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Thursday November 7, 2019
Seanergy (SHIP)
3Q2019 Shortfall Masks Improving Operating Results
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.
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- 3Q2019 results below expectations. 3Q2019 EBITDA of $9.8 million was below expectations due to higher downtime due to the scrubber program and other drydocking activity. In addition, TCE rates of $20,143/day were ~$4,000/day below our estimate in part due to an accounting change. SHIP switched to load-to-discharge accounting whereby revenues are not recorded for Capes in transit at the quarter cut-off date.
- Adjusting EBITDA estimates to $24.8 million in 2019 (from $26.3 million) and $51.3 million in 2020 (from $50.2 million) to reflect 3Q2019 shortfall but 4Q2019 forward cover update. 80% of available 4Q2019 operating days are booked at an average rate of $25.8k/day. We lowered our 2019 Cape TCE rate estimate to $14.8k/day (from $15.3k/day) and…
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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
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