail.com.