Posted on August 7, 2024
Seanergy Maritime Reports Record Second Quarter and First Half Financial Results for the Periods Ended June 30, 2024
Enhances Focus on Returning Capital to Shareholders With Updated Dividend Policy
Declares Cash Dividend of $0.25 Per Share reflecting strong financial results
Other Highlights and Developments:
- Record second quarter net income of $14.1 million
- Updated dividend policy targeting return of approximately 50% of operating cash flow available for distributions
- Increased quarterly cash dividend of $0.25 per share for Q2 20242
- Total cash dividends of $1.85 per share, or $34.7 million, declared since March 2022
- Fleet Time Charter Equivalent (“TCE”3) overperformance of Baltic Capesize Index (“BCI”) by 18% in 2Q24 and by 8% in 1H24
- 39% of available days for 2H24 fixed at a gross rate of $29,300
- Delivery of the recently acquired M/V Iconship and commencement of period employment
- Resumption of our stock buyback program
- Successful completion of $58.3 million financing and refinancing transactions during the second quarter
Athens, Greece – Seanergy Maritime Holdings Corp. (“Seanergy” or the “Company”) (NASDAQ: SHIP), announced today its financial results for the second quarter and six months ended June 30, 2024. The Company also declared a quarterly cash dividend of $0.25 per common share for the second quarter of 2024 and announced an updated dividend policy targeting the distribution of approximately 50% of operating cash flow after debt service.
For the quarter ended June 30, 2024, the Company generated Net Revenues of $43.1 million, compared to
$28.3 million in the second quarter of 2023, representing an increase of 52%. Adjusted EBITDA for the quarter was $28.0 million, 78% higher than $15.7 million in the same period of 2023. Net Income and Adjusted Net Income for the quarter were $14.1 million and $16.0 million, respectively, compared to Net Income of $0.7 million and Adjusted Net Income of $3.3 million in the second quarter of 2023. The daily TCE rate of the fleet for the second quarter of 2024 was $26,636, compared to $18,708 in the same period of 2023.
For the six-month period ended June 30, 2024, the Company generated Net Revenues of $81.4 million, compared to $46.4 million in the same period of 2023, marking an increase of 75%. Net Income and Adjusted Net Income for the six months were $24.3 million and $27.6 million, respectively, compared to Net Loss of $3.5 million and Adjusted Net Income of $2.9 million in the respective period of 2023. Adjusted EBITDA for the six months was $51.2 million, compared to $19.6 million for the same period of 2023. The daily TCE rate of the fleet for the first six-month period of 2024 was $25,365, compared to $14,756 in the same period of 2023. The average daily OPEX was $6,999 compared to $6,921 of the respective period of 2023.
Cash and cash-equivalents and restricted cash, as of June 30, 2024, stood at $38.2 million. Shareholders’ equity at the end of the second quarter was $254.7 million. Long-term debt (senior loans, finance lease liability and other financial liabilities) net of deferred charges stood at $247.6 million, while the book value of the fleet, including a chartered-in vessel and the advance for vessel acquisition, was $466.3 million.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“Seanergy generated record profitability in the second quarter and first half of 2024 as a result of the execution of our successful strategy to position the Company as a leading dry bulk operator with a pure-play Capesize fleet. The Capesize sector continued to perform more strongly than the other dry bulk asset classes, and Seanergy overperformed the Capesize index both in the second quarter and in the first half of the year. The daily TCE of our fleet was $26,636, representing a premium of about 18% compared to the $22,600 average of the Baltic Capesize Index for the period. Our active hedging plan was a main driver of this outperformance.
“Consistent with our proven strategy of returning capital to shareholders while balancing fleet growth and maintaining a strong balance sheet, our board of directors has adopted an updated dividend policy which further increases our focus on returning capital to our shareholders. Under our updated dividend policy, which targets distribution of approximately 50% of our operating cash flow after debt service, our quarterly dividend increases to $0.25 per share for the second quarter of 2024. Additionally, we resumed our stock repurchases and I have also purchased, in the open market, common shares and call options to purchase Seanergy stock in the coming quarters. Based on our strong and visible cash flow generation, we expect to be able to continue returning significant capital to our shareholders in the coming quarters.
“In terms of fleet updates, in 2024 to date, we have agreed to acquire two Capesize vessels which are, on average, younger than our current fleet. In June, we took delivery of the 2013-built M/V Iconship, with the vessel immediately commencing employment on an index linked time-charter with an earliest expiry date in March 2026. Furthermore, we expect to take delivery of a 2012 built Capesize, that will be renamed M/V Kaizenship, within the third quarter. Following these additions, our fleet will consist of 19 Capesize vessels, up from 17 at the start of 2024. We are pleased with the steady growth we are delivering, while also increasing dividend payments and stock repurchases.
“Moreover, during the quarter we entered a new $58.3 million financing agreement for the recently delivered M/V Iconship. We also refinanced a previous sale and leaseback facility secured by two of our vessels at a lower interest rate. On a net debt basis our loan-to-value ratio at the end of the quarter stood comfortably below 40%, highlighting the continued strength of our balance sheet.
“Regarding our guidance for the third quarter of 2024, we have fixed approximately 42% of our available days at an average gross rate of $29,500 which compares favorably with the performance of the BCI to date. Based on current FFA levels, our TCE is estimated to be approximately equal to $25,500. Lastly, for the second half of the year we have fixed 39% of our fleet’s days at a gross rate of $29,300.
“Concluding with our views on the market, Capesize earnings under the BCI have averaged about $24,000 year to date, at the traditionally weakest half of the year. This points to the strength of the market, which is based on the very low vessel ordering during the previous years. It is encouraging to note that the Capesize orderbook stands at a very low level by historical standards, especially when considering the need for fleet renewal necessitated by the stringent regulations aimed at limiting CO2 emissions. As regards vessel demand, China iron ore and coal imports have risen by 7% and 12% respectively year to date, while the 8% rise in Brazilian iron ore exports has added considerable ton miles. Additionally, steadily growing West African Bauxite exports have contributed to Atlantic Basin cargo flows and kept Capesize demand at high levels. Lastly, taking a longer-term view, we are encouraged by the development of new projects that are expected to add further to ton-mile demand.
“Seanergy is well positioned to continue performing strongly amidst the favorable Capesize market fundamentals, and we will remain focused on delivering high shareholder returns while opportunistically growing our fleet.”
