Monday, February 14, 2022

EuroDry (EDRY)
Looking Beyond Seasonal Volatility

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands and trades on the NASDAQ Capital Market under the ticker EDRY. EDRY is the product of a spin-off of the dry bulk fleet by Euroseas (ESEA) completed in May 2018. For every five ESEA shares, ESEA shareholders received one EDRY share. There are currently ~2.2 million EDRY shares outstanding. EuroDry operates in the dry bulk shipping markets. EuroDry’s operations are managed by Eurobulk Ltd., an affiliated ship management company, and Eurobulk FE (Far East) Ltd, which are responsible for the day-to-day commercial and technical management and operation of the fleet. EuroDry employs the fleet on spot and period charters and through pool arrangements.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

A solid quarter caps a strong year. Reported adjusted 4Q2021 EBITDA of $16.0 million included minimal dry dock expenses, which was ~$3.0 million higher than 3Q2021. TCE rates averaged $29,157/day. Reported adjusted 2021 EBITDA of $42.3 million included minimal dry dock expenses, which was well above 2020 adjusted EBITDA of $6.2 million. TCE rates averaged $24,222/day.


Adjusting 2022 EBITDA estimate to $59.4 million based on TCE rates of $25.8k/day.  Visibility is limited with forward cover of 19% and seasonality is expected, but acquisitions and a well balanced dry bulk market set a good tone for this year. While visibility is low, operating leverage is very high; each $1.0k/day change in the BKI/BPI/BSI indices impacts cash flow by +/- $1.4 million, or …

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. 

EuroDry Ltd. Reports Results for the Year and Quarter Ended December 31, 2021

News and Market Data on EuroDry Ltd.

 

ATHENS, Greece, Feb. 09, 2022 (GLOBE NEWSWIRE) — EuroDry Ltd. (NASDAQ: EDRY, the “Company” or “EuroDry”), an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced today its results for the three- and twelve-month periods ended December 31, 2021.  

Fourth Quarter 2021 Highlights:

• Total net revenues of $22.3 million.
  
  
• Net income attributable to common shareholders of $15.2 million or $5.38 and $5.32 earnings per share basic and diluted, respectively, inclusive of unrealized gain on derivatives.
  
  
• Adjusted net income attributable to common shareholders¹ for the quarter of $12.3 million, or, $4.34 and $4.29 per share basic and diluted, respectively. The adjusted net income attributable to common shareholders includes a $0.5m non-cash charge for a “Preferred deemed dividend” resulting from the redemption of the Company’s Series B Preferred Shares.
  
  
• Adjusted EBITDA¹ was $16.0 million.
  
  
• An average of 9.0 vessels were owned and operated during the fourth quarter of 2021 earning an average time charter equivalent rate of $29,157 per day.
  
  
• The Company declared a dividend of $0.2 million on its Series B Preferred Shares. The dividend was paid in cash. In addition, as previously announced, in December 2021 the Company redeemed all of its outstanding Series B Preferred Shares at par amounting to $13.6 million.
  

_{¹Adjusted EBITDA, Adjusted net income/(loss) and Adjusted earnings/(loss) per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for EuroDry’s financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.}

Full Year 2021 Highlights:

• Total net revenues of $64.4 million.
  
  
• Net income attributable to common shareholders of $29.4 million, or $11.63 and $11.53 earnings per share basic and diluted, respectively, inclusive of unrealized loss on derivatives and a loss on debt extinguishment.
  
  
• Adjusted net income attributable to common shareholders¹ for the period was $30.3 million or $11.98 and $11.88 adjusted earnings per share basic and diluted, respectively. The adjusted net income attributable to common shareholders includes a $0.7m non-cash charge for a “Preferred deemed dividend” resulting from the redemption of the Company’s Series B Preferred Shares.
  
  
• Adjusted EBITDA¹ was $42.3 million.
  
  
• An average of 7.9 vessels were owned and operated during the twelve months of 2021 earning an average time charter equivalent rate of $24,222 per day.
  

Recent developments

In January 2022, the Company acquired M/V Molyvos Luck, a 57,924 dwt drybulk vessel built in 2014, for $21.2 million. The vessel was majority owned by a third party and has been managed by Eurobulk Ltd., also the manager of the majority of the Company’s vessels. The vessel will be delivered to the Company around the middle of February 2022.The Company will also assume the existing charter of the vessel at $13,250/day until April 2022. The acquisition will be initially financed by the Company’s own funds; a bank loan will be arranged to partly finance the acquisition, using the acquired vessel as collateral.

Aristides Pittas, Chairman and CEO of EuroDry commented:

“We are pleased to report that, in the fourth quarter of 2021, we took advantage of the market levels registering our best quarter on record with more than $15m of net income. We also redeemed all our outstanding Series B Preferred shares reducing our cost of capital and increasing earnings to our common shareholders in 2022 and beyond.

“During the quarter, drybulk spot earnings, after peaking in October 2021 when they registered their highest level since early 2010, subsequently retreated by about 35% in November and December, while in January 2022 they retreated by approximately another 30%; at the same time, after initially retreating too, one-year time rates recovered during December 2021 and January 2022 suggesting that there are expectations amongst the market participants that the spot earnings’ retreat, a cyclically common effect during the first couple of months of every year, is only temporary. Even at their present levels though, spot earnings are at high levels relative to the last decade.

“Despite the market strength during 2021, the orderbook remained at historically low levels. This suggests minimal fleet growth over the next 2-3 years, likely, leading to higher rates in the rest of 2022 if trade increases even at just historically average levels. Within this framework of expectations, we have expanded our fleet acquiring our tenth vessel, M/V Molyvos Luck, which will further position us to take advantage of expected market increases.

“Overall, we are committed to continue growing EuroDry focusing on the middle size range of drybulk carriers. Our increased liquidity and low leverage ratio provide us with significant firepower to pursue our strategy.”

Tasos Aslidis, Chief Financial Officer of EuroDry commented: “The net revenues of the fourth quarter of 2021 increased significantly compared to the same period of 2020 as a result of the time charter equivalent rates our vessels earned during the quarter which were higher by 171% compared to the average time charter equivalent rates our vessels earned in the fourth quarter of 2020.

“Total daily vessel operating expenses, including management fees, general and administrative expenses but excluding drydocking costs, averaged $6,324 per vessel per day during the fourth quarter of 2021 as compared to $6,258 per vessel per day for the same quarter of last year, and $6,456 per vessel per day for the entire year of 2021 as compared to $6,211 per vessel per day for the same period of 2020. This increase is mainly due to increased crewing costs in 2021 compared to 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions.

“Adjusted EBITDA during the fourth quarter of 2021 was $16.0 million versus $1.8 million in the fourth quarter of last year. As of December 31, 2021, our outstanding debt (excluding the unamortized loan fees) was $79.4 million, while unrestricted and restricted cash was $29.5 million. As of the same date, our scheduled debt repayments including balloon payments over the next 12 months amounted to about $14.1 million (excluding the unamortized loan fees).”

Fourth Quarter 2021 Results:

For the fourth quarter of 2021, the Company reported total net revenues of $22.3 million representing a 248% increase over total net revenues of $6.4 million during the fourth quarter of 2020 which was the result of the increased average time charter equivalent rate our vessels earned and the higher number of vessels operating in the fourth quarter of 2021 compared to the same period of 2020. The Company reported a net income for the period of $16.0 million and a net income attributable to common shareholders of $15.2 million, as compared to a net loss of $0.3 million and a net loss attributable to common shareholders of $0.7 million for the same period of 2020. For the fourth quarter of 2021, voyage expenses, net amounted to income of $0.2 million resulting from gain on bunkers as compared to voyage expenses of $0.1 million in the same period of 2020. Vessel operating expenses were $3.7 million for the fourth quarter of 2021 as compared to $2.9 million for the same period of 2020. The increase is mainly attributable to the increased number of vessels operating in the fourth quarter of 2021 compared to the corresponding period in 2020. Depreciation expenses for the fourth quarter of 2021 amounted to $2.3 million, as compared to $1.7 million for the same period of 2020. This increase is due to the higher number of vessels operating in the fourth quarter of 2021 as compared to the same period of 2020. General and administrative expenses increased to $0.9 million in the fourth quarter of 2021, as compared to $0.6 million in the fourth quarter of 2020 due to higher legal and insurance expenses.

Interest and other financing costs for the fourth quarter of 2021 increased to $0.7 million as compared to $0.5 million for the same period of 2020. The increase is mainly due to the higher average outstanding debt of the period compared to the same period of 2020. For the three months ended December 31, 2021, the Company recognized a gain on four interest rate swaps of $0.2 million and a realized gain on FFA contracts of $1.4 million, as compared to a marginal loss on three interest rate swaps and a marginal gain on FFA contracts for the same period of 2020.

On average, 9.0 vessels were owned and operated during the fourth quarter of 2021 earning an average time charter equivalent rate of $29,157 per day compared to 7.0 vessels in the same period of 2020 earning on average $10,761 per day.

Adjusted EBITDA for the fourth quarter of 2021 was $16.0 million compared to $1.8 million achieved during the fourth quarter of 2020.

Basic and diluted earnings per share attributable to common shareholders for the fourth quarter of 2021 was $5.38 calculated on 2,827,316 basic and $5.32 calculated on 2,860,357 diluted weighted average number of shares outstanding, compared to basic and diluted loss per share of $0.31 for the fourth quarter of 2020, calculated on 2,285,601 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the income attributable to common shareholders for the quarter of the change in fair value of derivatives, the adjusted earnings attributable to common shareholders for the quarter ended December 31, 2021 would have been $4.34 and $4.29 per share basic and diluted, respectively, compared to adjusted loss of $0.34 per share basic and diluted for the quarter ended December 31, 2020. Usually, security analysts do not include the above item in their published estimates of earnings per share.

Full Year 2021 Results:

For the full year of 2021, the Company reported total net revenues of $64.4 million representing a 189% increase over total net revenues of $22.3 million during the twelve months of 2020, as a result of the increased average time charter equivalent rate our vessels earned in the twelve months of 2021 compared to the same period of 2020. The Company reported a net income for the period of $31.2 million and a net income attributable to common shareholders of $29.4 million, as compared to a net loss for the period of $5.9 million and a net loss attributable to common shareholders of $7.5 million, for the twelve months of 2020. For the twelve months of 2021, voyage expenses, net amounted to income of $0.8 million resulting from gain on bunkers as compared to voyage expenses of $0.3 million in the same period of 2020. Vessel operating expenses were $13.6 million for the twelve months of 2021 as compared to $11.6 million for the same period of 2020. The increase is attributable to the increased number of vessels operating in 2021 compared to the corresponding period in 2020, as well as to the increased crewing costs for our vessels compared to the same period of 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions, and the increase in hull and machinery insurance premiums. Depreciation expenses for the twelve months of 2021 were $7.7 million compared to $6.6 million during the same period of 2020, mainly due to the increase in the cost base of certain of our vessels due to the recent installation of ballast water management systems and the higher number of vessels operating in the same period.

On average, 7.9 vessels were owned and operated during the twelve months of 2021 earning an average time charter equivalent rate of $24,222 per day compared to 7.0 vessels in the same period of 2020 earning on average $9,387 per day. In the twelve months of 2020, three vessels underwent special survey for a total cost of $2.3 million, while there were no vessels undergoing drydocking in the twelve months of 2021. General and administrative expenses increased to $2.6 million during the twelve months of 2021 as compared to $2.3 million in the last year due to higher legal and insurance expenses.

Interest and other financing costs for the twelve months of 2021 remained unchanged at $2.3 million compared to the same period of 2020. For the twelve months ended December 31, 2021, the Company recognized a $0.3 million gain on four interest rate swaps and a $4.1 million realized loss on FFA contracts as compared to a loss on derivatives of $0.8 million for the same period of 2020, comprising of a $0.3 million loss on FFA contracts and a $0.5 million loss on three interest rate swaps. For the twelve months ended December 31, 2021, loss on debt extinguishment was $1.6 million and related to the conversion of part of our related party loan, amounting to $3.3 million, into common shares of the Company. The difference between the share price less the conversion price was reflected in loss on debt extinguishment. No such case existed in 2020.

Adjusted EBITDA for the twelve months of 2021 was $42.3 million compared to $3.7 million achieved during the twelve months of 2020.

Basic and diluted earnings per share attributable to common shareholders for the twelve months of 2021 was $11.63, calculated on 2,528,507 basic and $11.53, calculated on 2,548,950 diluted weighted average number of shares outstanding compared to basic and diluted loss of $3.28 per share for the twelve months of 2020, calculated on 2,275,062 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the earnings attributable to common shareholders for the year of the change in fair value of derivatives and the loss on debt extinguishment, the adjusted earnings attributable to common shareholders for the year ended December 31, 2021 would have been $11.98 and $11.88 per share basic and diluted, respectively, compared to an adjusted loss of $3.04 per share basic and diluted for 2020. As previously mentioned, usually, security analysts do not include the above item in their published estimates of earnings per share.

Fleet Profile:

The EuroDry Ltd. fleet profile is as follows:

Note:  
(*) Represents the earliest redelivery date
(**) BPI stands for the Baltic Panamax Index; the average BPI 4TC is an index based on four time charter routes. 
(***) The average Baltic Kamsarmax P5TC Index is an index based on five Panamax time charter routes.

Summary Fleet Data:

(1) Average number of vessels is the number of vessels that constituted the Company’s fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of the Company’s fleet during the period divided by the number of calendar days in that period.

(2) Calendar days. We define calendar days as the total number of days in a period during which each vessel in our fleet was in our possession including off-hire days associated with major repairs, drydockings or special or intermediate surveys or days of vessels in lay-up. Calendar days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during that period.

(3) The scheduled off-hire days including vessels laid-up are days associated with scheduled repairs, drydockings or special or intermediate surveys or days of vessels in lay-up.

(4) Available days. We define available days as the total number of days in a period during which each vessel in our fleet was in our possession net of scheduled off-hire days incl. laid up. We use available days to measure the number of days in a period during which vessels were available to generate revenues.

(5) Commercial off-hire days. We define commercial off-hire days as days a vessel is idle without employment.

(6) Operational off-hire days. We define operational off-hire days as days associated with unscheduled repairs or other off-hire time related to the operation of the vessels.

(7) Voyage days. We define voyage days as the total number of days in a period during which each vessel in our fleet was in our possession net of commercial and operational off-hire days. We use voyage days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes.

(8) Fleet utilization. We calculate fleet utilization by dividing the number of our voyage days during a period by the number of our available days during that period. We use fleet utilization to measure a company’s efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons such as unscheduled repairs or days waiting to find employment.

(9) Fleet utilization, commercial. We calculate commercial fleet utilization by dividing our available days net of commercial off-hire days during a period by our available days during that period.

(10) Fleet utilization, operational. We calculate operational fleet utilization by dividing our available days net of operational off-hire days during a period by our available days during that period.

(11) Time charter equivalent, or TCE, is a measure of the average daily net revenue performance of our vessels. Our method of calculating TCE is determined by dividing time charter revenue and voyage charter revenue net of voyage expenses by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, or are related to repositioning the vessel for the next charter. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters, pool agreements and bareboat charters) under which the vessels may be employed between the periods. Our definition of TCE may not be comparable to that used by other companies in the shipping industry.

(12) Daily vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and management fees are calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period. Drydocking expenses are reported separately.

(13) Daily general and administrative expense is calculated by dividing general and administrative expenses by fleet calendar days for the relevant time period.

(14) Total vessel operating expenses, or TVOE, is a measure of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses, management fees and general and administrative expenses; drydocking expenses are not included. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.

(15) Drydocking expenses include expenses during drydockings that would have been capitalized and amortized under the deferral method divided by the fleet calendar days for the relevant period. Drydocking expenses could vary substantially from period to period depending on how many vessels underwent drydocking during the period. The Company expenses drydocking expenses as incurred.

Conference Call and Webcast:
Tomorrow, February 10, 2022 at 10:00 a.m. Eastern Time, the Company’s management will host a conference call and webcast to discuss the results. 

Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote “EuroDry” to the operator. 

Audio webcast – Slides Presentation:
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 http://www.eurodry.gr  and click on Company Presentations under our Investor Relations page. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

A slide presentation on the Fourth Quarter 2021 results in PDF format will also be available 10 minutes prior to the conference call and webcast accessible on the company’s website (www.eurodry.gr) on the webcast page. Participants to the webcast can download the PDF presentation. 

EuroDry Ltd.
Unaudited Consolidated Condensed Statements of Operations
(All amounts expressed in U.S. Dollars – except number of shares)

EuroDry Ltd.
Unaudited Consolidated Condensed Balance Sheets
(All amounts expressed in U.S. Dollars – except number of shares)

EuroDry Ltd.
Unaudited Consolidated Condensed Statements of Cash Flows
(All amounts expressed in U.S. Dollars)

EuroDry Ltd.
Reconciliation of Adjusted EBITDA to Net (loss) / income to
(All amounts expressed in U.S. Dollars)

Adjusted EBITDA Reconciliation:
EuroDry Ltd. considers Adjusted EBITDA to represent net (loss) / income before interest, income taxes, depreciation, unrealized loss on Forward Freight Agreements (FFAs) and loss / (gain) on interest rate swaps. Adjusted EBITDA does not represent and should not be considered as an alternative to net (loss) / income, as determined by United States generally accepted accounting principles, or GAAP. Adjusted EBITDA is included herein because it is a basis upon which the Company assesses its financial performance because the Company believes that this non-GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period by excluding the potentially disparate effects between periods of, financial costs, unrealized loss / (gain) on FFAs and loss / (gain) on interest rate swaps, and depreciation. The Company’s definition of Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries. 

EuroDry Ltd.
Reconciliation of Net (loss) / income to Adjusted net (loss) / income
(All amounts expressed in U.S. Dollars – except share data and number of shares)

Adjusted net (loss) / income and Adjusted (loss) / earnings per share Reconciliation:

EuroDry Ltd. considers Adjusted net (loss) / income to represent net (loss) / income before unrealized (gain) / loss on derivatives which include FFAs and interest rate swaps, and loss on debt extinguishment. Adjusted net (loss) / income and Adjusted (loss) / earnings per share is included herein because we believe it assists our management and investors by increasing the comparability of the Company’s fundamental performance from period to period by excluding the potentially disparate effects between periods of unrealized (gain) / loss on derivatives and loss on debt extinguishment, which may significantly affect results of operations between periods. Adjusted net (loss) / income and Adjusted (loss) / earnings per share do not represent and should not be considered as an alternative to net (loss) / income or (loss) / earnings per share, as determined by GAAP. The Company’s definition of Adjusted net (loss) / income and Adjusted (loss) / earnings per share may not be the same as that used by other companies in the shipping or other industries.

About EuroDry Ltd.
EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd into a separate listed public company. EuroDry was spun-off from Euroseas Ltd on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. 

EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day-to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters.

The Company has a fleet of 10 vessels, including 5 Panamax drybulk carriers, 2 Ultramax drybulk carrier, 2 Kamsarmax drybulk carriers and one Supramax drybulk carrier. EuroDry’s 10 drybulk carriers have a total cargo capacity of 726,555 dwt.

Forward Looking Statement
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 and the Company’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that 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 changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. 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. 

Visit our website www.eurodry.gr

EuroDry Ltd. Reports Results for the Year and Quarter Ended December 31, 2021

News and Market Data on EuroDry Ltd.

 

ATHENS, Greece, Feb. 09, 2022 (GLOBE NEWSWIRE) — EuroDry Ltd. (NASDAQ: EDRY, the “Company” or “EuroDry”), an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced today its results for the three- and twelve-month periods ended December 31, 2021.  

Fourth Quarter 2021 Highlights:

• Total net revenues of $22.3 million.
  
  
• Net income attributable to common shareholders of $15.2 million or $5.38 and $5.32 earnings per share basic and diluted, respectively, inclusive of unrealized gain on derivatives.
  
  
• Adjusted net income attributable to common shareholders¹ for the quarter of $12.3 million, or, $4.34 and $4.29 per share basic and diluted, respectively. The adjusted net income attributable to common shareholders includes a $0.5m non-cash charge for a “Preferred deemed dividend” resulting from the redemption of the Company’s Series B Preferred Shares.
  
  
• Adjusted EBITDA¹ was $16.0 million.
  
  
• An average of 9.0 vessels were owned and operated during the fourth quarter of 2021 earning an average time charter equivalent rate of $29,157 per day.
  
  
• The Company declared a dividend of $0.2 million on its Series B Preferred Shares. The dividend was paid in cash. In addition, as previously announced, in December 2021 the Company redeemed all of its outstanding Series B Preferred Shares at par amounting to $13.6 million.
  

_{¹Adjusted EBITDA, Adjusted net income/(loss) and Adjusted earnings/(loss) per share are not recognized measurements under US GAAP (GAAP) and should not be used in isolation or as a substitute for EuroDry’s financial results presented in accordance with GAAP. Refer to a subsequent section of the Press Release for the definitions and reconciliation of these measurements to the most directly comparable financial measures calculated and presented in accordance with GAAP.}

Full Year 2021 Highlights:

• Total net revenues of $64.4 million.
  
  
• Net income attributable to common shareholders of $29.4 million, or $11.63 and $11.53 earnings per share basic and diluted, respectively, inclusive of unrealized loss on derivatives and a loss on debt extinguishment.
  
  
• Adjusted net income attributable to common shareholders¹ for the period was $30.3 million or $11.98 and $11.88 adjusted earnings per share basic and diluted, respectively. The adjusted net income attributable to common shareholders includes a $0.7m non-cash charge for a “Preferred deemed dividend” resulting from the redemption of the Company’s Series B Preferred Shares.
  
  
• Adjusted EBITDA¹ was $42.3 million.
  
  
• An average of 7.9 vessels were owned and operated during the twelve months of 2021 earning an average time charter equivalent rate of $24,222 per day.
  

Recent developments

In January 2022, the Company acquired M/V Molyvos Luck, a 57,924 dwt drybulk vessel built in 2014, for $21.2 million. The vessel was majority owned by a third party and has been managed by Eurobulk Ltd., also the manager of the majority of the Company’s vessels. The vessel will be delivered to the Company around the middle of February 2022.The Company will also assume the existing charter of the vessel at $13,250/day until April 2022. The acquisition will be initially financed by the Company’s own funds; a bank loan will be arranged to partly finance the acquisition, using the acquired vessel as collateral.

Aristides Pittas, Chairman and CEO of EuroDry commented:

“We are pleased to report that, in the fourth quarter of 2021, we took advantage of the market levels registering our best quarter on record with more than $15m of net income. We also redeemed all our outstanding Series B Preferred shares reducing our cost of capital and increasing earnings to our common shareholders in 2022 and beyond.

“During the quarter, drybulk spot earnings, after peaking in October 2021 when they registered their highest level since early 2010, subsequently retreated by about 35% in November and December, while in January 2022 they retreated by approximately another 30%; at the same time, after initially retreating too, one-year time rates recovered during December 2021 and January 2022 suggesting that there are expectations amongst the market participants that the spot earnings’ retreat, a cyclically common effect during the first couple of months of every year, is only temporary. Even at their present levels though, spot earnings are at high levels relative to the last decade.

“Despite the market strength during 2021, the orderbook remained at historically low levels. This suggests minimal fleet growth over the next 2-3 years, likely, leading to higher rates in the rest of 2022 if trade increases even at just historically average levels. Within this framework of expectations, we have expanded our fleet acquiring our tenth vessel, M/V Molyvos Luck, which will further position us to take advantage of expected market increases.

“Overall, we are committed to continue growing EuroDry focusing on the middle size range of drybulk carriers. Our increased liquidity and low leverage ratio provide us with significant firepower to pursue our strategy.”

Tasos Aslidis, Chief Financial Officer of EuroDry commented: “The net revenues of the fourth quarter of 2021 increased significantly compared to the same period of 2020 as a result of the time charter equivalent rates our vessels earned during the quarter which were higher by 171% compared to the average time charter equivalent rates our vessels earned in the fourth quarter of 2020.

“Total daily vessel operating expenses, including management fees, general and administrative expenses but excluding drydocking costs, averaged $6,324 per vessel per day during the fourth quarter of 2021 as compared to $6,258 per vessel per day for the same quarter of last year, and $6,456 per vessel per day for the entire year of 2021 as compared to $6,211 per vessel per day for the same period of 2020. This increase is mainly due to increased crewing costs in 2021 compared to 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions.

“Adjusted EBITDA during the fourth quarter of 2021 was $16.0 million versus $1.8 million in the fourth quarter of last year. As of December 31, 2021, our outstanding debt (excluding the unamortized loan fees) was $79.4 million, while unrestricted and restricted cash was $29.5 million. As of the same date, our scheduled debt repayments including balloon payments over the next 12 months amounted to about $14.1 million (excluding the unamortized loan fees).”

Fourth Quarter 2021 Results:

For the fourth quarter of 2021, the Company reported total net revenues of $22.3 million representing a 248% increase over total net revenues of $6.4 million during the fourth quarter of 2020 which was the result of the increased average time charter equivalent rate our vessels earned and the higher number of vessels operating in the fourth quarter of 2021 compared to the same period of 2020. The Company reported a net income for the period of $16.0 million and a net income attributable to common shareholders of $15.2 million, as compared to a net loss of $0.3 million and a net loss attributable to common shareholders of $0.7 million for the same period of 2020. For the fourth quarter of 2021, voyage expenses, net amounted to income of $0.2 million resulting from gain on bunkers as compared to voyage expenses of $0.1 million in the same period of 2020. Vessel operating expenses were $3.7 million for the fourth quarter of 2021 as compared to $2.9 million for the same period of 2020. The increase is mainly attributable to the increased number of vessels operating in the fourth quarter of 2021 compared to the corresponding period in 2020. Depreciation expenses for the fourth quarter of 2021 amounted to $2.3 million, as compared to $1.7 million for the same period of 2020. This increase is due to the higher number of vessels operating in the fourth quarter of 2021 as compared to the same period of 2020. General and administrative expenses increased to $0.9 million in the fourth quarter of 2021, as compared to $0.6 million in the fourth quarter of 2020 due to higher legal and insurance expenses.

Interest and other financing costs for the fourth quarter of 2021 increased to $0.7 million as compared to $0.5 million for the same period of 2020. The increase is mainly due to the higher average outstanding debt of the period compared to the same period of 2020. For the three months ended December 31, 2021, the Company recognized a gain on four interest rate swaps of $0.2 million and a realized gain on FFA contracts of $1.4 million, as compared to a marginal loss on three interest rate swaps and a marginal gain on FFA contracts for the same period of 2020.

On average, 9.0 vessels were owned and operated during the fourth quarter of 2021 earning an average time charter equivalent rate of $29,157 per day compared to 7.0 vessels in the same period of 2020 earning on average $10,761 per day.

Adjusted EBITDA for the fourth quarter of 2021 was $16.0 million compared to $1.8 million achieved during the fourth quarter of 2020.

Basic and diluted earnings per share attributable to common shareholders for the fourth quarter of 2021 was $5.38 calculated on 2,827,316 basic and $5.32 calculated on 2,860,357 diluted weighted average number of shares outstanding, compared to basic and diluted loss per share of $0.31 for the fourth quarter of 2020, calculated on 2,285,601 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the income attributable to common shareholders for the quarter of the change in fair value of derivatives, the adjusted earnings attributable to common shareholders for the quarter ended December 31, 2021 would have been $4.34 and $4.29 per share basic and diluted, respectively, compared to adjusted loss of $0.34 per share basic and diluted for the quarter ended December 31, 2020. Usually, security analysts do not include the above item in their published estimates of earnings per share.

Full Year 2021 Results:

For the full year of 2021, the Company reported total net revenues of $64.4 million representing a 189% increase over total net revenues of $22.3 million during the twelve months of 2020, as a result of the increased average time charter equivalent rate our vessels earned in the twelve months of 2021 compared to the same period of 2020. The Company reported a net income for the period of $31.2 million and a net income attributable to common shareholders of $29.4 million, as compared to a net loss for the period of $5.9 million and a net loss attributable to common shareholders of $7.5 million, for the twelve months of 2020. For the twelve months of 2021, voyage expenses, net amounted to income of $0.8 million resulting from gain on bunkers as compared to voyage expenses of $0.3 million in the same period of 2020. Vessel operating expenses were $13.6 million for the twelve months of 2021 as compared to $11.6 million for the same period of 2020. The increase is attributable to the increased number of vessels operating in 2021 compared to the corresponding period in 2020, as well as to the increased crewing costs for our vessels compared to the same period of 2020, resulting from difficulties in crew rotation due to COVID-19 related restrictions, and the increase in hull and machinery insurance premiums. Depreciation expenses for the twelve months of 2021 were $7.7 million compared to $6.6 million during the same period of 2020, mainly due to the increase in the cost base of certain of our vessels due to the recent installation of ballast water management systems and the higher number of vessels operating in the same period.

On average, 7.9 vessels were owned and operated during the twelve months of 2021 earning an average time charter equivalent rate of $24,222 per day compared to 7.0 vessels in the same period of 2020 earning on average $9,387 per day. In the twelve months of 2020, three vessels underwent special survey for a total cost of $2.3 million, while there were no vessels undergoing drydocking in the twelve months of 2021. General and administrative expenses increased to $2.6 million during the twelve months of 2021 as compared to $2.3 million in the last year due to higher legal and insurance expenses.

Interest and other financing costs for the twelve months of 2021 remained unchanged at $2.3 million compared to the same period of 2020. For the twelve months ended December 31, 2021, the Company recognized a $0.3 million gain on four interest rate swaps and a $4.1 million realized loss on FFA contracts as compared to a loss on derivatives of $0.8 million for the same period of 2020, comprising of a $0.3 million loss on FFA contracts and a $0.5 million loss on three interest rate swaps. For the twelve months ended December 31, 2021, loss on debt extinguishment was $1.6 million and related to the conversion of part of our related party loan, amounting to $3.3 million, into common shares of the Company. The difference between the share price less the conversion price was reflected in loss on debt extinguishment. No such case existed in 2020.

Adjusted EBITDA for the twelve months of 2021 was $42.3 million compared to $3.7 million achieved during the twelve months of 2020.

Basic and diluted earnings per share attributable to common shareholders for the twelve months of 2021 was $11.63, calculated on 2,528,507 basic and $11.53, calculated on 2,548,950 diluted weighted average number of shares outstanding compared to basic and diluted loss of $3.28 per share for the twelve months of 2020, calculated on 2,275,062 basic and diluted weighted average number of shares outstanding.

Excluding the effect on the earnings attributable to common shareholders for the year of the change in fair value of derivatives and the loss on debt extinguishment, the adjusted earnings attributable to common shareholders for the year ended December 31, 2021 would have been $11.98 and $11.88 per share basic and diluted, respectively, compared to an adjusted loss of $3.04 per share basic and diluted for 2020. As previously mentioned, usually, security analysts do not include the above item in their published estimates of earnings per share.

Fleet Profile:

The EuroDry Ltd. fleet profile is as follows:

Note:  
(*) Represents the earliest redelivery date
(**) BPI stands for the Baltic Panamax Index; the average BPI 4TC is an index based on four time charter routes. 
(***) The average Baltic Kamsarmax P5TC Index is an index based on five Panamax time charter routes.

Summary Fleet Data:

(1) Average number of vessels is the number of vessels that constituted the Company’s fleet for the relevant period, as measured by the sum of the number of calendar days each vessel was a part of the Company’s fleet during the period divided by the number of calendar days in that period.

(2) Calendar days. We define calendar days as the total number of days in a period during which each vessel in our fleet was in our possession including off-hire days associated with major repairs, drydockings or special or intermediate surveys or days of vessels in lay-up. Calendar days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during that period.

(3) The scheduled off-hire days including vessels laid-up are days associated with scheduled repairs, drydockings or special or intermediate surveys or days of vessels in lay-up.

(4) Available days. We define available days as the total number of days in a period during which each vessel in our fleet was in our possession net of scheduled off-hire days incl. laid up. We use available days to measure the number of days in a period during which vessels were available to generate revenues.

(5) Commercial off-hire days. We define commercial off-hire days as days a vessel is idle without employment.

(6) Operational off-hire days. We define operational off-hire days as days associated with unscheduled repairs or other off-hire time related to the operation of the vessels.

(7) Voyage days. We define voyage days as the total number of days in a period during which each vessel in our fleet was in our possession net of commercial and operational off-hire days. We use voyage days to measure the number of days in a period during which vessels actually generate revenues or are sailing for repositioning purposes.

(8) Fleet utilization. We calculate fleet utilization by dividing the number of our voyage days during a period by the number of our available days during that period. We use fleet utilization to measure a company’s efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons such as unscheduled repairs or days waiting to find employment.

(9) Fleet utilization, commercial. We calculate commercial fleet utilization by dividing our available days net of commercial off-hire days during a period by our available days during that period.

(10) Fleet utilization, operational. We calculate operational fleet utilization by dividing our available days net of operational off-hire days during a period by our available days during that period.

(11) Time charter equivalent, or TCE, is a measure of the average daily net revenue performance of our vessels. Our method of calculating TCE is determined by dividing time charter revenue and voyage charter revenue net of voyage expenses by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, or are related to repositioning the vessel for the next charter. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., spot voyage charters, time charters, pool agreements and bareboat charters) under which the vessels may be employed between the periods. Our definition of TCE may not be comparable to that used by other companies in the shipping industry.

(12) Daily vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs and management fees are calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period. Drydocking expenses are reported separately.

(13) Daily general and administrative expense is calculated by dividing general and administrative expenses by fleet calendar days for the relevant time period.

(14) Total vessel operating expenses, or TVOE, is a measure of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses, management fees and general and administrative expenses; drydocking expenses are not included. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.

(15) Drydocking expenses include expenses during drydockings that would have been capitalized and amortized under the deferral method divided by the fleet calendar days for the relevant period. Drydocking expenses could vary substantially from period to period depending on how many vessels underwent drydocking during the period. The Company expenses drydocking expenses as incurred.

Conference Call and Webcast:
Tomorrow, February 10, 2022 at 10:00 a.m. Eastern Time, the Company’s management will host a conference call and webcast to discuss the results. 

Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote “EuroDry” to the operator. 

Audio webcast – Slides Presentation:
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 http://www.eurodry.gr  and click on Company Presentations under our Investor Relations page. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

A slide presentation on the Fourth Quarter 2021 results in PDF format will also be available 10 minutes prior to the conference call and webcast accessible on the company’s website (www.eurodry.gr) on the webcast page. Participants to the webcast can download the PDF presentation. 

EuroDry Ltd.
Unaudited Consolidated Condensed Statements of Operations
(All amounts expressed in U.S. Dollars – except number of shares)

EuroDry Ltd.
Unaudited Consolidated Condensed Balance Sheets
(All amounts expressed in U.S. Dollars – except number of shares)

EuroDry Ltd.
Unaudited Consolidated Condensed Statements of Cash Flows
(All amounts expressed in U.S. Dollars)

EuroDry Ltd.
Reconciliation of Adjusted EBITDA to Net (loss) / income to
(All amounts expressed in U.S. Dollars)

Adjusted EBITDA Reconciliation:
EuroDry Ltd. considers Adjusted EBITDA to represent net (loss) / income before interest, income taxes, depreciation, unrealized loss on Forward Freight Agreements (FFAs) and loss / (gain) on interest rate swaps. Adjusted EBITDA does not represent and should not be considered as an alternative to net (loss) / income, as determined by United States generally accepted accounting principles, or GAAP. Adjusted EBITDA is included herein because it is a basis upon which the Company assesses its financial performance because the Company believes that this non-GAAP financial measure assists our management and investors by increasing the comparability of our performance from period to period by excluding the potentially disparate effects between periods of, financial costs, unrealized loss / (gain) on FFAs and loss / (gain) on interest rate swaps, and depreciation. The Company’s definition of Adjusted EBITDA may not be the same as that used by other companies in the shipping or other industries. 

EuroDry Ltd.
Reconciliation of Net (loss) / income to Adjusted net (loss) / income
(All amounts expressed in U.S. Dollars – except share data and number of shares)

Adjusted net (loss) / income and Adjusted (loss) / earnings per share Reconciliation:

EuroDry Ltd. considers Adjusted net (loss) / income to represent net (loss) / income before unrealized (gain) / loss on derivatives which include FFAs and interest rate swaps, and loss on debt extinguishment. Adjusted net (loss) / income and Adjusted (loss) / earnings per share is included herein because we believe it assists our management and investors by increasing the comparability of the Company’s fundamental performance from period to period by excluding the potentially disparate effects between periods of unrealized (gain) / loss on derivatives and loss on debt extinguishment, which may significantly affect results of operations between periods. Adjusted net (loss) / income and Adjusted (loss) / earnings per share do not represent and should not be considered as an alternative to net (loss) / income or (loss) / earnings per share, as determined by GAAP. The Company’s definition of Adjusted net (loss) / income and Adjusted (loss) / earnings per share may not be the same as that used by other companies in the shipping or other industries.

About EuroDry Ltd.
EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd into a separate listed public company. EuroDry was spun-off from Euroseas Ltd on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. 

EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day-to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters.

The Company has a fleet of 10 vessels, including 5 Panamax drybulk carriers, 2 Ultramax drybulk carrier, 2 Kamsarmax drybulk carriers and one Supramax drybulk carrier. EuroDry’s 10 drybulk carriers have a total cargo capacity of 726,555 dwt.

Forward Looking Statement
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 and the Company’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that 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 changes in the demand for dry bulk vessels, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. 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. 

Visit our website www.eurodry.gr

Tuesday, February 08, 2022

Eagle Bulk Shipping (EGLE)
Good Start in January and 1Q2022 Looks On Track

Eagle Bulk Shipping Inc. 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.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Chief Strategy Officer market observations. Last week, EGLE’s CSO highlighted the balanced dry bulk market one month into the new year. While down 23% versus December, the Baltic Supramax Index (BSI) average of ~$20k/day in January is a solid data point compared to the past. January is typically a weak month, and seven out of the last ten years the BSI ended the year higher than where it started. While a pickup in volatility was noted, the forward FFA curve is close to ~$22.5k/day, which suggests a well-balanced dry bulk market.


Favorable Dry Bulk Outlook Intact, Albeit with Volatility.  While overall TCE rates dropped recently due to weather disruptions and seasonality and the forward cover is low, our outlook remains favorable. Volatility is likely to continue, and seasonality should be expected. At the same time, the order book remains muted, and the January 1, 2023 implementation of new carbon emission regulations …

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. 

Wednesday, February 02, 2022

Euroseas (ESEA)
Expanding New Build Program But Still Expect Dividend and/or Buy Backs

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Two new build feeders added to existing new build program. Two Eco design 2,800 TEU Feeders will be built at Hyundai Mipo in South Korea at an estimated cost of ~$85 million, or ~12% above the Feeders ordered in 2Q2021. Deliveries are slated for 4Q2023/1Q2024. The new build program expands to four Feeders, and we view this move as a sign of confidence in the Feeder market outlook in part due to an order book that is below the order book for intermediate and larger containerships.


First two Feeder new builds on track and time charter interest developing.  The first two Eco design 2,800 TEU Feeders ordered in 2Q2021 are on track, with deliveries are slated for 1Q2023/2Q2023. Total estimated cost is ~$76 million. On the last call, management indicated that interest was picking up and time charters are likely to be in place prior to delivery …

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. 

Wednesday, February 02, 2022

Euroseas (ESEA)
Expanding New Build Program But Still Expect Dividend and/or Buy Backs

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Two new build feeders added to existing new build program. Two Eco design 2,800 TEU Feeders will be built at Hyundai Mipo in South Korea at an estimated cost of ~$85 million, or ~12% above the Feeders ordered in 2Q2021. Deliveries are slated for 4Q2023/1Q2024. The new build program expands to four Feeders, and we view this move as a sign of confidence in the Feeder market outlook in part due to an order book that is below the order book for intermediate and larger containerships.


First two Feeder new builds on track and time charter interest developing.  The first two Eco design 2,800 TEU Feeders ordered in 2Q2021 are on track, with deliveries are slated for 1Q2023/2Q2023. Total estimated cost is ~$76 million. On the last call, management indicated that interest was picking up and time charters are likely to be in place prior to delivery …

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 Ltd. Signs Contract for the Construction of Two Fuel Efficient 2,800 teu Feeder Containerships

Research, News, and Market Data on Euroseas Ltd

 

ATHENS, Greece, Feb. 01, 2022 (GLOBE NEWSWIRE) — Euroseas Ltd. (NASDAQ:ESEA), an owner and operator of container vessels and provider of seaborne transportation for containerized cargoes, announced today that it has signed a contract for the construction of two additional Eco design fuel efficient containerships. The vessels will have a carrying capacity of about 2,800 teu each and will be built at Hyundai Mipo Dockyard Co. in South Korea. The two newbuildings are scheduled to be delivered during the fourth quarter of 2023 and first quarter of 2024, respectively. The total consideration for these two newbuilding contracts is approximately $85 million and will be financed with a combination of debt and equity. The vessels are sisterships of a pair of vessels ordered by Euroseas Ltd. in June 2021.

Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce the ordering of two additional modern eco-design 2,800 teu vessels in one of the top-quality shipbuilders in the world. The current contracts, along with an order we placed back in June 2021 for a pair of similar vessels, will allow us to build a strong presence in the large feeder containership sector with a quartet of modern fuel-efficient vessels in our fleet. This order also highlights our aggressive plan to renew our fleet and expand our footprint in the sector while adhering to our commitment for environmentally sustainable operations. With our earnings visibility well into 2024, we believe that investing in new vessels of modern eco-design makes good use of the cash flow generated by our existing fleet. We remain very optimistic about the containership market over the next few years, and we believe that our newbuilding program will further bolster the prospects of our company for the benefit of our shareholders.”

About Euroseas Ltd.
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.

The Company currently has a fleet of 16 vessels comprising of 10 Feeder and 6 Intermediate containerships. Euroseas 16 containerships have a cargo capacity of 50,371 teu. On a fully-delivered basis, the Company’s fleet will increase to 20 containerships with a cargo capacity of about 61,571 teu.

Forward Looking Statement
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 and the Company’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that 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 changes in the demand for containerships, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. 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.

Visit the Company’s website www.euroseas.gr

Euroseas Ltd. Signs Contract for the Construction of Two Fuel Efficient 2,800 teu Feeder Containerships

Research, News, and Market Data on Euroseas Ltd

 

ATHENS, Greece, Feb. 01, 2022 (GLOBE NEWSWIRE) — Euroseas Ltd. (NASDAQ:ESEA), an owner and operator of container vessels and provider of seaborne transportation for containerized cargoes, announced today that it has signed a contract for the construction of two additional Eco design fuel efficient containerships. The vessels will have a carrying capacity of about 2,800 teu each and will be built at Hyundai Mipo Dockyard Co. in South Korea. The two newbuildings are scheduled to be delivered during the fourth quarter of 2023 and first quarter of 2024, respectively. The total consideration for these two newbuilding contracts is approximately $85 million and will be financed with a combination of debt and equity. The vessels are sisterships of a pair of vessels ordered by Euroseas Ltd. in June 2021.

Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce the ordering of two additional modern eco-design 2,800 teu vessels in one of the top-quality shipbuilders in the world. The current contracts, along with an order we placed back in June 2021 for a pair of similar vessels, will allow us to build a strong presence in the large feeder containership sector with a quartet of modern fuel-efficient vessels in our fleet. This order also highlights our aggressive plan to renew our fleet and expand our footprint in the sector while adhering to our commitment for environmentally sustainable operations. With our earnings visibility well into 2024, we believe that investing in new vessels of modern eco-design makes good use of the cash flow generated by our existing fleet. We remain very optimistic about the containership market over the next few years, and we believe that our newbuilding program will further bolster the prospects of our company for the benefit of our shareholders.”

About Euroseas Ltd.
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.

The Company currently has a fleet of 16 vessels comprising of 10 Feeder and 6 Intermediate containerships. Euroseas 16 containerships have a cargo capacity of 50,371 teu. On a fully-delivered basis, the Company’s fleet will increase to 20 containerships with a cargo capacity of about 61,571 teu.

Forward Looking Statement
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 and the Company’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that 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 changes in the demand for containerships, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. 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.

Visit the Company’s website www.euroseas.gr

Friday, January 28, 2022

Genco Shipping (GNK)
Looking Beyond Seasonal Dips Toward High Dividends

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.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Favorable Dry Bulk Market Outlook Intact, Albeit with Volatility. While overall TCE rates have dropped recently due to weather disruptions and seasonality and the forward cover is low, the outlook remains favorable. Volatility is likely to continue, and seasonality should be expected. At the same time, the order book remains muted, and the January 1, 2023 implementation of new carbon emission regulations (EEXI) could trigger slow steaming that effectively lowers supply.


Entering 2022 on Solid Footing and Well Positioned to Ramp Up Dividends.  Several milestones were achieved over the past several years and the moves enhanced the competitive position moving into this year. The fleet renewal program improved the fleet profile, a global refinancing simplified the capital structure, and the shift in the capital allocation strategy to variable dividends should add …

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. 

Wednesday, January 26, 2022

Eagle Bulk Shipping (EGLE)
Well Positioned For 2022

Eagle Bulk Shipping Inc. 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.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Favorable Dry Bulk Market Outlook Intact, Albeit with Volatility. While overall TCE rates have dropped recently due to weather disruptions and seasonality and the forward cover is low, the outlook remains favorable. Volatility is likely to continue, and seasonality should be expected. At the same time, the order book remains muted, and the January 1, 2023 implementation of new carbon emission regulations (EEXI) could trigger slow steaming that effectively lowers supply.


Well Positioned Entering 2022.  Several milestones were achieved over the past five years and the moves enhanced the competitive position moving into this year. The fleet renewal program improved the fleet profile, the commercial strategy has consistently outperformed the market, the capital structure has been simplified with a global refinancing in 4Q2021, access to equity capital markets has …

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 Provides Guidance on TCE and EBITDA

Research, News, and Market Data on Seanergy Maritime

 

January 24, 2022 – Glyfada, Greece – Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) updated its time charter equivalent (“TCE rate”) guidance upwards for the fourth quarter of 2021, provided preliminary TCE guidance for the first quarter of 2022, as well as EBITDA projections for FY 2022.1 2

TCE Guidance

In the fourth quarter of 2021, the Company is expected to exceed an average TCE rate of approximately $36,000 per ship per day, outperforming our previously announced guidance of $35,200 per ship per day.3

As of the date of this press release, our estimated TCE rate for the first quarter of 2022 is expected to be approximately $19,0004. This estimate assumes that the remaining unfixed operating days of our index-linked vessels for this period will be equal to the average Forward Freight Agreement (“FFA”) rate of $13,500 per day. Our TCE guidance for the first quarter includes certain conversions of index-linked charters to fixed, which were concluded in the third and fourth quarter of 2021, as part of our freight hedging strategy.

EBITDA Projections5

The following graph provides the Company’s estimates for its EBITDA for 2022, based on various scenarios for the average TCE for the 5 T/C routes of the Baltic Capesize Index (“TC5” of the “BCI”).

 

Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:

“As a result of our pro-active hedging strategy in 2H21, we estimate that we will overperform the current spot market rate by approximately 50% in the first quarter. Moreover, our robust EBITDA generating capacity in multiple freight environments attests to our firm belief that our shares are currently significantly undervalued.

“Despite the seasonal market weakness, we expect that supply and demand fundamentals will result in a strong recovery of Capesize rates within the following months. Our solid balance sheet, modern fleet and strong relationships with world leading charterers in combination with our substantial operating leverage place Seanergy in an optimal position to generate strong revenues and profitability in an improving charter rate environment.”

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of 11.7 years and aggregate cargo carrying capacity of approximately 3,011,083 dwt.

The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and its Class B warrants under “SHIPZ”.

Please visit our company website at: www.seanergymaritime.com.

Note Regarding Non-U.S. GAAP Financial Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). EBITDA and TCE rate are non-GAAP financial measures.

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) represents the sum of net income / (loss) (the most directly comparable U.S. GAAP measure), interest and finance costs, interest income, depreciation and amortization and, if any, income taxes during a period. EBITDA is not a recognized measurement under U.S. GAAP.

EBITDA is presented as we believe that this measure is useful to investors as a widely used means of evaluating operating profitability. EBITDA as presented here may not be comparable to similarly titled measures presented by other companies. This non-GAAP measure should not be considered in isolation from, as a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP.

TCE rate is defined as the Company’s net revenue less voyage expenses during a period divided by the number of the Company’s operating days during the period. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and other commissions. The Company includes the TCE rate, a non-GAAP measure, as it believes it provides additional meaningful information in conjunction with net revenues from vessels, the most directly comparable U.S. GAAP measure, and because it assists the Company’s management in making decisions regarding the deployment and use of the Company’s vessels and in evaluating their financial performance. The Company’s calculation of TCE rate may not be comparable to that reported by other companies.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; risks associated with the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:

Seanergy Investor Relations

Tel: +30 213 0181 522

E-mail: ir@seanergy.gr

 

Capital Link, Inc.

Paul Lampoutis

230 Park Avenue Suite 1536

New York, NY 10169

Tel: (212) 661-7566

E-mail: seanergy@capitallink.com

1 EBITDA and TCE rate are non-GAAP measures. Please see the discussion above under the heading “Note Regarding Non-U.S. GAAP Financial Measures” for more information.

2 Guidance is provided for TCE rate and EBITDA on a non-U.S. GAAP basis only, because information regarding various items necessary to determine net revenue from vessels and net income / (loss), the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP for TCE rate and EBITDA, respectively, on a forward looking basis is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of such items, including, but not limited to, voyage expenses, stock-based compensation and the non-recurring gain on sale of vessel and gain on debt refinancing, and certain non-ordinary course matters. Because of the uncertainty and variability of the nature and amount of such items, which could be significant, the Company is unable to provide a quantitative reconciliation of the differences between expected TCE rate and EBITDA and the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP without unreasonable efforts. The unavailable reconciling items could significantly affect the Company’s financial results for the periods discussed on a forward-looking basis herein.

3 The Company has not finalized its financial statement closing process for the fourth quarter. During the course of that process, the Company may identify items that would require it to make adjustments, including possible material adjustments to these preliminary results.

4 This guidance is based on certain assumptions, including projected utilization, and there can be no assurance that these assumptions and the resulting TCE estimates will be realized. TCE estimates include certain floating (index) to fixed rate conversions concluded in previous periods. For vessels on index-linked T/Cs, the TCE realized will vary with the underlying index, and for the purposes of this guidance, the TCE assumed for the remaining operating days of an index-linked T/C is equal to the average FFA rate of approximately $13,500 per day for the remaining days of the first quarter of 2022 based on the FFA curve as of January 19, 2022.

5 These projections are based on certain assumptions, including no change to the current composition of our fleet, fleet utilization or commissions and expenses, including operating and general & administrative expenses, based on the historical performance of the Company in the first nine months of 2021. EBITDA projections exclude extraordinary items such as gain/loss on vessel sales, loan refinancing etc. There can be no assurance that these assumptions and the resulting projections will be realized. As a result, the above projections constitute forward-looking statements and are subject to risks and uncertainties, including possible material adjustments to the projections disclosed. The Company is providing this information on a one-time basis only, subject to these assumptions, risks and uncertainties, and does not intend to update this information.

Seanergy Maritime Provides Guidance on TCE and EBITDA

Research, News, and Market Data on Seanergy Maritime

 

January 24, 2022 – Glyfada, Greece – Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) (NASDAQ: SHIP) updated its time charter equivalent (“TCE rate”) guidance upwards for the fourth quarter of 2021, provided preliminary TCE guidance for the first quarter of 2022, as well as EBITDA projections for FY 2022.1 2

TCE Guidance

In the fourth quarter of 2021, the Company is expected to exceed an average TCE rate of approximately $36,000 per ship per day, outperforming our previously announced guidance of $35,200 per ship per day.3

As of the date of this press release, our estimated TCE rate for the first quarter of 2022 is expected to be approximately $19,0004. This estimate assumes that the remaining unfixed operating days of our index-linked vessels for this period will be equal to the average Forward Freight Agreement (“FFA”) rate of $13,500 per day. Our TCE guidance for the first quarter includes certain conversions of index-linked charters to fixed, which were concluded in the third and fourth quarter of 2021, as part of our freight hedging strategy.

EBITDA Projections5

The following graph provides the Company’s estimates for its EBITDA for 2022, based on various scenarios for the average TCE for the 5 T/C routes of the Baltic Capesize Index (“TC5” of the “BCI”).

 

Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:

“As a result of our pro-active hedging strategy in 2H21, we estimate that we will overperform the current spot market rate by approximately 50% in the first quarter. Moreover, our robust EBITDA generating capacity in multiple freight environments attests to our firm belief that our shares are currently significantly undervalued.

“Despite the seasonal market weakness, we expect that supply and demand fundamentals will result in a strong recovery of Capesize rates within the following months. Our solid balance sheet, modern fleet and strong relationships with world leading charterers in combination with our substantial operating leverage place Seanergy in an optimal position to generate strong revenues and profitability in an improving charter rate environment.”

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 17 Capesize vessels with an average age of 11.7 years and aggregate cargo carrying capacity of approximately 3,011,083 dwt.

The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and its Class B warrants under “SHIPZ”.

Please visit our company website at: www.seanergymaritime.com.

Note Regarding Non-U.S. GAAP Financial Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). EBITDA and TCE rate are non-GAAP financial measures.

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) represents the sum of net income / (loss) (the most directly comparable U.S. GAAP measure), interest and finance costs, interest income, depreciation and amortization and, if any, income taxes during a period. EBITDA is not a recognized measurement under U.S. GAAP.

EBITDA is presented as we believe that this measure is useful to investors as a widely used means of evaluating operating profitability. EBITDA as presented here may not be comparable to similarly titled measures presented by other companies. This non-GAAP measure should not be considered in isolation from, as a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP.

TCE rate is defined as the Company’s net revenue less voyage expenses during a period divided by the number of the Company’s operating days during the period. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and other commissions. The Company includes the TCE rate, a non-GAAP measure, as it believes it provides additional meaningful information in conjunction with net revenues from vessels, the most directly comparable U.S. GAAP measure, and because it assists the Company’s management in making decisions regarding the deployment and use of the Company’s vessels and in evaluating their financial performance. The Company’s calculation of TCE rate may not be comparable to that reported by other companies.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; risks associated with the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For further information please contact:

Seanergy Investor Relations

Tel: +30 213 0181 522

E-mail: ir@seanergy.gr

 

Capital Link, Inc.

Paul Lampoutis

230 Park Avenue Suite 1536

New York, NY 10169

Tel: (212) 661-7566

E-mail: seanergy@capitallink.com

1 EBITDA and TCE rate are non-GAAP measures. Please see the discussion above under the heading “Note Regarding Non-U.S. GAAP Financial Measures” for more information.

2 Guidance is provided for TCE rate and EBITDA on a non-U.S. GAAP basis only, because information regarding various items necessary to determine net revenue from vessels and net income / (loss), the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP for TCE rate and EBITDA, respectively, on a forward looking basis is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of such items, including, but not limited to, voyage expenses, stock-based compensation and the non-recurring gain on sale of vessel and gain on debt refinancing, and certain non-ordinary course matters. Because of the uncertainty and variability of the nature and amount of such items, which could be significant, the Company is unable to provide a quantitative reconciliation of the differences between expected TCE rate and EBITDA and the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP without unreasonable efforts. The unavailable reconciling items could significantly affect the Company’s financial results for the periods discussed on a forward-looking basis herein.

3 The Company has not finalized its financial statement closing process for the fourth quarter. During the course of that process, the Company may identify items that would require it to make adjustments, including possible material adjustments to these preliminary results.

4 This guidance is based on certain assumptions, including projected utilization, and there can be no assurance that these assumptions and the resulting TCE estimates will be realized. TCE estimates include certain floating (index) to fixed rate conversions concluded in previous periods. For vessels on index-linked T/Cs, the TCE realized will vary with the underlying index, and for the purposes of this guidance, the TCE assumed for the remaining operating days of an index-linked T/C is equal to the average FFA rate of approximately $13,500 per day for the remaining days of the first quarter of 2022 based on the FFA curve as of January 19, 2022.

5 These projections are based on certain assumptions, including no change to the current composition of our fleet, fleet utilization or commissions and expenses, including operating and general & administrative expenses, based on the historical performance of the Company in the first nine months of 2021. EBITDA projections exclude extraordinary items such as gain/loss on vessel sales, loan refinancing etc. There can be no assurance that these assumptions and the resulting projections will be realized. As a result, the above projections constitute forward-looking statements and are subject to risks and uncertainties, including possible material adjustments to the projections disclosed. The Company is providing this information on a one-time basis only, subject to these assumptions, risks and uncertainties, and does not intend to update this information.

Monday, January 24, 2022

Seanergy Maritime (SHIP)
Webinar Highlights Significant Progress

Seanergy Maritime Holdings Corp. is the only pure-play Capesize shipping company listed in the US capital markets. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. Upon delivery of the M/V Dukeship, the Company’s operating fleet will consist of 17 Capesize vessels with an average age of 11.5 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”, its Class A warrants under “SHIPW” and its Class B warrants under “SHIPZ”.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Dry bulk market remains volatile, but intermediate outlook appears promising. In a webinar hosted by Capital Link, CEO Stamatis Tsantanis and CFO Stavros Gyftakis highlighted positive macro and micro trends. The dry bulk market looks favorable based on expanding demand, upcoming emission regulations and a low order book. While TCE rates dropped recently due to weather disruptions and seasonality and the forward cover is low, the outlook remains favorable. Absent acquisitions, other shareholder friendly moves, like added buy backs and/or dividends, are probable.


Entering 2022 with positive momentum.  SHIP starts the year with a larger Cape fleet of 17 and an improved financial position. The end result is a more stable platform that is well positioned to benefit from elevated Cape TCE rates …

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.