Costamare to spin-off dry bulk business, targeting 'pure-play' investments

Riviera understands the company does not intend to change its investment strategy in the dry bulk sector and will continue to adopt a cautious approach towards further purchases until prices cool off further.

The container shipping specialist made headlines in 2021 when it expanded into the bulk carrier market through secondhand acquisitions. Now, with its dry bulk fleet approaching 40 vessels, the company has decided to split its US-listed operations into two distinct entities.

Under the proposed plan, Costamare Inc will continue as a global container shipping provider, retaining its owned container ships and 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. As of 12 February, CBI had chartered-in 50 bulk carriers and has contracted to charter-in two more currently under construction, once they are delivered to their third-party owners.

Shares of Costamare Bulkers are expected to be listed on the New York Stock Exchange. The spin-off is targeted for completion within this calendar year, pending regulatory approvals and final board approval.

Currently, Costamare’s fleet consists of 68 container ships with a combined capacity of approximately 513,000 TEU, alongside 38 bulk carriers totalling around 3M dwt.

Pure-play investments 

Costamare’s board believes separating its container and dry bulk businesses will unlock the inherent value of each segment, given their distinct growth opportunities and investment potential.

The Greek shipowner 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.

Continued activity in the market

Costamare has remained active in the dry bulk sector, recently acquiring one Capesize and two Ultramax vessels while finalising the sale of a Handysize vessel and agreeing to divest a 2008-built Panamax ship. Since its Q3 2024 earnings release, the company has entered into over 50 chartering agreements for its owned dry bulk fleet.

During a recent investor call, Costamare chief financial officer, Gregory Zikos, stated the company remains committed to investing in the dry bulk business. However, he added the company is exercising caution regarding further expansion, unless asset prices become more favourable.

In 2024, Costamare reported total voyage revenues of US$2.0Bn, a 37% increase year-over-year from US$1.5Bn in 2023. However, net income declined to US$316M, down from US$381M in 2023.