Highlights of the Third Quarter of 2022:
- Net revenues: $34.0 million in Q3 2022, as compared to $48.2 million in Q3 2021
- Net Income: $7.1 million in Q3 2022, as compared to $20.1 million in Q3 2021
- Adjusted Net Income1: $7.6 million in Q3 2022, as compared to $22.8 million in Q3 2021
- EBITDA1: $18.6 million in Q3 2022, as compared to $30.1 million in Q3 2021
- Adjusted EBITDA1: $19.0 million in Q3 2022, as compared to $32.2 million in Q3 2021
- Earnings per share (“EPS”) (basic & diluted): $0.04
- Adjusted EPS1 (basic & diluted): $0.04
Highlights of the Nine Months ended September 30, 2022:
- Net revenues: $96.5 million in 9M 2022, as compared to $96.4 million in 9M 2021
- Net Income: $16.7 million in 9M 2022, as compared to $20.7 million in 9M 2021
- Adjusted Net Income1: $22.4 million in 9M 2022, as compared to $25.4 million in 9M 2021
- EBITDA1: $47.5 million in 9M 2022, as compared to $47.4 million in 9M 2021
- Adjusted EBITDA1: $53.1 million in 9M 2022, as compared to $51.4 million in 9M 2021
- Earnings per share (“EPS”) (basic & diluted): $0.10 and $0.09 respectively
- Adjusted EPS1 (basic & diluted): $0.13
Other Developments:
- Quarterly dividend of $0.025 per share for Q3 2022 - total cash dividends of $0.125 per share in 2022 to date
- Dividends represent 25% yield based on our closing price on November 29, 2022
- Total buybacks of convertible notes, warrants and shares of $26.7 million completed since Q4 2021
- New financing and refinancing transactions totaling $108.3 million within 2022 with improved pricing and overall loan terms - no remaining loan maturities until Q4 2023
Seanergy Maritime Holdings Corp., announced its financial results for the third quarter and nine months ended September 30, 2022. The Company also declared a quarterly dividend of $0.025 per share for the third quarter of 2022.
For the quarter ended September 30, 2022, the Company generated Net Revenues of $34.0 million, compared to $48.2 million in the third quarter of 2021. Adjusted EBITDA for the quarter was $19.0 million, compared to $32.2 million in the same period of 2021. Net Income and Adjusted Net Income for the quarter were $7.1 million and $7.6 million, respectively, compared to Net Income of $20.1 million and Adjusted Net Income of $22.8 million in the third quarter of 2021. The daily Time Charter Equivalent (“TCE”2 ) of the fleet for the third quarter of 2022 was $20,614, compared to $30,764 in the same period of 2021.
For the nine-month period ended September 30, 2022, Net Revenues were $96.5 million, compared to $96.4 million in same period of 2021. Adjusted EBITDA for the first nine months of 2022 was $53.1 million, compared to $51.4 million in the same period of 2021. The daily TCE of the fleet for the first nine months of 2022 was $20,996, compared to $23,449 in the first nine months of 2021. The average daily OPEX was $6,875, compared to $5,806 of the respective period of 2021.
Cash, cash-equivalents and restricted cash, as of September 30, 2022, stood at $25.6 million. Shareholders’ equity at the end of the third quarter was $225.5 million. Long-term debt (senior loans, convertible note and other financial liabilities) net of deferred charges stood at $243.5 million, while the book value of our fleet stood at $436.1 million.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are pleased to report another profitable quarter for Seanergy, despite the challenging macroeconomic and market conditions. Our Board of Directors has approved a cash dividend of $0.025 per share, consistent with our dividend policy and strategy of rewarding shareholders. Over the last four quarters, total cash dividend distributions have been approximately $22.5 million or $0.125 per share, which implies a 25% yield based on our closing price on November 29, 2022. Together with the successful execution of our two previous repurchase plans, we have deployed approximately $49.2 million to securities buybacks and cash dividends since Q4 2021.
“Regarding our financial performance in the third quarter, we have achieved TCE Revenues of $32.1 million, resulting in a daily TCE of $20,614. This represents a 51% premium to the average Baltic Capesize Index (“BCI”) earnings during the same period. For the first nine months of 2022 our daily TCE was $20,996, comparing favorably to the average daily BCI of $16,580. For Q1 2023, we also expect significant premium, compared to the relevant quoted forward freight agreements (“FFAs”), as we analyze further in this release. The decision to focus on acquiring premium quality vessels in combination with our commercial strategy and proactive freight hedging activities, have so far been able to mitigate the effects of a slowing dry bulk market. Adjusted EBITDA in the third quarter and nine months of 2022 amounted to $19.0 million and $53.1 million, respectively, while Net Income for the quarter and nine-month period was approximately $7.1 million and $16.7 million, respectively.
“Concerning our commercial developments, four of our vessels secured new time charter (“T/C”) employment or extended their existing agreements since our last update. The time charters are index-linked and all of them were concluded at premiums over the BCI. In addition, we managed to improve the scrubber profit sharing scheme for the scrubber-fitted vessels that were due for renewal. Within the next two quarters several of our scrubber-fitted vessels will start earning a considerably higher share of the scrubber premium, further strengthening our operational revenues.
“On the ESG and energy efficiency front, during the quarter we continued the installation of energy saving devices on an additional vessel. Similar to the rest of our fleet, these improvements will ensure the marketability of this vessel well into the future by keeping pace with the high environmental demands of first-class charterers. We have also continued the biofuel trials with two major clients and are in process of evaluating similar prospects with more of our close charterers.
“On the financing front, we continue our balance sheet optimization initiatives, having concluded $108.3 million in new financings and refinancing in 2022 to-date. In October, we closed a $28.0 million loan facility with a major European lender to refinance the $23.6 million indebtedness secured by two of our vessels on improved pricing terms. Following this refinancing, we have successfully addressed all remaining loan maturities for the current year, while ensuring sufficient liquidity that will allow us to mitigate a softer market environment and to evaluate opportunities to expand and renew our fleet.
“With dry bulk fleet growth at the lowest levels on record, we remain confident in the long-term prospects of the market and are constantly evaluating our options with respect to returning capital to shareholders and accretive vessel acquisitions.”
Third Quarter and Recent Developments:
Dividend Distribution for Q2 2022 and Declaration of Q3 2022 Dividend
On October 11, 2022, the Company paid the previously announced quarterly dividend of $0.025 per share, for the second quarter of 2022.
Continuing its quarterly dividend payments, the Company also declared a cash dividend of $0.025 per share for the third quarter of 2022 payable on or about January 30, 2023 to the shareholders of record as of December 28, 2022.
Redemption of the United Maritime Corporation (“United Maritime”) 6.5% Series C Cumulative Convertible Perpetual Preferred Shares
On October 17, 2022, the Company received $0.17 million from United Maritime relating to dividend accrued under the Series C preferred shares from their original issuance date to the date thereof.
On November 28, 2022, the outstanding 10,000 Series C preferred shares of United Maritime held by the Company were redeemed by the issuer at a price equal to 105% of the original issue price for a total cash inflow of $10.6 million, including all accrued and unpaid dividends up to the redemption date.
Announcement of the tender offer for the purchase of the Class E Common Share Purchase Warrants
On November 29, 2022, the Company announced that it will commence a tender offer to purchase all of its outstanding Class E warrants to purchase one common share, at a purchase price of $0.20 per warrant, with a maximum purchase value of $1.7 million. The offer will expire at 05:00 P.M. Eastern Time on January 10, 2023, unless extended.
Update on Stock Purchases by the CEO
In the third quarter to date, the Company’s Chairman and Chief Executive Officer, Mr. Stamatis Tsantanis, has purchased 49,500 of Seanergy’s common shares.
Commercial Updates
M/V Patriotship
In November 2022, the Company entered into a time charter agreement with Glencore for the M/V Patriotship. The T/C commenced on November 19, 2022 and will have a term of about 12 to about 18 months. The gross daily rate of the T/C is based at a premium over the BCI and at a scrubber profit sharing scheme. In addition, the T/C provides the option to the owner to convert this charter party to a fixed rate based on the prevailing BCI FFA rate.
M/V Worldship
In September 2022, the charterer of the M/V Worldship agreed to exercise the optional period extending the T/C for about 12 to about 15 months at a rate based at a premium over the BCI and at a scrubber profit sharing scheme. In addition, the T/C provides the option to the owner to convert this charter party to a fixed rate based on prevailing BCI FFA rate.
M/V Lordship
In August 2022, the charterer of the M/V Lordship agreed to exercise the optional period extending the T/C for about 11 to about 13 months which includes an improved scrubber profit sharing scheme for Seanergy. The rest of the T/C terms remained the same.
M/V Goodship
In September 2022, the charterer of the M/V Goodship agreed to exercise the optional period extending the T/C to minimum June 30, 2023 to maximum December 31, 2023.
Financing Updates
Danish Ship Finance A/S
On October 10, 2022, the Company entered into a $28.0 million loan facility to refinance the previous facility of $23.6 million secured by the M/Vs Premiership and Fellowship. The facility has a term of five years, while the interest rate is 2.5% plus SOFR per annum and will amortize through quarterly instalments averaging approximately $1.2 million with a $4.1 million balloon payment at maturity.
