Highlights | ||||||
(in million USD, except EPS) | Q1 2024 | Q1 2023 | ||||
Net Revenues | ||||||
Net income / (loss) | ( | |||||
Adjusted net income1 / (loss) | ( | |||||
EBITDA1 | ||||||
Adjusted EBITDA1 | ||||||
Earnings / (loss) per share Basic & Diluted | ( | |||||
Adjusted earnings / (loss) per share Basic1 | ( | |||||
Adjusted earnings / (loss) per share Diluted1 | ( |
Other Highlights and Developments:
- Record first quarter net income of
$10.2 million - Cash dividends of
$0.15 per share consisting of a quarterly cash dividend of$0.025 per share for Q1 2024 and a special cash dividend of$0.125 per share - Total cash dividends of
$1.60 per share, or$29.6 million , declared sinceMarch 2022 - Acquisition of two Japanese Capesize vessels, built in 2013 and 2012, with estimated deliveries in Q2 and H2 2024, respectively
- New financing and refinancing transactions of
$58.3 million
For the quarter ended
Cash and cash-equivalents and restricted cash, as of
__________________________
1 Adjusted earnings / (loss) per share, Adjusted Net Income / (loss), EBITDA and Adjusted EBITDA are non-GAAP measures. Please see the reconciliation below of Adjusted earnings / (loss) per share, Adjusted Net Income / (loss), EBITDA and Adjusted EBITDA to net income, the most directly comparable
2 TCE rate is a non-GAAP measure. Please see the reconciliation below of TCE rate to net revenues from vessels, the most directly comparable
“We are pleased to report that in the first quarter of 2024 we achieved record profits on the back of the continuing positive momentum in the Capesize market. This was mainly driven by higher iron ore exports, healthy coal volumes, as well as certain geopolitical events.
“Seanergy generated a net income of
“In light of our strong performance and consistent with our commitment to rewarding our shareholders, our Board authorized paying a quarterly and special cash dividend of
“With regard to our guidance for the second quarter of 2024, based on current FFA levels, we expect our daily TCE to be equal to approximately
“Moving on to fleet developments since our last quarterly update, in March we agreed to acquire an additional Capesize vessel built in 2012 in
“To conclude with a brief market update, contrary to regular seasonality, the first quarter of 2024 was the strongest of the past decade for Capesize earnings. Brazilian iron ore exports rose about 12% year on year and were the highest since 2019, while coal seaborne trade remained at very high levels. The limited vessel orderbook of the past years seems to be contributing to a gradually improving supply and demand balance, while the geopolitical uncertainty related to the
“Seanergy has proven its ability to execute on its fleet growth plan and with its high-quality vessels, strong balance sheet and successful commercial strategy, is well positioned to continue creating shareholder value.”
Company Fleet:
Capacity (DWT) | Year Built | Yard | Scrubber Fitted | Employment Type | FFA conversion option(1) | Minimum time charter (“T/C”) expiration | Maximum | Charterer | |
Titanship(3) | 207,855 | 2011 | - | T/C Index Linked | Yes | 09/2024 | 01/2025 | Olam | |
Patriotship | 181,709 | 2010 | Imabari | Yes | T/C Index Linked | Yes | 01/2025 | 04/2025 | Glencore |
Dukeship | 181,453 | 2010 | Sasebo | - | T/C Index Linked | Yes | 05/2024 | 09/2024 | NYK |
Paroship | 181,415 | 2012 | Koyo -Imabari | Yes | T/C Index Linked | Yes | 08/2025 | 01/2026 | Oldendorff |
Worldship | 181,415 | 2012 | Koyo – Imabari | Yes | T/C Index Linked | Yes | 10/2025 | 02/2026 | NYK |
Hellasship | 181,325 | 2012 | Imabari | - | T/C Index Linked | Yes | 12/2024 | 04/2025 | NYK |
Honorship | 180,242 | 2010 | Imabari | - | T/C Index Linked | Yes | 02/2024 | 07/2024 | NYK |
Fellowship | 179,701 | 2010 | Daewoo | - | T/C Index Linked | Yes | 06/2024 | 10/2024 | Anglo American |
Championship | 179,238 | 2011 | Sungdong SB | Yes | T/C Index Linked | Yes | 04/2025 | 11/2025 | |
Partnership | 179,213 | 2012 | Hyundai | Yes | T/C Index Linked | Yes | 09/2024 | 12/2024 | Uniper |
Knightship | 178,978 | 2010 | Hyundai | Yes | T/C Index Linked | Yes | 11/2025 | 01/2026 | Glencore |
Lordship | 178,838 | 2010 | Hyundai | Yes | T/C Index Linked | Yes | 08/2024 | 09/2024 | Uniper |
Friendship | 176,952 | 2009 | Namura | - | T/C Index Linked | Yes | 12/2024 | 04/2025 | NYK |
Flagship | 176,387 | 2013 | Mitsui | - | T/C Index Linked | Yes | 05/2026 | 07/2026 | |
Geniuship | 170,057 | 2010 | Sungdong SB | - | T/C Index Linked | Yes | 04/2024 | 08/2024 | NYK |
Premiership | 170,024 | 2010 | Sungdong SB | Yes | T/C Index Linked | Yes | 03/2025 | 05/2025 | Glencore |
Squireship | 170,018 | 2010 | Sungdong SB | Yes | T/C Index Linked | Yes | 04/2025 | 06/2025 | Glencore |
Total / Average age | 3,054,820 | 13.2 years | - | - | - | - | - | - | - |
(1) The Company has the option to convert the index-linked rate to fixed for periods ranging between 1 and 12 months, based on the prevailing Capesize FFA Rate for the selected period.
(2) The latest redelivery date does not include any additional optional periods.
(3) The vessel is 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.
Vessels to be delivered:
Capacity (DWT) | Year Built | Yard | Scrubber Fitted | |
tbr Iconship | 181,392 | 2013 | Imabari | - |
New Vessel tbr | 181,396 | 2012 | Koyo | - |
Fleet Data:
(
Q1 2024 | Q1 2023 | |||||
Ownership days (1) | 1,547 | 1,539 | ||||
Operating days (2) | 1,537 | 1,520 | ||||
Fleet utilization (3) | 99.4% | 98.8% | ||||
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 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. Available days are the number of ownership days less the aggregate number of days that our vessels are off-hire due to major repairs, dry-dockings, lay-up or special or intermediate surveys. Operating days include the days that our vessels are in ballast voyages without having finalized agreements for their next employment. The Company’s calculation of operating days may not be comparable to that reported by other companies.
(3) Fleet utilization is determined by dividing operating days by ownership days for the relevant period. Fleet Utilization is used to measure a company’s ability to efficiently find suitable employment for its vessels and minimize the number of days that its vessels are off-hire for unforeseen events. We believe it provides additional meaningful information and assists management in making decisions regarding areas where we may be able to improve efficiency and increase revenue and because we believe that it provides useful information to investors regarding the efficiency of our operations.
(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, which is not a recognized measure under
(In thousands of
Q1 2024 | Q1 2023 | ||||
Vessel revenue, net | 37,774 | 17,384 | |||
Less: Voyage expenses | 774 | 657 | |||
Time charter equivalent revenues | 37,000 | 16,727 | |||
Operating days | 1,537 | 1,520 | |||
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, 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
Q1 2024 | Q1 2023 | ||||
Vessel operating expenses | 11,070 | 10,913 | |||
Less: Pre-delivery expenses | - | 260 | |||
Vessel operating expenses before pre-delivery expenses | 11,070 | 10,653 | |||
Ownership days | 1,547 | 1,539 | |||
Daily Vessel Operating Expenses | |||||
Net income / (loss) to EBITDA and Adjusted EBITDA Reconciliation:
(In thousands of
Q1 2024 | Q1 2023 | |||
Net income / (loss) | 10,161 | (4,185) | ||
Interest and finance cost, net | 4,638 | 5,265 | ||
Depreciation and amortization | 6,846 | 7,077 | ||
EBITDA | 21,645 | 8,157 | ||
Stock based compensation | 1,479 | 3,680 | ||
Loss on extinguishment of debt | - | 110 | ||
Loss on forward freight agreements, net | 78 | 50 | ||
Gain on sale of vessel | - | (8,094) | ||
Adjusted EBITDA | 23,202 | 3,903 |
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") represents the sum of net income / (loss), Interest and finance costs, net, depreciation and amortization and income taxes, if any, during a period. EBITDA is not a recognized measurement under
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. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. 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
Adjusted Net income / (loss) Reconciliation and calculation of Adjusted Earnings / (loss) Per Share
(In thousands of
Q1 2024 | Q1 2023 | |||
Net income / (loss) | 10,161 | (4,185) | ||
Stock based compensation | 1,479 | 3,680 | ||
Loss on extinguishment of debt | - | 110 | ||
Adjusted net income / (loss) | 11,640 | (395) | ||
Adjusted net income / (loss) – common shareholders | 11,177 | (433) | ||
Adjusted earnings / (loss) per common share, basic | 0.58 | (0.02) | ||
Adjusted earnings / (loss) per common share, diluted | 0.57 | (0.02) | ||
Weighted average number of common shares outstanding, basic | 19,368,751 | 17,929,142 | ||
Weighted average number of common shares outstanding, diluted | 19,475,630 | 17,929,142 |
To derive Adjusted Net Income / (loss) and Adjusted Earnings / (loss) Per Share, both non-GAAP financial measures, from Net Income / (loss), we exclude non-cash items, as provided in the table above. We believe that Adjusted Net Income / (loss) and Adjusted Earnings / (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 measure 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 Income / (loss) and Adjusted Earnings / (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 Guidance:
As of the date hereof, approximately 79% of the Company fleet’s expected operating days in the second quarter of 2024 have been fixed at an estimated TCE of approximately
Operating Days | TCE | |
TCE - fixed rate (index-linked conversion) | 1,001 | 27,961 |
TCE - fixed rate | 0 | N/A |
TCE – index-linked | 546 | 23,563 |
Total / Average | 1,547 | 26,408 |
__________________________
3 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. For vessels on index-linked T/Cs, the TCE realized will vary with the underlying index, and for the purposes of this guidance, the TCE assumed for the remaining operating days of the quarter for an index-linked
First Quarter and Recent Developments:
Distribution of Q4 2023 Dividend and Declaration of Q1 2024 Dividends
On
Continuing its quarterly dividend payments, the Company has declared a quarterly cash dividend of
At-The-Market Offering Program
Since the filing of the Company’s annual report, the Company has issued and sold 267,585 common shares at an average price of
As of
Vessel Transactions and Commercial Updates
Vessel Acquisitions
On
On
M/V Knightship - Time charter extension
In
Financing Updates
AVIC Sale & leaseback agreement
The Company obtained credit committee approval from one of its close lending partners for three separate sale and leaseback agreements of
Conference Call:
The Company’s management will host a conference call to discuss financial results on
Audio Webcast:
There will be a live, and then archived, webcast of the conference call available through the Company’s website. To listen to the archived audio file, visit our website, following the Webcasts & Presentations section under our Investor Relations page. Participants to the live webcast should register on the Seanergy 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.
Unaudited Condensed Consolidated Balance Sheets (In thousands of | ||||||
2024 | 2023* | |||||
ASSETS | ||||||
Cash and cash equivalents, restricted cash | 24,218 | 24,928 | ||||
Vessels, net, right-of-use asset and advance for vessel acquisition | 442,033 | 440,038 | ||||
Other assets | 19,023 | 12,911 | ||||
TOTAL ASSETS | 485,274 | 477,877 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Long-term debt, finance lease liability and other financial liabilities, net of deferred finance costs | 223,246 | 232,568 | ||||
Other liabilities | 21,476 | 16,864 | ||||
Stockholders’ equity | 240,552 | 228,445 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 485,274 | 477,877 |
* Derived from the audited consolidated financial statements as of that date
Unaudited Condensed Consolidated Statements of Operations (In thousands of | |||||
Three months ended | |||||
2024 | 2023 | ||||
Vessel revenue, net | 37,774 | 17,384 | |||
Fees from related parties | 519 | 642 | |||
Revenue, net | 38,293 | 18,026 | |||
Expenses: | |||||
Voyage expenses | (774 | ) | (657 | ) | |
Vessel operating expenses | (11,070 | ) | (10,913 | ) | |
Management fees | (175 | ) | (229 | ) | |
General and administrative expenses | (4,629 | ) | (5,905 | ) | |
Depreciation and amortization | (6,846 | ) | (7,077 | ) | |
Loss on forward freight agreements, net | (78 | ) | (50 | ) | |
Gain on sale of vessel | - | 8,094 | |||
Operating income | 14,721 | 1,289 | |||
Other income / (expenses): | |||||
Interest and finance costs | (4,862 | ) | (5,337 | ) | |
Interest and other income | 228 | 76 | |||
Loss on extinguishment of debt | - | (110 | ) | ||
Other, net | 74 | (103 | ) | ||
Total other expenses, net: | (4,560 | ) | (5,474 | ) | |
Net income / (loss) | 10,161 | (4,185 | ) | ||
Net income / (loss) attributable to common shareholders | 9,698 | (4,223 | ) | ||
Net income / (loss) per common share, basic | 0.50 | (0.23 | ) | ||
Net income / (loss) per common share, diluted | 0.50 | (0.23 | ) | ||
Weighted average number of common shares outstanding, basic | 19,368,751 | 17,929,142 | |||
Weighted average number of common shares outstanding, diluted | 19,475,630 | 17,929,142 | |||
Unaudited Condensed Consolidated Cash Flow Data (In thousands of | ||||||
2024 | 2023 | |||||
Net cash provided by / (used in) operating activities | 14,458 | (264 | ) | |||
Vessels acquisitions and improvements | (2 | ) | - | |||
Advance for vessel acquisition | (7,816 | ) | - | |||
Proceeds from sale of assets | - | 23,910 | ||||
Finance lease prepayments and other initial direct costs | (305 | ) | - | |||
Other fixed assets, net | - | (47 | ) | |||
Net cash (used in) / provided by investing activities | (8,123 | ) | 23,863 | |||
Repayments of long-term debt and other financial liabilities | (8,489 | ) | (22,994 | ) | ||
Repayments of convertible notes | - | (8,000 | ) | |||
Payments of finance lease liabilities | (535 | ) | - | |||
Payments for fractional shares of reverse stock split | - | (23 | ) | |||
Payments of repurchase of common stock | (843 | ) | - | |||
Dividends payments | (491 | ) | (4,548 | ) | ||
Proceeds from issuance of common stock and warrants, net of underwriting fees and commissions | 3,313 | - | ||||
Net cash used in financing activities | (7,045 | ) | (35,565 | ) | ||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||
Cash paid during the period for interest | 4,679 | 4,422 | ||||
Noncash financing activities | ||||||
Dividends declared but not paid | 2,001 | 500 | ||||
Financing and stock issuance costs | 614 | - | ||||
About
The Company is incorporated in the
Please visit our Company website at: www.seanergymaritime.com.
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, including with respect to market trends, vessels we have agreed to acquire and pending litigation. Words such as "may", "should", "expects", "intends", "plans", "believes", "anticipates", "hopes", "estimates" and variations of such words and similar expressions are intended to identify forward-looking statements. 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, the Company's operating or financial results; the Company's liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, impacts of litigation, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside
For further information please contact:
Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr
Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1540
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com
Source:
2024 GlobeNewswire, Inc., source