Tuesday, February 02, 2021
Seanergy Maritime (SHIP)
New Time Charters Should Lower Volatility
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.
Two Capes shifted to time charters. Likely to dampen quarterly volatility. The Fellowship and Geniuship are moving onto time charters with larger shippers at the beginning of 2Q2021. While the time charters are indexed, the move should dampen earnings volatility that previously caused by the timing of voyages. The shift is also positive since the charters offer the opportunity to lock in rates at some point and lower working capital. There is no change to our current EBITDA estimates of $15.1 million in 2020 and $33.5 million in 2021, but only two Capes remain on voyage charters, which should dampen some of the earnings volatility that was driven by the timing of voyage charters.
Dry bulk market thesis intact. While the past two years were negatively impacted by extreme factors, the dry bulk supply/demand fundamentals appear favorable and the year has started on a better-than-expected note. 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 …
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.