Seanergy Maritime Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2023 and Declares Dividend of $0.025 Per Share

Other Highlights and Developments:

• Fleet Time Charter Equivalent (“TCE” ³) overperformance of Baltic Capesize Index (“BCI”) by 20% in 2Q23 & 1H23
• Quarterly cash dividend of $0.025 per share for Q2 2023 - total cash dividends of $1.325 per share or $23.9 million declared since March 2022
• Stock buyback of $1.6 million, or approximately 2% of its issued and outstanding shares – total repurchases of securities (common shares, convertible notes and warrants) of approximately $39.6 million since November 2021
• Agreement to acquire a 2011-built Newcastlemax dry bulk vessel through a 12-month bareboat charter with a purchase option
• $53.8 million in refinancings during the second quarter, on improved terms, adding $15.0 million of extra liquidity and removing any loan maturities until Q2 2025
  

ATHENS, Greece, Aug. 02, 2023 (GLOBE NEWSWIRE) -- Seanergy Maritime Holdings Corp. (“Seanergy” or the “Company”) ( SHIP), announced today its financial results for the second quarter and six months ended June 30, 2023. The Company also declared a quarterly dividend of $0.025 per common share for the second quarter of 2023.

For the quarter ended June 30, 2023, the Company generated Net Revenues of $28.3 million, compared to $32.8 million in the second quarter of 2022. Adjusted EBITDA for the quarter was $15.7 million, compared to $17.3 million for the same period of 2022. Net Income and Adjusted Net Income for the quarter were $0.7 million and $3.4 million, respectively, compared to Net Income of $5.9 million and Adjusted Net Income of $7.1 million in the second quarter of 2022. The daily TCE rate of the fleet for the second quarter of 2023 was $18,708, compared to $23,251 in the same period of 2022.

For the six-month period ended June 30, 2023, the Company generated Net Revenues of $46.4 million, compared to $62.5 million in the same period of 2022. Adjusted EBITDA for the six months was $19.6 million, compared to $34.2 million for the same period of 2022. Net Loss and Adjusted Net Income for the six months were $3.5 million and $3.1 million, respectively, compared to Net Income of $9.6 million and Adjusted Net Income of $14.8 million in the respective period of 2022. The daily TCE⁴ rate of the fleet for the first six-month period of 2023 was $14,756, compared to $21,207 in the same period of 2022. The average daily OPEX was $6,921 compared to $6,510 of the respective period of 2022.

Cash and cash-equivalents and restricted cash, as of June 30, 2023, stood at $22.5 million. Shareholders’ equity at the end of the second quarter was $220.9 million. Long-term debt (senior loans, a convertible note and other financial liabilities) net of deferred charges stood at $231.4 million, while the book value of the fleet was $422.6 million.

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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 All references to number of shares, share prices, warrant prices and “per share” figures in this document are adjusted to reflect the one-for-ten reverse stock split effected on February 16, 2023.
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.
⁴ 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:

“Despite a challenging and volatile market environment, our financial results for the second quarter of 2023 were profitable. In line with our commitment to providing consistent returns to our shareholders, regardless of prevailing market conditions, we have declared a quarterly dividend of $0.025 per common share, while we also completed $1.6 million in share repurchases at an average price of about $4.35, which is 23% lower than our stock’s current trading price. We remain optimistic that the favorable Capesize market outlook and Seanergy’s positioning within the segment will allow us to continue rewarding our shareholders.

“In terms of our fleet’s commercial performance for this quarter, we accomplished a time charter equivalent rate of $18,700. This figure represents a noteworthy premium of about 20% compared to the $15,600 BCI average during the same period. Our strategic decision to fix approximately 30% of our fleet days at daily levels above $20,000 played a pivotal role in mitigating the volatility of our revenues. Moreover, I firmly believe that the high quality of our fleet will allow Seanergy to consistently earn a premium over the BCI. The recent agreements for two floating rate time charters, both secured at a premium to the index, are a good demonstration of our vessels’ competitiveness and I am confident in the sustainability of our earnings power.

“Moving on to other developments, during the second quarter we agreed to charter-in on a bareboat basis a 2011-built Newcastlemax vessel, for a period of 12 months with delivery to our fleet anticipated by the end of the year. At the maturity of the time charter, Seanergy has the option to purchase the vessel for $20.2 million, bringing the total cash outlay, including the advance payments and bareboat hire payments, to approximately $30.5 million. This represents a very attractive notional acquisition price, while Seanergy will have the opportunity to operate a larger vessel earning the highest premium to the BCI recorded so far on a fleetwide basis. As a result, I believe this to be a very lucrative deal that will yield high returns on capital for the Company.

“With regards to financing transactions, we have entered two sale and leaseback agreements with Japanese counterparties and a new loan with an existing European lender, totaling $53.8 million, to refinance existing indebtedness. The underlying interest cost is lower, partly offsetting the increase in reference rates, while we have added net liquidity of approximately $15 million. Following these transactions, we have addressed all debt maturities until Q2 2025.

“Lastly for a brief market comment, since the beginning of the year we have seen a material increase of more than 7% in ton-mile demand for the major raw materials of iron ore, coal and bauxite. However, the freight market has not performed accordingly. The main reason is the reduced port congestion to historical low levels, which has increased the effective supply of ships. At the same time, the larger ore carriers on the C3 (Brazil-China) route are operating at close to maximum speeds, which also increases the DWT adjusted speed of the fleet and consequently their respective CO2 emissions. We believe that towards the end of the year we will see congestion reaching historical averages in-line with usual seasonal patterns, while beginning in 2024 more stringent regulations and carbon levies will force operators to decrease speeds to eco levels across the board. As these supply factors start normalizing, I would expect to see charter rates that reflect the healthy demand more closely.

“Seanergy is in a favorable position to perform well amidst what we believe is the best Capesize market fundamentals seen over the past three decades and we will continue to be focused on maintaining high shareholder returns and the reduction of our carbon footprint.”

Company Fleet:

(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 will be 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 in favour of the Company.
(4) Expected to be delivered to our fleet between August and December 2023.

Fleet Data:

(U.S. Dollars in thousands)

(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.
(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 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)