Highlights of the Second Quarter of
2018:
Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ:SHIP)
announced today its financial results for the second quarter and
six months ended June 30, 2018.
For the quarter ended June 30, 2018, the Company
generated net revenues of $16.8 million, an 8% decrease compared to
the second quarter of 2017. For the six-month period ended June 30,
2018, net revenues were $38.1 million, up 20% from the first half
of 2017. As of June 30, 2018, stockholder’s equity was $28.6
million and cash and cash equivalents, including restricted cash,
was $13 million.
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“During the first half of 2018 our efforts were
primarily focused on improving our liquidity and capital structure.
We refinanced successfully two Capesize vessels that were acquired
in 2016, achieving a capital release of approximately $10 million.
In addition, the value appreciation of our fleet combined with the
uninterrupted servicing of all of our loan facilities has led to an
increase of our net asset value. Finally we expanded our banking
relationships further in the Chinese market, establishing Seanergy
as a key business partner of a major Chinese financing
institution.
“Our results for the second quarter of 2018,
were affected by the seasonal weakness of the Brazilian exporting
volumes and other temporary adverse conditions of the Capesize
market. Since the beginning of the third quarter, the market has
recovered significantly reflecting the very strong fundamentals of
the Capesize sector.
“We expect that the positive momentum will
continue going forward and that the market will rise further
towards the historical averages. In the third quarter of 2018 our
Capesize vessels have been fixed for 73% of their ownership days at
a TCE of approximately $23,420, while our fleet has respectively
been fixed for 77% of its ownership days at a TCE of approximately
$20,680. This represents a 133% increase compared to the 2Q18
TCE.
“We are very optimistic for the market
conditions for the remaining of the year. Demand for seaborne
transportation of iron ore and coal will exceed its initial
expectations, while fleet growth is negligible. Beyond the current
year, we expect that the limited newbuilding ordering activity seen
recently and the implementation of the IMO 2020 regulations will
contribute to sustained strength in the Capesize market for the
next years.
“As a final note, we are continuously pursuing
transactions that will increase our net asset value, enhance our
shareholders value and ensure our compliance with the upcoming
environmental regulations.”
1 EBITDA and Time Charter Equivalent (“TCE”)
rate are non-GAAP measures. Please see the reconciliation below of
EBITDA to net loss and TCE rate to net revenues from vessels, in
each case the most directly comparable U.S. GAAP measure.
Company Fleet:
Vessel Name |
Vessel Class |
Capacity (in dwt) |
Year Built |
Yard |
Championship |
Capesize |
179,238 |
2011 |
Sungdong |
Partnership (1) |
Capesize |
179,213 |
2012 |
Hyundai |
Knightship (2) |
Capesize |
178,978 |
2010 |
Hyundai |
Lordship (3) |
Capesize |
178,838 |
2010 |
Hyundai |
Gloriuship |
Capesize |
171,314 |
2004 |
Hyundai |
Leadership |
Capesize |
171,199 |
2001 |
Koyo – Imabari |
Geniuship |
Capesize |
170,057 |
2010 |
Sungdong |
Premiership |
Capesize |
170,024 |
2010 |
Sungdong |
Squireship |
Capesize |
170,018 |
2010 |
Sungdong |
Guardianship |
Supramax |
56,884 |
2011 |
CSC Jinling |
Gladiatorship |
Supramax |
56,819 |
2010 |
CSC Jinling |
Total / Average |
|
1,682,582 |
9.3
years |
|
(1) This vessel is being chartered by a major
European utility and energy company and was delivered to the
charterer on June 13, 2017 for a period of employment of about 12
months to about 18 months at a gross daily rate of $16,200.
(2) This vessel was sold to and leased back from
a major Chinese leasing institution on June 29, 2018 for an eight
year period.
(3) This vessel is being chartered by a major
European charterer and was delivered to the charterer on June 28,
2017 for a period of about 18 months to about 22 months. The net
daily charter hire is calculated at an index linked rate based on
the five routes average time charter rate of the Baltic Capesize
Index. In addition, the time charter provides us an option for any
period of time during the term to be converted into a fixed rate
time charter with a duration of minimum three months to maximum 12
months, with a rate corresponding to the prevailing value of the
respective Capesize forward freight agreement.
Fleet Data:
(U.S. Dollars in thousands)
|
Q2 2018 |
|
Q2 2017 |
|
6M 2018 |
|
6M 2017 |
|
Ownership days (1) |
|
1,001 |
|
|
940 |
|
|
1,991 |
|
|
1,840 |
|
Available days (2) |
|
1,001 |
|
|
940 |
|
|
1,991 |
|
|
1,827 |
|
Operating days (3) |
|
999 |
|
|
940 |
|
|
1,987 |
|
|
1,825 |
|
Fleet utilization (4) |
|
99.8% |
|
|
100% |
|
|
99.8% |
|
|
99.2% |
|
TCE rate (5) |
$8,859 |
|
$10,278 |
|
$10,272 |
|
$8,255 |
|
Daily Vessel Operating Expenses (6) |
$5,242 |
|
$4,585 |
|
$5,178 |
|
$4,605 |
|
(1) Ownership days are the total number of
calendar days in a period during which the vessels in a fleet have
been owned. Ownership days are an indicator of the size of the
Company’s fleet over a period and affect both the amount of
revenues and the amount of expenses that the Company recorded
during a period.
(2) Available days are the number of ownership
days less the aggregate number of days that the vessels are
off-hire due to drydockings, special and intermediate surveys, or
days when the vessels are in lay-up. The shipping industry uses
available days to measure the number of ownership days in a period
during which the vessels should be capable of generating revenues.
During the three months ended June 30, 2018, the Company incurred
zero off-hire days for vessel dry dockings. During the three months
ended June 30, 2017, the Company incurred zero off-hire days for
vessel dry dockings. During the six months ended June 30, 2018, the
Company incurred zero off-hire days for vessel drydockings. During
the six months ended June 30, 2017, the Company incurred 13
off-hire days for one vessel drydocking.
(3) Operating days are the number of available
days in a period less the aggregate number of days that the vessels
are off-hire due to unforeseen circumstances. Operating days
includes the days that our vessels are in ballast voyages without
having finalized agreements for their next employment. The shipping
industry uses operating days to measure the aggregate number of
days in a period during which vessels actually could generate
revenues. In the quarter ended June 30, 2018, the Company incurred
two off-hire days due to unforeseen circumstances. In the quarter
ended June 30, 2017, the Company did not incur any off-hire days
due to unforeseen circumstances. During the six months ended June
30, 2018, the Company incurred four off-hire days due to unforeseen
circumstances. During the six months ended June 30, 2017, the
Company incurred two off-hire days due to unforeseen
circumstances.
(4) Fleet utilization is the percentage of time
that the vessels are generating revenue, and is determined by
dividing operating days by ownership days for the relevant
period.
(5) Time Charter Equivalent (TCE) rate is
defined as the Company’s net revenue less voyage expenses during a
period divided by the number of the Company’s operating days during
the period. Voyage expenses include port charges, bunker (fuel oil
and diesel oil) expenses, canal charges and other commissions. The
Company includes the TCE rate, a non-GAAP measure, as it believes
it provides additional meaningful information in conjunction with
net revenues from vessels, the most directly comparable U.S. GAAP
measure, and because it assists the Company’s management in making
decisions regarding the deployment and use of the Company’s vessels
and in evaluating their financial performance. The Company’s
calculation of TCE rate may not be comparable to that reported by
other companies. The following table reconciles the Company’s net
revenues from vessels to the TCE
rate. (In thousands
of U.S. Dollars, except operating days and TCE rate)
|
Q2 2018 |
|
Q2 2017 |
|
6M 2018 |
|
6M 2017 |
Net revenues from
vessels |
16,820 |
|
18,372 |
|
38,142 |
|
31,694 |
Less: Voyage
expenses |
7,970 |
|
8,711 |
|
17,732 |
|
16,629 |
Net operating
revenues |
8,850 |
|
9,661 |
|
20,410 |
|
15,065 |
Operating days |
999 |
|
940 |
|
1,987 |
|
1,825 |
TCE rate |
8,859 |
|
10,278 |
|
10,272 |
|
8,255 |
(6) Vessel operating expenses include crew
costs, provisions, deck and engine stores, lubricants, insurance,
maintenance and repairs. Daily Vessel Operating Expenses are
calculated by dividing vessel operating expenses by ownership days
for the relevant time periods. The Company’s calculation of daily
vessel operating expenses may not be comparable to that reported by
other companies. The following table reconciles the Company’s
vessel operating expenses to daily vessel operating
expenses. (In
thousands of U.S. Dollars, except ownership days and Daily Vessel
Operating Expenses)
|
Q2 2018 |
Q2 2017 |
6M 2018 |
6M 2017 |
Vessel operating
expenses |
5,247 |
4,613 |
10,310 |
8,796 |
Less: Pre-delivery
expenses |
- |
303 |
- |
322 |
Vessel operating
expenses before pre-delivery expenses |
5,247 |
4,310 |
10,310 |
8,474 |
Ownership days |
1,001 |
940 |
1,991 |
1,840 |
Daily Vessel Operating
Expenses |
5,242 |
4,585 |
5,178 |
4,605 |
EBITDA Reconciliation:
(In thousands of U.S. Dollars)
|
Q2 2018 |
|
Q2 2017 |
|
6M 2018 |
|
6M 2017 |
|
Net loss |
(8,867) |
|
(3,305) |
|
(12,309) |
|
(9,590) |
|
Add: Net interest and finance cost |
7,789 |
|
4,097 |
|
12,929 |
|
7,693 |
|
Add: Taxes |
(11) |
|
(4) |
|
(11) |
|
- |
|
Add: Depreciation and amortization |
2,961 |
|
2,759 |
|
5,900 |
|
5,382 |
|
EBITDA |
1,872 |
|
3,547 |
|
6,509 |
|
3,485 |
|
Earnings Before Interest, Taxes, Depreciation
and Amortization ("EBITDA") represents the sum of net income /
(loss), interest and finance costs, interest income, depreciation
and amortization and, if any, income taxes during a period. EBITDA
is not a recognized measurement under U.S. GAAP.
EBITDA is presented as we believe that this
measure is useful to investors as a widely used means of evaluating
operating profitability. EBITDA as presented here may not be
comparable to similarly titled measures presented by other
companies. This non-GAAP measure should not be considered in
isolation from, as a substitute for, or superior to, financial
measures prepared in accordance with U.S. GAAP.
Second Quarter 2018 Developments:
Relaxation on Loan Facilities and
Covenant Deferrals
On April 30, 2018, the Company agreed
proactively with UniCredit Bank (i) to temporarily relax the
minimum security cover undertaking until June 2019 and (ii) to
temporarily amend and relax until June 2019 certain other financial
covenants contained in its senior secured loan facility dated
September 11, 2015, as this has been further amended.
On May 18, 2018, the Company agreed proactively
with Amsterdam Trade Bank to temporarily amend and relax until June
2019 certain of its financial covenants contained in its senior
secured loan facility dated May 24, 2017, as amended and restated
on September 25, 2017.
On June 29, 2018, the Company agreed with Alpha
Bank (i) to temporarily waive and defer the application date of the
security requirement undertaking until March 2021 and (ii) to
temporarily amend and relax until June 2019 certain other financial
covenants contained in its senior secured loan facilities dated
March 6, 2015 and November 4, 2015, respectively, as these have
been further amended.
The Company is in compliance with all the
covenants under its loan facilities.
Refinancing of the M/V Lordship and M/V
Knightship
New Loan Facility
On June 11, 2018, the Company entered into a
$24.5 million loan agreement for the purpose of refinancing the
outstanding indebtedness of M/V Lordship under the previous loan
facility with Northern Shipping Funds dated November 28, 2016. The
earliest maturity date of the new facility is in June 2023, which
can be extended until June 2025 subject to certain conditions.
Sale and Leaseback
Transaction
On June 28, 2018, the Company has entered into a
$26.5 million sale and leaseback transaction for the M/V Knightship
with a major Chinese leasing institution for the purpose of
refinancing the outstanding indebtedness of M/V Knightship under
the previous loan facility with Northern Shipping Funds dated
November 28, 2016. Seanergy sold and chartered back the vessel on a
bareboat basis for an eight year period, having a purchase
obligation at the end of the eighth year. The Company has the
option to repurchase M/V Knightship at any time following the
second anniversary of the bareboat charter party.
Following these two transactions, the aggregate
amount of capital released was approximately $10 million.
Shelf Registration Statement Replacement:
The Company intends to file today a shelf
registration statement on Form F-3 which will replace, if it is
declared effective by the Securities and Exchange Commission, the
Company’s current shelf registration statement on Form F-3 (File
No. 333-205301) which would otherwise expire on August 14, 2018. At
this time, the Company has no plans to offer securities under
either shelf registration statement. Any determination to
offer securities in the future will be subject to market conditions
and approval by the Company's Board of Directors.
|
|
Seanergy Maritime Holdings
Corp.Unaudited Condensed Consolidated Balance Sheets(In
thousands of U.S. Dollars) |
|
|
|
|
|
June 30, 2018 |
|
|
December 31, 2017* |
|
ASSETS |
|
|
|
|
|
|
Cash and
restricted cash |
|
12,998 |
|
|
11,039 |
|
Vessels,
net |
|
249,344 |
|
|
254,730 |
|
Other
assets |
|
12,950 |
|
|
9,936 |
|
TOTAL
ASSETS |
|
275,292 |
|
|
275,705 |
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Bank debt
and other financial liabilities |
|
199,023 |
|
|
195,021 |
|
Convertible promissory note |
|
8,869 |
|
|
6,785 |
|
Due to
related parties |
|
19,346 |
|
|
17,342 |
|
Other
liabilities |
|
19,420 |
|
|
15,244 |
|
Stockholders’ equity |
|
28,634 |
|
|
41,313 |
|
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
275,292 |
|
|
275,705 |
|
|
|
|
|
|
|
|
*Derived from the audited consolidated financial statements as
of the period as of that date
|
|
|
|
|
|
Seanergy Maritime Holdings
Corp.Unaudited Condensed Consolidated Statements of
Operations (In thousands of U.S. Dollars, except for share and
per share data, unless otherwise stated) |
|
|
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
|
2018 |
|
2017 |
|
2018 |
|
|
2017 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Vessel
revenue, net |
|
16,820 |
|
18,372 |
|
38,142 |
|
|
31,694 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
Voyage
expenses |
|
(7,970 |
) |
(8,711 |
) |
(17,732 |
) |
|
(16,629 |
) |
|
Vessel
operating expenses |
|
(5,247 |
) |
(4,613 |
) |
(10,310 |
) |
|
(8,796 |
) |
|
Management fees |
|
(264 |
) |
(248 |
) |
(528 |
) |
|
(488 |
) |
|
General
and administrative expenses |
|
(1,451 |
) |
(1,230 |
) |
(3,003 |
) |
|
(2,269 |
) |
|
Depreciation and amortization |
|
(2,961 |
) |
(2,759 |
) |
(5,900 |
) |
|
(5,382 |
) |
|
Operating
(loss) / income |
|
(1,073 |
) |
811 |
|
669 |
|
|
(1,870 |
) |
|
Other
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Interest
and finance costs |
|
(7,788 |
) |
(4,098 |
) |
(12,929 |
) |
|
(7,701 |
) |
|
Other,
net |
|
(6 |
) |
(18 |
) |
(49 |
) |
|
(19 |
) |
|
Total other
expenses, net: |
|
(7,794 |
) |
(4,116 |
) |
(12,978 |
) |
|
(7,720 |
) |
|
Net
loss |
|
(8,867 |
) |
(3,305 |
) |
(12,309 |
) |
|
(9,590 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
common share, basic |
|
(0.24 |
) |
(0.09 |
) |
(0.33 |
) |
|
(0.27 |
) |
|
Weighted average number
of common shares outstanding, basic |
|
37,021,770 |
|
36,133,155 |
|
36,949,832 |
|
|
35,217,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is an
international shipping company that provides marine dry bulk
transportation services through the ownership and operation of dry
bulk vessels. The Company currently operates a modern fleet of
eleven dry bulk carriers, consisting of nine Capesizes and two
Supramaxes, with a combined cargo-carrying capacity of
approximately 1,682,582 dwt and an average fleet age of about 9.3
years.
The Company is incorporated in the Marshall
Islands with executive offices in Athens, Greece and an office in
Hong Kong. The Company's common shares and class A warrants trade
on the Nasdaq Capital Market under the symbols “SHIP” and “SHIPW”,
respectively.
Please visit our company website at:
www.seanergymaritime.com
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended) concerning future events. Words such as "may",
"should", "expects", "intends", "plans", "believes", "anticipates",
"hopes", "estimates" and variations of such words and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks and are based upon
a number of assumptions and estimates, which are inherently subject
to significant uncertainties and contingencies, many of which are
beyond the control of the Company. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, the Company's ability
to continue as a going concern; the Company's operating or
financial results; the Company's liquidity, including its ability
to pay amounts that it owes and obtain additional financing in the
future to fund capital expenditures, acquisitions and other general
corporate activities; competitive factors in the market in which
the Company operates; shipping industry trends, including charter
rates, vessel values and factors affecting vessel supply and
demand; future, pending or recent acquisitions and dispositions,
business strategy, areas of possible expansion or contraction, and
expected capital spending or operating expenses; risks associated
with operations outside the United States; and other factors listed
from time to time in the Company's filings with the SEC, including
its most recent annual report on Form 20-F. The Company's filings
can be obtained free of charge on the SEC's website at www.sec.gov.
Except to the extent required by law, the Company expressly
disclaims any obligations or undertaking to release publicly any
updates or revisions to any forward-looking statements contained
herein to reflect any change in the Company's expectations with
respect thereto or any change in events, conditions or
circumstances on which any statement is based.
For further information please
contact:Capital Link, Inc.Paul Lampoutis230 Park Avenue
Suite 1536New York, NY 10169Tel: (212) 661-7566E-mail:
seanergy@capitallink.com
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