Costamare Inc. Reports Results for the Third Quarter and Nine-Month Period Ended September 30, 2024
MONACO, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Costamare Inc. ("Costamare" or the "Company") (NYSE:CMRE) today reported unaudited financial results for the third quarter ("Q3 2024") and nine-months ended September 30, 2024.
I. PROFITABILITY AND LIQUIDITY
Q3 2024 Net Income available to common stockholders of $75.5 million ($0.63 per share).
Q3 2024 Adjusted Net Income available to common stockholders1 of $80.7 million ($0.68 per share).
Q3 2024 liquidity of $1,019.2 million2.
II. SALE AND PURCHASE ACTIVITY
Vessel Acquisitions
Agreement for:
the acquisition of the 2011-built, 179,546 DWT capacity dry bulk vessel, Nord Magnes (tbr. Magnes). Expected conclusion of the acquisition within Q4 2024.
the acquisition of the 2014-built, 61,090 DWT capacity dry bulk vessel, Alwine Oldendorff (tbr. Alwine). Expected conclusion of the acquisition within Q4 2024.
the acquisition of the 2015-built, 61,090 DWT capacity dry bulk vessel, August Oldendorff (tbr. August). Expected conclusion of the acquisition by Q1 2025.
Vessel Disposals
Conclusion of:
the sale of the 2009-built, 58,018 DWT capacity dry bulk vessel, Oracle. Net sale proceeds after debt repayment amounted to $4.0 million.
the sale of the 2009-built, 58,090 DWT capacity dry bulk vessel, Titan I. Net sale proceeds after debt repayment amounted to $10.8 million.
Agreement for the sale of the 2012-built, 37,019 DWT capacity dry bulk vessel, Discovery (expected conclusion of the sale within Q4 2024). Estimated net sale proceeds after debt prepayment of $7.7 million.
III. OWNED FLEET CHARTER UPDATE - FULLY EMPLOYED CONTAINERSHIP FLEET3
100% and 94% of the containership fleet4 fixed for 2024 and 2025, respectively.
Contracted revenues for the containership fleet of approximately $2.3 billion with a TEU-weighted duration of 3.3 years5.
Forward fixing of seven containerships for a period ranging from 14 to 34 months with incremental revenues of $166 million, since the Q2 2024 earnings release.
Entered into more than 30 chartering agreements for the owned dry bulk fleet since the Q2 2024 earnings release.
IV. DRY BULK OPERATING PLATFORM
Costamare Bulkers Inc. ("CBI") has currently fixed a fleet of 56 dry bulk vessels on period charters, consisting of:
34 Newcastlemax/ Capesize vessels
22 Kamsarmax/ Panamax vessels
Majority of the fixed fleet is on index linked charter-in agreements. More specifically:
29 charters for Newcastlemax/ Capesize vessels that are index linked.
11 charters for Kamsarmax/ Panamax vessels that are index linked.
Average remaining tenor for the Newcastlemax/ Capesize and Kamsarmax period chartered-in fleet of 12 and 7 months, respectively.
V. FULL PREPAYMENT OF UNSECURED BONDS
Prepayment in full of the €100 million aggregate principal amount of unsecured bonds issued by its wholly owned subsidiary, Costamare Participations Plc.
Prepayment will be made with cash on hand on November 25, 2024.
VI. NEW DEBT FINANCING
Bilateral commitments, subject to final documentation, from four European financial institutions for the financing/ refinancing of the dry bulk fleet. More specifically:
Total amount of the four bilateral facilities of up to approximately $352.1 million.
Minimum tenor of 5 years.
Improvement of funding cost.
Approximately $94.2 million available for the financing of future acquisitions for dry bulk and container vessels until December 2025.
No meaningful debt maturities until 2027.
VII. LEASE FINANCING PLATFORM
Controlling interest in Neptune Maritime Leasing Limited ("NML").
Costamare equity investment of up to $200 million.
Company's current investment in NML of $123.3 million.
Growing leasing platform, with committed funding for 32 shipping assets and total funding commitments exceeding $410 million, on the back of what we believe is a healthy pipeline.
VIII. DIVIDEND ANNOUNCEMENTS
On October 1, 2024, the Company declared a dividend of $0.115 per share on the common stock, which is payable on November 6, 2024, to holders of record of common stock as of October 21, 2024.
On October 1, 2024, the Company declared a dividend of $0.476563 per share on the Series B Preferred Stock, $0.531250 per share on the Series C Preferred Stock and $0.546875 per share on the Series D Preferred Stock which were all paid on October 15, 2024 to holders of record as of October 11, 2024.
___________________1 Adjusted Net Income available to common stockholders and respective per share figures are non-GAAP measures and should not be used in isolation or as substitutes for Costamare's financial results presented in accordance with U.S. generally accepted accounting principles ("GAAP"). For the definition and reconciliation of these measures to the most directly comparable financial measure calculated and presented in accordance with GAAP, please refer to Exhibit I.2 Including our share of cash amounting to $0.1 million held by vessel-owning companies set-up pursuant to the Framework Deed dated May 15, 2013, as amended and restated from time to time (the "Framework Deed"), between the Company and York Capital Management Global Advisors LLC and an affiliated fund (collectively, "York Capital"), margin deposits relating to our forward freight agreements ("FFAs") and bunker swaps of $29.9 million, short term investments in U.S. Treasury Bills amounting to $18.3 million and $94.2 million of available undrawn funds from two hunting license facilities as of September 30, 2024.3 Please refer to the Containership Fleet List table for additional information on vessel employment details for our containership fleet.4 Calculated on a TEU basis.5 As of October 31, 2024.
Mr. Gregory Zikos, Chief Financial Officer of Costamare Inc., commented:
"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 containership sector, with idle vessels of less than 1%, the fleet can still be considered as ‘fully employed'. The market is split between the larger sizes which remain in limited supply, and smaller vessels where the availability of tonnage is greater. As the pool of bigger tonnage is unable to meet demand, charter rates continue to evolve at firm levels.
During the quarter we chartered 7 containerships at healthy levels. The new charter agreements are expected to generate incremental contracted revenues of above $165 million.
The containership fleet employment stands at 100% and 94% for 2024 and 2025, respectively. Total contracted revenues amount to $2.3 billion with a remaining time charter duration of 3.3 years.
On the dry bulk side, we progress with our strategy to renew the owned fleet and increase its average size; during the quarter we agreed to acquire two 2014 and 2015 built Ultramax vessels and one 2011-built Capesize ship, while progressing with the disposal of smaller tonnage.
CBI manages a fleet of 56 ships, the majority of which are on index-linked charter-in agreements. We have a long-term commitment to the sector, and we view the vessel-owning and the trading platform as highly complementary activities.
Finally, with regards to Neptune Maritime Leasing, the platform continues to grow with committed funding for 32 shipping assets, reflecting total funding commitments exceeding $410 million on the back of a healthy pipeline."
Financial Summary
Nine-month period endedSeptember 30,
Three-month period endedSeptember 30,
(Expressed in thousands of U.S. dollars, except share and per share data)
2023
2024
2023
2024
Voyage revenue
$
1,011,968
$
1,406,695
$
397,256
$
459,040
Voyage revenue, related parties
-
$
111,128
-
$
79,352
Total voyage revenue
$
1,011,968
$
1,517,823
$
397,256
$
538,392
Accrued charter revenue (1)
$
4,515
$
(3,027
)
$
3,984
$
(2,457
)
Amortization of time-charter assumed
$
(141
)
$
(383
)
$
(170
)
$
(239
)
Total voyage revenue adjusted on a cash basis (2)
$
1,016,342
$
1,514,413
$
401,070
$
535,696
Income from investments in leaseback vessels
$
4,591
$
17,668
$
3,114
$
6,249
Adjusted Net Income available to common stockholders (3)
$
169,024
$
247,348
$
53,931
$
80,722
Weighted Average number of shares
121,059,768
119,129,429
118,107,881
119,577,920
Adjusted Earnings per share (3)
$
1.40
$
2.08
$
0.46
$
0.68
Net Income
$
276,344
$
284,418
$
60,086
$
78,871
Net Income available to common stockholders
$
258,094
$
260,935
$
53,287
$
75,463
Weighted Average number of shares
121,059,768
119,129,429
118,107,881
119,577,920
Earnings per share
$
2.13
$
2.19
$
0.45
$
0.63
(1) Accrued charter revenue represents the difference between cash received during the period and revenue recognized on a straight-line basis. In the early years of a charter with escalating charter rates, voyage revenue will exceed cash received during the period and during the last years of such charter cash received will exceed revenue recognized on a straight-line basis. The reverse is true for charters with descending rates. (2) Total voyage revenue adjusted on a cash basis represents Voyage revenue after adjusting for non-cash "Accrued charter revenue" recorded under charters with escalating or descending charter rates. However, Total voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. GAAP. We believe that the presentation of Total voyage revenue adjusted on a cash basis is useful to investors because it presents the charter revenue for the relevant period based on the then current daily charter rates. The increases or decreases in daily charter rates under our charter party agreements of our fleet are described in the notes to the "Fleet List" tables below.(3) Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are non-GAAP measures. Refer to the reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings per Share.
Non-GAAP Measures
The Company reports its financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures used in managing the business may provide users of these financial measures additional meaningful comparisons between current results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. The tables below set out supplemental financial data and corresponding reconciliations to GAAP financial measures for the three-month and the nine-month periods ended September 30, 2024 and 2023. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, voyage revenue or net income as determined in accordance with GAAP. Non-GAAP financial measures include (i) Voyage revenue adjusted on a cash basis (reconciled above), (ii) Adjusted Net Income available to common stockholders and (iii) Adjusted Earnings per Share.
Exhibit I Reconciliation of Net Income to Adjusted Net Income available to common stockholders and Adjusted Earnings per Share
Nine-month period endedSeptember 30,
Three-month period endedSeptember 30,
(Expressed in thousands of U.S. dollars, except share and per share data)
2023
2024
2023
2024
Net Income
$
276,344
$
284,418
$
60,086
$
78,871
Earnings allocated to Preferred Stock
(23,302
)
(18,566
)
(7,854
)
(5,288
)
Deemed dividend of Series E Preferred Stock
-
(5,446
)
-
-
Non-Controlling Interest
5,052
529
1,055
1,880
Net Income available to common stockholders
258,094
260,935
53,287
75,463
Accrued charter revenue
4,515
(3,027
)
3,984
(2,457
)
Deferred charter-in expense
-
300
-
(201
)
General and administrative expenses - non-cash component
4,294
6,508
1,440
2,352
Amortization of time-charter assumed
(141
)
(383
)
(170
)
(239
)
Realized gain on Euro/USD forward contracts
(536
)
(787
)
(301
)
(299
)
Vessel's impairment loss
229
-
229
-
Gain on sale of vessels, net
(118,046
)
(3,348
)
-
(2,234
)
Loss on vessel held for sale
4,855
-
4,855
-
(Gain) / Loss on sale of vessels, net, by jointly owned companies with York Capital included in equity gain on investments (1)
493
-
(1,572
)
-
Non-recurring, non-cash write-off of loan deferred financing costs
1,439
405
-
100
(Gain) / Loss on derivative instruments, excluding realized (gain) / loss on derivative instruments (1)
13,828
(16,384
)
(7,821
)
8,053
Other non-cash items
-
3,129
-
184
Adjusted Net Income available to common stockholders
$
169,024
$
247,348
$
53,931
$
80,722
Adjusted Earnings per Share
$
1.40
$
2.08
$
0.46
$
0.68
Weighted average number of shares
121,059,768
119,129,429
118,107,881
119,577,920
Adjusted Net Income available to common stockholders and Adjusted Earnings per Share represent Net Income after earnings allocated to preferred stock, deemed dividend of Series E Preferred Stock and Non-Controlling Interest, but before non-cash "Accrued charter revenue" recorded under charters with escalating or descending charter rates, deferred charter-in expense, amortization of time-charter assumed, loss on vessel held for sale, vessel's impairment loss, realized gain on Euro/USD forward contracts, gain on sale of vessels, net , (gain)/loss on sale of vessels, net, by jointly owned companies with York Capital included in equity gain on investments, non-recurring, non-cash write-off of loan deferred financing costs, general and administrative expenses - non-cash component, (gain)/loss on derivative instruments, excluding realized (gain)/loss on derivative instruments and other non-cash items. "Accrued charter revenue" is attributed to the timing difference between the revenue recognition and the cash collection. However, Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are not recognized measurements under U.S. GAAP. We believe that the presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful to investors because they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. We also believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our ability to service additional debt and make capital expenditures. In addition, we believe that Adjusted Net Income available to common stockholders and Adjusted Earnings per Share are useful in evaluating our operating performance and liquidity position compared to that of other companies in our industry because the calculation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share generally eliminates the effects of the accounting effects of capital expenditures and acquisitions, certain hedging instruments and other accounting treatments, items which may vary for different companies for reasons unrelated to overall operating performance and liquidity. In evaluating Adjusted Net Income available to common stockholders and Adjusted Earnings per Share, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted Net Income available to common stockholders and Adjusted Earnings per Share should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
(1) Items to consider for comparability include gains and charges. Gains positively impacting Net Income available to common stockholders are reflected as deductions to Adjusted Net Income available to common stockholders. Charges negatively impacting Net Income available to common stockholders are reflected as increases to Adjusted Net Income available to common stockholders.Results of Operations
Three-month period ended September 30, 2024 compared to the three-month period ended September 30, 2023
During the three-month periods ended September 30, 2024 and 2023, we had an average of 105.2 and 111.1 vessels, respectively, in our owned fleet. In addition, during the three-month periods ended September 30, 2024 and 2023, through our dry bulk operating platform Costamare Bulkers Inc. ("CBI") we chartered-in an average of 66.1 and 55.0 third party dry bulk vessels, respectively. As of October 31, 2024, CBI charters-in 56 dry bulk vessels on period charters.
During the three-month period ended September 30, 2024, we took delivery of the secondhand dry bulk vessel Frontier with a DWT of 181,415 and we sold the dry bulk vessels Oracle and Titan I with an aggregate DWT of 116,108.
During the three-month period ended September 30, 2023, we acquired the secondhand dry bulk vessels Enna, Dorado and Arya with an aggregate DWT of 417,241.
As of September 30, 2024, we have invested in NML the amount of $123.3 million. NML has been included in our consolidated financial statements since the second quarter of 2023.
In the three-month periods ended September 30, 2024 and 2023, our fleet ownership days totaled 9,680 and 10,222 days, respectively. Ownership days are one of the primary drivers of voyage revenue and vessels' operating expenses and represent the aggregate number of days in a period during which each vessel in our fleet is owned.
Consolidated Financial Results and Vessels' Operational Data
Three-month period endedSeptember 30,
Change
PercentageChange
(Expressed in millions of U.S. dollars, except percentages)
2023
2024
Voyage revenue
$
397.3
$
459.0
$
61.7
15.5
%
Voyage revenue, related parties
-
79.4
79.4
n.m.
Total voyage revenue
$
397.3
$
538.4
141.1
35.5
%
Income from investments in leaseback vessels
3.1
6.2
3.1
100.0
%
Voyage expenses
(84.8
)
(93.3
)
8.5
10.0
%
Charter-in hire expenses
(87.7
)
(212.9
)
125.2
142.8
%
Voyage expenses, related parties
(3.6
)
(6.4
)
2.8
77.8
%
Vessels' operating expenses
(63.5
)
(60.3
)
(3.2
)
(5.0
%)
General and administrative expenses
(6.0
)
(7.8
)
1.8
30.0
%
Management and agency fees, related parties
(13.9
)
(15.9
)
2.0
14.4
%
General and administrative expenses - non-cash component
(1.4
)
(2.3
)
0.9
64.3
%
Amortization of dry-docking and special survey costs
(5.0
)
(6.0
)
1.0
20.0
%
Depreciation
(42.2
)
(41.5
)
(0.7
)
(1.7
%)
Gain on sale of vessels, net
-
2.2
2.2
n.m.
Loss on vessel held for sale
(4.8
)
-
(4.8
)
n.m.
Vessel's impairment loss
(0.2
)
-
(0.2
)
n.m.
Foreign exchange gains / (losses)
(3.1
)
3.6
6.7
n.m.
Interest income
9.1
8.6
(0.5
)
(5.5
%)
Interest and finance costs
(36.7
)
(32.9
)
(3.8
)
(10.4
%)
Income / (loss) from equity method investments
1.8
-
(1.8
)
n.m.
Other
1.9
0.2
(1.7
)
(89.5
%)
Loss on derivative instruments, net
(0.2
)
(1.0
)
(0.8
)
n.m.
Net Income
$
60.1
$
78.9
Three-month period endedSeptember 30,
(Expressed in millions of U.S. dollars, except percentages)
2023
2024
Change
PercentageChange
Total voyage revenue
$
397.3
$
538.4
$
141.1
35.5
%
Accrued charter revenue
4.0
(2.5
)
(6.5
)
n.m.
Amortization of time-charter assumed
(0.2
)
(0.2
)
-
-
Total voyage revenue adjusted on a cash basis (1)
$
401.1
$
535.7
$
134.6
33.6
%
Three-month period endedSeptember 30,
Vessels' operational data
2023
2024
Change
PercentageChange
Average number of vessels
111.1
105.2
(5.9
)
(5.3
%)
Ownership days
10,222
9,680
(542
)
(5.3
%)
Number of vessels under dry-docking and special survey
6
3
(3
)
(1) Total voyage revenue adjusted on a cash basis is not a recognized measurement under U.S. generally accepted accounting principles ("GAAP"). Refer to "Consolidated Financial Results and Vessels' Operational Data" above for the reconciliation of Total voyage revenue adjusted on a cash basis.
Total Voyage Revenue
Total voyage revenue increased by 35.5%, or $141.1 million, to $538.4 million during the three-month period ended September 30, 2024, from $397.3 million during the three-month period ended September 30, 2023. The increase is mainly attributable to (i) increased revenue earned by CBI due to increased volume of its operations period over period, (ii) revenue earned by one container vessel acquired during the fourth quarter of 2023, two dry bulk vessels acquired during the third quarter of 2023, one dry bulk vessel acquired during the first quarter of 2024 and one dry bulk vessel acquired during the second quarter of 2024, (iii) increased charter rates in certain of our dry bulk vessels in the third quarter of 2024 compared to the third quarter of 2023 and (iv) decreased fleet off-hire and idle days in the third quarter of 2024 compared to the third quarter of 2023; partly offset by revenue not earned by one container vessel and three dry bulk vessels sold during the second half of 2023 and nine dry bulk vessels sold during the nine-month period ended September 30, 2024.
Total voyage revenue adjusted on a cash basis (which eliminates non-cash "Accrued charter revenue") increased by 33.6%, or $134.6 million, to $535.7 million during the three-month period ended September 30, 2024, from $401.1 million during the three-month period ended September 30, 2023. Accrued charter revenue for the three-month periods ended September 30, 2024 and 2023 was a negative amount of $2.5 million and a positive amount of $4.0 million, respectively.
Income from investments in leaseback vessels
Income from investments in leaseback vessels was $6.2 million and $3.1 million for the three-month periods ended September 30, 2024 and 2023, respectively. Income from investments in leaseback vessels increased, period over period, due to the increased volume of NML's operations during the three-month period ended September 30, 2024 compared to the three-month period ended September 30, 2023. NML acquires, owns and bareboat charters out vessels through its wholly-owned subsidiaries.
Voyage Expenses
Voyage expenses were $93.3 million and $84.8 million for the three-month periods ended September 30, 2024 and 2023, respectively. Voyage expenses mainly include (i) fuel consumption mainly related to dry bulk vessels, (ii) third-party commissions, (iii) port expenses and (iv) canal tolls.
Charter-in Hire Expenses
Charter-in hire expenses were $212.9 million and $87.7 million for the three-month periods ended September 30, 2024 and 2023, respectively. Charter-in hire expenses are expenses relating to chartering-in of third-party dry bulk vessels under charter agreements through CBI.
Voyage Expenses, related parties
Voyage expenses, related parties were $6.4 million and $3.6 million for the three-month periods ended September 30, 2024 and 2023, respectively. Voyage expenses, related parties represent (i) fees of 1.25%, in the aggregate, on voyage revenues earned by our owned fleet charged by a related manager and a related service provider, (ii) charter brokerage fees (in respect of our container vessels) payable to two related charter brokerage companies for an amount of approximately $0.4 million and $0.4 million, in the aggregate, for the three-month periods ended September 30, 2024 and 2023, respectively and (iii) address commission on certain charter-out agreements payable to a related agent (since the second quarter of 2024). This commission is subsequently paid in full on a back-to-back basis by the related agent to its respective third-party clients with no benefit for the related agent.
Vessels' Operating Expenses
Vessels' operating expenses, which also include the realized gain/(loss) under derivative contracts entered into in relation to foreign currency exposure, were $60.3 million and $63.5 million during the three-month periods ended September 30, 2024 and 2023, respectively. Daily vessels' operating expenses were $6,227 and $6,212 for the three-month periods ended September 30, 2024 and 2023, respectively. Daily operating expenses are calculated as vessels' operating expenses for the period over the ownership days of the period.
General and Administrative Expenses
General and administrative expenses were $7.8 million and $6.0 million during the three-month periods ended September 30, 2024 and 2023, respectively, and include amounts of $0.67 million and $0.67 million, respectively, that were paid to a related service provider.
Management and Agency Fees, related parties
Management fees charged by our related party managers were $10.9 million and $11.2 million during the three-month periods ended September 30, 2024 and 2023, respectively. The amounts charged by our related party managers include amounts paid to third party managers of $2.3 million and $3.7 million for the three-month periods ended September 30, 2024 and 2023, respectively. Furthermore, during the three-month periods ended September 30, 2024 and 2023, agency fees of $5.0 million and $2.7 million, in aggregate, were charged by four and three related agents, respectively, in connection with the operations of CBI.
General and Administrative Expenses - non-cash component
General and administrative expenses - non-cash component for the three-month period ended September 30, 2024 amounted to $2.3 million, representing the value of the shares issued to a related service provider on September 30, 2024. General and administrative expenses - non-cash component for the three-month period ended September 30, 2023 amounted to $1.4 million, representing the value of the shares issued to a related service provider on September 29, 2023.
Amortization of Dry-Docking and Special Survey Costs
Amortization of deferred dry-docking and special survey costs was $6.0 million and $5.0 million during the three-month periods ended September 30, 2024 and 2023, respectively. During the three-month period ended September 30, 2024, three vessels underwent and completed their dry-docking and special survey. During the three-month period ended September 30, 2023, five vessels underwent and completed their dry-docking and special survey and one vessel was in the process of completing her dry-docking and special survey.
Depreciation
Depreciation expense for the three-month periods ended September 30, 2024 and 2023 was $41.5 million and $42.2 million, respectively.
Gain on Sale of Vessels, net
During the three-month period ended September 30, 2024, we recorded a gain of $2.2 million from the sale of the dry bulk vessel Titan I. Furthermore, the dry bulk vessel Oracle, which was classified as a vessel held for sale as of June 30, 2024, was delivered to her new owners. No vessels were sold during the three-month period ended September 30, 2023.
Loss on Vessel Held for Sale
We did not record any loss on any vessels held for sale during the three-month period ended September 30, 2024. During the three-month period ended September 30, 2023, we recorded a loss on vessel held for sale of $4.8 million representing the expected loss from the sale of the container vessel Oakland during the next twelve-month period.
Vessel's Impairment Loss
During the three-month period ended September 30, 2024, no impairment loss was recorded. During the three-month period ended September 30, 2023, we recorded an impairment loss in relation to one of our dry bulk vessels in the amount of $0.2 million.
Interest Income
Interest income amounted to $8.6 million and $9.1 million for the three-month periods ended September 30, 2024 and 2023, respectively.
Interest and Finance Costs
Interest and finance costs were $32.9 million and $36.7 million during the three-month periods ended September 30, 2024 and 2023, respectively. The decrease is mainly attributable to the decreased interest expense due to a lower average loan balance during the three-month period ended September 30, 2024, compared to the three-month period ended September 30, 2023.
Income / (Loss) from Equity Method Investments
Income/(loss) from equity method investments for the three-month period ended September 30, 2024, was nil (compared to income of $1.8 million for the three-month period ended September 30, 2023) representing our share in the jointly owned companies set up pursuant to the Framework Deed. As of September 30, 2024 and 2023, two and three companies, respectively, were jointly owned pursuant to the Framework Deed out of which none and one company, respectively, owned container vessels.
Loss on Derivative Instruments, net
As of September 30, 2024, we hold derivative financial instruments that qualify for hedge accounting and derivative financial instruments that do not qualify for hedge accounting. The change in the fair value of each derivative instrument that qualifies for hedge accounting is recorded in "Other Comprehensive Income" ("OCI"). The change in the fair value of each derivative instrument that does not qualify for hedge accounting is recorded in the consolidated statements of income.
As of September 30, 2024, the fair value of these instruments, in aggregate, amounted to a net asset of $44.1 million. During the three-month period ended September 30, 2024, a net loss of $21.8 million has been included in OCI and a net loss of $1.0 million has been included in Loss on Derivative Instruments, net.
Cash FlowsThree-month periods ended September 30, 2024 and 2023
Condensed cash flows
Three-month period endedSeptember 30,
(Expressed in millions of U.S. dollars)
2023
2024
Net Cash Provided by Operating Activities
$
74.8
$
123.7
Net Cash Provided by / (Used in) Investing Activities
$
(1.6
)
$
9.1
Net Cash Used in Financing Activities
$
(42.8
)
$
(229.7
)
Net Cash Provided by Operating Activities
Net cash flows provided by operating activities for the three-month period ended September 30, 2024, increased by $48.9 million to $123.7 million, from $74.8 million for the three-month period ended September 30, 2023. The increase is mainly attributable to the favorable change in working capital position, excluding the current portion of long-term debt and the accrued charter revenue (representing the difference between cash received in that period and revenue recognized on a straight-line basis), the increased cash from operations during the three-month period ended September 30, 2024 compared to the three-month period ended September 30, 2023, the decrease in interest payments (including interest rate derivatives net receipts) during the three-month period ended September 30, 2024 compared to the three-month period ended September 30, 2023 and the decreased dry-docking and special survey costs during the three-month period ended September 30, 2024 compared to the three-month period ended September 30, 2023.
Net Cash Provided by / (Used in) Investing Activities
Net cash provided by investing activities was $9.1 million in the three-month period ended September 30, 2024, which mainly consisted of (i) proceeds we received from the sale of the dry bulk vessels Oracle and Titan I and (ii) net proceeds for the investments into which NML entered; partly offset by (i) the settlement payment for the acquisition of the secondhand dry bulk vessel Frontier, (ii) the advance payment for the acquisition of the secondhand dry bulk vessel Nord Magnes (tbr. Magnes) and (iii) payments for upgrades for certain of our container and dry bulk vessels.
Net cash used in investing activities was $1.6 million in the three-month period ended September 30, 2023, which mainly consisted of (i) payments for the acquisition of the secondhand dry bulk vessels Enna, Dorado and Arya, (ii) payments for upgrades for certain of our container and dry bulk vessels and (iii) net payments for investments into which NML entered; partly offset by the proceeds we received from the maturity of our short-term investments in US Treasury Bills.
Net Cash Used in Financing Activities
Net cash used in financing activities was $229.7 million in the three-month period ended September 30, 2024, which mainly consisted of (i) $96.3 million net payments relating to our debt financing agreements and finance lease liability agreement (including proceeds of $21.6 million we received from one existing debt financing agreement), (ii) $116.0 million we paid, in aggregate, for the full redemption of our 8.875% Series E Cumulative Redeemable Perpetual Preferred Stock ("Series E Preferred Stock"), (iii) $11.2 million we paid for dividends to holders of our common stock for the second quarter of 2024 and (iv) $0.9 million we paid for dividends to holders of our 7.625% Series B Cumulative Redeemable Perpetual Preferred Stock ("Series B Preferred Stock"), $2.1 million we paid for dividends to holders of our 8.500% Series C Cumulative Redeemable Perpetual Preferred Stock ("Series C Preferred Stock") and $2.2 million we paid for dividends to holders of our 8.75% Series D Cumulative Redeemable Perpetual Preferred Stock ("Series D Preferred Stock") for the period from April 15, 2024 to July 14, 2024.
Net cash used in financing activities was $42.8 million in the three-month period ended September 30, 2023, which mainly consisted of (i) $3.0 million net payments relating to our debt financing agreements and finance lease liability agreement (including proceeds of $82.4 million we received from three debt financing agreements), (ii) $28.8 million we paid for the re-purchase of 2.8 million of our common shares, (iii) $9.5 million we paid for dividends to holders of our common stock for the second quarter of 2023 and (iv) $0.9 million we paid for dividends to holders of our Series B Preferred Stock, $2.1 million we paid for dividends to holders of our Series C Preferred Stock, $2.2 million we paid for dividends to holders of our Series D Preferred Stock and $2.5 million we paid for dividends to holders of our Series E Preferred Stock for the period from April 15, 2023 to July 14, 2023.
Results of Operations
Nine-month period ended September 30, 2024 compared to the nine-month period ended September 30, 2023
During the nine-month periods ended September 30, 2024 and 2023, we had an average of 105.9 and 111.3 vessels, respectively, in our owned fleet. In addition, during the nine-month periods ended September 30, 2024 and 2023, through CBI we chartered-in an average of 60.8 and 36.3 third-party dry bulk vessels, respectively. As of October 31, 2024, CBI has chartered-in 56 dry bulk vessels on period charters.
During the nine-month period ended September 30, 2024, we took delivery of the secondhand dry bulk vessels Miracle, Prosper and Frontier with an aggregate DWT of 541,953 and we sold the dry bulk vessels Manzanillo, Progress, Konstantinos, Merida, Alliance, Pegasus, Adventure, Oracle and Titan I with an aggregate DWT capacity of 396,014.
During the nine-month period ended September 30, 2023, we (i) sold our 49% equity interest in the company owning the 2018-built, 3,800 TEU capacity containership, Polar Argentina to York Capital and (ii) acquired the 51% equity interest of York Capital in the 2018-built, 3,800 TEU capacity containership Polar Brasil and as a result we obtained 100% of the equity interest in the vessel. Furthermore, during the nine-month period ended September 30, 2023, we acquired the secondhand dry bulk vessels Enna, Dorado and Arya with an aggregate DWT of 417,241 and we sold the container vessels Maersk Kalamata and Sealand Washington with an aggregate TEU capacity of 13,292 and the dry bulk vessels Miner, Taibo and Comity with an aggregate DWT of 104,714.
As of September 30, 2024, we have invested in NML the amount of $123.3 million. NML has been included in our consolidated financial statements since the second quarter of 2023.
In the nine-month periods ended September 30, 2024 and 2023, our fleet ownership days totaled 29,028 and 30,385 days, respectively. Ownership days are one of the primary drivers of voyage revenue and vessels' operating expenses and represent the aggregate number of days in a period during which each vessel in our fleet is owned.
Consolidated Financial Results and Vessels' Operational Data
(Expressed in millions of U.S. dollars, except percentages)
Nine-month periodended September 30,
Change
PercentageChange
2023
2024
Voyage revenue
$
1,012.0
