Friday, May 20, 2022
Seanergy Maritime (SHIP)
Fine tuning numbers as we take over coverage
Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. The company owns a modern fleet of 11 dry bulk carriers consisting of 9 Capesizes and 2 Supramaxes with a combined cargo-carrying capacity of approximately 1,682,582 dwt and an average fleet age of 8.1 years. The company was formerly known as Seanergy Maritime Corp. and changed its name to Seanergy Maritime Holdings Corp. in January 2009. The company was founded in 2008 and is headquartered in Athens, Greece with an office in Hong Kong
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
We are making modest adjustments to our models as we take over research coverage of SHIP. We are lowering our TCE rate/day assumption for the 2022-1Q to $19,000 from $19,500 to reflect declines in dry bulk shipping prices at the end of the first quarter. We now project total revenues of $30.3 million and TCE revenues of $28.1 million based on 1500 operating days. We are also factoring in a $1.3 million, nonrecurring, non-cash loss as per company guidance. We now project adjusted EBITDA for the quarter to be $13.3 million (down from $16.5 million) and adjusted net income to be $4.3 million (down from $6.0 million). The company will report results near the end of May.
Our adjustments to future quarters are less significant, rating is unchanged. We have lowered our TCE rates for the remaining quarters of the year as well. The impact on revenues, cash flow and earnings is fairly muted and does not affect our rating or overall opinion of the company. We continue to rate the shares outperform with a $1.50 per share price target. Our price target equates to a Total Enterprise Value (TEV) multiple of close to 4.0x estimated 2022 EBITDA. While the Cape market remains volatile and financial leverage remains a risk factor, we believe that SHIP is attractive due to high-operating leverage and moves to improve the capital structure. …
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.