United Maritime Reports Financial Results for the Period from Commencement of Operations (July 6, 2022) to September 30, 2022
United Maritime Corporation (USEA) reported financial results for its initial operating period from July 6 to September 30, 2022. The company generated net revenues of $7.9 million and net income of $1.0 million, with an EBITDA of $2.9 million. They achieved a gain of $19 million from selling two Aframax vessels, significantly outpacing purchase costs. The cash reserves stood at $21.2 million, while debt totaled $76.3 million. The company initiated stock buybacks totaling $16 million, reducing share count by 24%. Looking ahead, they expect a TCE of $33,200 for Q4 2022.
- Achieved net income of $1.0 million in initial reporting period.
- Recognized a $19 million gain from the sale of two Aframax vessels.
- Cash reserves of $21.2 million, supporting financial stability.
- Initiated stock buyback programs totaling $16 million.
- Accumulated long-term debt of $76.3 million.
Commencement Period Financial Highlights:
- Net revenues:
$7.9 million - Net income:
$1.0 million - EBITDA1:
$2.9 million
Other Highlights and Q4 Guidance:
$19 million approximate gain from the sale of two Aframax vessels at50% over the vessels’ acquisition price, to be recognized in Q4- Fleet Time Charter Equivalent (“TCE1”) average rate of
$33,200 per day for88% of Q4 days - Time charter agreement for one of our LR2 tankers at a daily rate of
$43,500 for Q1 2023 $16 million in Stock Buybacks and redemption of convertible preferred shares
ATHENS, Greece, Nov. 16, 2022 (GLOBE NEWSWIRE) -- United Maritime Corporation (“United” or the “Company”) (NASDAQ: USEA), announced today its financial results for the period from commencement of its operation on July 6, 2022 to September 30, 2022.
For the period from commencement of its operation to September 30, 2022, the Company generated Net Revenues of
Cash and cash-equivalents, as of September 30, 2022, were
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are pleased to report United’s first financial results for its initial period of operations. Further to the successful spinoff from Seanergy Maritime and the commencement of trading on Nasdaq in July 2022, we completed the highly accretive acquisition of two Aframax and two LR2 tankers. The timing of the acquisitions was exceptional given the subsequent upsurge of tanker spot rates and accelerating tanker vessel values.
“Regarding United’s financial performance, the initial reporting period ending September 30, 2022, has been transitional given that the majority of our fleet was delivered towards the end of the period with limited contribution in our revenue stream. Nonetheless, we recorded net income of
“In September we agreed to sell the two Aframax tankers, securing a gain of approximately
“As regards to our commercial strategy, one of the two remaining LR2 product tankers is currently employed in the spot market, while the other is on a fixed rate time charter until March 2023. Given the favorable tanker market conditions and outlook, we expect both vessels to generate significant free cash flow. The time charter of our only capesize vessel runs at a fixed rate until the end of the year, supplementing the robust revenue stream of the tankers. Looking to the next quarter, we have covered
“Furthermore, through two separate stock buyback programs we have repurchased approximately 3.3 million shares in the open market to date, at an average price of
“On the financing front, the Company’s debt consists only of fixed-rate loans, providing protection against the rapid rise in interest rates; additionally, as a result of the increase in the values of the tanker vessels, our gearing is at moderate levels. Our cash reserves are strong, standing in excess of
“Looking forward, our capital deployment strategy will be balanced between pursuing attractive investments in new vessels and rewarding our shareholders.”
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1 EBITDA and TCE rate are not recognized measurements under U.S. generally accepted accounting principles, or U.S. GAAP. Please see the reconciliation below of EBITDA to net income and TCE rate to net revenues from vessels, in each case the most directly comparable U.S. GAAP measure.
Current Company Fleet:
| Vessel Name | Sector | Capacity (DWT) | Year Built | Yard | Employment Type | Minimum T/C expiration | Maximum T/C expiration(1) |
| Gloriuship | Dry Bulk / Capesize | 171,314 | 2004 | Hyundai | T/C Index Linked(2) | Dec-22 | Apr-23 |
| Minoansea | Tankers / LR2 | 108,817 | 2008 | SWS | Spot | N/A | N/A |
| Epanastasea | Tankers / LR2 | 109,647 | 2008 | Dalian | Fixed Rate T/C(3) | Mar-23 | Apr-23 |
| Total/Average age | 389,778 | 15.9 |
Held for Sale Fleet4:
| Vessel Name | Sector | Capacity (DWT) | Year Built | Yard |
| Parosea | Tankers / Aframax | 113,553 | 2006 | Samsung |
| Bluesea | Tankers / Aframax | 113,553 | 2006 | Samsung |
| Total/Average age | 227,106 | 16.6 |
(1) The latest redelivery dates do not include any additional optional periods.
(2) Chartered by Pacbulk Shipping and delivered to the charterer for an initial period of about 4 to about 7 months. Following various extensions, in December 2021, the T/C was further extended until minimum December 2022, up to maximum May 2023. The daily charter hire is based on the BCI and an FFA conversion option is embedded.
(3) The vessel was delivered to the charterer on September 2, 2022, with an attached time-charter with A.D.N.O.C. and a remaining period of three months. In October 2022, the T/C was further extended until minimum March 2023, up to maximum April 2023. The daily charter hire is currently
(4) The M/T Parosea was delivered to her new owners on November 8, 2022. The delivery of the M/T Bluesea is expected within November.
Fleet Data:
(Amounts in U.S. Dollars)
| From July 6, 2022 to September 30, 2022 | |||
| Ownership days (1) | 248 | ||
| Operating days (2) | 244 | ||
| Fleet utilization (3) | 98.4 | % | |
| TCE rate (4) | $ | 23,639 | |
| Daily Vessel Operating Expenses (5) | $ | 7,573 | |
(1) Ownership days are the total number of calendar days in a period during which the vessels in a fleet have been owned or chartered in. Ownership days are an indicator of the size of the Company’s fleet over a period and affect both the amount of revenues and the amount of expenses that the Company recorded during a period.
(2) Operating days are the number of available days in a period less the aggregate number of days that the vessels are off-hire due to unforeseen circumstances. Operating days includes the days that our vessels are in ballast voyages without having finalized agreements for their next employment.
(3) Fleet utilization is the percentage of time that the vessels are generating revenue and is determined by dividing operating days by ownership days for the relevant period.
(4) TCE rate is defined as the Company’s net revenue less voyage expenses during a period divided by the number of the Company’s operating days during the period. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and other commissions. The Company includes the TCE rate, a non-GAAP measure, as it believes it provides additional meaningful information in conjunction with net revenues from vessels, the most directly comparable U.S. GAAP measure, and because it assists the Company’s management in making decisions regarding the deployment and use of our vessels and because the Company believes that it provides useful information to investors regarding our financial performance. The Company’s calculation of TCE rate may not be comparable to that reported by other companies. The following table reconciles the Company’s net revenues from vessels to the TCE rate.
(In thousands of U.S. Dollars, except operating days and TCE rate)
| From July 6, 2022 to September 30, 2022 | ||
| Net revenues from vessels | 7,852 | |
| Less: Voyage expenses | 2,084 | |
| Time charter equivalent revenues | 5,768 | |
| Operating days | 244 | |
| TCE rate | $ | 23,639 |
(5) Vessel operating expenses include crew costs, provisions, deck and engine stores, lubricants, insurance, maintenance and repairs. Daily Vessel Operating Expenses are calculated by dividing vessel operating expenses, excluding pre delivery costs of acquired vessels, by ownership days for the relevant time periods. The Company’s calculation of daily vessel operating expenses may not be comparable to that reported by other companies. The following table reconciles the Company’s vessel operating expenses to daily vessel operating expenses.
(In thousands of U.S. Dollars, except ownership days and Daily Vessel Operating Expenses)
| From July 6, 2022 to September 30, 2022 | ||
| Vessel operating expenses | 2,179 | |
| Less: Pre-delivery expenses | 301 | |
| Vessel operating expenses before pre-delivery expenses | 1,878 | |
| Ownership days | 248 | |
| Daily Vessel Operating Expenses | $ | 7,573 |
Net Income to EBITDA Reconciliation:
(In thousands of U.S. Dollars)
| From July 6, 2022 to September 30, 2022 | |
| Net income attributable to common shareholders | 889 |
| Add: Interest and finance costs, net | 948 |
| Add: Depreciation and amortization | 946 |
| Add: Dividends on series C preferred shares | 139 |
| EBITDA | 2,922 |
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) represents the sum of net income / (loss), net interest and finance costs, depreciation and amortization and, if any, income taxes during a period. EBITDA is not a recognized measurement under U.S. GAAP.
EBITDA is presented as we believe that this measure is useful to investors as a widely used means of evaluating operating profitability. EBITDA as presented here may not be comparable to similarly titled measures presented by other companies. This non-GAAP measure should not be considered in isolation from, as a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP.
Interest and Finance Costs to Cash Interest and Finance Costs Reconciliation:
(In thousands of U.S. Dollars)
| From July 6, 2022 to September 30, 2022 | ||
| Interest and finance costs, net | (948 | ) |
| Add: Amortization of deferred finance charges and other discounts | 128 | |
| Cash interest and finance costs | (820 | ) |
Fourth Quarter 2022 TCE Guidance:
As of the date hereof, approximately
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2 This guidance is based on certain assumptions and there can be no assurance that these TCE estimates, or projected utilization will be realized. TCE estimates include certain floating (index) to fixed rate conversions concluded in previous periods. Spot estimates are provided using the load-to-discharge method of accounting. Over the duration of the voyage (discharge-to-discharge) there is no difference in the total revenues and costs to be recognized. The rates quoted are for days currently contracted. Increased ballast days at the end of the quarter will reduce the additional revenues that can be booked based on the accounting cut-offs and therefore the resulting TCE will be reduced accordingly.
Third Quarter and Recent Developments:
Share Buybacks
In September and October 2022, the Company completed two share buyback plans, repurchasing approximately 3.3 million common shares at an average price of
In October, as previously announced, the Board of Directors authorized an additional share buyback plan, under which the Company may repurchase up to
Redemption of the
A special independent committee of the Company’s Board of Directors has authorized the redemption of the Series C Preferred Shares issued to Seanergy Maritime in connection with the spin-off in order to provide working capital to United. Pursuant to the terms of the Series C Preferred Shares, the Company has the right, at its option, to redeem the shares at
Vessel transactions and commercial updates
Aframax Tankers (M/T Parosea and M/T Bluesea)
In August 2022, the Company took delivery of the two 113,553 dwt Aframax tankers, built in 2006 in South Korea, which were renamed M/T Parosea and M/T Bluesea. The two vessels entered a leading Aframax tanker pool tracking the earnings of the spot market.
In September 2022, the Company entered into two separate definitive agreements with an unaffiliated third party for the sale of the two vessels. The M/T Parosea was delivered to her new owners on November 8, 2022, and the M/T Bluesea is expected to be delivered to her new owners within November 2022.
LR2 Tankers (M/T Minoansea and M/T Epanastasea)
In August 2022, the Company took delivery of the 108,817 dwt LR2 tanker, built in 2008 in China, which was renamed M/T Minoansea. The vessel has been deployed since then in the spot freight market.
In September 2022, the Company took delivery of the 109,647 dwt LR2 tanker, built in 2008 in China, which was renamed M/T Epanastasea. The vessel was delivered with a T/C attached for a remaining period of three months at a gross daily rate of
Financing Updates
Underwritten Public Offering
In July 2022, United completed an underwritten public offering of 8,000,000 units at a public offering price of
Four Tankers Facility
In August 2022, the Company successfully concluded a new facility of
Regarding the two Aframax tanker sales, the Company shall prepay the respective tranches upon the delivery of each vessel, for an aggregate amount of
M/V Gloriuship Facility
In August 2022, we concluded the refinancing of
In connection with the sale of the two Aframax tankers, the Company has agreed to prepay
Update on Number of Common Shares Issued and Outstanding
As of November 14, 2022, the Company has 7,222,213 common shares issued and outstanding.
Conference Call:
The Company’s management will host a conference call to discuss the financial results today, Wednesday, November 16, 2022 at 10:00 a.m. Eastern Time.
Audio Webcast:
There will be a live, and then archived, webcast of the conference call through the Company’s website. To listen to the archived audio file, visit our website, in the “Investors” section. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast, following this link.
Conference Call Details:
Participants have the option to register for the call using the following link. You can use any number from the list or add your phone number and let the system call you right away.
| United Maritime Corporation Unaudited Condensed Consolidated Balance Sheets (In thousands of U.S. Dollars) | |||
| September 30, 2022 | |||
| ASSETS | |||
| Cash and cash equivalents | 21,215 | ||
| Vessels, net and vessels held for sale | 98,202 | ||
| Other assets | 8,645 | ||
| TOTAL ASSETS | 128,062 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
| Long-term debt | 76,281 | ||
| Other liabilities | 7,508 | ||
| Stockholders’ equity | 44,273 | ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 128,062 | ||
| United Maritime Corporation Unaudited Condensed Consolidated Statements of Operations (In thousands of U.S. Dollars, except for share and per share data, unless otherwise stated) | |||
| From January 20, 2022 (date of inception) to September 30, 2022 | |||
| Vessel revenue, net | 7,852 | ||
| Expenses: | |||
| Voyage expenses | (2,084 | ) | |
| Vessel operating expenses | (2,179 | ) | |
| Management fees | (230 | ) | |
| General and administrative expenses | (442 | ) | |
| Depreciation and amortization | (946 | ) | |
| Operating income | 1,971 | ||
| Other income / (expenses): | |||
| Interest and finance costs, net | (948 | ) | |
| Other, net | 5 | ||
| Total other expenses, net: | (943 | ) | |
| Net income | 1,028 | ||
| Dividends on series C preferred shares | (139 | ) | |
| Net income attributable to common stockholders | 889 | ||
| Net income per common share, basic | 0.24 | ||
| Net income per common share, diluted | 0.14 | ||
| Weighted average number of common shares outstanding, basic | 3,682,695 | ||
| Weighted average number of common shares outstanding, diluted | 6,639,101 | ||
| United Maritime Corporation Unaudited Condensed Consolidated Cash Flow Data (In thousands of U.S. Dollars) | |||
| From January 20, 2022 (date of inception) to September 30, 2022 | |||
| Net cash provided by operating activities | 1,893 | ||
| Net cash used in investing activities | (19,604 | ) | |
| Net cash provided by financing activities | 38,926 | ||
About United Maritime Corporation
United Maritime Corporation is an international shipping company specializing in worldwide seaborne transportation services. Following the disposal of its two recently-sold vessels, the Company will operate a fleet of two tanker vessels and one dry bulk vessel with an aggregate cargo carrying capacity of 389,778 dwt.
The Company is incorporated under the laws of the Republic of the Marshall Islands and has executive offices in Glyfada, Greece. The Company's common shares trade on the Nasdaq Capital Market under the symbol “USEA”.
Please visit the Company’s website at: www.unitedmaritime.gr
Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events. Words such as "may", "should", "expects", "intends", "plans", "believes", "anticipates", "hopes", "estimates" and variations of such words and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; the impact of changes in regulatory requirements or actions taken by regulatory authorities on the Company's operating or financial results; the Company's financial condition and liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; increased operating costs associated with vessel aging; vessel damage; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; dependence on affiliates of the Company’s former parent and third-party managers to operate the Company’s business; availability of crew, number of off-hire days, classification survey requirements and insurance costs; changes in the Company’s relationships with contract counterparties; potential liability from future litigation and incidents involving the Company’s vessels; broader market impacts arising from war (or threatened war) or international hostilities, such as between Russia and Ukraine; risks associated with the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for crude oil, petroleum products, dry bulk products, other types of products and the transportation thereof; and other factors listed from time to time in the Company's filings with the SEC, including its registration statement on Form 20-F. The Company's filings can be obtained free of charge on the SEC's website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
For further information please contact:
United Investor Relations
Tel: +30 213 0181 522
E-mail: ir@usea.gr
Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1540
New York, NY 10169
Tel: (212) 661-7566
E-mail: usea@capitallink.com
FAQ
What were the net revenues for USEA in Q3 2022?
How much net income did USEA generate in its first financial period?
What is the TCE guidance for USEA in Q4 2022?
What was the gain from the sale of Aframax vessels reported by USEA?
How much cash did USEA have on hand as of September 30, 2022?
