Nasdaq-listed Seanergy Maritime Holdings Corp. capesize and newcastlemax owner has reported an increase in its net income and adjusted net income for the nine-month period of the year, reaching $36.8m and $41.7m. This compares to net loss of $8.5m and adjusted net income of $0.4m in the same period of 2023.
Meanwhile in October the company, which operates a fleet of 19 vessels (1 newcastlemax and 18 capesize), took delivery of the Kaizenship, a 181,396 dwt capesize bulk carrier, built in 2012 in Japan. At the same time, the ship commenced its T/C employment with Mitsui O.S.K. Lines, Ltd. (MOL), for a duration of minimum 11 months to maximum 12 months.
The company has the option to convert the daily hire from index-linked to fixed for a period of 2 to 10 months.
Furthermore, in October the owner exercised its purchase option and took delivery of the Titanship, for an aggregate price of $20.2m. The exercise of the purchase option has been financed with proceeds from the Alpha Bank Facility agreement.
Also, in September the Titanship commenced employment under a new time charter agreement with Costamare. The time charter has a duration of minimum 24 to maximum 30 months.
Meanwhile, the shipowner announced its financial results for the third quarter and nine months ended September 30.
For the quarter the shipowner reported net revenues of $44.4m, compared to $24.5m in the third quarter of 2023, an increase of 81%.
Adjusted Ebitda for the quarter was $26.8m, 182% higher than $9.5m in the same period of 2023. Net Income and Adjusted Net Income for the quarter were $12.5m and $14.1m, respectively, compared to Net Loss of $5m and Adjusted Net Loss of $2.6m in the third quarter of 2023.
The daily TCE rate of the fleet for the third quarter of 2024 was $26,529, compared to $15,298 in the same period of 2023.
For the nine-month period ended September 30, the owner generated net revenues of $125.8m, compared to $70.8m in the same period of 2023, marking an increase of 78%.
Net Income and Adjusted Net Income for the nine months were $36.8m and $41.7m, respectively, compared to Net Loss of $8.5m and Adjusted Net Income of $0.4m in the respective period of 2023.
Adjusted Ebitda for the nine months was $78m, compared to $29.1m for the same period of 2023.
The daily TCE rate of the fleet for the nine-month period of 2024 was $25,762, compared to $14,935 in the same period of 2023.
Stamatis Tsantanis, the company’s chairman & chief executive officer, said:
“In the third quarter, Seanergy sustained its profitable trajectory by continuing to execute on our focused strategy as a dedicated Capesize operator. During this period, the Capesize segment led the dry bulk sector in performance, with the BCI averaging $24,900. Seanergy’s fleet achieved a notable TCE rate of $26,500, outperforming the BCI by approximately 7%. This outperformance highlights the effectiveness of our hedging strategy, which has been instrumental in reducing charter rate volatility and increasing our revenue visibility.
“Our objective remains to maintain a balanced risk-return profile throughout the market cycle, ensuring stability and resilience in our earnings.
“As evidenced by our recently implemented updated dividend policy, which targets a distribution of approximately 50% of our operating cash flow after debt service, we are committed to delivering strong capital returns to our shareholders, consistent with our earnings performance, while continuing to grow our fleet and maintain a healthy balance sheet. In line with this policy, the Board has approved a quarterly dividend of $0.26 per share for the third quarter of 2024. We have also continued stock repurchases since our last update and into the fourth quarter. Buybacks continue to be an important part of our capital allocation strategy, and we remain committed to optimizing the ways in which we return capital to our shareholders.
“In October, as anticipated, we welcomed the 2012-built M/V Kaizenship to our fleet. This vessel, along with the 2013-built M/V Iconship also acquired in 2024, has reduced our fleet’s average age and both vessels have been chartered at a premium over the BCI, outperforming our fleet-wide average. These younger, high-performing additions align with our disciplined growth strategy and strengthen our competitive edge in the Capesize sector.
“Our balance sheet remains robust, reflecting our commitment to sustainable leverage as we expand our fleet. With positive Capesize market trends, we are well-positioned to continue delivering strong returns, while advancing our growth strategy.
“For the fourth quarter of the year, our TCE guidance is approximately $23,400, reflecting current FFA levels and our effective hedging strategy. Notably, we have secured 42% of our available days at a fixed average daily rate of around $28,000, outperforming the BCI which has averaged $20,900 quarter-to-date. Looking ahead to 2025, we have locked in daily earnings for two vessels at an average rate of $24,000, with one agreement incorporating a 50-50 profit-sharing scheme on top of the fixed hire rate, based on a premium over the BCI. These initiatives position us to capture stable, high returns while optimizing earnings potential in line with market movements.
“The Capesize market has performed relatively strong in 2024, with the BCI averaging around $24,000. Key drivers include a 6% rise in Brazilian iron ore exports, a 17% increase in Guinea’s bauxite exports, and higher seaborne coal trade as demand in India and China outpaces local production. Geopolitical factors and the shift toward distant sourcing regions, such as West Africa, have further boosted ton-mile demand.
“Limited new vessel deliveries, as well as increased global fleet drydockings in 2025, are likely to constrain supply in 2025, supporting continued Capesize rate strength. With these favorable dynamics, Seanergy is well positioned to continue to deliver robust returns for shareholders.
“Finally, we are pleased with the recent decision by the High Court of the Republic of the Marshall Islands to dismiss the litigation brought against the Company by Sphinx Investment Corp., an entity of G. Economou. This outcome reaffirms our adherence to good corporate governance processes. We are also pleased with the strong support for our Board demonstrated by our recent annual meeting results. We remain fully focused on executing our value-creating strategy, reinforcing our commitment to delivering strong returns for our shareholders.”
