Seanergy Maritime Provides
Guidance
on TCE and EBITDA
January 24, 2022 – Glyfada,
Greece – Seanergy Maritime Holdings Corp. (the “Company”
or “Seanergy”) (NASDAQ: SHIP) updated its time charter equivalent
(“TCE rate”) guidance upwards for the fourth quarter of 2021,
provided preliminary TCE guidance for the first quarter of 2022, as
well as EBITDA projections for FY 2022.1 2
TCE Guidance
In the fourth quarter of 2021, the Company is
expected to exceed an average TCE rate of approximately $36,000 per
ship per day, outperforming our previously announced guidance of
$35,200 per ship per day.3
As of the date of this press release, our
estimated TCE rate for the first quarter of 2022 is expected to be
approximately $19,0004. This estimate assumes that the remaining
unfixed operating days of our index-linked vessels for this period
will be equal to the average Forward Freight Agreement (“FFA”) rate
of $13,500 per day. Our TCE guidance for the first quarter includes
certain conversions of index-linked charters to fixed, which were
concluded in the third and fourth quarter of 2021, as part of our
freight hedging strategy.
EBITDA Projections5
The following graph provides the Company’s
estimates for its EBITDA for 2022, based on various scenarios for
the average TCE for the 5 T/C routes of the Baltic Capesize Index
(“TC5” of the “BCI”).
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“As a result of our pro-active hedging strategy
in 2H21, we estimate that we will overperform the current spot
market rate by approximately 50% in the first quarter. Moreover,
our robust EBITDA generating capacity in multiple freight
environments attests to our firm belief that our shares are
currently significantly undervalued.
“Despite the seasonal market weakness, we expect
that supply and demand fundamentals will result in a strong
recovery of Capesize rates within the following months. Our solid
balance sheet, modern fleet and strong relationships with world
leading charterers in combination with our substantial operating
leverage place Seanergy in an optimal position to generate strong
revenues and profitability in an improving charter rate
environment.”
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 Capesize vessels. The Company's operating fleet consists
of 17 Capesize vessels with an average age of 11.7 years and
aggregate cargo carrying capacity of approximately 3,011,083
dwt.
The Company is incorporated in the Marshall
Islands and has executive offices in Glyfada, Greece. The Company's
common shares trade on the Nasdaq Capital Market under the symbol
“SHIP” and its Class B warrants under “SHIPZ”.
Please visit our company website at:
www.seanergymaritime.com.
Note Regarding Non-U.S. GAAP Financial
Measures
The Company reports its financial results in
accordance with U.S. generally accepted accounting principles
(“U.S. GAAP”). EBITDA and TCE rate are non-GAAP financial
measures.
Earnings Before Interest, Taxes, Depreciation
and Amortization ("EBITDA") represents the sum of net income /
(loss) (the most directly comparable U.S. GAAP measure), 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.
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.
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; risks
associated with the length and severity of the ongoing novel
coronavirus (COVID-19) outbreak, including its effects on demand
for dry bulk products and the transportation thereof; 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:
Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr
Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com
1 EBITDA and TCE rate are non-GAAP measures. Please see the
discussion above under the heading “Note Regarding Non-U.S. GAAP
Financial Measures” for more information. 2 Guidance is provided
for TCE rate and EBITDA on a non-U.S. GAAP basis only, because
information regarding various items necessary to determine net
revenue from vessels and net income / (loss), the most directly
comparable financial measures calculated and presented in
accordance with U.S. GAAP for TCE rate and EBITDA, respectively, on
a forward looking basis is unavailable due to the uncertainty and
inherent difficulty of predicting the occurrence and the future
financial statement impact of such items, including, but not
limited to, voyage expenses, stock-based compensation and the
non-recurring gain on sale of vessel and gain on debt refinancing,
and certain non-ordinary course matters. Because of the uncertainty
and variability of the nature and amount of such items, which could
be significant, the Company is unable to provide a quantitative
reconciliation of the differences between expected TCE rate and
EBITDA and the most directly comparable financial measures
calculated and presented in accordance with U.S. GAAP without
unreasonable efforts. The unavailable reconciling items could
significantly affect the Company’s financial results for the
periods discussed on a forward-looking basis herein. 3 The Company
has not finalized its financial statement closing process for the
fourth quarter. During the course of that process, the Company may
identify items that would require it to make adjustments, including
possible material adjustments to these preliminary results. 4 This
guidance is based on certain assumptions, including projected
utilization, and there can be no assurance that these assumptions
and the resulting TCE estimates will be realized. TCE estimates
include certain floating (index) to fixed rate conversions
concluded in previous periods. For vessels on index-linked T/Cs,
the TCE realized will vary with the underlying index, and for the
purposes of this guidance, the TCE assumed for the remaining
operating days of an index-linked T/C is equal to the average FFA
rate of approximately $13,500 per day for the remaining days of the
first quarter of 2022 based on the FFA curve as of January 19,
2022. 5 These projections are based on certain assumptions,
including no change to the current composition of our fleet, fleet
utilization or commissions and expenses, including operating and
general & administrative expenses, based on the historical
performance of the Company in the first nine months of 2021. EBITDA
projections exclude extraordinary items such as gain/loss on vessel
sales, loan refinancing etc. There can be no assurance that these
assumptions and the resulting projections will be realized. As a
result, the above projections constitute forward-looking statements
and are subject to risks and uncertainties, including possible
material adjustments to the projections disclosed. The Company is
providing this information on a one-time basis only, subject to
these assumptions, risks and uncertainties, and does not intend to
update this information.
- 2022-1-24_SHIP_TCE EBITDA guidance
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