Seanergy Maritime (NASDAQ: SHIP) And United Maritime (NASDAQ: USEA) Provide Financial Update To Shareholders

Rhea-AI Summary

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) reported a fourth-quarter net profit of $10.8 million, a significant increase from the previous year. Revenue also grew to $39.4 million. Seanergy outperformed the Baltic Capesize Index by 7% in 2023, projecting a TCE of $23,219 per day for the first three months of 2024. The company acquired a new vessel and capitalized on the strong Capesize market.

Positive

• Seanergy reported a fourth-quarter net profit of $10.8 million, a substantial rise from the previous year.
• Revenue increased to $39.4 million, showcasing growth in the company's financial performance.
• Seanergy outperformed the Baltic Capesize Index by 7% in 2023, demonstrating operational excellence.
• The company projects a TCE of $23,219 per day for the first quarter of 2024, indicating positive expectations.
• Seanergy acquired a 2013 Japanese-built Capesize vessel with a capacity of 181,392 dwt, enhancing its fleet.
• The company capitalized on the strong Capesize market, fixing rates at around $28,300 per day for the second quarter.
• CEO Tsantanis highlighted the strategic approach of acquiring quality assets, strengthening the balance sheet, and rewarding shareholders.
• United Maritime, a spin-off company, completed a sale-and-leaseback transaction to generate liquidity and potentially expand its fleet.
• In 2023, United Maritime recorded positive financial results, with net revenues increasing by 58% compared to the previous year.

Negative

• None.

Insights

Market Research Analyst

The reported financial results by Seanergy Maritime Holdings Corp. indicate a substantial year-over-year increase in net profit and revenue. Such a performance, especially in a volatile market, suggests effective strategic management and operational efficiency. The company's ability to outperform the Baltic Capesize Index is a positive indicator of competitiveness, potentially attracting investor attention. The forward-looking statements about projected TCE and the successful utilization of the freight futures market for securing rates and cash flow further reinforce the company's strong positioning in the market.

Moreover, the acquisition of a new vessel and the increase in its value post-purchase could be seen as a strategic asset expansion that enhances the company's fleet capabilities and market value. The CEO's balanced approach to capital allocation, including ship acquisitions, stock buybacks and dividends, indicates a shareholder-friendly policy, which could have a favorable impact on investor sentiment and the stock price.

Financial Analyst

Seanergy's financial performance, with a significant jump in net profit from $0.5 million to $10.8 million, highlights strong operational leverage. Investors should note the impressive revenue growth, which is a clear signal of the company's ability to scale effectively. The strategic acquisition of the M/V Iconship at a price that has already appreciated suggests a savvy investment decision, possibly leading to increased asset value on the balance sheet.

From a liquidity perspective, the actions taken by United Maritime, Seanergy's spin-off, to refinance existing debt through a sale-and-leaseback transaction may improve financial flexibility. This could be a strategic move to optimize capital structure and potentially expand operations, which may have positive implications for the company's long-term growth trajectory.

Shipping Industry Expert

Seanergy's performance in a volatile Capesize market, particularly outperforming the BCI, is notable. The Capesize segment is known for its high volatility due to factors such as seasonal demand variations and changes in seaborne trade patterns. Seanergy's ability to capitalize on favorable market conditions, as evidenced by the strong start to the year and the securing of advantageous rates through freight futures, demonstrates adept market timing and risk management. The purchase of a high-capacity vessel aligns with industry trends where scale can drive operational efficiencies.

Investors should consider the cyclical nature of the shipping industry, where current profitability might not guarantee similar future performance. However, Seanergy's current results and strategic maneuvers position it well to navigate the cyclical ups and downs of the shipping market.

GLYFADA, GREECE / ACCESSWIRE / April 9, 2024 / Seanergy Maritime Holdings Corp. (NASDAQ:SHIP), a leading player in the global shipping industry, reported a fourth-quarter net profit of $10.8 million, a significant increase from $0.5 million in the previous year. The company's revenue also grew to $39.4 million compared to $28.5 million for the same quarter last year. Despite a very volatile Capesize market, Seanergy's daily time charter equivalent (TCE) outperformed the Baltic Capesize Index (BCI) by 7% in 2023.

For the first three months of 2024, the company is projecting a TCE of $23,219 per day. During the full-year period, they recorded a net income of $2.3 million, while their fleet's average daily rate was $17,501, exceeding the Baltic Capesize Index average of $16,389. Seanergy says its consistent ability to generate higher revenues from its Capesize fleet compared to industry benchmarks sets it apart from other shipping companies like Hapag-Llyod Aktien and Matson Inc.

In the first quarter, experiencing the strongest start for the Capesize market since 2011, Seanergy reports it has capitalized on the surge in freight futures prices. Seanergy has utilized the freight futures market to fix the rates for approximately half of its ownership days in the second quarter at around $28,300 per day, securing strong cash flow and profitability.

In February 2024, Seanergy acquired a 2013 Japanese-built Capesize dry bulk vessel with a capacity of 181,392 deadweight tons (dwt), which will be renamed M/V Iconship. The purchase price was $33.7 million, however, the value of the bulker has increased to $38 million since.

"The actions we have taken to grow our fleet substantially over the past three years with quality assets and to further strengthen our balance sheet have us optimally positioned to reap the benefits of what looks like a very strong capesize market," shared CEO Stamatis Tsantanis.

Tsantanis explained some of the overall strategy, "As you have seen, we have a perfectly balanced approach. We acquired ships, which we believe will contribute very significantly to the cash flow of the company going forward … We also buy back the stock and at the same time, we pay a dividend. So, we're doing all three that we can in a perfectly balanced way. It's going to be pretty much the same. Assuming that the rates and the cash flow allows, we will continue to reward the shareholders, and of course, doing buybacks as well in the event that allows. … In many cases, we have maximized that and the stock price has been increasing. So, we're doing our best to comply with all three major balanced allocations of capital."

United Maritime

Seanergy's spin-off company, United Maritime Corporation (NASDAQ:USEA), completed a sale-and-leaseback transaction to generate liquidity and potentially expand its fleet of bulkers. The transaction allowed United Maritime to refinance an existing $13 million loan facility. The six-year lease gives United Maritime options to repurchase the vessel after the first two years, with ownership transferred at no additional cost.

In 2023, United Maritime successfully regrew its fleet, continuing the shareholders' reward program, and managed to record a positive bottom line. The net revenues for 2023 were $36.1 million, which increased by 58% compared to 2022, but so did voyage expenses, interest and finance costs. As a result, their fleet earned an average daily TCE rate of about $15,400 in 2023, compared to $28,800 in 2022.

United Maritime recorded $11.6 million in net revenues, with adjusted EBITDA at $4.6 million for the fourth quarter. Despite the quarterly loss of $0.7 million, United Maritime maintained the dividend of $0.075 per share, reflecting a solid 11% annualized yield. United Maritime anticipates that the fleet's daily TCE earnings could see additional growth if the physical market aligns with the forward curve for freight rates this quarter. Furthermore, it is securing higher rates for some of the ownership days in the second quarter compared to those achieved in the first quarter.

"The healthy dry bulk market seen so far in the first quarter seems to be sustainable through the rest of the year, making us optimistic about our financial performance in 2024 with a fleet that will consist of three Capesize, three Kamsarmax and three Panamax vessels … With regards to our investment strategy, we are pleased with the timing of our transition towards larger sizes of dry bulk vessels, as we are witnessing the strongest first quarter for the dry bulk market of the past decade," Stamatis Tsantanis stated.

Featured photo courtesy of Seanergy Maritime.

Seanergy Investor Relations
E-mail: ir@seanergy.gr

United Investor Relations
E-mail: ir@usea.gr

SOURCE: Seanergy Maritime Holdings Corp.

View the original press release on accesswire.com

FAQ

What was Seanergy Maritime Holdings Corp.'s fourth-quarter net profit in 2023?

Seanergy Maritime Holdings Corp. reported a fourth-quarter net profit of $10.8 million in 2023.

How does Seanergy's revenue compare between the fourth quarter of 2023 and the previous year?

Seanergy's revenue grew to $39.4 million in the fourth quarter of 2023, a significant increase from the previous year.

By how much did Seanergy outperform the Baltic Capesize Index in 2023?

Seanergy outperformed the Baltic Capesize Index by 7% in 2023.

What is Seanergy projecting as the TCE for the first three months of 2024?

Seanergy is projecting a TCE of $23,219 per day for the first three months of 2024.

What was the purchase price of the 2013 Japanese-built Capesize vessel acquired by Seanergy?

The purchase price of the 2013 Japanese-built Capesize vessel acquired by Seanergy was $33.7 million.

What rates did Seanergy fix for approximately half of its ownership days in the second quarter of 2024?

Seanergy fixed rates at around $28,300 per day for approximately half of its ownership days in the second quarter of 2024.

What did United Maritime achieve in terms of net revenues in 2023 compared to 2022?

United Maritime recorded net revenues of $36.1 million in 2023, which increased by 58% compared to 2022.