Wednesday, August 04, 2021

Great Lakes Dredge & Dock (GLDD)
Tough 1H2021 With COVID-19, But 2H2021 Rebound Ahead

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

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

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

2Q2021 EBITDA of $20 million was dragged down by higher costs and downtime/delays due to COVID-19. For the second consecutive quarter, 2Q2021 operating results were softer than expected due to COVID-19 disruptions and unexpected downtime. Despite increasing vaccination rates amongst crews, extensive testing and preventive measures, several vessels were sidelined and scheduling was disrupted again. The number of days of downtime was not quantified, but extra direct costs totaled $3.0 million, which compares to 23 days of downtime and extra direct costs of $4.3 million in 1Q2021.


Fine tuning 2021 EBITDA estimate.  1H2021 start slow due to COVID-19 issues, but 2H2021 should recover. Our EBITDA estimate of $132.3 million is lower than our previous estimate of $146 million and down compared to 2020 EBITDA of $151.1 million due to a 300 basis point drop in EBITDA margin to 17.6%, mainly due to strong outperformance on several projects last year and the negative impact of …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Wednesday, August 04, 2021

Great Lakes Dredge & Dock (GLDD)
Tough 1H2021 With COVID-19, But 2H2021 Rebound Ahead

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

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

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

2Q2021 EBITDA of $20 million was dragged down by higher costs and downtime/delays due to COVID-19. For the second consecutive quarter, 2Q2021 operating results were softer than expected due to COVID-19 disruptions and unexpected downtime. Despite increasing vaccination rates amongst crews, extensive testing and preventive measures, several vessels were sidelined and scheduling was disrupted again. The number of days of downtime was not quantified, but extra direct costs totaled $3.0 million, which compares to 23 days of downtime and extra direct costs of $4.3 million in 1Q2021.


Fine tuning 2021 EBITDA estimate.  1H2021 start slow due to COVID-19 issues, but 2H2021 should recover. Our EBITDA estimate of $132.3 million is lower than our previous estimate of $146 million and down compared to 2020 EBITDA of $151.1 million due to a 300 basis point drop in EBITDA margin to 17.6%, mainly due to strong outperformance on several projects last year and the negative impact of …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Euroseas Ltd. Announces New Charter for One Of Its Vessels, M/V “EM Spetses”

 

ATHENS, Greece, Aug. 02, 2021 (GLOBE NEWSWIRE) — Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner and operator of container vessels and provider of seaborne transportation for containerized cargoes, announced today a new time charter contract for its container vessel M/V “EM Spetses”.

Specifically, M/V “EM Spetses”, a 1,740 TEU vessel built in 2007, entered into a new time charter contract for a period between a minimum of thirty-six (36) and a maximum of forty (40) months at the option of the charterer, at a gross daily rate of $29,500. The new rate will commence on August 5, 2021 when the vessel is redelivered from its current charterer.

Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce the new charter for our vessel, M/V “EM Spetses”, for about three years at a rate about three and a half times the level of its current employment. EM Spetses’ new daily rate of $29,500 is the second highest rate earned by a vessel in our fleet and, notably, by one of our smallest vessels. This fixture follows the fixture of our M/V “EM Hydra”, a sister vessel of M/V “EM Spetses” built in 2005, that was fixed about three months ago for an approximately two-year long charter at a gross daily rate of $20,000 indicating how strongly the market has risen in the span of just three months. This new charter will secure us with a minimum of $31 million of contracted revenues and have a minimum EBITDA contribution of approximately $24 million. At the same time, Euroseas is well positioned to take advantage of a further rising market with four more ships, about 30% of our fleet on-the-water, which are expected to open up till the end of the year.”

Fleet Profile:

The Euroseas Ltd. fleet profile is as follows:

Notes: 
(*) / (+) TC denotes time charter. All dates listed are the earliest redelivery dates under each time charter unless the contract rate is lower than the current market rate in which cases the latest redelivery date is assumed; vessels with the latest redelivery date shown are marked by (+).
(1) The CONTEX (Container Ship Time Charter Assessment Index) has been published by the Hamburg and Bremen Shipbrokers’ Association (VHBS) since October 2007. The CONTEX is a company-independent index of time charter rates for container ships. It is based on assessments of the current day charter rates of six selected container ship types, which are representative of their size categories: Type 1,100 TEU and Type 1,700 TEU with a charter period of one year, and the Types 2,500, 2,700, 3,500 and 4,250 TEU, all with a charter period of two years.
(2) Calendar quarter vessel is scheduled to be delivered (“TBD”)
(3) On a fully delivered basis

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 has a fleet of 14 vessels on the water, including 9 Feeder containerships and 5 Intermediate Container carriers and two feeder ships under newbuilding contracts. After the delivery of the latter two vessels, Euroseas 16 containerships will have a cargo capacity of 47,881 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 our website www.euroseas.gr

Euroseas Ltd. Announces New Charter for One Of Its Vessels, M/V “EM Spetses”

 

ATHENS, Greece, Aug. 02, 2021 (GLOBE NEWSWIRE) — Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner and operator of container vessels and provider of seaborne transportation for containerized cargoes, announced today a new time charter contract for its container vessel M/V “EM Spetses”.

Specifically, M/V “EM Spetses”, a 1,740 TEU vessel built in 2007, entered into a new time charter contract for a period between a minimum of thirty-six (36) and a maximum of forty (40) months at the option of the charterer, at a gross daily rate of $29,500. The new rate will commence on August 5, 2021 when the vessel is redelivered from its current charterer.

Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce the new charter for our vessel, M/V “EM Spetses”, for about three years at a rate about three and a half times the level of its current employment. EM Spetses’ new daily rate of $29,500 is the second highest rate earned by a vessel in our fleet and, notably, by one of our smallest vessels. This fixture follows the fixture of our M/V “EM Hydra”, a sister vessel of M/V “EM Spetses” built in 2005, that was fixed about three months ago for an approximately two-year long charter at a gross daily rate of $20,000 indicating how strongly the market has risen in the span of just three months. This new charter will secure us with a minimum of $31 million of contracted revenues and have a minimum EBITDA contribution of approximately $24 million. At the same time, Euroseas is well positioned to take advantage of a further rising market with four more ships, about 30% of our fleet on-the-water, which are expected to open up till the end of the year.”

Fleet Profile:

The Euroseas Ltd. fleet profile is as follows:

Notes: 
(*) / (+) TC denotes time charter. All dates listed are the earliest redelivery dates under each time charter unless the contract rate is lower than the current market rate in which cases the latest redelivery date is assumed; vessels with the latest redelivery date shown are marked by (+).
(1) The CONTEX (Container Ship Time Charter Assessment Index) has been published by the Hamburg and Bremen Shipbrokers’ Association (VHBS) since October 2007. The CONTEX is a company-independent index of time charter rates for container ships. It is based on assessments of the current day charter rates of six selected container ship types, which are representative of their size categories: Type 1,100 TEU and Type 1,700 TEU with a charter period of one year, and the Types 2,500, 2,700, 3,500 and 4,250 TEU, all with a charter period of two years.
(2) Calendar quarter vessel is scheduled to be delivered (“TBD”)
(3) On a fully delivered basis

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 has a fleet of 14 vessels on the water, including 9 Feeder containerships and 5 Intermediate Container carriers and two feeder ships under newbuilding contracts. After the delivery of the latter two vessels, Euroseas 16 containerships will have a cargo capacity of 47,881 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 our website www.euroseas.gr

Tuesday, August 03, 2021

Euroseas Ltd. (ESEA)
Another Positive Container Data Point

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.

Spetses feeder secures term charter at higher TCE rate. After the market closed yesterday, a new charter on the Spetses, a 2007-built 1,740 TEU feeder, was announced. The charter runs through August 2024 (a minimum of 36 months and maximum of 40 months) at a TCE rate of $29.5k/day.


No change to 2021-2 EBITDA estimates, but positive bias intact.  We will adjust our EBITDA estimates when 2Q2021 operating results are out over the next week or so. Four feeders (Diamantis/Corfu/Evridiki/Astoria) and one intermediate (Oakland) are available for charter over the next six months, and recent charters on the Oakland intermediate and Spetses feeder set a positive tone …

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. 

Friday, July 30, 2021

Orion Group Holdings (ORN)
Surprise Quarter, But Recovery Expected

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

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

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

Adjusted 2Q2021 EBITDA of $7.4 million was below expectations due to wet weather. The hit from weather was mainly in Concrete and could have been as high as $10 million. Versus 2Q2020, revenue of $145.9 million was $38 million lower; gross profit of $12.3 million was $8.4 million lower and adjusted EBITDA of $7.4 million was $5.2 million lower.


No change in 2021 EBITDA estimate following the quarterly call.  There is no change to our revised 2021 EBITDA estimate of $43.2 million, which includes asset sales of $1.6 million. The company is still facing tough comps versus last year, but Marine results should pick up over the rest of the year and Concrete continues to represent upside potential …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Friday, July 30, 2021

Seanergy Maritime (SHIP)
Solid 2Q2021 Results Previews Better Second Half

Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. 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 10 Capesize vessels, with total capacity of approximately 1,748,581 dwt and an average fleet age of about 9.8 years. The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and class A warrants under “SHIPW”.

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

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

2Q2021 EBITDA of $11.3 million beat our estimate of $10.1 million. Higher TCE revenue of $22.5 million and TCE rates of $20.1k/day more than offset higher opex of $8.9 million due to acquisition related expenses of $2.0 million. Operating days of 1,122 were slightly higher too.


Moving EBITDA estimate to $73.0 million based on TCE rates of $23.4k/day, up from $71.4 million based on TCE rates of $23.1k/day to incorporate 2Q2021 results and updated forward cover.  About 59% of 3Q2021 available days of 1,448 are fixed at ~$28.5k/day due to time charters and options exercised to fix eight Capes for 3Q2021. Assuming the remaining 592 unfixed days earn ~$29.9k/day, the 3Q2021 TCE …

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. 

Friday, July 30, 2021

Orion Group Holdings (ORN)
Surprise Quarter, But Recovery Expected

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

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

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

Adjusted 2Q2021 EBITDA of $7.4 million was below expectations due to wet weather. The hit from weather was mainly in Concrete and could have been as high as $10 million. Versus 2Q2020, revenue of $145.9 million was $38 million lower; gross profit of $12.3 million was $8.4 million lower and adjusted EBITDA of $7.4 million was $5.2 million lower.


No change in 2021 EBITDA estimate following the quarterly call.  There is no change to our revised 2021 EBITDA estimate of $43.2 million, which includes asset sales of $1.6 million. The company is still facing tough comps versus last year, but Marine results should pick up over the rest of the year and Concrete continues to represent upside potential …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Seanergy Maritime Holdings Corp. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2021

 

Seanergy Maritime Holdings Corp. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2021

Highlights of the Second Quarter of 2021:

• Gross revenues: $28.9 million in Q2 2021 compared to $9.3 million in Q2 2020, up 209%
• Net income: $2.0 million in Q2 2021, as compared to a net loss of $11.3 million in Q2 2020
• EBITDA¹: $10.8 million in Q2 2021, as compared to negative $2.1 million in Q2 2020
• Adjusted EBITDA¹: $11.3 million in Q2 2021, as compared to negative $1.8 million in Q2 2020

Highlights of First Six Months of 2021:

• Gross revenues: $50.0 million in 6M 2021 compared to $23.1 million in 6M 2020, up 116%
• Net income: $0.6 million in 6M 2021, as compared to a net loss of $19.6 million in 6M 2020
• EBITDA¹: $17.3 million in 6M 2021 as compared to negative $1.1 million in 6M 2020
• Adjusted EBITDA¹: $19.2 6M 2021, as compared to negative $0.5 million in 6M 2020

Second Quarter of 2021 and Recent Developments:

• Fleet increase by 45% with the delivery of 5 modern Japanese Capesizes
• Fleet modernization through substitution of the fleet’s oldest Capesize with an eight year younger vessel
• New time charter agreements with prominent charterers
• Financing and refinancing transactions of $117.3 million including a $30.9 million sale and leaseback & new loan commitment

July 29, 2021 – Athens, Greece – Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP), announced today its financial results for the second quarter ended June 30, 2021.

For the quarter ended June 30, 2021, the Company generated gross revenues of $28.9 million, a 209% increase compared to the second quarter of 2020. Adjusted EBITDA for the quarter was $11.3 million, from negative $1.8 million in the same period of 2020. Net income for the second quarter was $2.0 million compared to net loss of $11.3 million in the second quarter of 2020. The daily Time Charter Equivalent (“TCE”)¹ of the fleet for the second quarter of 2021 was $20,095, marking a 270% increase compared $5,424 for the second quarter of 2020.

For the six-month period ended June 30, 2021, gross revenues were $50.0 million, increased by 116% when compared to $23.1 million in same period of 2020. Adjusted EBITDA for the first six months of 2021 was $19.2 million, compared to a negative adjusted EBITDA of $0.5 million in the same period of 2020. The daily TCE of the fleet for the first six months of 2021 was $18,327 compared to $6,985 in the first six months of 2020. The average daily OPEX was $5,766 compared to $5,353 of the respective period of 2020.

Cash and cash-equivalents, restricted cash and term deposits as of June 30, 2021 stood at $56.4 million. Shareholders’ equity at the end of the second quarter was $199.4 million, vs. $95.7 million in December 31, 2020. Long-term debt (senior and junior loans and financial leases) stood at $203.8 million as of June 30, 2021, from $169.8 million as of the end of 2020. In the same period, following the addition of four of our new acquisitions, the book value of our fleet (including vessels held for sale and advances for vessel acquisitions) increased by 43.3% to $367.9 million from $256.7 million.

Third Quarter 2021 TCE Guidance:

As of the date hereof, approximately 94% of the Company fleet’s expected operating days in the third quarter of 2021 have been fixed at an estimated TCE of approximately $28,880², or 63% higher than the TCE recorded in the first half of the year. Our TCE guidance for the third quarter of 2021 includes certain conversions (8 vessels) of index-linked charters to fixed for the 3-month period ending on September 30, 2021 which were concluded in the first and second quarter of 2021 as part of our freight hedging strategy. The following table provides the break-down:

	Operating Days	TCE
TCE – fixed rate (index-linked conversion)	719.6	$28,049
TCE – fixed rate	136.6	$28,782
TCE – index linked & spot	591.9	$29,913
Total / Average	1,448.1	$28,880

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

“The six-month period that ended on June 30, 2021, marks a significant turning point for Seanergy, with strong financial performance, being the first profitable first-half since the Company’s relaunching in 2015. Most importantly, we have successfully concluded many milestone transactions that saw Seanergy’s fleet growing by more than 60% while solidifying our financial standing.

Concerning our results for the second quarter of 2021, our daily TCE was approximately $20,000, marking an increase of 270% compared to the TCE of the second quarter of 2020. The TCE of the fleet for the first 6 months of 2021 was about $18,300 per day as compared to a daily TCE of approximately $7,000 in the first half of 2020. As discussed in our last earnings release, our TCE performance in the second quarter was affected by certain less favorable conversions of index-linked charters to fixed which were concluded in the fourth quarter of 2020 as part of our freight hedging strategy. However, our Q3 guidance is very strong at close to $29,000 per day. Adjusted EBITDA for the second quarter and first half of 2021 was $11.3 million and $19.2 million respectively, as compared to negative adjusted EBITDA by $1.85 million and $0.5 million in the respective periods of 2020. Net result for the quarter was a profit of $2.0 million, which was sufficient to reverse the slight losses of the first quarter of the year resulting in a profitable first half for our Company.  

Regarding our fleet growth and renewal strategy, since the beginning of the year, our investment in our fleet has totaled approximately $160 million, and we have agreed to acquire 6 high-quality Japanese Capesize bulkers of an average age of 10.5 years, with the most recent acquisition being that of the 2009 built M/V Friendship. This vessel will essentially replace the oldest vessel in our fleet, the 2001 built M/V Leadership, which we agreed to sell to third-party buyers. This asset swap is improving the age profile of our fleet and enhances its competitiveness and compliance with the upcoming environmental regulations.

To date we have taken delivery of five out of the six new acquisitions and the last vessel, the 2012 built Worldship is scheduled to be delivered to us in August, followed by the delivery of the M/V Leadership to her new owners in September. The total investment capex of about $160 million has been fully funded by our cash reserves, which remain strong following these acquisitions, and newly concluded debt financing arrangements.

On the debt financing front, in the first half of 2021, we have successfully concluded new financings and refinancings of $104.3 million whilst making $69.7 million prepayments and repayments on our legacy debt facilities. The resulting net increase in our debt by $34.6 million, against an increase in the book value of our fleet by $158.9 million, implies a 22% effective loan-to-value on our new acquisitions. Next to the significant deleveraging of the balance sheet, the retirement of expensive debt and its replacement with competitively priced financings reflects positively on our bottom line. Indicatively, the weighted average interest rate on the facilities that were fully prepaid was 8.4% as compared to 3.35% for the new $104.3 million financings. We also expect that the terms of our financings will improve further going forward.

Concerning the commercial deployment of our fleet, in 2021 to date, we have concluded seven new period employment agreements ranging from 12 months to 5 years. All time-charters have been concluded with world-leading charterers in the Capesize sector, including NYK, Cargill, Anglo American and Ssangyong. The underlying rates are mainly index-linked, in most cases with options to convert to fixed based on the prevailing freight futures curve, allowing us to capitalize on potential spikes in the day-rates. Taking advantage of the strong market conditions, we have concluded fixed rate T/Cs at rates exceeding $31,000 per day for periods ranging from 12 to 18 months for two vessels. We continue to position our fleet optimally for what we believe to be an unfolding commodities super-cycle, which will underscore the importance of dry bulk shipping and especially that of the Capesize sector in global seaborne trade.

With respect to the implementation of our ESG agenda and as part of our continuous efforts to improve the energy efficiency rating of our fleet, we have installed Energy Saving Devices (“ESDs”) on an additional vessel and we have agreed with Cargill to install ESDs on another vessel in the coming months. Moreover, we have partnered with DeepSea for the installation of Artificial Intelligence performance systems on our fleet with proven benefit on fuel consumption. Finally we are in progressed discussions with other charterers for similar ESD projects, as well as for biofuel blend trials, which we believe to be one of the most efficient ways to transition into a greener future for shipping.

Regarding current market conditions, we are very pleased to see a consistent positive trend in our sector with daily rates above $20,000/ day since the beginning of April. Looking ahead, we are entering the seasonally “strong” period for Brazilian iron ore exports as local miners are ramping up production, supported by favorable weather conditions and “clean” plant maintenance schedules. At the same time coal prices are at the highest level of the last decade resulting in steadily rising seaborne coal volumes – a positive trend that defies the seasonal patterns of the last years. On that basis, and considering the favorable vessel-supply fundamentals of our sector with the orderbook standing at the lowest level of the last 25 years, as amplified by the catalytic effect of the upcoming environmental regulations, we feel confident about the prospects of the Capesize market.

As mentioned earlier, our daily TCE for the third quarter, based on 94% of our available days, stands at approximately $29,000, which is 63% higher than our 1H TCE. As part of our forward rates hedging strategy, we have triggered the “floating to fixed” feature on 8 of our index-linked charterers at an average net daily rate of approximately $28,050. This in combination with the solid outlook for our sector will form the basis for what we expect to be a further improved financial performance in the next quarter.

On a closing note, we have worked tirelessly and determinedly over the last 18 months to execute consistently on our strategic initiatives and place Seanergy amongst the most prominent Capesize owners globally. We remain committed to delivering additional value for our shareholders.”

Company Fleet following vessels’ deliveries and the sale of the M/V Leadership:

(1)   Chartered by a major European utility and energy company and delivered to the charterer on September 11, 2019 for a period of minimum 33 to maximum 37 months with an optional period of about 11 to maximum 13 months. The daily charter hire is based on the BCI. In addition, the Company has the option to convert to a fixed rate for a period of between 3 and 12 months, based on the prevailing Capesize Forward Freight Agreement Rate (“FFA”) for the selected period.

(2)   Chartered by Cargill. The vessel was delivered to the charterer on November 7, 2018 for a period of employment of 60 months, with an additional period of about 24 to about 27 months at the charterer’s option. The daily charter hire is based on the BCI plus a net daily scrubber premium of $1,740. In addition, the time charter provides the option to convert the index linked rate to a fixed rate for a period of between 3 and 12 months based on the Capesize FFA for the selected period.

(3)   Chartered by a major European utility and energy company and delivered on August 4, 2019 for a period of minimum 33 to maximum 37 months with an optional period of 11-13 months. The daily charter hire is based on the BCI plus a net daily scrubber premium of $3,735 until May 2021. In addition, the Company has the option to convert to a fixed rate for a period of between three and 12 months, based on the prevailing Capesize FFA for the selected period.

(4)   Chartered by Glencore and was delivered to the charterer on November 29, 2019 for a period of minimum 36 to maximum 42 months with two optional periods of minimum 11 to maximum 13 months. The daily charter hire is based on the BCI plus a net daily scrubber premium of $2,055.

(5)   Chartered by Glencore and was delivered to the charterer on December 19, 2019 for a period of minimum 36 to maximum 42 months with two optional periods of minimum 11 to maximum 13 months. The daily charter hire is based on the BCI plus a net daily scrubber premium of $2,055.

(6)   Chartered by Glencore and was delivered to the charterer on May 15, 2020 for a period of about 36 to about 42 months with two optional periods of minimum 11 to maximum 13 months. The daily charter hire is based on the BCI.

(7)   Chartered by Pacbulk Shipping and delivered to the charterer on April 23, 2020 initially for a period of about 10 to about 14 months. Upon expiration of the current T/C period, in June 2021, the vessel commenced the second extension period up to minimum January 1, 2022 to maximum April 30, 2022. The daily charter hire is based on the BCI. In addition, the Company has the option to convert to a fixed rate, based on the prevailing Capesize FFA for the selected period.

(8)   Chartered by Anglo American, a leading global mining company, and expected to be delivered to the charterer towards the beginning of June 2021 for a period of minimum 12 to maximum 15 months from the delivery date. The daily charter hire is based on the BCI. In addition, the Company has the option to convert to a fixed rate for a period of minimum three and maximum 12 months, based on the prevailing Capesize FFA for the selected period.

(9)   Chartered by Pacbulk Shipping and was delivered to the charterer on March 22, 2021 for a period of about 11 to about 14 months from the delivery date. The daily charter hire is based on the BCI. In addition, the Company has the option to convert to a fixed rate based on the prevailing Capesize FFA for the selected period.

(10)   Chartered by NYK Line and was delivered to the charterer on May 10, 2021 for a period of minimum 11 to maximum 15 months. The daily charter hire is based at a premium over the BCI.

(11)   Chartered by Cargill. The vessel was delivered to the charterer on May 10, 2021 for a period of 60 months. The daily charter hire is based at a premium over the BCI minus $1,325 per day. In addition, the time charter provides the option to convert the index linked rate to a fixed rate for a period of minimum 3 to maximum 12 months based on the Capesize FFA for the selected period.

(12)   Chartered by a European cargo operator and was delivered to the charterer on June 7, 2021 for a period of minimum 12 to maximum 18 months. The daily charter hire is fixed at $31,000.

(13)   Chartered by a major South Korean industrial company and was delivered to the charterer on June 15, 2021 for a period employment of 11 to 15 months. The daily charter hire is based on the BCI.

(14)   Chartered by NYK Line and was delivered to the charterer on July 29, 2021 for a period of minimum 17 to maximum 24 months. The daily charter hire is based at a premium over the BCI.

(15)   Prompt delivery

(16)   Chartered by a U.S. commodity trading company and will be delivered to the charterer upon its delivery for a period of about 12 to 16 months. The daily charter hire is fixed at $31,750.

Fleet Data:

(U.S. Dollars in thousands)

	Q2 2021	Q2 2020	6M 2021	6M 2020
Ownership days (1)	1,164	910	2,155	1,820
Operating days (2)	1,122	863	2,055	1,764
Fleet utilization (3)	96.4%	94.8%	95.4%	96.9%
TCE rate (4)	$20,095	$5,424	$18,327	$6,985
Daily Vessel Operating Expenses (5)	$5,908	$5,140	$5,766	$5,353

(1)   Ownership days are the total number of calendar days in a period during which the vessels in a fleet have been owned or chartered in. Ownership days are an indicator of the size of the Company’s fleet over a period and affect both the amount of revenues and the amount of expenses that the Company recorded during a period.

(2)   Operating days are the number of available days in a period less the aggregate number of days that the vessels are off-hire due to unforeseen circumstances. Operating days includes the days that our vessels are in ballast voyages without having finalized agreements for their next employment.

(3)   Fleet utilization is the percentage of time that the vessels are generating revenue and is determined by dividing operating days by ownership days for the relevant period.

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

(In thousands of U.S. Dollars, except operating days and TCE rate)

	Q2 2021	Q2 2020	6M 2021	6M 2020
Net revenues from vessels	27,832	9,042	48,230	22,381
Less: Voyage expenses	5,285	4,361	10,567	10,060
Net operating revenues	22,547	4,681	37,663	12,321
Operating days	1,122	863	2,055	1,764
TCE rate	$20,095	$5,424	$18,327	$6,985

(5)   Vessel operating expenses include crew costs, provisions, deck and engine stores, lubricants, insurance, maintenance and repairs. Daily Vessel Operating Expenses are calculated by dividing vessel operating expenses by ownership days for the relevant time periods. The Company’s calculation of daily vessel operating expenses may not be comparable to that reported by other companies. The following table reconciles the Company’s vessel operating expenses to daily vessel operating expenses.


(In thousands of U.S. Dollars, except ownership days and Daily Vessel Operating Expenses)

	Q2 2021	Q2 2020	6M 2021	6M 2020
Vessel operating expenses	8,879	4,677	14,428	9,742
Less: Pre-delivery expenses	2,002	–	2,002	–
Vessel operating expenses excluding pre-delivery expenses	6,877	4,677	12,426	9,742
Ownership days	1,164	910	2,155	1,820
Daily Vessel Operating Expenses	5,908	5,140	5,766	5,353

Net Loss to EBITDA and Adjusted EBITDA Reconciliation:

(In thousands of U.S. Dollars)

	Q2 2021	Q2 2020	6M 2021	6M 2020
Net income/(loss)	1,961	(11,286)	640	(19,629)
Add: Net interest and finance cost	4,277	5,556	8,307	11,244
Add: Depreciation and amortization	4,520	3,674	8,337	7,308
EBITDA	10,758	(2,056)	17,284	(1,077)
Add: stock based compensation	528	207	1,931	589
Adjusted EBITDA	11,286	(1,849)	19,215	(488)

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) represents the sum of net income / (loss), interest and finance costs, interest income, depreciation and amortization and, if any, income taxes during a period. EBITDA is not a recognized measurement under U.S. GAAP. Adjusted EBITDA represents EBITDA adjusted to exclude stock based compensation, which the Company believes is not indicative of the ongoing performance of its core operations.

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

Interest and Finance Costs to Cash Interest and Finance Costs Reconciliation:

(In thousands of U.S. Dollars)

	Q2 2021	Q2 2020	6M 2021	6M 2020
Interest and finance costs, net	(4,277)	(5,556)	(8,307)	(11,244)
Add: Amortization of deferred finance charges	985	177	1,702	349
Add: Amortization of convertible note beneficial conversion feature	61	1,279	1,238	2,416
Add: Amortization of other deferred charges	333	149	174	302
Cash interest and finance costs	(2,898)	(3,951)	(5,193)	(8,177)

Second Quarter and Recent Developments:

Update on Vessel Acquisitions and Time-Charter Agreements

Deliveries and Time Charters Commencement

During the first half, the Company has agreed to acquire six high-quality Japanese Capesize bulkers and has taken delivery of five, while the sixth vessel is scheduled to be delivered in August. All newly acquired units have been fixed on medium to long-term time charters as of their respective deliveries.

M/V Hellasship

In May 2021, the Company took delivery of the 181,325 dwt Capesize bulk carrier, built in 2012 in Japan, which was renamed M/V Hellasship. The M/V Hellasship was fixed on a time charter with NYK Line, a leading Japanese shipping company and operator. The T/C commenced on May 10, 2021 and will have a term of minimum 11 to maximum 15 months. The gross daily rate of the T/C is based at a premium over the BCI.

M/V Flagship

In May 2021, the Company took delivery of the 176,387 dwt Capesize bulk carrier, built in 2013 in Japan, which was renamed M/V Flagship. The M/V Flagship is the second vessel of the Company’s fleet time-chartered to Cargill International S.A. (“Cargill”). The daily hire is based on the BCI, while the Company has the option to convert the index-linked hire to fixed for a minimum period of three months to a maximum of 12 months based on the prevailing Capesize FFA curve. The rate is 102% of the BCI minus $1,325 per day. The term of the T/C is 5 years from the delivery of the vessel to Cargill, which took place on May 10, 2021.

M/V Patriotship

In June 2021, the Company took delivery of the 181,709 dwt Capesize bulk carrier, built in 2010 in Japan, which was renamed M/V Patriotship. The M/V Patriotship has been fixed on a time charter with a major European cargo operator. The T/C commenced on June 7, 2021 and will have a term of minimum 12 to maximum 15 months. The gross daily hire is $31,000.

M/V Tradership

In June 2021, the Company took delivery of the 176,925 dwt Capesize bulk carrier, built in 2006 in Japan, which was renamed M/V Tradership. The M/V Tradership has been fixed on a time charter with a major South Korean industrial company. The T/C commenced on June 15, 2021 and will have a term of minimum 11 to maximum 15 months. The gross daily rate of the T/C is based on the BCI.

M/V Worldship

In May 2021, the Company agreed to acquire a 181,415 dwt Capesize bulk carrier, built in 2012 in Japan, which will be renamed M/V Worldship. The M/V Worldship has been fixed on a T/C with a world-leading U.S. commodity trading company, at a gross daily rate of $31,750 for a period of minimum 12 to maximum16 months. The T/C is expected to commence immediately upon the vessel’s upcoming delivery, which is anticipated within August 2021.

Vessel Replacement

M/V Friendship

In July 2021, the Company took delivery of the 176,952 dwt Capesize bulk carrier, built in 2009 in Japan, which was renamed M/V Friendship. The M/V Friendship has been fixed on a time charter with NYK Line, a leading Japanese shipping company and operator. The T/C will commence promptly, upon finalization of the customary handover process and will have a term of minimum 17 to maximum 24 months. The gross daily rate of the T/C is based on 102% of the BCI.

M/V Leadership

Additionally, the Company has agreed to sell the 2001-built M/V Leadership to an unaffiliated party for a net sale price of $12.0 million. The substitution will improve the average age of the Company’s fleet. The vessel’s delivery to her new owners is anticipated within September 2021.

Financing Updates

During the second quarter, the Company has successfully concluded new financings and refinancing of $104.3 million and has received a commitment letter for a loan facility of up to $13.0 million.

Alpha Bank S.A.

On May 20, 2021, the Company entered into a $37.45 million credit facility to (i) refinance the existing facilities of $25.5 million secured by the M/V Leadership and the M/V Squireship and (ii) finance the previously unencumbered M/V Lordship. The earliest maturity date of the facility will be in December 2024 and the interest rate is 3.5% plus LIBOR per annum.

Aegean Baltic Bank S.A.

On April 22, 2021, the Company entered into a credit facility for an amount of $15.5 million secured by the M/V Goodship and the M/V Tradership. The facility has a term of 4.5 years, with latest maturity date falling in December 2025 and bears interest of LIBOR plus 4% per annum.

Cargill International S.A.

On May 11, 2021, the Company entered into a sale and leaseback transaction with Cargill to partially fund the acquisition cost of the M/V Flagship. The financing amount is $20.5 million at an implied interest rate of approximately 2% all-in, fixed for five years.

New Financing Agreement of $30.9 million

In June 2021, the Company successfully concluded the financing of two of its new acquisitions, the 2012-built Capesize M/V Hellasship and the 2010-built M/V Patriotship through a sale and leaseback agreement with a major Chinese financial institution. The vessels were sold and chartered back on a bareboat basis for a five-year period, the combined financing amount is $30.9 million and the applicable interest rate is LIBOR + 3.50% p.a.

Alpha Bank Commitment Letter – Friendship

In July 2021, the Company obtained a commitment letter from Alpha Bank S.A. for a loan facility of up to $13.0 million, in order to finance the acquisition of the 2009-built Capesize M/V Friendship. The interest rate will be LIBOR plus 3.25% p.a., and the term of the loan will be four years. The facility will be repaid through 4 quarterly instalments of $0.7 million followed by 12 quarterly instalments of $0.38 million and a balloon of $5.7 million payable together with the last instalment. The new loan facility will be structured as an additional loan tranche in the existing Alpha Bank facility secured by the M/Vs Lordship, Squireship and Leadership mentioned above.

 

Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Balance Sheets
(In thousands of U.S. Dollars)

		June 30, 2021			December 31, 2020*
ASSETS
Cash and cash equivalents, restricted cash and term deposits		56,394			23,651
Vessels, vessel held for sale and advances for vessels’ acquisitions, net		367,897			256,737
Other assets		16,483			14,857
TOTAL ASSETS		440,774			295,245
LIABILITIES AND STOCKHOLDERS’ EQUITY
Long-term debt and other financial liabilities		203,829			169,762
Convertible notes		16,196			14,516
Other liabilities		21,335			15,273
Stockholders’ equity		199,414			95,694
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		440,774			295,245

* Derived from the audited consolidated financial statements as of the period as of that date

Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Statements of Operations
(In thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

		Three months ended June 30,				Six months ended June 30,
		2021		2020		2021			2020
Revenues:
Vessel revenues		28,867		9,341		50,023			23,148
Commissions		(1,035	)	(299	)	(1,793	)		(767	)
Vessel revenue, net		27,832		9,042		48,230			22,381
Expenses:
Voyage expenses		(5,285	)	(4,361	)	(10,567	)		(10,060	)
Vessel operating expenses		(8,879	)	(4,677	)	(14,428	)		(9,742	)
Management fees		(348	)	(251	)	(629	)		(503	)
General and administrative expenses		(2,566	)	(1,786	)	(5,296	)		(3,145	)
Depreciation and amortization		(4,520	)	(3,674	)	(8,337	)		(7,308	)
Operating income/(loss)		6,234		(5,707	)	8,973			(8,377	)
Other income / (expenses):
Interest and finance costs, net		(4,277	)	(5,556	)	(8,307	)		(11,244	)
Other, net		4		(23	)	(26	)		(8	)
Total other expenses, net:		(4,273	)	(5,579	)	(8,333	)		(11,252	)
Net income/(loss)		1,961		(11,286	)	640			(19,629	)
Net income/(loss) per common share, basic and diluted		0.01		(0.65	)	0.01			(2.05	)
Weighted average number of common shares outstanding, basic		160,171,874		17,478,283		137,590,311			9,588,854
Weighted average number of common shares outstanding, diluted		174,592,644		17,478,283		152,052,538			9,588,854

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. On a ‘fully-delivered’ basis, the Company’s fleet will consist of 16 Capesize vessels with an average age of 11.4 years and aggregate cargo carrying capacity of 2,829,631 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”.

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

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; 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.
Daniela Guerrero
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com

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¹ EBITDA and Time Charter Equivalent (“TCE”) rate are non-GAAP measures. Please see the reconciliation below of EBITDA to net loss and TCE rate to net revenues from vessels, in each case the most directly comparable U.S. GAAP measure.

² This guidance is based on certain assumptions and there can be no assurance that these TCE estimates or projected utilization will be realized. TCE estimates include certain floating (index) to fixed rate conversions concluded in previous periods. For vessels on index-linked T/Cs, the TCE realized will vary with the underlying index, and for the purposes of this guidance, the TCE assumed for the remaining operating days of an index-linked T/C is equal to the last invoiced average of the BCI for the respective T/C, which is approximately equal to $30,000 as compared to an average FFA rate of $36,000 per day for August and September 2021 as of July 26, 2021. Spot estimates are provided using the load-to-discharge method of accounting. Load-to-discharge accounting recognizes revenues over fewer days as opposed to the discharge-to-discharge method of accounting used prior to 2018, resulting in higher rates for these days and only voyage expenses being recorded in the ballast days. Over the duration of the voyage (discharge-to-discharge) there is no difference in the total revenues and costs to be recognized. The rates quoted are for days currently contracted. Increased ballast days at the end of the quarter will reduce the additional revenues that can be booked based on the accounting cut-offs and therefore the resulting TCE will be reduced accordingly.

Seanergy Maritime Holdings Corp. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2021

 

Seanergy Maritime Holdings Corp. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2021

Highlights of the Second Quarter of 2021:

• Gross revenues: $28.9 million in Q2 2021 compared to $9.3 million in Q2 2020, up 209%
• Net income: $2.0 million in Q2 2021, as compared to a net loss of $11.3 million in Q2 2020
• EBITDA¹: $10.8 million in Q2 2021, as compared to negative $2.1 million in Q2 2020
• Adjusted EBITDA¹: $11.3 million in Q2 2021, as compared to negative $1.8 million in Q2 2020

Highlights of First Six Months of 2021:

• Gross revenues: $50.0 million in 6M 2021 compared to $23.1 million in 6M 2020, up 116%
• Net income: $0.6 million in 6M 2021, as compared to a net loss of $19.6 million in 6M 2020
• EBITDA¹: $17.3 million in 6M 2021 as compared to negative $1.1 million in 6M 2020
• Adjusted EBITDA¹: $19.2 6M 2021, as compared to negative $0.5 million in 6M 2020

Second Quarter of 2021 and Recent Developments:

• Fleet increase by 45% with the delivery of 5 modern Japanese Capesizes
• Fleet modernization through substitution of the fleet’s oldest Capesize with an eight year younger vessel
• New time charter agreements with prominent charterers
• Financing and refinancing transactions of $117.3 million including a $30.9 million sale and leaseback & new loan commitment

July 29, 2021 – Athens, Greece – Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP), announced today its financial results for the second quarter ended June 30, 2021.

For the quarter ended June 30, 2021, the Company generated gross revenues of $28.9 million, a 209% increase compared to the second quarter of 2020. Adjusted EBITDA for the quarter was $11.3 million, from negative $1.8 million in the same period of 2020. Net income for the second quarter was $2.0 million compared to net loss of $11.3 million in the second quarter of 2020. The daily Time Charter Equivalent (“TCE”)¹ of the fleet for the second quarter of 2021 was $20,095, marking a 270% increase compared $5,424 for the second quarter of 2020.

For the six-month period ended June 30, 2021, gross revenues were $50.0 million, increased by 116% when compared to $23.1 million in same period of 2020. Adjusted EBITDA for the first six months of 2021 was $19.2 million, compared to a negative adjusted EBITDA of $0.5 million in the same period of 2020. The daily TCE of the fleet for the first six months of 2021 was $18,327 compared to $6,985 in the first six months of 2020. The average daily OPEX was $5,766 compared to $5,353 of the respective period of 2020.

Cash and cash-equivalents, restricted cash and term deposits as of June 30, 2021 stood at $56.4 million. Shareholders’ equity at the end of the second quarter was $199.4 million, vs. $95.7 million in December 31, 2020. Long-term debt (senior and junior loans and financial leases) stood at $203.8 million as of June 30, 2021, from $169.8 million as of the end of 2020. In the same period, following the addition of four of our new acquisitions, the book value of our fleet (including vessels held for sale and advances for vessel acquisitions) increased by 43.3% to $367.9 million from $256.7 million.

Third Quarter 2021 TCE Guidance:

As of the date hereof, approximately 94% of the Company fleet’s expected operating days in the third quarter of 2021 have been fixed at an estimated TCE of approximately $28,880², or 63% higher than the TCE recorded in the first half of the year. Our TCE guidance for the third quarter of 2021 includes certain conversions (8 vessels) of index-linked charters to fixed for the 3-month period ending on September 30, 2021 which were concluded in the first and second quarter of 2021 as part of our freight hedging strategy. The following table provides the break-down:

	Operating Days	TCE
TCE – fixed rate (index-linked conversion)	719.6	$28,049
TCE – fixed rate	136.6	$28,782
TCE – index linked & spot	591.9	$29,913
Total / Average	1,448.1	$28,880

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

“The six-month period that ended on June 30, 2021, marks a significant turning point for Seanergy, with strong financial performance, being the first profitable first-half since the Company’s relaunching in 2015. Most importantly, we have successfully concluded many milestone transactions that saw Seanergy’s fleet growing by more than 60% while solidifying our financial standing.

Concerning our results for the second quarter of 2021, our daily TCE was approximately $20,000, marking an increase of 270% compared to the TCE of the second quarter of 2020. The TCE of the fleet for the first 6 months of 2021 was about $18,300 per day as compared to a daily TCE of approximately $7,000 in the first half of 2020. As discussed in our last earnings release, our TCE performance in the second quarter was affected by certain less favorable conversions of index-linked charters to fixed which were concluded in the fourth quarter of 2020 as part of our freight hedging strategy. However, our Q3 guidance is very strong at close to $29,000 per day. Adjusted EBITDA for the second quarter and first half of 2021 was $11.3 million and $19.2 million respectively, as compared to negative adjusted EBITDA by $1.85 million and $0.5 million in the respective periods of 2020. Net result for the quarter was a profit of $2.0 million, which was sufficient to reverse the slight losses of the first quarter of the year resulting in a profitable first half for our Company.  

Regarding our fleet growth and renewal strategy, since the beginning of the year, our investment in our fleet has totaled approximately $160 million, and we have agreed to acquire 6 high-quality Japanese Capesize bulkers of an average age of 10.5 years, with the most recent acquisition being that of the 2009 built M/V Friendship. This vessel will essentially replace the oldest vessel in our fleet, the 2001 built M/V Leadership, which we agreed to sell to third-party buyers. This asset swap is improving the age profile of our fleet and enhances its competitiveness and compliance with the upcoming environmental regulations.

To date we have taken delivery of five out of the six new acquisitions and the last vessel, the 2012 built Worldship is scheduled to be delivered to us in August, followed by the delivery of the M/V Leadership to her new owners in September. The total investment capex of about $160 million has been fully funded by our cash reserves, which remain strong following these acquisitions, and newly concluded debt financing arrangements.

On the debt financing front, in the first half of 2021, we have successfully concluded new financings and refinancings of $104.3 million whilst making $69.7 million prepayments and repayments on our legacy debt facilities. The resulting net increase in our debt by $34.6 million, against an increase in the book value of our fleet by $158.9 million, implies a 22% effective loan-to-value on our new acquisitions. Next to the significant deleveraging of the balance sheet, the retirement of expensive debt and its replacement with competitively priced financings reflects positively on our bottom line. Indicatively, the weighted average interest rate on the facilities that were fully prepaid was 8.4% as compared to 3.35% for the new $104.3 million financings. We also expect that the terms of our financings will improve further going forward.

Concerning the commercial deployment of our fleet, in 2021 to date, we have concluded seven new period employment agreements ranging from 12 months to 5 years. All time-charters have been concluded with world-leading charterers in the Capesize sector, including NYK, Cargill, Anglo American and Ssangyong. The underlying rates are mainly index-linked, in most cases with options to convert to fixed based on the prevailing freight futures curve, allowing us to capitalize on potential spikes in the day-rates. Taking advantage of the strong market conditions, we have concluded fixed rate T/Cs at rates exceeding $31,000 per day for periods ranging from 12 to 18 months for two vessels. We continue to position our fleet optimally for what we believe to be an unfolding commodities super-cycle, which will underscore the importance of dry bulk shipping and especially that of the Capesize sector in global seaborne trade.

With respect to the implementation of our ESG agenda and as part of our continuous efforts to improve the energy efficiency rating of our fleet, we have installed Energy Saving Devices (“ESDs”) on an additional vessel and we have agreed with Cargill to install ESDs on another vessel in the coming months. Moreover, we have partnered with DeepSea for the installation of Artificial Intelligence performance systems on our fleet with proven benefit on fuel consumption. Finally we are in progressed discussions with other charterers for similar ESD projects, as well as for biofuel blend trials, which we believe to be one of the most efficient ways to transition into a greener future for shipping.

Regarding current market conditions, we are very pleased to see a consistent positive trend in our sector with daily rates above $20,000/ day since the beginning of April. Looking ahead, we are entering the seasonally “strong” period for Brazilian iron ore exports as local miners are ramping up production, supported by favorable weather conditions and “clean” plant maintenance schedules. At the same time coal prices are at the highest level of the last decade resulting in steadily rising seaborne coal volumes – a positive trend that defies the seasonal patterns of the last years. On that basis, and considering the favorable vessel-supply fundamentals of our sector with the orderbook standing at the lowest level of the last 25 years, as amplified by the catalytic effect of the upcoming environmental regulations, we feel confident about the prospects of the Capesize market.

As mentioned earlier, our daily TCE for the third quarter, based on 94% of our available days, stands at approximately $29,000, which is 63% higher than our 1H TCE. As part of our forward rates hedging strategy, we have triggered the “floating to fixed” feature on 8 of our index-linked charterers at an average net daily rate of approximately $28,050. This in combination with the solid outlook for our sector will form the basis for what we expect to be a further improved financial performance in the next quarter.

On a closing note, we have worked tirelessly and determinedly over the last 18 months to execute consistently on our strategic initiatives and place Seanergy amongst the most prominent Capesize owners globally. We remain committed to delivering additional value for our shareholders.”

Company Fleet following vessels’ deliveries and the sale of the M/V Leadership:

(1)   Chartered by a major European utility and energy company and delivered to the charterer on September 11, 2019 for a period of minimum 33 to maximum 37 months with an optional period of about 11 to maximum 13 months. The daily charter hire is based on the BCI. In addition, the Company has the option to convert to a fixed rate for a period of between 3 and 12 months, based on the prevailing Capesize Forward Freight Agreement Rate (“FFA”) for the selected period.

(2)   Chartered by Cargill. The vessel was delivered to the charterer on November 7, 2018 for a period of employment of 60 months, with an additional period of about 24 to about 27 months at the charterer’s option. The daily charter hire is based on the BCI plus a net daily scrubber premium of $1,740. In addition, the time charter provides the option to convert the index linked rate to a fixed rate for a period of between 3 and 12 months based on the Capesize FFA for the selected period.

(3)   Chartered by a major European utility and energy company and delivered on August 4, 2019 for a period of minimum 33 to maximum 37 months with an optional period of 11-13 months. The daily charter hire is based on the BCI plus a net daily scrubber premium of $3,735 until May 2021. In addition, the Company has the option to convert to a fixed rate for a period of between three and 12 months, based on the prevailing Capesize FFA for the selected period.

(4)   Chartered by Glencore and was delivered to the charterer on November 29, 2019 for a period of minimum 36 to maximum 42 months with two optional periods of minimum 11 to maximum 13 months. The daily charter hire is based on the BCI plus a net daily scrubber premium of $2,055.

(5)   Chartered by Glencore and was delivered to the charterer on December 19, 2019 for a period of minimum 36 to maximum 42 months with two optional periods of minimum 11 to maximum 13 months. The daily charter hire is based on the BCI plus a net daily scrubber premium of $2,055.

(6)   Chartered by Glencore and was delivered to the charterer on May 15, 2020 for a period of about 36 to about 42 months with two optional periods of minimum 11 to maximum 13 months. The daily charter hire is based on the BCI.

(7)   Chartered by Pacbulk Shipping and delivered to the charterer on April 23, 2020 initially for a period of about 10 to about 14 months. Upon expiration of the current T/C period, in June 2021, the vessel commenced the second extension period up to minimum January 1, 2022 to maximum April 30, 2022. The daily charter hire is based on the BCI. In addition, the Company has the option to convert to a fixed rate, based on the prevailing Capesize FFA for the selected period.

(8)   Chartered by Anglo American, a leading global mining company, and expected to be delivered to the charterer towards the beginning of June 2021 for a period of minimum 12 to maximum 15 months from the delivery date. The daily charter hire is based on the BCI. In addition, the Company has the option to convert to a fixed rate for a period of minimum three and maximum 12 months, based on the prevailing Capesize FFA for the selected period.

(9)   Chartered by Pacbulk Shipping and was delivered to the charterer on March 22, 2021 for a period of about 11 to about 14 months from the delivery date. The daily charter hire is based on the BCI. In addition, the Company has the option to convert to a fixed rate based on the prevailing Capesize FFA for the selected period.

(10)   Chartered by NYK Line and was delivered to the charterer on May 10, 2021 for a period of minimum 11 to maximum 15 months. The daily charter hire is based at a premium over the BCI.

(11)   Chartered by Cargill. The vessel was delivered to the charterer on May 10, 2021 for a period of 60 months. The daily charter hire is based at a premium over the BCI minus $1,325 per day. In addition, the time charter provides the option to convert the index linked rate to a fixed rate for a period of minimum 3 to maximum 12 months based on the Capesize FFA for the selected period.

(12)   Chartered by a European cargo operator and was delivered to the charterer on June 7, 2021 for a period of minimum 12 to maximum 18 months. The daily charter hire is fixed at $31,000.

(13)   Chartered by a major South Korean industrial company and was delivered to the charterer on June 15, 2021 for a period employment of 11 to 15 months. The daily charter hire is based on the BCI.

(14)   Chartered by NYK Line and was delivered to the charterer on July 29, 2021 for a period of minimum 17 to maximum 24 months. The daily charter hire is based at a premium over the BCI.

(15)   Prompt delivery

(16)   Chartered by a U.S. commodity trading company and will be delivered to the charterer upon its delivery for a period of about 12 to 16 months. The daily charter hire is fixed at $31,750.

Fleet Data:

(U.S. Dollars in thousands)

	Q2 2021	Q2 2020	6M 2021	6M 2020
Ownership days (1)	1,164	910	2,155	1,820
Operating days (2)	1,122	863	2,055	1,764
Fleet utilization (3)	96.4%	94.8%	95.4%	96.9%
TCE rate (4)	$20,095	$5,424	$18,327	$6,985
Daily Vessel Operating Expenses (5)	$5,908	$5,140	$5,766	$5,353

(1)   Ownership days are the total number of calendar days in a period during which the vessels in a fleet have been owned or chartered in. Ownership days are an indicator of the size of the Company’s fleet over a period and affect both the amount of revenues and the amount of expenses that the Company recorded during a period.

(2)   Operating days are the number of available days in a period less the aggregate number of days that the vessels are off-hire due to unforeseen circumstances. Operating days includes the days that our vessels are in ballast voyages without having finalized agreements for their next employment.

(3)   Fleet utilization is the percentage of time that the vessels are generating revenue and is determined by dividing operating days by ownership days for the relevant period.

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

(In thousands of U.S. Dollars, except operating days and TCE rate)

	Q2 2021	Q2 2020	6M 2021	6M 2020
Net revenues from vessels	27,832	9,042	48,230	22,381
Less: Voyage expenses	5,285	4,361	10,567	10,060
Net operating revenues	22,547	4,681	37,663	12,321
Operating days	1,122	863	2,055	1,764
TCE rate	$20,095	$5,424	$18,327	$6,985

(5)   Vessel operating expenses include crew costs, provisions, deck and engine stores, lubricants, insurance, maintenance and repairs. Daily Vessel Operating Expenses are calculated by dividing vessel operating expenses by ownership days for the relevant time periods. The Company’s calculation of daily vessel operating expenses may not be comparable to that reported by other companies. The following table reconciles the Company’s vessel operating expenses to daily vessel operating expenses.


(In thousands of U.S. Dollars, except ownership days and Daily Vessel Operating Expenses)

	Q2 2021	Q2 2020	6M 2021	6M 2020
Vessel operating expenses	8,879	4,677	14,428	9,742
Less: Pre-delivery expenses	2,002	–	2,002	–
Vessel operating expenses excluding pre-delivery expenses	6,877	4,677	12,426	9,742
Ownership days	1,164	910	2,155	1,820
Daily Vessel Operating Expenses	5,908	5,140	5,766	5,353

Net Loss to EBITDA and Adjusted EBITDA Reconciliation:

(In thousands of U.S. Dollars)

	Q2 2021	Q2 2020	6M 2021	6M 2020
Net income/(loss)	1,961	(11,286)	640	(19,629)
Add: Net interest and finance cost	4,277	5,556	8,307	11,244
Add: Depreciation and amortization	4,520	3,674	8,337	7,308
EBITDA	10,758	(2,056)	17,284	(1,077)
Add: stock based compensation	528	207	1,931	589
Adjusted EBITDA	11,286	(1,849)	19,215	(488)

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) represents the sum of net income / (loss), interest and finance costs, interest income, depreciation and amortization and, if any, income taxes during a period. EBITDA is not a recognized measurement under U.S. GAAP. Adjusted EBITDA represents EBITDA adjusted to exclude stock based compensation, which the Company believes is not indicative of the ongoing performance of its core operations.

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

Interest and Finance Costs to Cash Interest and Finance Costs Reconciliation:

(In thousands of U.S. Dollars)

	Q2 2021	Q2 2020	6M 2021	6M 2020
Interest and finance costs, net	(4,277)	(5,556)	(8,307)	(11,244)
Add: Amortization of deferred finance charges	985	177	1,702	349
Add: Amortization of convertible note beneficial conversion feature	61	1,279	1,238	2,416
Add: Amortization of other deferred charges	333	149	174	302
Cash interest and finance costs	(2,898)	(3,951)	(5,193)	(8,177)

Second Quarter and Recent Developments:

Update on Vessel Acquisitions and Time-Charter Agreements

Deliveries and Time Charters Commencement

During the first half, the Company has agreed to acquire six high-quality Japanese Capesize bulkers and has taken delivery of five, while the sixth vessel is scheduled to be delivered in August. All newly acquired units have been fixed on medium to long-term time charters as of their respective deliveries.

M/V Hellasship

In May 2021, the Company took delivery of the 181,325 dwt Capesize bulk carrier, built in 2012 in Japan, which was renamed M/V Hellasship. The M/V Hellasship was fixed on a time charter with NYK Line, a leading Japanese shipping company and operator. The T/C commenced on May 10, 2021 and will have a term of minimum 11 to maximum 15 months. The gross daily rate of the T/C is based at a premium over the BCI.

M/V Flagship

In May 2021, the Company took delivery of the 176,387 dwt Capesize bulk carrier, built in 2013 in Japan, which was renamed M/V Flagship. The M/V Flagship is the second vessel of the Company’s fleet time-chartered to Cargill International S.A. (“Cargill”). The daily hire is based on the BCI, while the Company has the option to convert the index-linked hire to fixed for a minimum period of three months to a maximum of 12 months based on the prevailing Capesize FFA curve. The rate is 102% of the BCI minus $1,325 per day. The term of the T/C is 5 years from the delivery of the vessel to Cargill, which took place on May 10, 2021.

M/V Patriotship

In June 2021, the Company took delivery of the 181,709 dwt Capesize bulk carrier, built in 2010 in Japan, which was renamed M/V Patriotship. The M/V Patriotship has been fixed on a time charter with a major European cargo operator. The T/C commenced on June 7, 2021 and will have a term of minimum 12 to maximum 15 months. The gross daily hire is $31,000.

M/V Tradership

In June 2021, the Company took delivery of the 176,925 dwt Capesize bulk carrier, built in 2006 in Japan, which was renamed M/V Tradership. The M/V Tradership has been fixed on a time charter with a major South Korean industrial company. The T/C commenced on June 15, 2021 and will have a term of minimum 11 to maximum 15 months. The gross daily rate of the T/C is based on the BCI.

M/V Worldship

In May 2021, the Company agreed to acquire a 181,415 dwt Capesize bulk carrier, built in 2012 in Japan, which will be renamed M/V Worldship. The M/V Worldship has been fixed on a T/C with a world-leading U.S. commodity trading company, at a gross daily rate of $31,750 for a period of minimum 12 to maximum16 months. The T/C is expected to commence immediately upon the vessel’s upcoming delivery, which is anticipated within August 2021.

Vessel Replacement

M/V Friendship

In July 2021, the Company took delivery of the 176,952 dwt Capesize bulk carrier, built in 2009 in Japan, which was renamed M/V Friendship. The M/V Friendship has been fixed on a time charter with NYK Line, a leading Japanese shipping company and operator. The T/C will commence promptly, upon finalization of the customary handover process and will have a term of minimum 17 to maximum 24 months. The gross daily rate of the T/C is based on 102% of the BCI.

M/V Leadership

Additionally, the Company has agreed to sell the 2001-built M/V Leadership to an unaffiliated party for a net sale price of $12.0 million. The substitution will improve the average age of the Company’s fleet. The vessel’s delivery to her new owners is anticipated within September 2021.

Financing Updates

During the second quarter, the Company has successfully concluded new financings and refinancing of $104.3 million and has received a commitment letter for a loan facility of up to $13.0 million.

Alpha Bank S.A.

On May 20, 2021, the Company entered into a $37.45 million credit facility to (i) refinance the existing facilities of $25.5 million secured by the M/V Leadership and the M/V Squireship and (ii) finance the previously unencumbered M/V Lordship. The earliest maturity date of the facility will be in December 2024 and the interest rate is 3.5% plus LIBOR per annum.

Aegean Baltic Bank S.A.

On April 22, 2021, the Company entered into a credit facility for an amount of $15.5 million secured by the M/V Goodship and the M/V Tradership. The facility has a term of 4.5 years, with latest maturity date falling in December 2025 and bears interest of LIBOR plus 4% per annum.

Cargill International S.A.

On May 11, 2021, the Company entered into a sale and leaseback transaction with Cargill to partially fund the acquisition cost of the M/V Flagship. The financing amount is $20.5 million at an implied interest rate of approximately 2% all-in, fixed for five years.

New Financing Agreement of $30.9 million

In June 2021, the Company successfully concluded the financing of two of its new acquisitions, the 2012-built Capesize M/V Hellasship and the 2010-built M/V Patriotship through a sale and leaseback agreement with a major Chinese financial institution. The vessels were sold and chartered back on a bareboat basis for a five-year period, the combined financing amount is $30.9 million and the applicable interest rate is LIBOR + 3.50% p.a.

Alpha Bank Commitment Letter – Friendship

In July 2021, the Company obtained a commitment letter from Alpha Bank S.A. for a loan facility of up to $13.0 million, in order to finance the acquisition of the 2009-built Capesize M/V Friendship. The interest rate will be LIBOR plus 3.25% p.a., and the term of the loan will be four years. The facility will be repaid through 4 quarterly instalments of $0.7 million followed by 12 quarterly instalments of $0.38 million and a balloon of $5.7 million payable together with the last instalment. The new loan facility will be structured as an additional loan tranche in the existing Alpha Bank facility secured by the M/Vs Lordship, Squireship and Leadership mentioned above.

 

Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Balance Sheets
(In thousands of U.S. Dollars)

		June 30, 2021			December 31, 2020*
ASSETS
Cash and cash equivalents, restricted cash and term deposits		56,394			23,651
Vessels, vessel held for sale and advances for vessels’ acquisitions, net		367,897			256,737
Other assets		16,483			14,857
TOTAL ASSETS		440,774			295,245
LIABILITIES AND STOCKHOLDERS’ EQUITY
Long-term debt and other financial liabilities		203,829			169,762
Convertible notes		16,196			14,516
Other liabilities		21,335			15,273
Stockholders’ equity		199,414			95,694
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		440,774			295,245

* Derived from the audited consolidated financial statements as of the period as of that date

Seanergy Maritime Holdings Corp.
Unaudited Condensed Consolidated Statements of Operations
(In thousands of U.S. Dollars, except for share and per share data, unless otherwise stated)

		Three months ended June 30,				Six months ended June 30,
		2021		2020		2021			2020
Revenues:
Vessel revenues		28,867		9,341		50,023			23,148
Commissions		(1,035	)	(299	)	(1,793	)		(767	)
Vessel revenue, net		27,832		9,042		48,230			22,381
Expenses:
Voyage expenses		(5,285	)	(4,361	)	(10,567	)		(10,060	)
Vessel operating expenses		(8,879	)	(4,677	)	(14,428	)		(9,742	)
Management fees		(348	)	(251	)	(629	)		(503	)
General and administrative expenses		(2,566	)	(1,786	)	(5,296	)		(3,145	)
Depreciation and amortization		(4,520	)	(3,674	)	(8,337	)		(7,308	)
Operating income/(loss)		6,234		(5,707	)	8,973			(8,377	)
Other income / (expenses):
Interest and finance costs, net		(4,277	)	(5,556	)	(8,307	)		(11,244	)
Other, net		4		(23	)	(26	)		(8	)
Total other expenses, net:		(4,273	)	(5,579	)	(8,333	)		(11,252	)
Net income/(loss)		1,961		(11,286	)	640			(19,629	)
Net income/(loss) per common share, basic and diluted		0.01		(0.65	)	0.01			(2.05	)
Weighted average number of common shares outstanding, basic		160,171,874		17,478,283		137,590,311			9,588,854
Weighted average number of common shares outstanding, diluted		174,592,644		17,478,283		152,052,538			9,588,854

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. On a ‘fully-delivered’ basis, the Company’s fleet will consist of 16 Capesize vessels with an average age of 11.4 years and aggregate cargo carrying capacity of 2,829,631 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”.

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

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; 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.
Daniela Guerrero
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com

---

¹ EBITDA and Time Charter Equivalent (“TCE”) rate are non-GAAP measures. Please see the reconciliation below of EBITDA to net loss and TCE rate to net revenues from vessels, in each case the most directly comparable U.S. GAAP measure.

² This guidance is based on certain assumptions and there can be no assurance that these TCE estimates or projected utilization will be realized. TCE estimates include certain floating (index) to fixed rate conversions concluded in previous periods. For vessels on index-linked T/Cs, the TCE realized will vary with the underlying index, and for the purposes of this guidance, the TCE assumed for the remaining operating days of an index-linked T/C is equal to the last invoiced average of the BCI for the respective T/C, which is approximately equal to $30,000 as compared to an average FFA rate of $36,000 per day for August and September 2021 as of July 26, 2021. Spot estimates are provided using the load-to-discharge method of accounting. Load-to-discharge accounting recognizes revenues over fewer days as opposed to the discharge-to-discharge method of accounting used prior to 2018, resulting in higher rates for these days and only voyage expenses being recorded in the ballast days. Over the duration of the voyage (discharge-to-discharge) there is no difference in the total revenues and costs to be recognized. The rates quoted are for days currently contracted. Increased ballast days at the end of the quarter will reduce the additional revenues that can be booked based on the accounting cut-offs and therefore the resulting TCE will be reduced accordingly.

Wednesday, July 28, 2021

Seanergy Maritime (SHIP)
Another Acquisition Closed, Leaving One to Go

Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. 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 10 Capesize vessels, with total capacity of approximately 1,748,581 dwt and an average fleet age of about 9.8 years. The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and class A warrants under “SHIPW”.

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

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

One Cape delivery down, one to go. The acquisition of the Friendship, a 2009—built Cape, closed, which leaves only the Worldship closing to go. Debt of $13.0 million at Libor plus 300 bps was approved by an existing lender, with debt amortization of $2.8 million in year one, $1.5 million in years two through four and a balloon payment of $5.7 million due in 2025.


2Q2021 results BMO out on July 29th and call scheduled for 10am EST.  Call number is 877-870-9135 and code is 5697340. EBITDA estimate is $10.1 million based on TCE rates of $19.5k/day …

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. 

Tuesday, July 27, 2021

Euroseas Ltd. (ESEA)
Positive Impact of Another Oakland Rate Reset

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.

Another positive reset on the Oakland intermediate. Yesterday morning, the fleet employment table was updated on the web site to show that the TCE rate on the Oakland had moved up to $64.7k/day over the weekend versus the last reset of $38.0k/day in April. The reset is the last one under a charter that is based on 90 percent of the Contex index for 4,250 TEU vessels, which had moved up into the more than $70.0k/day range. Once the current charter ends in late October, the Oakland is likely to move onto a longer term charter.


Tight supply and higher container rates are positives for upcoming charters.  According to Contex indices, rates have moved up by more than 40% over the past several weeks. Our current estimates assume that the feeders (Spetses/Diamantis/Corfu/Evridiki) will soon secure longer term work at charter rates in the $20.0k—$25.0k/day range …

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. 

Tuesday, July 27, 2021

Grindrod Shipping (GRIN)
Another Positive Move to Acquire JV Interest

Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE.

Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.

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

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

Remaining IVS Bulk joint venture interest of 31.1% acquired for $46.3 million. We view this move as positive since it effectively expands the fleet by four (two Supras/Two Handys) and eliminates another joint venture interest. Pricing is based on May 13th appraisal and April 30th financials. Funding will be comprised of combo of IVS Bulk existing cash and a new credit line of $23 million to redeem IVS preferred and existing GRIN cash after IVS Bulk preferred redemption.


Dry bulk market thesis intact.  Supply/demand fundamentals appear favorable and 1H2021 TCE rate performance has been better than expected. The order book and supply growth remain historically low due to rate volatility, regulatory uncertainty and declining capital availability, while demand should rebound on the back of global stimulus packages and solid secular minor bulk trends. CEO Martyn Wade …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.