Costamare Reverses Course Planning to Spilt Boxship and Bulker Businesses
Costamare Announces Plan to Split Operations
Costamare, a prominent owner and provider of containerships and dry bulk vessels for charter, recently revealed its decision to split its operations into two publicly-traded companies. This strategic move marks a shift from the company’s previous strategy, which had incorporated both containerships and dry bulk vessels under one entity.
Costamare’s Focus on Containerships:
With a rich history spanning over five decades, Costamare has primarily focused on containerships in recent years. The company currently boasts a fleet of 68 owned containerships, serving renowned carriers such as COSCO, Evergreen, Maersk, and more. In its year-end 2024 financial report, Costamare highlighted the fixed contracts for a significant portion of its containership capacity in the coming years.
Venturing into the Dry Bulk Sector:
In a surprising move in June 2021, Costamare ventured into the dry bulk sector, citing strong fundamentals and promising return opportunities for shareholders. The company swiftly acquired 16 dry bulk vessels in 2021, ranging in capacity and age. Presently, Costamare owns a total of 38 dry bulk carriers with a cumulative capacity of three million dwt.
The Decision to Split Operations:
The diverging market trends for containerships and dry bulk vessels have prompted Costamare to announce the spin-off of its dry bulk business into a standalone company. This new entity will include the vessels and operating platform, trading on the New York Stock Exchange. The original company will retain its containerships and Neptune Maritime Leasing operation.
Enhancing Value and Focus:
According to the company’s announcement, the separation of operations aims to unlock inherent value within the two companies, offering unique growth prospects and investment opportunities. The new structure will provide simplified operations, enhanced focus on individual businesses, and improved financial flexibility for both entities.
Anticipated Timeline and Approval:
While the terms of the spin-off are yet to be finalized, the transaction is subject to final approval from the board of directors. Costamare expects the spin-off to be completed within the current calendar year, emphasizing the commitment to executing the strategic split in a timely manner.
