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Costamare Gets Funds for Newbuilds, Opts for Scrubbers

Greek shipping company Costamare Inc. had a busy third quarter of 2018 as it secured financing for newbuildings, decided to install scrubbers and purchased more ships.

In August 2018, the company concluded pre and post delivery financing deals for its five newbuild vessels, ordered earlier this year from China’s Jiangsu Yangzijiang Shipbuilding Group.

Currently under construction, the 12,690 TEU units are expected to be delivered between the second quarter of 2020 and the second quarter of 2021. The ships will enter into ten-year charters to Yang Ming upon their delivery.

Additionally, the company agreed to install scrubbers on five Post Panamax container vessels. Following the installation of the scrubbers, the existing charter rates will be increased and the original charter expiry, ranging from 2023 to 2024, will be extended for a period of 3 years.

The ships in question are the 2014-built 9,403 TEU containerships MSC Azov, MSC Ajaccio and MSC Amalfi, for which the current daily rate is USD 43,000, and the 2013-built 8,827 TEU MSC Athens and MSC Athos with MSC, currently earning USD 42,000 per day.

Furthermore, in September 2018, the company purchased two 1996-built, 8,044 TEU sister containerships Maersk Kleven and Maersk Kotka. Upon their delivery the vessels commenced a 2.5-year charter with Maersk Line at a daily rate of USD 17,500. The company is currently in discussions regarding the debt financing of those ships.

Also, during the quarter, Costamare secured charter deals for 23 vessels, excluding the two secondhand acquisitions. The company’s net income for the quarter was at USD 14 million, down from USD 24.1 million reported a year earlier, as voyage revenues deflated to USD 90.9 million compared to USD 101.2 million seen a year earlier.

“Seasonality, combined with concerns about demand growth and trade tensions have resulted in a softer market, both in terms of charter rates and asset prices,” Gregory Zikos, Chief Financial Officer of Costamare Inc., said.