Grindrod Shipping operates a fleet of owned and long-term and short-term chartered-in drybulk vessels predominantly in the handysize and supramax/ultramax segments. The drybulk business, which operates under the brand “Island View Shipping” (“IVS”), includes a Core Fleet of 31 vessels consisting of 15 handysize drybulk carriers and 16 supramax/ultramax drybulk carriers. The Company also owns one medium range product tanker on bareboat charter. The Company is based in Singapore, with offices in London, Durban, Tokyo, Cape Town and Rotterdam. Grindrod Shipping is listed on NASDAQ under the ticker “GRIN” and on the JSE under the ticker “GSH”.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Taylor Maritime Investment Limited (TMI) proposed a $26 per share offer to acquire share capital of the Company not already owned by TMI. TMI owned 4,925,023, or 25.9% of the shares of Grindrod as of August 17, 2022.The offer consists of $21 in cash and a $5 special cash dividend to be paid to shareholders. Grindrod has entered into a confidentiality agreement and an exclusivity agreement with TMI whereas TMI has been granting a period to negotiate the proposed transaction. Grindrod has not agreed to terms of the proposal nor its willingness to be acquired.
The shares of Grindrod rose on the news but remain below spring trading levels and our price target. The shares of GRIN rose 16.73% to $23.93 per share on Monday, the day the deal was announced. The shares of GRIN traded as high as $28.98 on May 20, 2022 but have been weak since that date in response to declining shipping rates and overall market weakness. The company reported very strong financial results for the first and second quarters allowing the company to pay down debt, acquire a vessel, and raise the dividend. As a result, we have maintained our price target of $31 even as shipping rates have declined….
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Great Lakes Dredge & Dock (GLDD) More Awards, More Work
Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 131-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
More Awards Announced. Great Lakes Dredge & Dock announced yesterday the Company has received eight new awards that total $107.0 million, with the awards to be completed by the end of the fiscal 2022 year through the second half of the 2023 year. These awards include maintenance projects, an improvement project, and an access channel dredging project.
Maintenance Projects. The Company was given several maintenance projects, with the largest award ($15.4 million) being in South Carolina and dredging in the Charlestown Lower Harbor. The second largest ($13.0 million, $14.5 million with options) is in Florida and dredging in the Tampa Harbor Entrance Channel. Four smaller projects were bundled in the announcement, but the projects total $14.8 million in awards and are in New York, North Carolina, and South Carolina….
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Pangaea Logistics (PANL) Ship Acquisition Follows Balanced Strategy of Growth and Rewarding Stakeholders
Pangaea Logistics Solutions Ltd. (NASDAQ: PANL) provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The Company addresses the transportation needs of its customers with a comprehensive set of services and activities, including cargo loading, cargo discharge, vessel chartering, and voyage planning. Learn more at www.pangaeals.com.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Ship acquisition announced. Pangaea announced the acquisition of a 2010-built vessel for US$17.1 million. Management had indicated it was in final negotiations for a ship purchase during its August 18th call to discuss second quarter financial results so the announcement was not a surprise. Pangaea has operated the ship for over a year on a chartered-in basis and had been approached by the owner. The ship will be delivered in September or October. Owned ships typically command higher margin contracts than chartered-in ships so the acquisition should have a positive impact on financial results going forward.
Acquisition follows management’s balanced strategy of growth and rewarding stakeholders. The Board of Directors has raised the dividend twice in the last twelve months although it opted to hold dividends constant in the most recent quarter. It has also paid down debt and capital leases in recent quarters. The ship acquisition will help grow Pangaea’s asset base. Pangaea’s cash position was $102.2 million (up from $40.6 million at this time last year). We believe the company will pay for the ship, which will be renamed Bulk Sachuest, with cash on hand….
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Grindrod Shipping operates a fleet of owned and long-term and short-term chartered-in drybulk vessels predominantly in the handysize and supramax/ultramax segments. The drybulk business, which operates under the brand “Island View Shipping” (“IVS”), includes a Core Fleet of 31 vessels consisting of 15 handysize drybulk carriers and 16 supramax/ultramax drybulk carriers. The Company also owns one medium range product tanker on bareboat charter. The Company is based in Singapore, with offices in London, Durban, Tokyo, Cape Town and Rotterdam. Grindrod Shipping is listed on NASDAQ under the ticker “GRIN” and on the JSE under the ticker “GSH”.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Second quarter financial results come in above expectations. Grindrod Shipping reported above-expectation financial results for the most recent quarter boosted by higher-than-expected shipping rates and lower daily operating costs. Reported revenues for the quarter were $161.6 million including $30 million from the sale of a ship. Average TCE rates increased compared to first-quarter rates and surpassed our expectations. This wasn’t just a top-line story. Equally impressive, operating costs per day declined, bucking a trend seen by other shippers. Administrative expense also declined.
The upcoming third quarter might not surpass the second quarter, but it will still be good. Shipping rates have come down in recent months. That said, Grindrod has locked in about 70% of its shipping days at rates not too far below the second quarter. We would expect third quarter revenues to be slightly below second quarter results absent revenues from ship sale revenues….
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Euroseas (ESEA) Smooth Sailing as Euroseas Rides The Tide of Higher Shipping Rates
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Solid top-line growth. Euroseas reported 2022-2Q net revenues of $48.5 million up 165% over the same period last year and modestly ahead of our $44.8 million estimate. Higher results reflect vessel additions (1,487 voyage days versus 1,273) and higher shipping rates (TCE of $33,714 versus $14,853). Operating costs rose modestly. Adjusted EBITDA was $34.2 million up from $10.5 million and slightly above our $33.7 million estimate. Adjusted net income was $29.6 million ($4.08 per diluted) versus $7.6 million ($1.11) and our estimate of $28.8 million ($3.96).
Locked-in rates looking good as shipping rates decline. The company has locked-in rates for 98% of voyage days for the rest of 2022, 78% for 2023 and 54% for 2024. Average TCE rates are near $30,000, which is down from this quarter’s TCE rate but still high relative to historical rates. Eurosea’s largest exposure to spot rates comes largely from ships under construction that will be delivered in 2024. Eurosea’s fleet is getting younger and receives premium pricing. Euroseas locked in a TCE rate of $48,000 for two vessels to be delivered in 2023. High TCE rates should result in strong cash flow and earnings levels for the foreseeable future….
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Pangaea Logistics Solutions Ltd. (NASDAQ: PANL) provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The Company addresses the transportation needs of its customers with a comprehensive set of services and activities, including cargo loading, cargo discharge, vessel chartering, and voyage planning. Learn more at www.pangaeals.com.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Higher revenues reflect a jump in shipping rates. The company reported revenues of $195.5m up 34% over the same period last year. Higher sales reflect a 29% increase in TCE rates to $27,139. Adjusted EBITDA rose 107% to $44.2 million. The large increase in EBITDA reflects higher revenues combined with only modest increases in operating costs. Net income rose 30% to $25.0 million.
Next quarter should be good as well. The company has locked in 3,026 shipping days, or about 60% of its rates at a TCE rate of $25,600. Management reports that it has no planned dry dock days for the rest of 2022, so we expect high utilization rates. Finally, we would note that the upcoming September quarter has 92 days versus lower levels in each of the first two quarters….
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Pyxis Tankers (PXS) Outstanding quarter shows sensitivity to shipping rates
We currently own a modern fleet of five tankers engaged in seaborne transportation of refined petroleum products and other bulk liquids. We are focused on growing our fleet of medium range product tankers, which provide operational flexibility and enhanced earnings potential due to their “eco” features and modifications. We are positioned to opportunistically expand and maximize our fleet due to competitive cost structure, strong customer relationships and an experienced management team whose interests are aligned with those of its shareholders. For more information, visit: http://www.pyxistankers.com.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Pyxis reported strong top-line results due to higher shipping rates. Results carried through to earnings. Pyxis reported 2022-2Q net revenues of $16.1 million vs. $7.7 million for the same period last year as higher energy prices and a disruption in global oil flow routes due to the Russia/Ukraine war resulted in higher tanker shipping rates. The average TCE rate for the quarter was $21,070 vs. $12,280 and could go higher in the third quarter with 57% of capacity fixed at $30,500. Meanwhile, operating costs per day declined to $6,181 from $6,697 leading to net income of $4.6 million or $0.38 per diluted versus ($1.4 million) or ($0.16 per share).
Cash flow is strong and the balance sheet is reasonable. Adjusted EBITDA was $7.3 million up from $0.4 million. The company’s cash position has grown to $6.2 million with $73.8 million in debt. Debt represents approximately 60% of capitalization (net debt is 55%). Debt is well supported by a increasingly more valuable asset base. Financing costs are an average 4.6%. The utilization rate for the quarter was 98%, a large improvement above first quarter rates of 74% that suffered from the accidental grounding of a tanker….
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Eagle Bulk Shipping Inc. (“Eagle”) is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Results were up sharply versus last year and slightly above our forecast. Net revenues were $198.7m in the most recent quarter, up 53% versus last year and in line with our $205.0m estimate. Improved sales reflect higher TCE shipping rates ($30,207 vs. $21,580) and more operating days (5,707 vs. 4,778) due to more owned and chartered-in vessels (60 vs. 55). Favorable sales led to a jump in adjusted EBITDA (which excludes hedges) to $102.6m from $6.6m surpassing our $93.4m estimate. The EBITDA surprise was due to lower-than-expected voyage expenses. Adjusted net income was $81.6m ($4.98/diluted share) versus our $73m.
Charter rates have slipped but still remain above historical averages. Shipping rates declined in the second quarter as fighting in Ukraine and overall global economic concerns affected prices. Eagle has locked in 72% of its shipping rates for the third quarter as compared to an 83% rate in the second quarter leaving it a bit more exposed to spot prices. The fourth quarter is typically the highest-priced quarter due to North American grain shipments. Management believes the market for dry bulk shipping is also favorable with China opening up, Russian and Ukraine grain shipments resuming, and Brazil iron ore supply growing. Management points out that new vessel construction is limited and new orders wouldn’t be completed until 2024….
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Great Lakes Dredge & Dock (GLDD) Corrected Copy: Income Statement Model
Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 131-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Corrected Model. An incorrect Income Statement model was attached to our second quarter update entitled “When It Rains…” and published August 3, 2022. A corrected version is attached. The error involves our full year 2022 revenue and adjusted EBITDA. The correct numbers are $692.8 million and $89.5 million, respectively, compared to $751.4 million and $89.9 million, respectively, in the prior consolidated income statement. The quarterly information is correct. Throughout the report we reference the correct $692.8 million revenue number. In certain instances, we do reference the incorrect $89.9 million adjusted EBITDA number but the de minimis difference between the two figures does not impact our investment case or valuation of GLDD shares.
…
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Genco Shipping (GNK) Results rise even as the company takes steps to position itself for the future
Genco Shipping & Trading Limited, incorporated on September 27, 2004, transports iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes through the ownership and operation of drybulk carrier vessels. The Company is engaged in the ocean transportation of drybulk cargoes around the world through the ownership and operation of drybulk carrier vessels. As of December 31, 2016, its fleet consisted of 61 drybulk carriers, including 13 Capesize, six Panamax, four Ultramax, 21 Supramax, two Handymax and 15 Handysize drybulk carriers, with an aggregate carrying capacity of approximately 4,735,000 deadweight tons (dwt). Of the vessels in its fleet, 15 are on spot market-related time charters, and 27 are on fixed-rate time charter contracts. As of December 31, 2016, additionally, 19 of the vessels in its fleet were operating in vessel pools.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Genco Shipping reported 2022-2Q results above our estimates but below consensus estimates. Net revenues were $100.9 million vs. $76.0 million last year, above our $97.1 million estimate but below the consensus estimate of $109.1 million. Adjusted EBITDA for the quarter was $64.2 million, up 28% but below our estimate of $67.1 million and the consensus estimate of $67.4 million. Net income was $47.5 million ($1.10 per share) vs. our estimate of $43.6 million ($1.01 per share) and the consensus estimate of $50.5 million ($1.17 per share).
Why were costs up? Daily vessel operating expenses were $7.358/day in the second quarter versus $5,151/day last year. The company is switching technical management companies. The changeover required higher repair and maintenance costs and an increase in the purchase of stores and spare parts. In addition, the company completed an entire crew changeover as ships came into dock. The good news is that the changeover is largely complete and vessel operating expenses are expected to drop to $4,950 in the upcoming quarter….
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Seanergy Maritime (SHIP) Results in line with recent revisions
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 approximately 12 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”.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Seanergy reported 2022-2Q results in line with expectations. SHIP reported net revenues of $32.8 million up 18% over last year and slightly above our estimate of $31.1 million. EBITDA of $16.1 million met our $16.2 million estimate and reported net income of $5.9 million ($0.03 per share) was slightly above our $5.5 million ($0.03 per share) estimate. We had fine-tuned our projections last month after a conversation with management.
TCE rates were the main cause for higher year-over-year result although coming in below early guidance. Average Time Charter Equivalent rates were $23,251 for the quarter in line with our $23,000 estimate. Management had forecast a 2Q TCE rate of $24,569 at the end of the first quarter. Shipping rates remain above historical levels but have fallen as the quarter progressed and concerns of a weakening global economy emerged. Still, the overall outlook remains positive as the iron ore and coal trades are active and China begins to reopen….
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Noble on the Road Presents: Great Lakes Dredge & Dock Corporation Investor Day
Noble Capital Markets is hosting an investor day with Great Lakes Dredge & Dock for the New York financial community on Tuesday, September 13th. CEO Lasse Petterson and CFO Scott Kornblau will present and answer questions. This is a no cost event for investors to get to know the company and management.
Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) is a leading provider of dredging services in the United States specializing in projects that help improve and protect our nation’s infrastructure and coastlines. With a robust portfolio of major dredging projects, the company brings extensive experience and a strong safety record.
Noble senior analyst Joe Gomes follows the company and has an Outperform rating with a $17.05 price target.
To learn more about Great Lakes Dredge & Dock, click here. The research is complimentary to you.
Spin-off
of United Maritime Corporation (“United”) and distribution of United’s
common shares to Seanergy’s shareholders
Quarterly
dividend of $0.025 per share for Q2 2022, payable on or about October 11,
2022 to all common shareholders of record as of September 25, 2022
Total
cash dividends of $0.10 per common share to the Company’s shareholders in
2022 to date plus the distribution of United’s shares
Additional
repurchase plan of up to $5.0 million, on top of the $26.7 million
buybacks completed in Q4 2021 / Q1 2022
Delivery
of the recently acquired Capesize vessel and commencement of period
employment
New
financing and refinancing transactions totaling $80.3 million with
improved pricing and overall loan terms
$28.0
million commitment letter from a prominent European lender for the
refinancing of the last balloon remaining for 2022
No
remaining loan maturities until Q4 2023
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.
ATHENS, Greece, Aug. 04, 2022 (GLOBE NEWSWIRE) — 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, 2022. The Company also declared a quarterly dividend of $0.025 per common share for the second quarter of 2022.
For the quarter ended June 30, 2022, the Company generated Net Revenues of $32.8 million, a 18% increase compared to the second quarter of 2021. Adjusted EBITDA for the quarter was $17.3 million, a 53% increase compared to $11.3 million in the same period of 2021. Net Income and Adjusted Net Income for the quarter were $5.9 million and $7.1 million a 203% and 187% increase respectively, compared to Net Income of $2.0 million and Adjusted Net Income of $2.5 million in the second quarter of 2021. The daily Time Charter Equivalent (“TCE rate”1) of the fleet for the second quarter of 2022 was $23,251, marking a 16% increase compared to $20,095 for the same period of 2021.
For the six-month period ended June 30, 2022, Net Revenues were $62.5 million, increased by 30% when compared to $48.2 million in same period of 2021. Adjusted EBITDA for the first six months of 2022 was $34.1 million, a 77% increase compared to $19.2 million in the same period of 2021. The daily TCE of the fleet for the first six months of 2022 was $21,207 compared to $18,327 in the first six months of 2021. The average daily OPEX was $6,510 compared to $5,766 of the respective period of 2021.
Cash, cash-equivalents and restricted cash, as of June 30, 2022, stood at $41.4 million. Shareholders’ equity at the end of the second quarter was $233.7 million. Long-term debt (senior loans, convertible note and other financial liabilities) net of deferred charges stood at $257.6 million, while the book value of our fleet stood at $455.0 million.
1 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 record financial results for the second quarter and the first half of the year. Based on the sustained profitability of Seanergy, we are declaring a quarterly dividend of $0.025 per share for Q2 2022, which represents approximately 63% of our adjusted net income for the period. Over the last three quarters, we will have distributed approximately $18.0 million or $0.10 per share to our shareholders.
“Concerning our results for the second quarter of 2022, our daily TCE was $23,251, marking an increase of 16% compared to the TCE of the second quarter of 2021. The TCE for the first 6 months of 2022 was $21,207 per day as compared to a daily TCE of approximately $18,327 in the first half of 2021. Most importantly, the TCE of our fleet outperformed the Baltic Capesize Index (“BCI”) average in the first six months of 2022 by 17%. Our guidance for the third quarter is $23,650 per day.
“Adjusted EBITDA for the second quarter and first half of 2022 was $17.3 million and $34.1 million, respectively, marking a 53% and a 77% increase versus the respective periods of 2021. Net income for the quarter was approximately $5.9 million, while that of the first half was $9.6 million.
“We also recently completed the spin-off of United, which commenced trading on the NASDAQ Capital Market on July 6, 2022, under the ticker “USEA”. The distribution of all of United’s common shares to our shareholders represents a significant return of value.
“Lastly, concerning our shareholder rewards plan, following the successful execution of two buyback plans of shares and equity-linked instruments totaling $26.7 million, our Board of Directors authorized an additional share repurchase plan of $5 million. Including the aforementioned dividend payments, a total of $44.7 million of the Company’s cash has been allocated to activities which directly reward our shareholders since the fourth quarter of 2021.
“In the second quarter, we concluded the acquisition of another quality Japanese Capesize vessel, replacing the M/V Gloriuship that was spun out to United. The new acquisition, renamed M/V Honorship, was delivered to us in June and immediately commenced its period employment for approximately 2 years with NYK Line.
“On the financing front, in 2022 to-date, we have successfully concluded new financings and refinancings of $80.3 million while obtaining a commitment letter from a prominent European lender for the last remaining loan maturity in 2022. In addition to the replacement of legacy debt at considerably improved terms, one of our new facilities includes a significant sustainability-linked element. This is aligned with our intention to incorporate our ESG agenda in every aspect of our corporation.
“Concerning our fleet developments, we have now successfully completed installations of ballast water treatment systems on 100% of our fleet and have upgraded various vessels by installing Energy Saving Devices. In most cases, these projects are accompanied by agreements with our charterers to increase the daily hire rate, reflecting the improved performance of the underlying vessels, as well as to extend the respective time-charter periods. As a result, we believe our fleet is optimally positioned commercially and operationally.
“Looking ahead, considering the favorable demand and vessel-supply fundamentals of our sector, we are optimistic about the prospects of the Capesize market for the coming years.”
Company
Fleet:
Vessel
Name
Capacity (DWT)
Year Built
Yard
Scrubber Fitted
Employment Type
FFA conversion option(18)
Minimum T/C expiration
Maximum T/C expiration(19)
Patriotship
181,709
2010
Imabari
Yes
T/C – fixed rate(1)
–
06/2022
12/2022
Dukeship
181,453
2010
Sasebo
–
T/C Index Linked(2)
Yes
01/2022
06/2023
Worldship
181,415
2012
Koyo – Imabari
Yes
T/C – fixed rate(3)
–
09/2022
01/2023
Hellasship
181,325
2012
Imabari
–
T/C Index Linked(4)
–
12/2023
04/2024
Honorship
180,242
2010
Imabari
–
T/C Index Linked(5)
Yes
02/2024
06/2024
Fellowship
179,701
2010
Daewoo
–
T/C Index Linked(6)
Yes
06/2024
10/2024
Championship
179,238
2011
Sungdong SB
Yes
T/C Index Linked(7)
Yes
11/2023
11/2023
Partnership
179,213
2012
Hyundai
Yes
T/C Index Linked(8)
Yes
10/2022
11/2023
Knightship
178,978
2010
Hyundai
Yes
T/C Index Linked(9)
–
05/2023
11/2023
Lordship
178,838
2010
Hyundai
Yes
T/C Index Linked(10)
Yes
05/2022
09/2022
Goodship
177,536
2005
Mitsui
–
T/C Index Linked(11)
Yes
08/2022
11/2022
Friendship
176,952
2009
Namura
–
T/C Index Linked(12)
–
12/2023
03/2024
Tradership
176,925
2006
Namura
–
T/C Index Linked(13)
Yes
06/2023
10/2023
Flagship
176,387
2013
Mitsui
–
T/C Index Linked(14)
Yes
05/2026
05/2026
Geniuship
170,057
2010
Sungdong SB
–
T/C Index Linked(15)
Yes
01/2023
05/2023
Premiership
170,024
2010
Sungdong SB
Yes
T/C Index Linked(16)
–
11/2022
05/2023
Squireship
170,018
2010
Sungdong SB
Yes
T/C Index Linked(17)
–
12/2022
06/2023
Total/Average age
3,020,012
12.1
(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 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.
(3)
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.
(4)
Chartered by NYK and delivered to the charterer on May 10, 2021 for an initial period of minimum 11 to maximum 15 months, which was further extended until minimum December 2023 to maximum March 2024. The daily charter hire is based on the BCI.
(5)
Chartered by NYK and delivered to the charterer on June 30, 2022 for a period of about 20 to about 24 months. The daily charter hire is based on the BCI.
(6)
Chartered by Anglo American, a leading global mining company, and delivered to the charterer on June 18, 2021 for an initial period of minimum 12 to about 15 months, which was further extended for a period of minimum 20 to about 24 months starting as of October 2022. The daily charter hire is based on the BCI.
(7)
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.
(8)
Chartered by a major European utility and energy company and delivered to the charterer on September 11, 2019 for an initial period of minimum 33 to maximum 37, ending in October 2022. Pursuant to a charterer’s option the time-charter (“T/C”) was extended for a further 11 to 13 months. According to the terms of the agreement, the charterer has an additional 11 to 13 months optional period. The daily charter hire is based on the BCI.
(9)
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.
(10)
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.
(11)
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.
(12)
Chartered by NYK and delivered to the charterer on July 29, 2021 for an initial period of minimum 17 to maximum 24 months, which was extended until minimum December 2023 to maximum March 2024. The daily charter hire is based on the BCI.
(13)
Chartered by a major European operator and delivered to the charterer on July 26, 2022 for a period of about 11 to about 15 months. The daily charter hire is based on the BCI.
(14)
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.
(15)
Chartered by NYK and delivered to the charterer on February 6, 2022 for a period of about 11 to about 15. The daily charter hire is based on the BCI.
(16)
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.
(17)
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.
(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.
(19)
The latest redelivery date does not include any additional optional period.
Fleet Data:
(U.S. Dollars in thousands)
Q2 2022
Q2 2021
6M 2022
6M 2021
Ownership days (1)
1,551
1,164
3,081
2,155
Operating days (2)
1,341
1,122
2,823
2,055
Fleet utilization (3)
86.5%
96.4%
91.6%
95.4%
TCE rate (4)
$23,251
$20,095
$21,207
$18,327
Daily Vessel Operating Expenses (5)
$6,575
$5,908
$6,510
$5,766
(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 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 2022
Q2 2021
6M 2022
6M 2021
Net revenues from vessels
32,847
27,832
62,513
48,230
Less: Voyage expenses
1,667
5,285
2,646
10,567
Time charter equivalent revenues
31,180
22,547
59,867
37,663
Operating
days
1,341
1,122
2,823
2,055
TCE rate
$23,251
$20,095
$21,207
$18,327
(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 2022
Q2 2021
6M 2022
6M 2021
Vessel operating expenses
10,529
8,879
20,441
14,428
Less: Pre-delivery expenses
331
2,002
384
2,002
Vessel operating expenses before pre-delivery expenses
10,198
6,877
20,057
12,426
Ownership
days
1,551
1,164
3,081
2,155
Daily Vessel Operating Expenses
$6,575
$5,908
$6,510
$5,766
Net Income to EBITDA and Adjusted
EBITDA Reconciliation:
(In thousands of U.S. Dollars)
Q2 2022
Q2 2021
6M 2022
6M 2021
Net income
5,935
1,961
9,606
640
Add: Net interest and finance cost
3,163
4,277
6,013
8,307
Add: Depreciation and amortization
7,034
4,520
13,299
8,337
Add: Taxes
(28
)
–
(28
)
–
EBITDA
16,104
10,758
28,890
17,284
Add: Stock based compensation
1,163
528
3,842
1,931
Add: Loss on extinguishment of debt
6
–
1,285
–
Less: Loss on forward freight agreements, net
36
–
72
–
Adjusted EBITDA
17,309
11,286
34,089
19,215
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, and loss on extinguishment of debt, 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.
Adjusted
Net income Reconciliation and calculation of Adjusted Net Income Per Share
(In thousands of U.S. Dollars)
Q2 2022
Q2 2021
6M 2022
6M 2021
Net income
5,935
1,961
9,606
640
Add: Stock based compensation
1,163
528
3,842
1,931
Add: Loss on extinguishment of debt
6
–
1,285
–
Less: Loss on forward freight agreements, net
36
–
72
–
Adjusted net income
7,140
2,489
14,805
2,571
Adjusted net income per common share, basic
0.04
0.02
0.09
0.02
Adjusted net income per common share, diluted
0.04
0.02
0.08
0.02
Weighted average number of common shares outstanding, basic
172,559,248
160,171,874
172,437,211
137,590,311
Weighted average number of common shares outstanding, diluted
177,368,289
165,864,695
178,074,877
143,292,880
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)
Q2 2022
Q2 2021
6M 2022
6M 2021
Interest and finance costs, net
(3,163
)
(4,277
)
(6,013
)
(8,307
)
Add: Amortization of deferred finance charges and other discounts
617
1,068
1,275
1,876
Add: Amortization of convertible note beneficial conversion feature
–
680
–
1,238
Cash interest and finance costs
(2,546
)
(2,529
)
(4,738
)
(5,193
)
Third Quarter 2022 TCE Guidance:
As of the date hereof, approximately 62% of the Company fleet’s expected operating days in the third quarter of 2022 have been fixed at an estimated TCE of approximately $26,600. 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 $19,865 per day (based on the FFA curve of August 1, 2022), our estimated TCE for the third quarter of 2022 will be approximately $23,6501. Our TCE guidance for the third quarter of 2022 includes certain conversions (three vessels) of index-linked charters to fixed, which were concluded in previous quarters as part of our freight hedging strategy. The following table provides the break-down:
Operating Days
TCE
TCE – fixed rate (index-linked conversion)
281
$33,839
TCE – fixed rate
183
$29,992
TCE – index-linked unhedged
1,102
$19,998
Total / Average
1,566
$23,650
1 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 $19,865. Spot estimates are provided using the load-to-discharge method of accounting. 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.
Second
Quarter and Recent Developments:
Dividend Distribution and
Declaration of Q2 Dividend
On July 14, 2022, the Company paid the previously-announced quarterly dividend of $0.025 per share, for the first quarter of 2022. Committed to its dividend strategy, the Company also declared a cash dividend of $0.025 per share for the second quarter of 2022 payable on or about October 11, 2022 to the shareholders of record as of September 25, 2022.
Additional Share Buyback Plan
In June 2022, the Board of Directors of the Company authorized an additional share repurchase plan, under which the Company may repurchase up to $5.0 million of its outstanding common shares, convertible note or warrants. Since the fourth quarter of 2021 to date, the Company has repurchased $26.7 million of outstanding common shares, convertible notes and warrants reducing its financial leverage and preventing a potential dilution.
Vessel acquisitions and commercial
updates
M/V
Honorship In June 2022, the Company took delivery of the 180,242 dwt Capesize bulk carrier, built in 2010 in Japan, which was renamed M/V Honorship. The M/V Honorship was fixed on a time charter with NYK Line, a leading Japanese shipping company and existing charterer of the Company. The T/C commenced on June 30, 2022 and will have a term of about 20 to about 24 months. The gross daily rate of the T/C is based at a premium over the BCI.
M/V
Partnership Following the completion of her recent drydock, the charterer agreed to exercise the optional period extending the T/C until October 2022 at a higher rate based at a premium over the BCI and at an increased scrubber profit sharing scheme. In addition, the T/C provides for one more optional extension period of 11-13 months at charterer’s option.
Financing Updates
During the first half of 2022, the Company has successfully concluded new financings and refinancings of $80.3 million, out of which $59.0 million were concluded in the second quarter of 2022. Furthermore, the Company has received a commitment letter for a loan facility of up to $28.0 million, which will be concluded within Q3 2022.
Piraeus
Bank S.A On June 22, 2022, the Company entered into an up to $38.0 million sustainability-linked loan facility to (i) refinance the existing facility of $14.9 million secured by the M/V Worldship and (ii) partially fund the acquisition cost of the M/V Honorship. The facility has a term of five years while the interest rate is 3.0% plus LIBOR per annum and can be further reduced based on certain emission reduction thresholds.
Alpha
Bank S.A. On June 21, 2022, the Company entered into a credit facility for an amount of up to $21.0 million secured by the M/V Dukeship. The facility has a term of four years and the interest rate is 2.95% plus SOFR per annum.
Danish
Ship Finance Commitment Letter In July 2022, the Company obtained a commitment letter from Danish Ship Finance A/S for a loan facility of up to $28.0 million, in order to refinance an existing facility of $24.8 million secured by the M/Vs Premiership & Fellowship. The interest rate will be 2.5% plus SOFR per annum and the term of the loan will be five years. The facility will be repaid through six quarterly instalments of $1.6 million followed by 14 quarterly instalments of $1.04 million and a balloon of $4.1 million payable together with the last instalment. The existing facility that is intended to be refinanced includes a balloon payment of $23.6 million to be paid during the fourth quarter of 2022. The transaction is subject to completion of definitive documentation.
Spin-Off and distribution of
United’s shares
In July 2022, the Company completed the spin-off of its wholly-owned subsidiary, United Maritime Corporation which commenced trading on the Nasdaq Capital Market on July 6, 2022 under the symbol “USEA”. The Company’s shareholders on record as of June 28, 2022, received one United common share for every 118 Seanergy common shares. Following the spin-off, the M/V Gloriuship was substituted by the younger M/V Honorship, positively affecting the Company’s average fleet and overall operating margin.
Nasdaq Notice
The Company received written notification from The Nasdaq Stock Market (“Nasdaq”) dated August 1, 2022, indicating that because the closing bid price of the Company’s common stock for 30 consecutive business days, from June 16, 2022, to July 29, 2022, was below the minimum $1.00 per share bid price requirement for continued listing on the Nasdaq Capital Market, the Company is not in compliance with Nasdaq Listing Rule 5550(a)(2). Pursuant to the Nasdaq Listing Rule 5810(c)(3)(A), the applicable grace period to regain compliance is 180 days, or until January 30, 2023. The Company can cure this deficiency if the closing bid price of its common stock is $1.00 per share or higher for at least ten consecutive business days during the grace period.
Conference Call:
The Company’s management will host a conference call to discuss financial results today, Thursday, August 4, 2022 at 10:00 a.m. Eastern Time.
Slides and Audio Webcast:
There will be a live, and then archived, webcast of the conference call and accompanying slides available through the Company’s website. To listen to the archived audio file, visit our website, following Webcast &
Presentations. Participants to the live webcast should register on the 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, 2022
December 31, 2021*
ASSETS
Cash and cash equivalents, restricted cash and term deposits
41,357
47,126
Vessels, net
455,020
426,062
Other assets
22,546
14,023
TOTAL ASSETS
518,923
487,211
LIABILITIES AND STOCKHOLDERS’ EQUITY
Long-term debt and other financial liabilities
247,373
215,174
Convertible notes
10,245
7,573
Other liabilities
27,636
19,988
Stockholders’ equity1
233,669
244,476
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
518,923
487,211
* 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 ended June 30,
Six months ended June 30,
2022
2021
2022
2021
Vessel revenue, net
32,847
27,832
62,513
48,230
Expenses:
Voyage expenses
(1,667
)
(5,285
)
(2,646
)
(10,567
)
Vessel operating expenses
(10,529
)
(8,879
)
(20,441
)
(14,428
)
Management fees
(377
)
(348
)
(753
)
(629
)
General and administrative expenses
(4,205
)
(2,566
)
(8,520
)
(5,296
)
Depreciation and amortization
(7,034
)
(4,520
)
(13,299
)
(8,337
)
Loss on forward freight agreements, net
(36
)
–
(72
)
–
Operating income
8,999
6,234
16,782
8,973
Other income / (expenses):
Interest and finance costs, net1
(3,163
)
(4,277
)
(6,013
)
(8,307
)
Loss on extinguishment of debt
(6
)
–
(1,285
)
–
Other, net
105
4
122
(26
)
Total other expenses, net:
(3,064
)
(4,273
)
(7,176
)
(8,333
)
Net income
5,935
1,961
9,606
640
Net income per common share, basic
0.03
0.01
0.06
0.01
Net income per common share, diluted
0.03
0.01
0.05
0.01
Weighted average number of common shares outstanding, basic
172,559,248
160,171,874
172,437,211
137,590,311
Weighted average number of common shares outstanding, diluted
177,368,289
165,864,695
178,074,877
143,292,880
1 On January 1, 2022, we adopted ASU 2020-06, eliminating the beneficial conversion feature model in ASC 470-20. The adoption of ASU 2020-06 resulted in an increase of the Convertible notes, a reduction of the Accumulated deficit and a reduction of Additional paid-in capital.
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 ended June 30,
2022
2021
Net cash provided by operating activities
18,939
15,037
Vessels acquisitions and improvements
(37,246
)
(117,058
)
Term deposits
1,500
(1,000
)
Other fixed assets, net
(69
)
–
Net cash used in investing activities
(35,815
)
(118,058
)
Proceeds from long-term debt and other financial liabilities
80,300
104,350
Repayments of long-term debt and other financial liabilities
(47,910
)
(66,722
)
Repayments of convertible notes
(10,000
)
–
Payments of financing and stock issuance costs
(937
)
(1,096
)
Dividend paid
(8,916
)
–
Proceeds from issuance of common stock and warrants, net of underwriters fees and commissions
70
98,232
Net cash provided by financing activities
12,607
134,764
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for interest
4,798
5,160
Noncash investing activities
Vessels acquisitions and improvements
3,518
(884
)
Noncash financing activities
Dividends declared but not paid
4,460
–
Units issued for repayment of subordinated long term-debt
–
3,000
Repayment of subordinated long term-debt by issuance of units
–
(3,000
)
About
Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is the only 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 17 Capesize vessels with an average age of approximately 12.1 years and an aggregate cargo carrying capacity of approximately 3,020,012 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.
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.
