United Maritime Reports First Quarter 2024 Financial Results and Declares Quarterly Cash Dividend of $0.075 Per Share
United Maritime reported its Q1 2024 financial results, showing a net revenue increase to $10.6 million from $2.8 million in Q1 2023. The company reduced its net loss to $1.3 million from $4.9 million, and its adjusted EBITDA improved to $3.7 million from a negative $1.5 million. United declared a quarterly cash dividend of $0.075 per share. The company also announced fleet developments, including the acquisition of a 2016-built Japanese Kamsarmax and the profitable sale of a 2010-built Chinese Kamsarmax. Additionally, United secured an $18 million sale and leaseback arrangement, contributing to total financings of $31.8 million year-to-date. As of March 31, 2024, United's cash equivalents stood at $9.8 million, shareholders' equity at $64 million, and long-term debt at $93.5 million. The company forecasts a favorable market outlook for its mixed fleet of Panamax and Capesize vessels.
- Net revenue increased from $2.8 million in Q1 2023 to $10.6 million in Q1 2024.
- Net loss reduced from $4.9 million in Q1 2023 to $1.3 million in Q1 2024.
- Adjusted EBITDA improved from negative $1.5 million to $3.7 million.
- Quarterly cash dividend of $0.075 per share declared.
- Successful sale and profitable acquisition of vessels.
- Secured $18 million sale and leaseback arrangement.
- Total financings of $31.8 million year-to-date.
- Fleet utilization improved to 90.5% from 80.3%.
- Improved TCE rate from $10,294 to $15,165 per day.
- Net loss of $1.3 million reported for Q1 2024.
- High long-term debt of $93.5 million.
- Cash and cash equivalents decreased to $9.8 million.
- Increased vessel operating expenses from $7,764 to $7,085 per day.
Insights
United Maritime Corporation has shown a significant improvement in its financial results for Q1 2024 compared to the same period in 2023. The Net Revenues increased substantially from
The dividend declaration of $0.075 per share is an attractive feature for dividend-seeking investors, especially given the high annualized yield of approximately
The sale and leaseback arrangements further underpin the company's strategy to optimize its capital structure and improve liquidity. These arrangements also help in lowering the average age of the fleet, thereby improving fuel efficiency and environmental ratings, which are important in the long term for meeting regulatory requirements and reducing operating costs.
Overall, these results suggest a positive trend in the company's financial health and a strong outlook for the future. However, potential investors should consider the high levels of long-term debt which stood at
The improved Time Charter Equivalent (TCE) rate from $10,294 per day in Q1 2023 to $15,165 per day in Q1 2024 is a significant indicator of better market conditions and effective utilization of the fleet. The fleet’s utilization rate also improved to
Additionally, the strategic acquisitions and sales of vessels are noteworthy. The purchase of a 2016-built Japanese Kamsarmax vessel and the sale of a 2010-built Chinese Kamsarmax at a profit indicates smart fleet management. The switch to newer, more fuel-efficient vessels not only aligns with environmental regulations but also aims for better operational efficiency and lower costs.
The charter agreements, notably the new and extended time-charter agreements, provide revenue visibility and stability. For example, fixing approximately
The company's hedging activities, while ensuring downside protection, did impact the results slightly. However, these measures are prudent in mitigating risks associated with market volatility.
From a market perspective, the optimistic outlook for the dry bulk sector, driven by higher seaborne trade and limited vessel deliveries, positions United Maritime well to leverage these market dynamics. The disruptions at major canals like Panama and Suez also play into their favor by limiting vessel availability and pushing up freight rates.
| Highlights | |||
| (in million USD except LPS) | Q1 2024 | Q1 2023 | |
| Net Revenues | |||
| Net Loss | ( | ( | |
| Adjusted Net Loss1 | ( | ( | |
| EBITDA1 | ( | ||
| Adjusted EBITDA1 | ( | ||
| Loss per share Basic & Diluted | ( | ( | |
| Adjusted Loss per share Basic1 & Diluted1 | ( | ( | |
Other Highlights and Developments:
- Quarterly cash dividend of
$0.07 5 per share declared for Q1 2024 - Total cash dividends of
$11.4 million , or$1.45 per share, declared since November 2022, representing approximately46% of United’s market capitalization2 - Agreement to acquire a 2016-built Japanese Kamsarmax3
- Agreement to sell a 2010-built Chinese Kamsarmax at a profit
- A new
$18.0 million sale and leaseback arrangement – aggregate financings of$31.8 million year-to-date
GLYFADA, Greece, May 24, 2024 (GLOBE NEWSWIRE) -- United Maritime Corporation (“United” or the “Company”) (NASDAQ: USEA), announced today its financial results for the first quarter ended March 31, 2024 and declared a quarterly dividend of
For the quarter ended March 31, 2024, the Company generated Net Revenues of
Cash and cash-equivalents and restricted cash as of March 31, 2024, stood at
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“In the first quarter of the year, we witnessed a strong start for the dry bulk market, reflecting positively on the Capesize segment of our fleet, while our smaller vessels recorded a moderate performance. The strong market conditions are paving the way for high returns on capital for our shareholders, mainly through the appreciation of our Capesize and Panamax acquisitions concluded in 2023. Our results for the quarter were affected by our hedging activities, as we had converted about half of our operating days ahead of the counter-seasonal increase in the market as a means of ensuring downside protection. Our performance in the first quarter of 2024 was also affected by lower utilization rates due to increased scheduled dry-docking activity.
“Consistent with our practice of returning capital to our shareholders, we declared our sixth consecutive quarterly dividend of
“In terms of major transactions relating to our fleet development, we have recently agreed to sell the 2010-built M/V Oasea, at a profit over its acquisition price. We have already agreed to replace the M/V Oasea, with the previously announced acquisition of a 2016-built Japanese vessel, the M/V Nisea. Besides the financial profit from the sale of the M/V Oasea, these transactions will significantly benefit United commercially based on the improved fuel efficiency and considerably better environmental rating of our newest acquisition. Following these deliveries, our fleet will consist of 8 dry bulk vessels with a total carrying capacity of approximately 1 million dwt. We are optimistic that our focus on larger vessels and favorable capital structure should allow us to benefit considerably from the positive market environment.
“Turning to our commercial highlights, we have fixed approximately
“With regards to the market outlook, the recent dry bulk strength has been driven by higher seaborne trade across most commodities in the face of limited vessel deliveries, while disruptions involving the Panama and Suez canals have contributed to significant restrictions in vessel availability in the sub-Cape segments. Looking ahead, our outlook remains constructive based on limited new deliveries and continuing strong dry bulk commodity demand as highlighted by strong steel production growth outside China and Atlantic basin agricultural exports. Our mixed fleet of Panamax and Capesize vessels is well placed to take advantage of these developments and I hope that we will be in position to handsomely reward our shareholders.”
Current Company Fleet:
| Vessel Name | Sector | Capacity (DWT) | Year Built | Yard | Employment Type | Minimum T/C expiration | Maximum T/C expiration(1) |
| Goodship | Dry Bulk / Capesize | 177,536 | 2005 | Mitsui | T/C Index Linked(2) | Aug-24 | Nov-24 |
| Tradership | Dry Bulk / Capesize | 176,925 | 2006 | Namura | T/C Index Linked(2) | Jan-25 | Jun-25 |
| Gloriuship | Dry Bulk / Capesize | 171,314 | 2004 | Hyundai | Time Charter Trip | N/A | N/A |
| Oasea(3) | Dry Bulk / Kamsarmax | 82,217 | 2010 | Tsuneishi | Time Charter Trip | N/A | N/A |
| Cretansea | Dry Bulk / Kamsarmax | 81,508 | 2009 | Universal | T/C Index Linked(2) | Apr-24 | Jul-24 |
| Chrisea(4) | Dry Bulk / Panamax | 78,173 | 2013 | Shin Kurushima | T/C Index Linked(2) | May-25 | Sep-25 |
| Synthesea(5) | Dry Bulk / Panamax | 78,020 | 2015 | Sasebo | T/C Index Linked(2) | Oct-24 | Dec-24 |
| Vessel Name | Sector | Capacity (DWT) | Year Built | Yard | Employment Type | Minimum T/C expiration | Maximum T/C expiration(1) |
| Exelixsea | Dry Bulk / Panamax | 76,361 | 2011 | Oshima | T/C Index Linked(2) | Jul-24 | Nov-24 |
| Total/Average age | 922,054 | 14.9 years |
(1) The latest redelivery dates do not include any additional optional periods.
(2) “T/C” refers to a time charter agreement. Under these index-linked T/Cs, the Company has the option to convert the index-linked rate to fixed for a period of minimum two months, based on the prevailing FFA Rates for the selected period, and has done so for certain vessels as part of its freight hedging strategy, as described below under “Second Quarter 2024 TCE Rate Guidance.”
(3) The vessel is expected to be delivered to her new owners in June 2024.
(4) The vessel is technically and commercially operated by the Company on the basis of an 18-month bareboat charter-in contract with the owners of the vessel, including a purchase option at the end of the bareboat charter in favour of the Company.
(5) The vessel is technically and commercially operated by the Company on the basis of a 12-month bareboat charter-in contract with the owners of the vessel, including a purchase option at the end of the bareboat charter in favour of the Company.
Vessel to be delivered
| Vessel Name | Sector | Capacity (DWT) | Year Built | Yard |
| tbr Nisea | Dry Bulk / Kamsarmax | 82,235 | 2016 | Oshima |
Fleet Data:
(Amounts in U.S. Dollars)
| Q1 2024 | Q1 2023 | |||
| Ownership days (1) | 728 | 305 | ||
| Operating days (2) | 659 | 245 | ||
| Fleet utilization (3) | ||||
| TCE rate (4) | ||||
| Daily Vessel Operating Expenses (5) | ||||
(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. 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 include the days that our vessels are on 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)
| Q1 2024 | Q1 2023 | |||
| Vessel revenue, net | 10,598 | 2,821 | ||
| Less: Voyage expenses | 604 | 299 | ||
| Time charter equivalent revenues | 9,994 | 2,522 | ||
| Operating days | 659 | 245 | ||
| TCE rate | ||||
(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)
| Q1 2024 | Q1 2023 | |||
| Vessel operating expenses | 5,158 | 3,111 | ||
| Less: Pre-delivery expenses | - | 743 | ||
| Vessel operating expenses before pre-delivery expenses | 5,158 | 2,368 | ||
| Ownership days | 728 | 305 | ||
| Daily Vessel Operating Expenses | ||||
Net loss to EBITDA and Adjusted EBITDA Reconciliation:
(In thousands of U.S. Dollars)
| Q1 2024 | Q1 2023 | |||
| Net loss | (1,340 | ) | (4,887 | ) |
| Interest and finance costs, net | 2,031 | 970 | ||
| Depreciation and amortization | 2,810 | 1,226 | ||
| EBITDA | 3,501 | (2,691 | ) | |
| Stock based compensation | 190 | 1,218 | ||
| Loss on extinguishment of debt | 22 | - | ||
| Adjusted EBITDA | 3,713 | (1,473 | ) |
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) represents the sum of net income, 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. Adjusted EBITDA represents EBITDA adjusted to exclude stock-based compensation and loss on extinguishment of debt, which the Company believes are not indicative of the ongoing performance of its core operations.
EBITDA and Adjusted EBITDA are presented as we believe that these measures are useful to investors as a widely used means of evaluating operating profitability. EBITDA and Adjusted EBITDA as presented here may not be comparable to similarly titled measures presented by other companies. These non-GAAP measures should not be considered in isolation from, as a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP.
Net loss and Adjusted net loss Reconciliation and calculation of Adjusted loss Per Share
(In thousands of U.S. Dollars)
| Q1 2024 | Q1 2023 | |||
| Net loss | (1,340 | ) | (4,887 | ) |
| Stock based compensation | 190 | 1,218 | ||
| Loss on extinguishment of debt | 22 | - | ||
| Adjusted net loss | (1,128 | ) | (3,669 | ) |
| Adjusted net loss – common stockholders, basic and diluted | (1,128 | ) | (3,729 | ) |
| Adjusted loss per common share, basic and diluted | (0.13 | ) | (0.48 | ) |
| Weighted average number of common shares outstanding, basic and diluted | 8,688,498 | 7,766,681 |
To derive Adjusted Net loss and Adjusted Net loss Per Share, both non-GAAP measures, from Net loss, we exclude certain non-cash items, as provided in the table above. We believe that Adjusted Net loss and Adjusted Net loss Per Share assist our management and investors by increasing the comparability of our performance from period to period since each such measure eliminates the effects of such non-cash items as stock-based compensation, loss on extinguishment of debt and other items which may vary from year to year, for reasons unrelated to overall operating performance. In addition, we believe that the presentation of the respective measures provides investors with supplemental data relating to our results of operations, and therefore, with a more complete understanding of factors affecting our business than with GAAP measures alone. Our method of computing Adjusted Net loss and Adjusted Net loss per Share may not necessarily be comparable to other similarly titled captions of other companies due to differences in methods of calculation.
Second Quarter 2024 TCE Rate Guidance:
As of the date hereof, approximately
The following table provides the breakdown of index-linked charters and fixed-rate charters in the second quarter of 2024:
| Operating Days | TCE Rate | ||
| TCE - fixed rate (index-linked conversions) | 455 | ||
| TCE - fixed rate | 117 | ||
| TCE – index-linked | 124 | ||
| Total / Average | 696 | $17,256 | |
First Quarter and Recent Developments:
Dividend Distribution for Q4 2023 and Declaration of Dividend for Q1 2024
On April 10, 2024, the Company paid the previously announced quarterly cash dividend of
On May 23, 2024, the Company declared a cash dividend of
Financing Updates
Sale and Leaseback of M/V Exelixsea
In March 2024, the Company entered into a
Sale and Leaseback of M/V Synthesea
In May 2024, the Company obtained credit committee approval from an unaffiliated third party in Japan, for a
Vessel Transactions and Commercial Updates
M/V Nisea – Bareboat charter agreement
In February 2024, the Company agreed to enter into a bareboat charter agreement for an 82,235 dwt Kamsarmax dry bulk carrier built in 2016 in Japan, which will be renamed Nisea and is expected to be delivered to United within the second half of 2024. The vessel will be chartered in under an 18-month bareboat charter agreement, with a down payment of
Exercise of purchase option and Sale of M/V Oasea
In May 2024, the Company expressed its intention to exercise the purchase option under the
In May 2024, the Company also entered into an agreement with an unaffiliated third party for the sale of the M/V Oasea. The vessel is scheduled to be delivered to its new owner in June 2024, following her acquisition by the Company under the sale and leaseback agreement mentioned above. The vessel’s gross sale price is
M/V Chrisea - New time-charter agreement
In February 2024, the Company entered into a new T/C agreement at an improved index linked rate with the existing charterer of the M/V Chrisea for a duration of about 12 to about 15 months. The charter will be in direct continuation from the current T/C agreement and is expected to commence in June 2024. All other terms of the T/C remain materially the same.
M/V Tradership – Time-charter extension
In February 2024, the charterer of the M/V Tradership agreed to extend the period of the time charter agreement for a duration of minimum January 2025 up to maximum June 2025. All other main terms of the time charter remain the same.
M/V Oasea – Time-charter trip
In April 2024, following the expiration of her time charter agreement, the M/V Oasea commenced a time charter trip at a gross daily hire of
M/V Gloriuship – Time-charter trip
In May 2024, following the expiration of her time charter agreement, the M/V Gloriuship commenced a time charter trip at a gross daily hire of
| United Maritime Corporation Unaudited Condensed Consolidated Balance Sheets (In thousands of U.S. Dollars) | ||||||
| March 31, 2024 | December 31, 2023* | |||||
| ASSETS | ||||||
| Cash and cash equivalents and restricted cash | 9,756 | 14,501 | ||||
| Vessels, net and, Right-of-use assets | 150,213 | 152,525 | ||||
| Other assets | 17,011 | 7,779 | ||||
| TOTAL ASSETS | 176,980 | 174,805 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Long-term debt, finance lease liability and other financial liabilities, net of deferred finance costs | 93,535 | 95,954 | ||||
| Other liabilities | 19,462 | 12,982 | ||||
| Stockholders’ equity | 63,983 | 65,869 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 176,980 | 174,805 | ||||
* Derived from the audited consolidated financial statements as of the period as of that date
| 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) | |||||
| Three months ended March 31, 2024 | Three months ended March 31, 2023 | ||||
| Vessel Revenue, net | 10,598 | 2,821 | |||
| Expenses: | |||||
| Voyage expenses | (604 | ) | (299 | ) | |
| Vessel operating expenses | (5,158 | ) | (3,111 | ) | |
| Management fees | (592 | ) | (232 | ) | |
| General and administrative expenses | (778 | ) | (1,819 | ) | |
| Depreciation and amortization | (2,810 | ) | (1,226 | ) | |
| Operating income / (loss) | 656 | (3,866 | ) | ||
| Other income / (expenses): | |||||
| Interest and finance costs | (2,123 | ) | (1,179 | ) | |
| Interest and other income | 92 | 209 | |||
| Loss on extinguishment of debt | (22 | ) | - | ||
| Other, net | 57 | (51 | ) | ||
| Total other expenses, net: | (1,996 | ) | (1,021 | ) | |
| Net loss | (1,340 | ) | (4,887 | ) | |
| Net loss attributable to common stockholders | (1,340 | ) | (4,947 | ) | |
| Net loss per common share, basic and diluted | (0.15 | ) | (0.64 | ) | |
| Weighted average number of common shares outstanding, basic and diluted | 8,688,498 | 7,766,681 | |||
| United Maritime Corporation Unaudited Condensed Consolidated Cash Flow Data (In thousands of U.S. Dollars) | |||||
| Three months ended March 31, 2024 | Three months ended March 31, 2023 | ||||
| Net cash provided by / (used in) operating activities | 2,296 | (4,060 | ) | ||
| Net cash used in investing activities | (3,750 | ) | (52,135 | ) | |
| Net cash (used in) / provided by financing activities | (3,291 | ) | 6,264 | ||
About United Maritime Corporation
United Maritime Corporation is an international shipping company specializing in worldwide seaborne transportation services. The Company operates a fleet of eight dry bulk vessels with an aggregate cargo carrying capacity of 922,054 dwt. Upon the completion of the delivery of the M/V Nisea and sale of the M/V Oasea, the Company’s operating fleet will consist of three Capesize, two Kamsarmax and three Panamax vessels, with an aggregate cargo carrying capacity of 922,072 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 or to pay dividends; 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 or Israel and Palestine; risks associated with the length and severity of pandemics (including COVID-19), including their 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
___________________
1 Adjusted loss per share, Adjusted Net loss, EBITDA and Adjusted EBITDA are non-GAAP measures. Please see the reconciliation below of Adjusted loss per share, Adjusted Net loss, EBITDA and Adjusted EBITDA to Net loss, the most directly comparable U.S. GAAP measure.
2 Based on the closing price on May 22, 2024.
3 Through an 18-month bareboat charter with purchase option.
4 TCE Rate is a non-GAAP measure. Please see the reconciliation below of TCE Rate to net revenues from vessels, the most directly comparable U.S. GAAP measure.
5 This guidance is based on certain assumptions and there can be no assurance that these TCE rate estimates, or projected utilization will be realized. TCE rate estimates include certain floating (index) to fixed rate conversions concluded in previous periods. For the only vessel on unhedged index-linked T/C, the TCE rate realized will vary with the underlying index, and for the purposes of this guidance the BPI daily rate assumed for the remaining operating days of the quarter for the index-linked T/C is equal to the average FFA rate of
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