Costamare scaps 2 old container vessels and buys 2 newer, bigger vessels

GREEK Costamare Inc has announced that it will scrap two 1984-built ships and purchase two 1998-built vessels as replacements for their charters.

Costamare will purchase the 1998-built, 3,842-TEU Bunga Raya Dua (to be renamed Koroni) and the 1998-built, 3,842-TEU Bunga Raya Satu (to be renamed Kyparissia) and scrap the 1984-built, 2,922-TEU Gifted and the 1984-built, 2,922-TEU Genius I, reports World Maritime News.

The total acquisition cost for the two vessels is US$24.9 million and will be partly funded with debt drawn from a currently committed and undrawn credit facility. The total sale price for the Gifted and Genius I is $12.3 million.

The newly acquired vessels are expected to be delivered in May. At the same time, the Costamare has agreed to extend these two charters for 18 months, from November at an average daily rate of $11,150.

"We continue to deliver on our fleet renewal programme by taking advantage of attractive steel prices and second-hand, charter-free ship values," said Costamare chief financial officer Gregory Zikos.

"With an incremental cost of only $6.3 million per vessel, we are extending the useful life of older assets by substituting them for vessels that are 14 years younger, larger and with better specifications. The transaction enhances our earnings potential and re-chartering upside. We expect to realise book gains of $4.4 million in aggregate from the above disposals."