Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP),
announced today its financial results for the fourth quarter and
twelve months ended December 31, 2021. The Company also announced
$5 million additional repurchases of its outstanding 5.5%
convertible note and declared a quarterly dividend of $0.025 per
share and a special dividend of $0.025 per share.
For the quarter ended December 31, 2021, the
Company generated net revenues of $56.7 million, a 166% increase
compared to the fourth quarter of 2020. Adjusted EBITDA for the
quarter was $38.8 million, from $8.3 million in the same period of
2020. Adjusted net income for the quarter was $27.9 million,
compared to net loss of $2.3 million in the fourth quarter of 2020.
The daily Time Charter Equivalent rate (“TCE rate”)2 of the fleet
for the fourth quarter of 2021 was $36,642, marking a 122% increase
compared to $16,511 for the same period of 2020.
For the twelve-month period ended December 31,
2021, net revenues were $153.1 million, increased by 142% when
compared to $63.3 million in the same period of 2020. Adjusted
EBITDA for the twelve months of 2021 was $90.1 million, compared to
an adjusted EBITDA of $15.6 million in the same period of 2020. The
daily TCE of the fleet for the twelve months of 2021 was $27,399
compared to $11,950 in the twelve months of 2020. The average daily
OPEX was $6,211, compared to $5,709 in the respective period of
2020.
Cash and cash-equivalents, restricted cash, term
deposits, as of December 31, 2021, stood at $47.1 million, compared
to $23.7 million as of December 31, 2020. Shareholders’ equity at
the end of the fourth quarter was $244.5 million, compared to $95.7
million on December 31, 2020. Long-term debt (senior and junior
loans and other financial liabilities) net of deferred charges
stood at $215.2 million as of December 31, 2021, increased from
$169.8 million as of the end of 2020. In the same period, the book
value of our fleet increased by 66% to $426.1 million from $256.7
million.______________1 Adjusted EPS, Adjusted Net Income, EBITDA
and Adjusted EBITDA are non-GAAP measures. Please see the
reconciliation below of Adjusted EPS, Adjusted Net Income, EBITDA
and adjusted EBITDA to net income the most directly comparable U.S.
GAAP measure.2 TCE rate is a non-GAAP measure. Please see the
reconciliation below of TCE rate to net revenues from vessels, the
most directly comparable U.S. GAAP measure.
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“Seanergy reported its strongest operational
year in 2021, earning an adjusted net income of $53.3 million, an
adjusted EBITDA of $90.1 million on net revenue of $153.1 million.
In Q4 2021, our fleet TCE was $36,642 and our estimated TCE for the
first quarter of 2022 is $19,475. Despite the seasonal softening
experienced in the first months of 2022, for which we were
proactively hedged, the market is already trending higher.
“Consistent with our stated intention to return
capital to our shareholders, our board of directors has initiated a
regular quarterly dividend of $0.025 per share for the fourth
quarter of 2021. In addition, based on the strong financial
performance of Q4 2021 we are also declaring a special dividend of
$0.025 per share. As a result, the Company will be paying a
dividend of $0.05 per share for the fourth quarter of 2021 to all
shareholders of record as of March 25, 2022. The fourth quarter
dividend of $8.9 million and the $26.7 million in buybacks of
convertible notes, warrants and common shares represent an
aggregate of $35.6 million in shareholder-rewarding initiatives
that Seanergy’s board of directors undertook over the last 4
months. While the amount and timing of any future dividend payments
remains subject to the discretion of our board of directors and
will be based on our results, investment opportunities and overall
market conditions, we remain committed to continue distributing a
significant portion of our earnings to our shareholders.
“In 2021 we successfully executed a substantial
fleet growth program. Despite the Covid-related hindrance we took
delivery of seven high-quality Japanese Capesize vessels, reducing
the average age of our fleet. Investment in vessel acquisitions in
2021 totalled approximately $193.2 million.
“Moreover, we have entered into eleven new
time-charter agreements with leading charterers in the Capesize
sector and all our fleet operates under period employment
agreements. We strongly believe this to be the optimal commercial
positioning of our fleet.
“On the buyback front, since the fourth quarter
of 2021, we have completed a total of $21.7 million in buybacks of
convertible notes, warrants and common shares, while an additional
prepayment of $5.0 million of convertible note, was effected on
March 10, 2022. The ultimate effect of our buyback program will be
the prevention of potential dilution by 25.95 million shares. This
reflects our firm belief that our share price continues to be
significantly undervalued. As previously announced, in 2021 I
continued my open-market purchases of Seanergy’s shares, which
indicates my strong confidence in the Company.
“New financings and refinancings since the
beginning of 2021 total $170.5 million. All transactions concluded
in 2021 and to date underscore our stated intention to optimize the
capital structure and further reduce our financing expense. In the
fourth quarter of 2021 and in the first quarter to-date, we have
concluded three new financings of approximately $53.15 million. The
new financings include our first sustainability-linked loan in
Greece, as well as two transactions with prominent lenders in
Taiwan and Japan, strengthening Seanergy’s footing in the Asian
ship-financing market. In the same period, we prepaid $50.6 million
of our existing financings, including legacy high-coupon
facilities, all junior loans and a large part of the convertible
notes. The weighted average interest rate across our indebtedness
has seen a significantly year-over-year reduction of 128 basis
points.
“Regarding our ESG initiatives, we primarily
continue to execute on the installation of Energy Saving Devices
(“ESDs”) on vessels undergoing scheduled dry-docking. In most cases
the selection of the ESDs is done in cooperation with the
underlying charterers, following agreement to adjust the
index-linked rate to reflect the improved performance of the
vessels. At the same time, we have completed biofuel trials in
cooperation with two of our closest charterers. The Company’s first
ESG report, analyzing material actions that Seanergy has
successfully completed to date, as well as the targets set going
forward, will be released within 2022.
“Over the past months we have successfully
executed on a number of strategic initiatives, which have resulted
in Seanergy’s transformation into one of the leading Capesize
players in the U.S. capital markets.
“Our outlook for the Capesize market is very
positive based on the strong supply-demand fundamentals. Firstly,
the record low orderbook coupled with the upcoming environmental
regulations, will significantly limit vessel supply. Secondly, the
global energy supply shortages, as well as the worldwide stimuli
and infrastructure projects will strongly support demand for dry
bulk shipping. Given Seanergy’s significant operating leverage, we
are well positioned to capitalise on the favourable dynamics of our
sector.”
Company
Fleet:
Vessel Name |
Vessel Class |
Capacity (DWT) |
Year Built |
Yard |
Scrubber Fitted |
Employment Type |
FFAconversion option(18) |
EarliestT/Cexpiration |
Patriotship |
Capesize |
181,709 |
2010 |
Imabari |
Yes |
T/C – fixed rate(1) |
- |
06/2022 |
Worldship |
Capesize |
181,415 |
2012 |
Koyo - Imabari |
Yes |
T/C – fixed rate(2) |
- |
09/2022 |
Hellasship |
Capesize |
181,325 |
2012 |
Imabari |
- |
T/C Index Linked(3) |
- |
04/2022 |
Fellowship |
Capesize |
179,701 |
2010 |
Daewoo |
- |
T/C Index Linked(4) |
Yes |
06/2022 |
Championship |
Capesize |
179,238 |
2011 |
Sungdong SB |
Yes |
T/C Index Linked(5) |
Yes |
11/2023 |
Partnership |
Capesize |
179,213 |
2012 |
Hyundai |
Yes |
T/C Index Linked(6) |
Yes |
06/2022 |
Knightship |
Capesize |
178,978 |
2010 |
Hyundai |
Yes |
T/C Index Linked(7) |
- |
05/2023 |
Lordship |
Capesize |
178,838 |
2010 |
Hyundai |
Yes |
T/C Index Linked(8) |
Yes |
05/2022 |
Goodship |
Capesize |
177,536 |
2005 |
Mitsui |
- |
T/C Index Linked(9) |
Yes |
08/2022 |
Friendship |
Capesize |
176,952 |
2009 |
Namura |
- |
T/C Index Linked(10) |
- |
12/2022 |
Tradership |
Capesize |
176,925 |
2006 |
Namura |
- |
T/C Index Linked(11) |
Yes |
05/2022 |
Flagship |
Capesize |
176,387 |
2013 |
Mitsui |
- |
T/C Index Linked(12) |
Yes |
05/2026 |
Gloriuship |
Capesize |
171,314 |
2004 |
Hyundai |
- |
T/C Index Linked(13) |
Yes |
12/2022 |
Geniuship |
Capesize |
170,057 |
2010 |
Sungdong SB |
- |
T/C Index Linked(14) |
Yes |
01/2023 |
Premiership |
Capesize |
170,024 |
2010 |
Sungdong SB |
Yes |
T/C Index Linked(15) |
- |
11/2022 |
Squireship |
Capesize |
170,018 |
2010 |
Sungdong SB |
Yes |
T/C Index Linked(16) |
- |
12/2022 |
Dukeship |
Capesize |
181,453 |
2010 |
Sasebo |
- |
T/C Index Linked(17) |
Yes |
12/2022 |
Total / Average age |
|
3,011,083 |
12 |
|
|
|
|
|
(1) |
Chartered by a European cargo operator and delivered to the
charterer on June 7, 2021 for a period of about 12 to about 18
months. The daily charter hire is fixed at $31,000. |
|
|
(2) |
Chartered by a U.S. commodity
trading company and delivered to the charterer on September 2, 2021
for a period of about 12 to about 16 months. The daily charter hire
is fixed at $31,750. |
|
|
(3) |
Chartered by NYK and delivered
to the charterer on May 10, 2021 for a period of minimum 11 to
maximum 15 months. The daily charter hire is based on the BCI. |
|
|
(4) |
Chartered by Anglo American, a
leading global mining company, and delivered to the charterer on
June 18, 2021 for a period of minimum 12 to about 15 months. The
daily charter hire is based on the BCI. |
|
|
(5) |
Chartered by Cargill and
delivered to the charterer on November 7, 2018 for a period of
employment of 60 months, with an additional period of about 16 to
about 18 months. The daily charter hire is based on the BCI plus a
net daily scrubber premium of $1,740. |
|
|
(6) |
Chartered by a major European
utility and energy company and delivered to the charterer on
September 11, 2019 for a period of minimum 33 to maximum 37 months
with two optional periods of about 11 to maximum 13 months. The
daily charter hire is based on the BCI. |
|
|
(7) |
Chartered by Glencore and
delivered to the charterer on May 15, 2020 for a period of about 36
to about 42 months with two optional periods of 11 to 13 months.
The daily charter hire is based on the BCI. |
|
|
(8) |
Chartered by a major European
utility and energy company and delivered 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 daily charter hire is based
on the BCI. |
|
|
(9) |
Chartered by an international
commodities trader and delivered to the charterer on November 12,
2021 for a period of about 9 to about 12 months. The daily charter
hire is based on the BCI. |
|
|
(10) |
Chartered by NYK and delivered
to the charterer on July 29, 2021 for a period of minimum 17 to
maximum 24 months. The daily charter hire is based on the BCI. |
|
|
(11) |
Chartered by a major South
Korean industrial company and delivered to the charterer on June
15, 2021 for a period employment of minimum 11 to about 15 months.
The daily charter hire is based on the BCI. |
|
|
(12) |
Chartered by Cargill. The
vessel was delivered to the charterer on May 10, 2021 for a period
of 60 months. The daily charter hire is based at a premium over the
BCI minus $1,325 per day. |
|
|
(13) |
Chartered by Pacbulk Shipping
and delivered to the charterer on April 23, 2020 for a period of
about 11 to about 15 months. In December 2021, the T/C was further
extended until minimum December 16, 2022, up to maximum April 15,
2023. The daily charter hire is based on the BCI. |
|
|
(14) |
Chartered by NYK and delivered
to the charterer on February 5, 2022 for a period of about 11 to
about 15. The daily charter hire is based on the BCI. |
|
|
(15) |
Chartered by Glencore and
delivered to the charterer on November 29, 2019 for a period of
minimum 36 to maximum 42 months with two optional periods of
minimum 11 to maximum 13 months. The daily charter hire is based on
the BCI plus a net daily scrubber premium of $2,055. |
|
|
(16) |
Chartered by Glencore and
delivered to the charterer on December 19, 2019 for a period of
minimum 36 to maximum 42 months with two optional periods of
minimum 11 to maximum 13 months. The daily charter hire is based on
the BCI plus a net daily scrubber premium of $2,055. |
|
|
(17) |
Chartered by NYK and delivered
to the charterer on December 1, 2021 for a period of about 13 to
about 18 months. The daily charter hire is based on the BCI. |
|
|
(18) |
The Company has the option to
convert the index-linked rate to a fixed one for a period ranging
between 2 and 12 months, based on the prevailing Capesize FFA Rate
for the selected period. |
|
|
Fleet Data:
(U.S. Dollars in thousands)
|
Q4 2021 |
|
Q4 2020 |
|
FY 2021 |
|
FY 2020 |
|
Ownership days (1) |
|
1,508 |
|
|
1,012 |
|
|
5,140 |
|
|
3,807 |
|
Operating days (2) |
|
1,493 |
|
|
1,010 |
|
|
4,987 |
|
|
3,747 |
|
Fleet utilization (3) |
|
99.0 |
% |
|
99.8 |
% |
|
97.0 |
% |
|
98.4 |
% |
TCE rate (4) |
$ |
36,642 |
|
$ |
16,511 |
|
$ |
27,399 |
|
$ |
11,950 |
|
Daily Vessel Operating Expenses (5) |
$ |
7,184 |
|
$ |
6,087 |
|
$ |
6,211 |
|
$ |
5,709 |
|
(1) |
Ownership days
are the total number of calendar days in a period during which the
vessels in a fleet have been owned or chartered in. 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) |
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. |
|
|
(3) |
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. |
|
|
(4) |
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)
|
Q4 2021 |
|
Q4 2020 |
|
FY 2021 |
|
FY 2020 |
Net revenues from vessels |
|
56,699 |
|
|
21,313 |
|
|
153,108 |
|
|
63,345 |
Less: Voyage expenses |
|
1,992 |
|
|
4,637 |
|
|
16,469 |
|
|
18,567 |
Net operating revenues |
|
54,707 |
|
|
16,676 |
|
|
136,639 |
|
|
44,778 |
Operating days |
|
1,493 |
|
|
1,010 |
|
|
4,987 |
|
|
3,747 |
TCE rate |
$ |
36,642 |
|
$ |
16,511 |
|
$ |
27,399 |
|
$ |
11,950 |
(5) |
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)
|
Q4 2021 |
|
Q4 2020 |
|
FY 2021 |
|
FY 2020 |
Vessel operating expenses |
|
11,862 |
|
|
6,206 |
|
|
36,332 |
|
|
22,347 |
Less: Pre-delivery
expenses |
|
1,029 |
|
|
46 |
|
|
4,410 |
|
|
611 |
Vessel operating expenses
before pre-delivery expenses |
|
10,833 |
|
|
6,160 |
|
|
31,922 |
|
|
21,736 |
Ownership days |
|
1,508 |
|
|
1,012 |
|
|
5,140 |
|
|
3,807 |
Daily Vessel Operating
Expenses |
$ |
7,184 |
|
$ |
6,087 |
|
$ |
6,211 |
|
$ |
5,709 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income / (Loss) to EBITDA and Adjusted EBITDA
Reconciliation:
(In thousands of U.S. Dollars)
|
Q4 2021 |
|
Q4 2020 |
|
FY 2021 |
|
FY 2020 |
|
Net income/(loss) |
20,644 |
|
(2,319 |
) |
41,348 |
|
(18,356 |
) |
Add: Net interest and finance cost |
4,751 |
|
6,677 |
|
17,618 |
|
23,217 |
|
Add: Depreciation and amortization |
6,117 |
|
3,897 |
|
19,944 |
|
15,040 |
|
EBITDA |
31,512 |
|
8,255 |
|
78,910 |
|
19,901 |
|
Add: Stock based compensation |
393 |
|
44 |
|
5,097 |
|
869 |
|
Less: Loss/(gain) on sale of vessel |
19 |
|
- |
|
(697 |
) |
- |
|
Add: Loss on extinguishment of debt |
6,863 |
|
- |
|
6,863 |
|
- |
|
Less: Loss/(gain) on debt refinancing |
- |
|
6 |
|
- |
|
(5,144 |
) |
Less: Gain on forward freight agreements, net |
(24 |
) |
- |
|
(24 |
) |
- |
|
Adjusted EBITDA |
38,763 |
|
8,305 |
|
90,149 |
|
15,626 |
|
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. Adjusted EBITDA
represents EBITDA adjusted to exclude stock-based compensation, the
non-recurring gain on sale of vessel and gain on debt refinancing
and gain on forward freight agreements, net, which the Company
believes are not indicative of the ongoing performance of its core
operations.
EBITDA and adjusted EBITDA are presented as we
believe that these measures are useful to investors as a widely
used means of evaluating operating profitability. EBITDA and
adjusted EBITDA as presented here may not be comparable to
similarly titled measures presented by other companies. These
non-GAAP measures should not be considered in isolation from, as a
substitute for, or superior to, financial measures prepared in
accordance with U.S. GAAP.
Net Income/(Loss) and Adjusted Net income/(Loss)
Reconciliation and calculation of Adjusted Earnings/(Loss) Per
Share
(In thousands of U.S. Dollars)
|
Q4 2021 |
|
Q4 2020 |
|
FY 2021 |
FY 2020 |
|
Net income/(loss) |
20,644 |
|
(2,319 |
) |
41,348 |
(18,356 |
) |
Add: Stock based compensation |
393 |
|
44 |
|
5,097 |
869 |
|
Add: Loss on extinguishment of debt |
6,863 |
|
- |
|
6,863 |
- |
|
Less: Loss/(gain) on debt refinancing |
- |
|
6 |
|
- |
(5,144 |
) |
Adjusted net income/(loss) |
27,900 |
|
(2,269 |
) |
53,308 |
(22,631 |
) |
Adjusted net income/(loss) per common share, basic |
0.16 |
|
(0.03 |
) |
0.35 |
(0.68 |
) |
Weighted average number of common shares outstanding, basic |
170,884,012 |
|
67,904,450 |
|
153,321,907 |
33,436,278 |
|
Adjusted net income/(loss) per common share, diluted |
0.14 |
|
(0.03 |
) |
0.28 |
(0.68 |
) |
Weighted average number of common shares outstanding, diluted |
205,228,391 |
|
67,904,450 |
|
191,337,521 |
33,436,278 |
|
To derive Adjusted Net Income/(Loss) and
Adjusted Earnings/(Loss) Per Share from Net Income/(Loss), we
exclude non-cash items, as provided in the table above. We believe
that Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per
Share assist our management and investors by increasing the
comparability of our performance from period to period since each
such measure eliminates the effects of such non-cash items as
gain/(loss) on extinguishment of debt and other items which may
vary from year to year, for reasons unrelated to overall operating
performance. In addition, we believe that the presentation of the
respective measure provides investors with supplemental data
relating to our results of operations, and therefore, with a more
complete understanding of factors affecting our business than with
GAAP measures alone. Our method of computing Adjusted Net
Income/(Loss) and Adjusted Earnings/(Loss) Per Share may not
necessarily be comparable to other similarly titled captions of
other companies due to differences in methods of calculation.
Interest and Finance Costs to Cash
Interest and Finance Costs Reconciliation:
(In thousands of U.S. Dollars)
|
Q4 2021 |
|
Q4 2020 |
|
FY 2021 |
|
FY 2020 |
|
Interest and finance costs, net |
(4,751 |
) |
(6,677 |
) |
(17,618 |
) |
(23,217 |
) |
Add: Amortization of deferred finance charges |
892 |
|
219 |
|
3,333 |
|
757 |
|
Add: Amortization of convertible note beneficial conversion
feature |
878 |
|
1,645 |
|
2,887 |
|
5,518 |
|
Add: Amortization of other deferred charges (shares issued to third
party) |
75 |
|
120 |
|
326 |
|
550 |
|
Add: Fair value of units – related party (one-off expenses relating
to financial restructuring) |
- |
|
596 |
|
- |
|
596 |
|
Cash interest and finance costs |
(2,906 |
) |
(4,097 |
) |
(11,072 |
) |
(15,796 |
) |
Add: Restructuring expenses |
(25 |
) |
1,012 |
|
22 |
|
1,012 |
|
Cash interest and finance costs, net of restructuring
expenses |
(2,931 |
) |
(3,085 |
) |
(11,050 |
) |
(14,784 |
) |
First Quarter 2022 TCE
Guidance:
As of the date hereof, approximately 90% of the
Company fleet’s expected operating days in the first quarter of
2022 have been fixed at an estimated TCE of approximately $19,844.
Assuming that for the remaining operating days of our index-linked
T/Cs, the respective vessels’ TCE will be equal to the average
Forward Freight Agreement (“FFA”) rate of approximately $17,500 per
day (based on the FFA curve of March 3, 2022), our estimated TCE
for the first quarter of 2022 will be approximately $19,4753. Our
TCE guidance for the first quarter of 2022 includes certain
conversions (5 vessels) of index-linked charters to fixed, which
were concluded in the third and fourth quarter of 2021 as part of
our freight hedging strategy. The following table provides the
break-down:
|
Operating Days |
TCE |
TCE - fixed rate (index-linked conversion) |
244 |
$26,512 |
TCE - fixed rate |
269 |
$28,764 |
TCE - index linked unhedged |
964 |
$15,209 |
Total / Average |
1,477 |
$19,475 |
Fourth Quarter and Recent Developments:
Buybacks of Convertible Notes, Warrants
and Common Shares
(A) $17 million Repurchase Plan of August 10,
2021: Completed in December 2021 through the following
transactions:
(i) Buyback of two outstanding convertible
notes with 5.5% coupon and a conversion price of $1.20 per share
(the “Notes”) at face value of $13.95 million;
(ii) Buyback of warrants to purchase 4.3
million common shares at an exercise price of $0.70 held by the
holder of the Notes for $1.02 million; and
(iii) Buyback of 1.7 million common shares for
$1.69 million
(B) $10 million Repurchase Plan of December 7,
2021:
(i) Buyback of $5 million of the remaining
convertible note in January 2022; and
(ii) Buyback of additional $5 million of the
remaining convertible Note, on March 10, 2022
______________3 This guidance is based on
certain assumptions and there can be no assurance that these TCE
estimates, or projected utilization 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 the quarter for an index-linked T/C is equal to
the average FFA rate of $17,500 per day (FFA curve of March 3,
2022). Spot estimates are provided using the load-to-discharge
method of accounting. Load-to-discharge accounting recognizes
revenues over fewer days as opposed to the discharge-to-discharge
method of accounting used prior to 2018, resulting in higher rates
for these days and only voyage expenses being recorded in the
ballast days. Over the duration of the voyage
(discharge-to-discharge) there is no difference in the total
revenues and costs to be recognized. The rates quoted are for days
currently contracted. Increased ballast days at the end of the
quarter will reduce the additional revenues that can be booked
based on the accounting cut-offs and therefore the resulting TCE
will be reduced accordingly.
Moreover, Seanergy’s Chairman & CEO,
purchased in 2021 an additional 300,000 of the Company’s common
shares in the open market.
Fleet Update
M/V Dukeship
In December 2021, the Company announced the
delivery of the M/V Dukeship, a 181,453 dwt Capesize bulk carrier,
built in 2010 in Japan. At the same time, M/V Dukeship commenced
its time charter (“T/C”) employment with NYK, a leading Japanese
charterer. The purchase price of $34.3 million was funded with cash
on hand.
Commercial Updates
M/V Geniuship
The M/V Geniuship has been delivered to NYK on
February 5, 2022 for a period of about 11 to about 15 months. The
daily charter hire is based on the BCI. In addition, the Company
has the option to convert the index-linked rate to a fixed rate
based on the prevailing Capesize FFA for the selected period.
M/V Gloriuship
The M/V Gloriuship has been chartered by Pacbulk
since April, 2020. In December 2021 the charterer extended the T/C
until minimum December 16, 2022, up to maximum April 15, 2023, in
charterer’s option.
Financing Updates
Piraeus Bank S.A.
On November 12, 2021, the Company entered into a
$16.85 million sustainability-linked loan facility to finance part
of the acquisition cost of the M/V Worldship. The principal will be
repaid over a five-year term, through 4 quarterly instalments of
$1.0 million, 2 quarterly instalments of $0.75 million, 14
quarterly instalments of $0.38 million and a final balloon payment
of $6.1 million payable at maturity. The loan is secured by, among
other things, a mortgage on the M/V Worldship and a corporate
guarantee from the Company. The interest rate is 3.05% plus LIBOR
per annum, which can be further improved based on certain emission
reduction thresholds.
Sinopac Capital International (HK) Limited
On December 20, 2021, the Company entered into a
$15 million loan facility to refinance a previous loan facility of
Entrust Global secured by the M/V Geniuship. The principal will be
repaid over a five-year term, through 4 quarterly instalments of
$530,000 followed by 16 quarterly instalments of $385,000 and a
final balloon payment of $6.72 million. The loan will be secured
by, among other things, a mortgage on the M/V Geniuship and a
corporate guarantee by the Company. The interest rate is 3.5% plus
LIBOR per annum. Considering that the previous loan facility bore a
fixed interest of 10.5% per annum, the interest savings for the
Company are expected to be approximately $0.9 million for 2022 and
$0.5 million on average per year for 2023-2025.
Japanese Lender
On February 25, 2022, the Company entered into a
sale and leaseback transaction with a Japanese lender to refinance
a previous senior loan facility of Amsterdam Trade Bank N.V.
($15.13 million) and a junior loan facility of Jelco Delta Holding
Corp. ($1.85 million) secured by the M/V Partnership. The financing
amount is $21.3 million and the interest rate is 2.9% plus SOFR per
annum. The principal will be repaid over an eight-year term,
through 32 quarterly instalments averaging at approximately
$590,000. Following the second anniversary of the bareboat charter,
the Company has continuous options to repurchase the vessel. At the
end of the 8-year bareboat period, the Company has the option to
repurchase the vessel for $2.39 million, which the Company expects
to exercise.
Seanergy Maritime Holdings Corp.Unaudited
Condensed Consolidated Balance Sheets(In thousands of U.S.
Dollars) |
|
|
|
December 31,2021 |
|
|
December 31, 2020* |
ASSETS |
|
|
|
|
|
Cash and cash equivalents, restricted cash, term deposits |
|
47,126 |
|
|
23,651 |
Vessels, net |
|
426,062 |
|
|
256,737 |
Other assets |
|
13,733 |
|
|
14,857 |
TOTAL ASSETS |
|
486,921 |
|
|
295,245 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Long-term debt and other financial liabilities |
|
215,174 |
|
|
169,762 |
Convertible notes |
|
7,573 |
|
|
14,516 |
Other liabilities |
|
19,698 |
|
|
15,273 |
Stockholders’ equity |
|
244,476 |
|
|
95,694 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
486,921 |
|
|
295,245 |
* 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 endedDecember 31, |
|
Twelve months endedDecember 31, |
|
|
|
2021 |
|
2020 |
|
2021 |
|
|
2020 |
|
Vessel revenue, net |
|
56,699 |
|
21,313 |
|
153,108 |
|
|
63,345 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
(1,992 |
) |
(4,637 |
) |
(16,469 |
) |
|
(18,567 |
) |
Vessel operating expenses |
|
(11,862 |
) |
(6,206 |
) |
(36,332 |
) |
|
(22,347 |
) |
Management fees |
|
(406 |
) |
(279 |
) |
(1,435 |
) |
|
(1,052 |
) |
General and administrative expenses |
|
(4,024 |
) |
(1,925 |
) |
(13,739 |
) |
|
(6,607 |
) |
Depreciation and amortization |
|
(6,117 |
) |
(3,897 |
) |
(19,944 |
) |
|
(15,040 |
) |
(Loss)/gain on sale of vessel |
|
(19 |
) |
- |
|
697 |
|
|
- |
|
Gain on forward freight agreements, net |
|
24 |
|
- |
|
24 |
|
|
- |
|
Operating income/(loss) |
|
32,303 |
|
4,369 |
|
65,910 |
|
|
(268 |
) |
Other (expenses)/income: |
|
|
|
|
|
|
|
|
|
|
Interest and finance costs, net |
|
(4,751 |
) |
(6,677 |
) |
(17,618 |
) |
|
(23,217 |
) |
Loss on extinguishment of debt |
|
(6,863 |
) |
- |
|
(6,863 |
) |
|
- |
|
(Loss)/gain on debt refinancing |
|
- |
|
(6 |
) |
- |
|
|
5,144 |
|
Other, net |
|
(45 |
) |
(5 |
) |
(81 |
) |
|
(15 |
) |
Total other expenses, net: |
|
(11,659 |
) |
(6,688 |
) |
(24,562 |
) |
|
(18,088 |
) |
Net income/(loss) |
|
20,644 |
|
(2,319 |
) |
41,348 |
|
|
(18,356 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) per common share, basic |
|
0.12 |
|
(0.03 |
) |
0.27 |
|
|
(0.55 |
) |
Weighted average number of common shares outstanding, basic |
|
170,884,012 |
|
67,904,450 |
|
153,321,907 |
|
|
33,436,278 |
|
Net income/(loss) per common share, diluted |
|
0.11 |
|
(0.03 |
) |
0.25 |
|
|
(0.55 |
) |
Weighted average number of common shares outstanding, diluted |
|
205,228,391 |
|
67,904,450 |
|
191,337,521 |
|
|
33,436,278 |
|
|
|
|
|
|
|
|
|
|
|
|
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 fleet consists of 17
Capesize vessels with an average age of 12 years and aggregate
cargo carrying capacity of 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.
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; broader
market impacts arising from war (or threatened war) or
international hostilities, such as between Russia and Ukraine;
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 RelationsTel: +30 213 0181 522E-mail:
ir@seanergy.gr
Capital Link, Inc.Paul Lampoutis 230 Park Avenue Suite 1536New
York, NY 10169Tel: (212) 661-7566E-mail:
seanergy@capitallink.com
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