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MONACO - Costamare Bulkers Holdings Limited (NYSE:CMDB), currently trading at $12.71 and facing profitability challenges according to InvestingPro data, announced Monday it has entered into a Strategic Cooperation Agreement with Cargill International S.A., aimed at restructuring its business operations and exploring joint investment opportunities.
Under the agreement, Costamare will transfer the majority of its trading book, including chartered-in vessels, cargo transportation commitments, and derivative positions to Cargill. The company, which has been experiencing weak gross profit margins of 3.5%, will also charter four Supramax vessels to Cargill for a period of four to six months.
The partnership includes a bunkering services agreement with Seascale Energy, a joint venture between Cargill and Hafnia, which will cover Costamare’s owned and operating fleet. Additionally, the companies will collaborate on decarbonization and vessel efficiency strategies.
"The Agreement allows us to reduce our exposure in the volatile trading business and generate more stable and predictable earnings," said Gregory Zikos, Chief Executive Officer of Costamare Bulkers, in the press release.
Jan Dieleman, President of Cargill Ocean Transportation, stated the partnership "allows Cargill to better serve its customers as it continues to help us grow our current fleet."
Costamare Bulkers currently owns a fleet of 37 dry bulk vessels with approximately 3,103,000 dwt total carrying capacity, including six vessels the company has agreed to sell. The company also operates a dry bulk platform that handles vessel chartering and freight agreements.
The companies indicated they will explore opportunities to jointly invest in dry bulk assets and other business ventures within the sector, according to the announcement.
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