Costamare Reverses Course Planning to Spilt Boxship and Bulker Businesses
Costamare which calls itself one of the leading owners and providers of containerships and dry bulk vessels for charter announced a plan to split its operations into two publicly-traded companies. The move reverses a strategy launched just four years ago to take the long-time containership owner into the dry bulk segment.
The company has been in business for 51 years and focused recently on containerships. It currently has a fleet of 68 owned containerships with a total capacity of approximately 513,000 TEU. The ships sail for well-known carriers ranging from COSCO, Evergreen, and Yang Ming to Maersk, MSC, Hapag-Lloyd, and Zim. In its year-end 2024 financial report, the company highlighted contracts had been fixed for 96 percent of its containership capacity in 2025 and 69 percent in 2026.
Costamare surprised the industry in June 2021 reporting it had decided to enter the dry bulk sector. At the time they called it a liquid sector with strong fundamentals that would provide enhanced return opportunities for shareholders. Management pointed to a low orderbook and demand that was being driven by increased infrastructure spending and commodity consumption.
The position in dry bulk was launched with the acquisition of 16 vessels in 2021. They ranged between 33,000 and 85,000 dwt, with an average age of 10 years. Today, Costamare owns 38 dry bulk carriers with a total capacity of approximately three million dwt and has a total of 51 bulkers on its operating platform.
The company reported income of more than $290 million for 2024, but the markets for containerships and dry bulk have moved divergently. Last year, demand for containerships was very strong while analysts have questioned the prospects for segments of dry bulk. Bulkers operate on short-term charters with the company reporting in late 2024 and early 2025 that it executed over 50 charters.
The new strategy calls for a spin-off of the dry bulk business into a standalone company that will include the vessels and the operating platform. It will also trade on the New York Stock Exchange. The original company will retain the containerships and its Neptune Maritime Leasing operation.
“The board believes the proposed separation will unlock the inherent value within the two companies, which have unique growth prospects and investment opportunities,” according to the announcement. In addition to creating two pure-play investment opportunities, the transaction they said would provide a simplified structure. Management they said would have an enhanced focus on the individual business and the companies would have improved financial flexibility.
Terms of the spin-off have not yet been set and the transaction requires final approval from the board of directors. Costamare said the spin-off is expected to be completed as soon as practical within this calendar year.