Seanergy Maritime Holdings Corp. Announces Successful Completion of its IMO 2020 Compliance Plan
February 10 2020 - 9:00AM
Seanergy Maritime Holdings Corp. (“Seanergy” or the “Company”)
(NASDAQ: SHIP), announced today the successful completion of its
IMO 2020 compliance plan. As of the date of this release, the
Company has retrofitted five Capesize vessels, or 50% of its owned
fleet, with scrubbers. The costs of the scrubber program were borne
by the vessels’ charterers under long-term time charters which the
Company entered into in 2018 and 2019, with the last of these
charters commencing on schedule on December 19, 2019.
A. Scrubber
Fitted Vessels
All scrubber systems installed are open loop
type, U-Type design, built by Hyundai Materials Corporation of S.
Korea and have the capacity to comply with the stricter 0.1%
sulphur fuel content limit applicable in the Environmentally
Controlled Areas (“ECA”). The installations took place at Yiu Lian
shipyard in Zhoushan, China.
The costs of the acquisition and installation of
the scrubbers, as well as the largest part of the associated
off-hires incurred in 2019, were borne by the charterers. The
settlement of the relevant costs by the charterers was made either
in the form of immediate reimbursement of the expenses incurred or
fixed premiums over the daily index-linked charter hire.
The charterers consist of global commodities
traders and utilities companies. The duration of the underlying
time charters ranges between three and five years at rates based on
the Baltic Capesize Index. In addition to the daily hire, there is
a profit-sharing element based on the fuel spread.
The total investment by the charterers in
Seanergy’s vessels exceeded $14 million.
B.
Non-Scrubber Fitted Vessels
During the second half of 2019, the Company
procured sufficient quantity of MGO at competitive pricing in order
to cover the needs of the five non-scrubber fitted vessels for the
majority of the first quarter of 2020. The proactive procurement of
0.1% sulphur content fuel oil ensured the seamless compliance of
the Company’s non-scrubber fitted vessels with the IMO 2020
regulation while providing for a natural hedge against the adverse
movements in the price of compliant fuel oils.
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“The completion of the scrubber installations
and timely delivery of all ships under the respective period
charters, as well as the proactive procurement of compliant fuel
for our non-scrubber fitted ships, has ensured the successful
transition of our Company into the new regulatory environment. Most
importantly, we achieved our goals as regards to the technological
and environmental quality of our fleet, while enhancing the market
value of our vessels with limited outlays from Seanergy and in
close cooperation with our strategic partners.”
About Seanergy Maritime Holdings
Corp.
Seanergy Maritime Holdings Corp. is the only
pure-play Capesize shipowner publicly listed in the United States.
Seanergy provides marine dry bulk transportation services through a
modern fleet of 10 Capesize vessels, with a cargo-carrying capacity
of approximately 1,748,581 dwt and an average fleet age of
approximately 10.9 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 trade on the Nasdaq Capital
Market under the symbol "SHIP", its Class A warrants under "SHIPW"
and its Class B warrants under “SHIPZ”.
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 operating
or financial results; the Company's liquidity, including its
ability to service its indebtedness; 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 obligation 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.Judit Csepregi230 Park Avenue
Suite 1536New York, NY 10169Tel: (212) 661-7566E-mail:
seanergy@capitallink.com
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