Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP)
announced today that it has entered into a time charter agreement
(“T/C”) with Glencore for an additional Capesize vessel.
Furthermore, another Capesize vessel of the Company is extending
its current time charter contract.
M/V Knightship
The M/V Knightship will be the third of the
Company’s vessels time-chartered by ST Shipping and Transport Pte.
Ltd., a fully owned subsidiary of Glencore plc, a leading
multinational commodity trading and mining company. The M/V
Knightship is following the M/V Premiership and the M/V Squireship,
which were delivered to ST Shipping in the fourth quarter of 2019.
The T/C will commence immediately upon completion of scrubber
installation on the M/V Knightship, which is expected by the end of
May 2020, and will extend for a period of 36 to 42 months1. The
daily hire of the T/C will be based on the 5 T/C routes of the
Baltic Capesize Index (“BCI”).
The charterer will compensate the Company for
100% of the scrubber investment, including equipment and
installation cost as well as for the associated off-hire days. In
addition to the daily hire, the Company will be entitled to
additional revenue (profit-sharing) above a certain spread between
the price of High and Low Sulphur Fuel Oil throughout the term of
the charter.
M/V Gloriuship
The charterer of the M/V Gloriuship, which is a
major Asian dry bulk operator, has agreed to extend the initial 4
to 7-month T/C for an additional period of 10 to 14 months,
commencing as of April 23, 2020. The daily hire is based on the 5
T/C routes of the BCI. Seanergy has the option to convert the
contract from floating to fixed for a minimum period of three
months under certain conditions2.
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“We are pleased to further expand our
relationship with Glencore through a third vessel under a
commercial arrangement that Seanergy has pioneered in the sector.
Our unique expertise was developed through the previous five
successful commercial agreements with three prominent dry bulk
charterers.
Most importantly, following the delivery of the
Knightship to the subject charterer, 70% percent of our fleet will
be employed under index-linked time-charters. The relevant time
charter equivalent of the Baltic Capesize Index has increased by
260% from its lowest point seen two months ago.
Based on the improving market fundamentals, as
further driven by the worldwide economic stimulus offered to ease
the Covid-19 impact, we believe that our fleet is well-positioned
to capture the full upside potential of the rising trend in the
Capesize market.”
Fleet Employment Profile
Vessel Name |
Year Built |
Dwt |
Flag |
Yard |
Type of Employment |
Fellowship |
2010 |
179,701 |
MI |
Daewoo |
Spot |
Championship |
2011 |
179,238 |
MI |
Sungdong |
T/C Index Linked(1) |
Partnership |
2012 |
179,213 |
MI |
Hyundai |
T/C Index Linked(2) |
Knightship |
2010 |
178,978 |
LIB |
Hyundai |
T/C Index Linked(3) |
Lordship |
2010 |
178,838 |
LIB |
Hyundai |
T/C Index Linked(4) |
Gloriuship |
2004 |
171,314 |
MI |
Hyundai |
T/C Index Linked(5) |
Leadership |
2001 |
171,199 |
BA |
Koyo-Imabari |
Spot |
Geniuship |
2010 |
170,058 |
MI |
Sungdong |
Spot |
Premiership |
2010 |
170,024 |
IoM |
Sungdong |
T/C Index Linked(6) |
Squireship |
2010 |
170,018 |
LIB |
Sungdong |
T/C Index Linked(7) |
|
|
|
|
|
|
(1) This vessel is being chartered by Cargill.
The vessel was delivered to the charterer on November 7, 2018 for a
period of employment of 60 months, with an additional period of 24
to 27 months at the charterer’s option. The net daily charter hire
is calculated at an index linked rate based on the 5 T/C routes of
the BCI. In addition, the time charter provides us with the option
to convert the index linked rate to a fixed rate for a period of
between 3 and 12 months priced at the then prevailing Capesize
Forward Freight Agreement rate (“FFA”) for the selected period.
(2) This vessel is being chartered by a major
European utility and energy company and was delivered to the
charterer on September 11, 2019, for a period of minimum 33 to
maximum 37 months with an optional period of about 11 to maximum 13
months. The net daily charter hire is calculated at an index linked
rate based on the 5 T/C routes rate of the BCI. In addition, the
time charter provides us an option for any period of time during
the hire to be converted into a fixed rate time charter, between 3
months and 12 months, with a rate corresponding to the prevailing
value of the respective Capesize FFA for the selected period.
(3) This vessel will be chartered by Glencore,
commencing within May 2020 for a period of minimum 36 to maximum 42
months with two optional periods of about 11 to maximum 13 months.
The net daily charter hire is calculated at an index linked rate
based on the 5 T/C routes rate of the BCI.
(4) This vessel is being chartered by a major
European utility and energy company and was delivered to the
charterer on August 4, 2019, for a period of minimum 33 to maximum
37 months with an optional period of about 11 to maximum 13 months.
The net daily charter hire is calculated at an index linked rate
based on the 5 T/C routes rate of the BCI. In addition, the time
charter provides us an option for any period of time during the
hire to be converted into a fixed rate time charter, between 3
months and 12 months, with a rate corresponding to the prevailing
value of the respective Capesize FFA for the selected period.
(5) This vessel is being chartered by a dry bulk
charter operator and was delivered to the charterer on April 23,
2020 for a period of minimum 10 to maximum 14 months. The net daily
charter hire is calculated at an index linked rate based on the
five T/C routes of the BCI.
(6) This vessel is being chartered by Glencore
and was delivered to the charterer on November 29, 2019 for a
period of minimum 36 to maximum 42 months with two optional periods
of about 11 to maximum 13 months. The net daily charter hire is
calculated at an index linked rate based on the 5 T/C routes rate
of the BCI.
(7) This vessel is being chartered by Glencore
and was delivered to the charterer on December 19, 2019 for a
period of minimum 36 to maximum 42 months with two optional periods
of about 11 to maximum 13 months. The net daily charter hire is
calculated at an index linked rate based on the 5 T/C routes rate
of the BCI.
About Seanergy Maritime Holdings
Corp.
Seanergy Maritime Holdings Corp. is the only
pure-play Capesize ship-owner publicly listed in the US. 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 11 years. The Company is incorporated in the Marshall
Islands and has 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 the Registration Statement and 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.
________________________________
1 The agreement can be extended for two additional
periods of 11 to 13 months each at the charterer’s option
2 The charter can be converted into a fixed rate
time charter, between 3 months and 12 months, with a rate
corresponding to the prevailing value of the respective Capesize
Forward Freight Agreement (“FFA”) for the selected period,
conditioned on availability of the relevant FFA market
For further information please
contact: Capital Link, Inc. Judit Csepregi 230 Park Avenue
Suite 1536 New York, NY 10169 Tel: (212) 661-7566 E-mail:
seanergy@capitallink.com
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