Seanergy Maritime Holdings Corp. (“Seanergy” or the “Company”)
(NASDAQ: SHIP), announced today its financial results for the
second quarter and six months ended June 30, 2024. The Company also
declared a quarterly cash dividend of $0.25 per common share for
the second quarter of 2024 and announced an updated dividend policy
targeting the distribution of approximately 50% of operating cash
flow after debt service.
For the quarter ended June 30, 2024, the Company
generated Net Revenues of $43.1 million, compared to $28.3 million
in the second quarter of 2023, representing an increase of 52%.
Adjusted EBITDA for the quarter was $28.0 million, 78% higher than
$15.7 million in the same period of 2023. Net Income and Adjusted
Net Income for the quarter were $14.1 million and $16.0 million,
respectively, compared to Net Income of $0.7 million and Adjusted
Net Income of $3.3 million in the second quarter of 2023. The daily
TCE rate of the fleet for the second quarter of 2024 was $26,636,
compared to $18,708 in the same period of 2023.
For the six-month period ended June 30, 2024,
the Company generated Net Revenues of $81.4 million, compared to
$46.4 million in the same period of 2023, marking an increase of
75%. Net Income and Adjusted Net Income for the six months were
$24.3 million and $27.6 million, respectively, compared to Net Loss
of $3.5 million and Adjusted Net Income of $2.9 million in the
respective period of 2023. Adjusted EBITDA for the six months was
$51.2 million, compared to $19.6 million for the same period of
2023. The daily TCE rate of the fleet for the first six-month
period of 2024 was $25,365, compared to $14,756 in the same period
of 2023. The average daily OPEX was $6,999 compared to $6,921 of
the respective period of 2023.
Cash and cash-equivalents and restricted cash,
as of June 30, 2024, stood at $38.2 million. Shareholders’ equity
at the end of the second quarter was $254.7 million. Long-term debt
(senior loans, finance lease liability and other financial
liabilities) net of deferred charges stood at $247.6 million, while
the book value of the fleet, including a chartered-in vessel and
the advance for vessel acquisition, was $466.3 million.
_________________________
1 Adjusted earnings / (loss) per share, Adjusted
Net Income / (loss), EBITDA and Adjusted EBITDA are non-GAAP
measures. Please see the reconciliation below of Adjusted earnings
/ (loss) per share, Adjusted Net Income / (loss), EBITDA and
Adjusted EBITDA to net income, the most directly comparable U.S.
GAAP measure.2 Pursuant to revised divided policy tied to the
Company’s operating cash flow after debt service.3 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 generated record profitability in the
second quarter and first half of 2024 as a result of the execution
of our successful strategy to position the Company as a leading dry
bulk operator with a pure-play Capesize fleet. The Capesize sector
continued to perform more strongly than the other dry bulk asset
classes, and Seanergy overperformed the Capesize index both in the
second quarter and in the first half of the year. The daily TCE of
our fleet was $26,636, representing a premium of about 18% compared
to the $22,600 average of the Baltic Capesize Index for the period.
Our active hedging plan was a main driver of this
outperformance.
“Consistent with our proven strategy of
returning capital to shareholders while balancing fleet growth and
maintaining a strong balance sheet, our board of directors has
adopted an updated dividend policy which further increases our
focus on returning capital to our shareholders. Under our updated
dividend policy, which targets distribution of approximately 50% of
our operating cash flow after debt service, our quarterly dividend
increases to $0.25 per share for the second quarter of 2024.
Additionally, we resumed our stock repurchases and I have also
purchased, in the open market, common shares and call options to
purchase Seanergy stock in the coming quarters. Based on our strong
and visible cash flow generation, we expect to be able to continue
returning significant capital to our shareholders in the coming
quarters.
“In terms of fleet updates, in 2024 to date, we
have agreed to acquire two Capesize vessels which are, on average,
younger than our current fleet. In June, we took delivery of the
2013-built M/V Iconship, with the vessel immediately commencing
employment on an index linked time-charter with an earliest expiry
date in March 2026. Furthermore, we expect to take delivery of a
2012 built Capesize, that will be renamed M/V Kaizenship, within
the third quarter. Following these additions, our fleet will
consist of 19 Capesize vessels, up from 17 at the start of 2024. We
are pleased with the steady growth we are delivering, while also
increasing dividend payments and stock repurchases.
“Moreover, during the quarter we entered a new
$58.3 million financing agreement for the recently delivered M/V
Iconship. We also refinanced a previous sale and leaseback facility
secured by two of our vessels at a lower interest rate. On a net
debt basis our loan-to-value ratio at the end of the quarter stood
comfortably below 40%, highlighting the continued strength of our
balance sheet.
“Regarding our guidance for the third quarter of
2024, we have fixed approximately 42% of our available days at an
average gross rate of $29,500 which compares favorably with the
performance of the BCI to date. Based on current FFA levels, our
TCE is estimated to be approximately equal to $25,500. Lastly, for
the second half of the year we have fixed 39% of our fleet’s days
at a gross rate of $29,300.
“Concluding with our views on the market,
Capesize earnings under the BCI have averaged about $24,000 year to
date, at the traditionally weakest half of the year. This points to
the strength of the market, which is based on the very low vessel
ordering during the previous years. It is encouraging to note that
the Capesize orderbook stands at a very low level by historical
standards, especially when considering the need for fleet renewal
necessitated by the stringent regulations aimed at limiting CO2
emissions. As regards vessel demand, China iron ore and coal
imports have risen by 7% and 12% respectively year to date, while
the 8% rise in Brazilian iron ore exports has added considerable
ton miles. Additionally, steadily growing West African Bauxite
exports have contributed to Atlantic Basin cargo flows and kept
Capesize demand at high levels. Lastly, taking a longer-term view,
we are encouraged by the development of new projects that are
expected to add further to ton-mile demand.
“Seanergy is well positioned to continue
performing strongly amidst the favorable Capesize market
fundamentals, and we will remain focused on delivering high
shareholder returns while opportunistically growing our fleet.”
Company
Fleet:
Vessel Name |
Capacity(DWT) |
YearBuilt |
Yard |
ScrubberFitted |
EmploymentType |
FFAconversionoption(1) |
Minimumtime charter(“T/C”)expiration |
MaximumT/Cexpiration(2) |
Charterer |
Titanship(3) |
207,855 |
2011 |
NACKS |
- |
T/C Index Linked |
Yes |
09/2024 |
01/2025 |
Olam |
Patriotship |
181,709 |
2010 |
Imabari |
Yes |
T/C Index Linked |
Yes |
01/2025 |
04/2025 |
Glencore |
Dukeship |
181,453 |
2010 |
Sasebo |
- |
T/C Index Linked |
Yes |
06/2025 |
09/2025 |
NYK |
Paroship |
181,415 |
2012 |
Koyo -Imabari |
Yes |
T/C Index Linked |
Yes |
08/2025 |
01/2026 |
Oldendorff |
Worldship |
181,415 |
2012 |
Koyo – Imabari |
Yes |
T/C Index Linked |
Yes |
10/2025 |
02/2026 |
NYK |
Iconship |
181,392 |
2013 |
Imabari |
- |
T/C Index Linked |
Yes |
03/2026 |
06/2026 |
Costamare |
Hellasship |
181,325 |
2012 |
Imabari |
- |
T/C Index Linked |
Yes |
12/2024 |
04/2025 |
NYK |
Honorship |
180,242 |
2010 |
Imabari |
- |
T/C Index Linked |
Yes |
03/2025 |
07/2025 |
NYK |
Fellowship |
179,701 |
2010 |
Daewoo |
- |
T/C Index Linked |
Yes |
06/2026 |
11/2026 |
Anglo American |
Championship |
179,238 |
2011 |
Sungdong SB |
Yes |
T/C Index Linked |
Yes |
04/2025 |
11/2025 |
Cargill |
Partnership |
179,213 |
2012 |
Hyundai |
Yes |
T/C Index Linked |
Yes |
09/2024 |
12/2024 |
Uniper |
Knightship |
178,978 |
2010 |
Hyundai |
Yes |
T/C Index Linked |
Yes |
11/2025 |
01/2026 |
Glencore |
Lordship |
178,838 |
2010 |
Hyundai |
Yes |
T/C Index Linked |
Yes |
01/2026 |
05/2026 |
Costamare |
Friendship |
176,952 |
2009 |
Namura |
- |
T/C Index Linked |
Yes |
12/2024 |
04/2025 |
NYK |
Flagship |
176,387 |
2013 |
Mitsui |
- |
T/C Index Linked |
Yes |
05/2026 |
07/2026 |
Cargill |
Geniuship |
170,057 |
2010 |
Sungdong SB |
- |
T/C Index Linked |
Yes |
06/2025 |
09/2025 |
NYK |
Premiership |
170,024 |
2010 |
Sungdong SB |
Yes |
T/C Index Linked |
Yes |
03/2025 |
05/2025 |
Glencore |
Squireship |
170,018 |
2010 |
Sungdong SB |
Yes |
T/C Index Linked |
Yes |
04/2025 |
06/2025 |
Glencore |
Total /Average age |
3,236,212 |
13.4 years |
- |
- |
- |
- |
- |
- |
- |
(1) The Company has the option to convert the
index-linked rate to fixed for periods ranging between 1 and 12
months, based on the prevailing Capesize FFA Rate for the selected
period.
(2) The latest redelivery date does not include
any additional optional periods.
(3) The vessel is operated by the Company on the
basis of a 12-month bareboat charter-in contract with the owners of
the vessel, including a purchase option at the end of the bareboat
charter.
Vessel to be delivered:
Vessel Name |
Capacity (DWT) |
YearBuilt |
Yard |
ScrubberFitted |
Kaizenship |
181,396 |
2012 |
Koyo |
- |
Fleet Data:
(U.S. Dollars in thousands)
|
Q2 2024 |
Q2 2023 |
6M 2024 |
6M 2023 |
Ownership days (1) |
1,567 |
1,456 |
3,114 |
2,995 |
Operating days (2) |
1,562 |
1,443 |
3,099 |
2,963 |
Fleet utilization (3) |
99.7% |
99.1% |
99.5% |
98.9% |
TCE rate (4) |
$26,636 |
$18,708 |
$25,365 |
$14,756 |
Daily Vessel Operating Expenses (5) |
$6,844 |
$6,919 |
$6,999 |
$6,921 |
(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. Available days are
the number of ownership days less the aggregate number of days that
our vessels are off-hire due to major repairs, dry-dockings, lay-up
or special or intermediate surveys. Operating days include the days
that our vessels are in ballast voyages without having finalized
agreements for their next employment. The Company’s calculation of
operating days may not be comparable to that reported by other
companies.
(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.
Fleet Utilization is used to measure a company’s ability to
efficiently find suitable employment for its vessels and minimize
the number of days that its vessels are off-hire for unforeseen
events. We believe it provides additional meaningful information
and assists management in making decisions regarding areas where we
may be able to improve efficiency and increase revenue and because
we believe that it provides useful information to investors
regarding the efficiency of our operations.
(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, which is not a recognized measure under U.S. GAAP, 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
our vessels and because the Company believes that it provides
useful information to investors regarding our 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 2024 |
Q2 2023 |
6M 2024 |
6M 2023 |
Vessel revenue, net |
42,592 |
27,646 |
80,366 |
45,030 |
Less: Voyage expenses |
986 |
651 |
1,760 |
1,308 |
Time charter equivalent
revenues |
41,606 |
26,995 |
78,606 |
43,722 |
Operating days |
1,562 |
1,443 |
3,099 |
2,963 |
TCE rate |
$26,636 |
$18,708 |
$25,365 |
$14,756 |
(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, excluding pre
delivery costs, 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 2024 |
Q2 2023 |
6M 2024 |
6M 2023 |
Vessel operating expenses |
11,184 |
10,176 |
22,254 |
21,089 |
Less: Pre-delivery expenses |
460 |
102 |
460 |
362 |
Vessel operating expenses before
pre-delivery expenses |
10,724 |
10,074 |
21,794 |
20,727 |
Ownership days |
1,567 |
1,456 |
3,114 |
2,995 |
Daily Vessel Operating
Expenses |
$6,844 |
$6,919 |
$6,999 |
$6,921 |
Net income / (loss) to EBITDA and Adjusted EBITDA
Reconciliation:
(In thousands of U.S. Dollars)
|
Q2 2024 |
Q2 2023 |
6M 2024 |
6M 2023 |
Net income / (loss) |
14,127 |
678 |
24,288 |
(3,507 |
) |
Interest and finance cost, net |
4,596 |
4,937 |
9,235 |
10,203 |
|
Depreciation and amortization |
7,065 |
7,103 |
13,911 |
14,180 |
|
EBITDA |
25,788 |
12,718 |
47,434 |
20,876 |
|
Stock based compensation |
1,538 |
2,447 |
3,017 |
6,127 |
|
Loss on extinguishment of debt |
649 |
430 |
649 |
540 |
|
Loss on forward freight agreements, net |
26 |
94 |
104 |
144 |
|
Gain on sale of vessels, net |
- |
- |
- |
(8,094 |
) |
Adjusted EBITDA |
28,001 |
15,689 |
51,204 |
19,593 |
|
Earnings Before Interest, Taxes, Depreciation
and Amortization ("EBITDA") represents the sum of net income /
(loss), net interest and finance costs, 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,
loss on forward freight agreements, net, loss on extinguishment of
debt, and the non-recurring gain on sale of vessels, 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. Management also
uses these non-GAAP financial measures in making financial,
operating and planning decisions and in evaluating the Company’s
performance. 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.
Adjusted Net income Reconciliation and calculation of
Adjusted Earnings Per Share
(In thousands of U.S. Dollars, except for share and per share
data)
|
Q2 2024 |
Q2 2023 |
6M 2024 |
6M 2023 |
Net income / (loss) |
14,127 |
678 |
24,288 |
(3,507 |
) |
Stock based compensation |
1,538 |
2,447 |
3,017 |
6,127 |
|
Loss on extinguishment of debt (non-cash) |
304 |
190 |
304 |
300 |
|
Adjusted net income |
15,969 |
3,315 |
27,609 |
2,920 |
|
Adjusted net income – common shareholders |
15,285 |
3,263 |
26,427 |
2,844 |
|
Adjusted earnings per common share, basic |
0.78 |
0.18 |
1.35 |
0.16 |
|
Adjusted earnings per common share, diluted |
0.77 |
0.18 |
1.34 |
0.16 |
|
Weighted average number of common shares outstanding, basic |
19,687,911 |
18,460,963 |
19,533,621 |
18,196,521 |
|
Weighted average number of common shares outstanding, diluted |
19,832,695 |
18,460,963 |
19,659,370 |
18,196,521 |
|
To derive Adjusted Net Income and Adjusted
Earnings Per Share, both non-GAAP financial measures, from Net
Income, we adjust for dividends and undistributed earnings to
non-vested participating securities and exclude non-cash items, as
provided in the table above. We believe that Adjusted Net Income
and Adjusted Earnings 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 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 and Adjusted Earnings Per Share may not
necessarily be comparable to other similarly titled captions of
other companies due to differences in methods of calculation.
Third Quarter 2024 TCE Rate Guidance:
As of the date hereof, approximately 67% of the
Company fleet’s expected operating days in the third quarter of
2024 have been fixed at an estimated TCE rate of approximately
$27,243. Assuming that for the remaining operating days of our
index-linked time charters, the respective vessels’ TCE rate will
be equal to the average Forward Freight Agreement (“FFA”) rate of
$22,977 per day (based on the FFA curve as of July 29, 2024), our
estimated TCE rate for the third quarter of 2024 will be
approximately $25,5134. The following table provides the breakdown
of index-linked charters and fixed-rate charters in the third
quarter of 2024:
|
Operating Days |
TCE |
TCE - fixed rate (index-linked conversion) |
766 |
$26,915 |
TCE - fixed rate |
0 |
N/A |
TCE – index-linked |
859 |
$24,263 |
Total / Average |
1,626 |
$25,513 |
_________________________
4 This guidance is based on certain assumptions
and there can be no assurance that these TCE rate 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 rate
realized will vary with the underlying index, and for the purposes
of this guidance, the TCE rate assumed for the remaining operating
days of the quarter for an index-linked T/C is equal to the average
FFA rate of $22,977 based on the curve of July 29, 2024. Spot
estimates are provided using the load-to-discharge method of
accounting. 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 rate will be reduced
accordingly.
Second Quarter and Recent Developments:
Dividend Distribution for Q1 2024 and
Declaration of Q2 2024 Dividend
On July 10, 2024, the Company paid a quarterly
dividend of $0.025 per share and a special dividend of $0.125 per
share, for the first quarter of 2024, to all shareholders of record
as of June 25, 2024.
The Company has declared a quarterly cash
dividend of $0.25 per common share for the second quarter of 2024
payable on or about October 10, 2024, to all shareholders of record
as of September 27, 2024.
Updated Dividend Policy
In August 2024, our Board of Directors (“Board”)
adopted an updated dividend policy, pursuant to which we intend to
distribute approximately 50% of our operating cash flow (the amount
presented in our Cash Flow Statement for the period in question,
incorporating all operating expenses, variations in working
capital, interest expenses and amounts paid for drydocking),
-
Less: Debt repayments (this amount captures loan facilities,
finance lease liabilities and other financial liabilities),
-
Less: Discretionary quarterly reserve (this amount will be assessed
by the Board on a quarterly basis taking into consideration, among
other things, (a) the share buybacks completed during the quarter,
(b) anticipated capital expenditures such as vessel acquisitions
and (c) a targeted liquidity buffer).
Any future dividends declared will be at the
discretion and remain subject to approval of the Board each
quarter, after its review of our financial condition and other
factors, including but not limited to our earnings, prevailing
charter market conditions, capital requirements, limitations under
our debt agreements and applicable provisions of Marshall Islands
law. Seanergy’s dividend policy and declaration and payment of
dividends may be changed at any time and are subject to legally
available funds and the Board’s determination that each declaration
and payment is at the time in the best interests of Seanergy and
its shareholders after review of the Company’s financial
performance. There can be no assurance that our Board will declare
or pay any dividend in the future.
At-The-Market Offering
Program
Since the issuance of the Company’s earnings
release for the first quarter of 2024, the Company did not conduct
any sales of common shares under the “at-the-market” equity
offering program initiated in December 2023 with B.Riley as sales
agent. As of the date of this release, $24.9 of the Company’s
common shares remain to be sold under the program.
Buyback of Common Shares
Since the issuance of the Company’s earnings
release for the first quarter of 2024, the Company repurchased
166,903 common shares in open market transactions at an average
price of $10.56 per share for an aggregate consideration of $1.8
million pursuant to the $25.0 million share repurchase program
commenced in December 2023. All the abovementioned shares were
cancelled and removed from our share capital as of the date of this
release. As of August 2, 2024, the Company had 20,611,924 common
shares issued and outstanding.
Since the fourth quarter of 2021, the Company
has completed $42.9 million in securities repurchases, consisting
of (i) $6.0 million in common shares in open market transactions at
an average price of $7.24 per common share and (ii) $36.9 million
in convertible notes and warrants in private transactions and
pursuant to a tender offer.
Open Market purchases of stock options
and shares by the CEO
Seanergy’s Chairman & Chief Executive
Officer, Mr. Stamatis Tsantanis, has recently purchased 600 call
option contracts, allowing the purchase of up to 60,000 common
shares of the Company upon expiration. The call option contracts
have an average strike price of $11.7 and an expiration date of
January 2025. During the same period, Mr. Tsantanis has purchased
an additional 3,400 common shares of the Company in the open market
through various dates at an average purchase price of $9.32 per
common share.
Vessel Transactions and Commercial
Updates
M/V Iconship – Delivery and New T/C
agreement
In June 2024, the Company announced the delivery
of the M/V Iconship, a 181,392 dwt Capesize bulk carrier, built in
2013 in Japan. At the same time, M/V Iconship commenced its T/C
employment with Costamare Bulkers Inc. (“Costamare”), for a
duration of minimum 21 months to about 24 months. The daily hire is
based at a premium over the BCI. The Company has the option to
convert the daily hire from index-linked to fixed for a period of 2
to 12 months based on prevailing Capesize FFA curve. The
acquisition of the vessel has been financed with cash on hand and
proceeds from the AVIC Sale & leaseback agreement mentioned
below.
M/V Lordship - New T/C
agreement
In June 2024, the M/V Lordship was fixed on a
T/C with Costamare. Following the completion of the vessel’s
scheduled drydocking, on July 31, 2024, the T/C commenced for a
period of minimum January 1, 2026 to maximum May 31, 2026. The
daily hire will be based on the 5 T/C routes of the BCI, while the
Company has the option to convert the daily hire from index-linked
to fixed for a minimum period of 2 months to a maximum of 12 months
based on the prevailing Capesize FFA curve. The Company will also
receive the majority of the benefit from the scrubber
profit-sharing scheme based on the price difference between
high-sulfur and low-sulfur fuel.
M/V Dukeship – Time charter
extension
In July 2024, the charterer of the M/V Dukeship
agreed to extend the time charter agreement in direct continuation
from the previous agreement. The extension period commenced on July
24, 2024 for a duration of minimum June 30, 2025 up to maximum
September 30, 2025. All main terms of the time charter remain
materially the same.
M/V Fellowship – Time charter
extension
In July 2024, the charterer of the M/V
Fellowship agreed to extend the time charter agreement in direct
continuation from the current agreement. The extension period will
commence within October 2024 for a duration of minimum 20 months to
about 24 months. All main terms of the time charter remain
materially the same.
M/V Geniuship – Time charter
extension
In June 2024, the charterer of the M/V Geniuship
agreed to extend the time charter agreement in direct continuation
from the previous agreement. The extension period commenced on July
19, 2024, for a duration of minimum June 2025 up to maximum
September 2025. The daily hire is based at a revised premium over
the BCI, while all other main terms of the time charter remain
materially the same.
M/V Honorship – Time charter
extension
In May 2024, the charterer of the M/V Honorship
agreed to extend the time charter agreement in direct continuation
from the previous agreement. The extension period commenced on May
30, 2024, for a duration of minimum March 16, 2025 to maximum July
15, 2025. The daily hire is based at a revised premium over the
BCI, while all other main terms of the time charter remain
materially the same.
Financing Updates
M/Vs Iconship, Hellasship, Patriotship –
AVIC Sale & leaseback agreement
The Company entered into three separate sale and
leaseback agreements of $58.3 million in aggregate with AVIC
International Leasing Co. to refinance the existing debt of the
M/Vs Hellasship and Patriotship, and to partially finance the
acquisition of the M/V Iconship. The vessels have been sold and
chartered back on a bareboat basis for a five-year period
commencing on each delivery date. The Company has continuous
options to repurchase the vessels at predetermined prices at any
time of the bareboat charter. At the end of the bareboat period,
Seanergy has the obligation to purchase the vessels for an
aggregate amount of approximately $31.5 million. Each financing
bears interest of 3-month term SOFR plus 2.55% per annum and the
interest rate is approximately 120 bps lower than the rate of the
refinanced sale and leaseback agreements. The aggregate charterhire
principal for the three vessels will amortize through four
quarterly installments of approximately $2.1 million, followed by
sixteen quarterly installments of approximately $1.2
million.
Conference
Call:
The Company’s management will host a conference
call to discuss financial results on Tuesday, August 6, 2024 at
11:00 a.m. Eastern Time.
Audio Webcast and Earnings
Presentation:
There will be a live, and then archived, webcast
of the conference call available and accompanying presentation
available through the Company’s website. To access the presentation
and listen to the archived audio file, visit our website, following
the Webcast & Presentations section under our Investor
Relations page. Participants to the live webcast should register on
Seanergy’s website approximately 10 minutes prior to the start of
the webcast, following this link.
Conference Call
Details:
Participants have the option to register for the
call using the following link. You can use any number from the list
or add your phone number and let the system call you right
away.
Seanergy Maritime Holdings Corp.Unaudited
Condensed Consolidated Balance Sheets(In thousands of U.S.
Dollars) |
|
|
June 30,2024 |
|
|
December 31,2023* |
ASSETS |
|
|
|
|
|
Cash and cash equivalents and restricted cash |
|
38,224 |
|
|
24,928 |
Vessels, net, right-of-use asset and advance for vessel
acquisition |
|
466,286 |
|
|
440,038 |
Other assets |
|
20,467 |
|
|
12,911 |
TOTAL
ASSETS |
|
524,977 |
|
|
477,877 |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Long-term debt, finance lease liability and other financial
liabilities, net of deferred finance costs |
|
247,625 |
|
|
232,568 |
Other liabilities |
|
22,651 |
|
|
16,864 |
Stockholders’ equity |
|
254,701 |
|
|
228,445 |
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
524,977 |
|
|
477,877 |
* Derived from the audited consolidated financial statements 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 endedJune 30, |
|
Six months endedJune 30, |
|
|
|
2024 |
|
2023 |
|
2024 |
|
|
2023 |
|
Vessel revenue, net |
|
42,592 |
|
27,646 |
|
80,366 |
|
|
45,030 |
|
Fees from related parties |
|
541 |
|
682 |
|
1,060 |
|
|
1,324 |
|
Revenue,
net |
|
43,133 |
|
28,328 |
|
81,426 |
|
|
46,354 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
(986 |
) |
(651 |
) |
(1,760 |
) |
|
(1,308 |
) |
Vessel operating expenses |
|
(11,184 |
) |
(10,176 |
) |
(22,254 |
) |
|
(21,089 |
) |
Management fees |
|
(184 |
) |
(145 |
) |
(359 |
) |
|
(374 |
) |
General and administrative expenses |
|
(4,303 |
) |
(4,776 |
) |
(8,932 |
) |
|
(10,681 |
) |
Depreciation and amortization |
|
(7,065 |
) |
(7,103 |
) |
(13,911 |
) |
|
(14,180 |
) |
Loss on forward freight agreements, net |
|
(26 |
) |
(94 |
) |
(104 |
) |
|
(144 |
) |
Gain on sale of vessels, net |
|
- |
|
- |
|
- |
|
|
8,094 |
|
Operating
income |
|
19,385 |
|
5,383 |
|
34,106 |
|
|
6,672 |
|
Other income /
(expenses): |
|
|
|
|
|
|
|
|
|
|
Interest and finance costs |
|
(4,854 |
) |
(5,058 |
) |
(9,716 |
) |
|
(10,395 |
) |
Loss on extinguishment of debt |
|
(649 |
) |
(430 |
) |
(649 |
) |
|
(540 |
) |
Interest and other income |
|
262 |
|
806 |
|
490 |
|
|
882 |
|
Other, net |
|
(17 |
) |
(23 |
) |
57 |
|
|
(126 |
) |
Total other expenses,
net: |
|
(5,258 |
) |
(4,705 |
) |
(9,818 |
) |
|
(10,179 |
) |
Net income /
(loss) |
|
14,127 |
|
678 |
|
24,288 |
|
|
(3,507 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net income / (loss)
per common share, basic |
|
0.68 |
|
0.03 |
|
1.18 |
|
|
(0.20 |
) |
Net income / (loss)
per common share, diluted |
|
0.68 |
|
0.03 |
|
1.18 |
|
|
(0.20 |
) |
Weighted average number of
common shares outstanding, basic |
|
19,687,911 |
|
18,460,963 |
|
19,533,621 |
|
|
18,196,521 |
|
Weighted average number of
common shares outstanding, diluted |
|
19,832,695 |
|
18,460,963 |
|
19,659,370 |
|
|
18,196,521 |
|
|
|
|
|
|
|
|
|
|
|
|
Seanergy Maritime Holdings Corp.Unaudited
Condensed Consolidated Cash Flow Data (In thousands of U.S.
Dollars, except for share and per share data, unless otherwise
stated) |
|
|
Six months endedJune 30, |
|
|
|
2024 |
|
2023 |
|
Net cash provided by
operating activities |
|
35,048 |
|
1,604 |
|
|
|
|
|
|
|
Vessels acquisitions and improvements |
|
(34,313 |
) |
(134 |
) |
Advance for vessel acquisition |
|
(4,450 |
) |
- |
|
Finance lease prepayments and other initial direct costs |
|
(305 |
) |
(3,500 |
) |
Proceeds from sale of assets |
|
- |
|
23,910 |
|
Deposits assets, non-current |
|
- |
|
1,325 |
|
Other fixed assets, net |
|
- |
|
(176 |
) |
Net cash (used in) /
provided by investing activities |
|
(39,068 |
) |
21,425 |
|
|
|
|
|
|
|
Proceeds from long-term debt and other financial liabilities |
|
58,279 |
|
53,750 |
|
Repayments of long-term debt and other financial liabilities |
|
(40,576 |
) |
(70,868 |
) |
Payments of finance lease liabilities |
|
(1,079 |
) |
- |
|
Repayments of convertible notes |
|
- |
|
(8,000 |
) |
Payments of financing and stock issuance costs |
|
(917 |
) |
(1,282 |
) |
Payments for repurchase of common stock |
|
(1,722 |
) |
(1,583 |
) |
Dividend payments |
|
(2,492 |
) |
(5,048 |
) |
Payments for fractional shares of reverse stock split |
|
- |
|
(23 |
) |
Proceeds from issuance of common stock and warrants, net of
underwriters fees and commissions |
|
5,823 |
|
- |
|
Net cash provided by /
(used in) financing activities |
|
17,316 |
|
(33,054 |
) |
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW
INFORMATION |
|
|
|
|
|
Cash paid during the period for interest |
|
10,260 |
|
8,899 |
|
|
|
|
|
|
|
Noncash financing
activities |
|
|
|
|
|
Dividends declared but not paid |
|
3,108 |
|
491 |
|
Financing and stock issuance costs |
|
2,035 |
|
- |
|
|
|
|
|
|
|
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is a prominent
pure-play Capesize ship-owner publicly listed in the U.S. Seanergy
provides marine dry bulk transportation services through a modern
fleet of Capesize vessels. The Company’s operating fleet consists
of 18 vessels (1 Newcastlemax and 17 Capesize) with an average age
of approximately 13.4 years and an aggregate cargo carrying
capacity of approximately 3,236,212 dwt. Upon completion of the
delivery of the previously announced Capesize vessel acquisition,
the Company’s operating fleet will consist of 19 vessels (1
Newcastlemax and 18 Capesize) with an aggregate cargo carrying
capacity of approximately 3,417,608 dwt.
The Company is incorporated in the Republic of
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”.
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, including with respect
to the declaration of dividends, market trends and vessels we have
agreed to acquire. 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, impacts of litigation, 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
Israel and Hamas and Russia and Ukraine; risks associated with the
length and severity of pandemics (including COVID-19), including
their 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 Lampoutis230 Park Avenue Suite 1540New
York, NY 10169Tel: (212) 661-7566E-mail:
seanergy@capitallink.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/01db6b20-5b63-44c9-80a8-384c05946ff6
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