Posted on October 9, 2024
Seanergy Maritime Holdings Corp. (“Seanergy” or the “Company”) (NASDAQ: SHIP) today announced that it has mailed a letter from Stamatis Tsantanis, Seanergy’s Chairman and Chief Executive Officer, to shareholders in connection with the Company’s upcoming 2024 Annual Meeting of Shareholders.
The letter highlights the Company’s:
- Transformation over the last four years into a prominent pure-play Capesize shipping company with attractive competitive positioning and an improved balance sheet, poised to capitalize on tailwinds in the Capesize market;
- Comprehensive strategic plan that has enabled Seanergy to grow its business, deliver record financial results and increase returns to shareholders; and
- Highly qualified directors who each brings a deep understanding of the industry. Their continued oversight is critical for us to build on our momentum and execute our strategic
The Seanergy Board of Directors continues to unanimously recommend that shareholders vote on the WHITE proxy card “FOR” Seanergy’s nominees and “AGAINST” the proposals made by Economou, and discard any other proxy card you may receive from Economou. Additional information, including details on how to vote, can be found at www.VoteSeanergy.com.
The full text of the letter follows:
October 8, 2024
Dear Fellow Seanergy Shareholders,
I am reaching out to you directly because we need your vote on the WHITE proxy card in connection with our upcoming Annual Meeting of Shareholders. Your vote is incredibly important not only to Seanergy, all of our employees and the customers that rely on our shipping services, but also to protect the value of YOUR investment in our Company.
Over the last four years in particular, we have transformed Seanergy into a prominent pure-play Capesize shipping company with a distinct competitive edge and a robust financial foundation. Our decisive actions have strategically positioned the Company to fully capitalize on the growing opportunities within the Capesize market and have enhanced our ability to deliver sustained value to our shareholders.
Seanergy has significant momentum that reflects key decisions made by the Board and management team. Starting in 2021, we took bold and decisive actions, executing a comprehensive strategic plan that redefined our business. We expanded our Capesize fleet, fortified our balance sheet and smoothly transitioned into a fully independent, broadly owned public company, all while prioritizing returns to our shareholders. These efforts are also translating into a dramatically improved cash flow profile that has been a catalyst for a significant increase in our share price and dividends. We are well positioned to continue our growth trajectory and create long-term value for our investors.
Our shareholders are now benefitting from our focused strategy, as well as our strong execution, which has enabled us to grow our business, deliver record financial results and increase returns to shareholders. Specifically, we have been focused on:
- Investing in our fleet: We have been growing our fleet efficiently through well-timed, low- cost acquisitions of high-quality vessels, levered conservatively that resulted in sustainable cash break-even rates. We have invested over $350 million into the growth of our fleet since 2020, which now stands at 19 Capesize vessels or 3.4 million DWT. Furthermore, we are committed to enhancing the competitiveness of our fleet and improving returns through innovative initiatives, in collaboration with our charterers and other industry stakeholders, to invest in energy-efficient technologies that reduce our environmental footprint. Our long-standing sustainability and ESG efforts have been recognized with multiple awards.
- Delivering record profitability and cash flow generation: In the first half of 2024, we delivered net revenues of $81.4 million and net income of $24.3 million, executing consistently on our strategic decision to position Seanergy as a leading dry bulk shipping company with a pure-play Capesize We also generated significant cash flows to fund our growth and capital returns.
- Reducing our debt: Through a thoughtful and prudent approach to capital allocation, we have streamlined our capital structure and reduced our leverage. These actions have enabled us to grow strategically while returning capital to shareholders. At the same time, we ensured that we have the requisite financial flexibility to navigate long-term shipping market cycles in our historically volatile dry bulk market.
- Increasing our returns to shareholders: We have prioritized rewarding our shareholders through compelling dividends and securities Since 2021 we have repurchased $42.9 million in securities, while from the initiation of our dividend strategy in 2022, we have paid 11 consecutive quarterly dividends and 3 special dividends, totaling $34.7 million. In light of our strong performance and our commitment to creating value, we recently updated our dividend policy to return approximately 50% of our net operating cash flow (after debt and reserves) to shareholders through dividends.
By advancing this strategy, we have delivered peer-leading total shareholder returns of over 130% over the last year.
