Konstantinos Konstantakopoulos-led Costamare Bulkers, the planned dry bulk spin-off carved out of Costamare Inc, is taking a measured approach to fleet expansion while setting its sights on gradually transitioning to larger vessel segments
The company held a virtual investor day on 9 April to unveil its strategic vision and growth trajectory. Gregory Zikos – currently chief financial officer of Costamare Inc and incoming chief executive of Costamare Bulkers – told attendees that while the company remains open to opportunities, it is in no rush to expand hastily.
During the presentation, Costamare Bulkers revealed plans to shift its portfolio toward larger tonnage by replacing Handysize and Supramax vessels with Ultramax, Panamax and Capesize ships.
However, Mr Zikos noted conditions in the Capesize segment are currently not favourable for acquisitions. Newbuilding prices do not make sense at the moment, he said, adding secondhand values have not adjusted in line with the recent market volatility.
“We’ve acquired some Capesize vessels between 10 and 15 years old over the past quarters, but for now, we may sit and wait, we have the luxury to do so,” he explained.
’Pure-play’ investment opportunities
Mr Zikos also outlined the reasoning behind the spin-off, stating separating the dry bulk and container businesses into two distinct publicly listed entities aligns with current market dynamics.
“We already have the platform in place,” he said, referring to the 38-vessel dry bulk fleet Costamare has built since entering the sector in 2021. He also pointed out dry bulk-listed entities are currently trading at a discount, creating attractive investment opportunities.
Costamare has also emphasised the two separate entities will offer pure-play investment opportunities tailored to different investor bases. Additionally, each company will benefit from a streamlined structure with dedicated balance sheets and capital allocation strategies aligned with their respective business models.
Structure and fleet overview
Under the proposed structure, Costamare Inc will continue to operate as a global container shipping provider, retaining its 68 owned container ships – with a total capacity of approximately 513,000 TEU – as well as Neptune Maritime Leasing Ltd business.
Meanwhile, Costamare Bulkers will become an international owner and operator of dry bulk vessels, holding the company’s bulk carriers and managing the CBI operating platform – Costamare’s dedicated dry bulk operating unit.
Costamare Bulker’s 38-vessel owned fleet comprises 10 Supramax, eight Ultramax, eight /Panamax, six Capesize, and six Handysize vessels, with a charter-free market value estimated at US$719M. Additionally, CBI has chartered in 48 bulk carriers, 34 in the /Capesize size and 14 /Panamax vessels.
Costamare Bulkers is expected to be listed on the New York Stock Exchange, under the ticket CMDB, pending regulatory and final approvals.
Prior to the completion of the spin-off, Costamare Inc will contribute US$100M in cash and cash equivalents to the new entity. It will also prepay US$150M of the spin-off’s total long-term debt and forgive US$85M in related-party loans.
