Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP)
announced today the successful installation and commissioning of
the first three exhaust gas cleaning systems (“Scrubbers”) on the
M/V Lordship, M/V Partnership and M/V Championship.
The Scrubbers are open loop U-Type design, built
by Hyundai Materials Corporation of Korea and have the capacity to
comply with the stricter 0.1% Sulphur fuel content limit applicable
in the environmentally controlled areas (“ECA”). The installations
took place at Yiu Lian shipyard in Zhoushan, China, our chosen
partner for all scrubber installations and dry-dockings for
periodic surveys for our entire fleet.
A. M/V Partnership
and M/V Lordship
Following the successful installation of the
Scrubbers on the M/V Lordship and M/V Partnership, the vessels were
delivered to a major European utility and energy company on August
4, 2019 and September 11, 2019 respectively to commence on 33 to 37
month time-charters with an additional period of approximately 11
to 13 months at the charterers’ option. The daily hire under both
charters is based on the TCE of the Baltic Capesize Index, while
the Company has the option to convert to a fixed rate for a period
of up to 12 months, based on the prevailing Capesize FFA for the
selected period. As previously announced, the costs of the
acquisition and installation of the equipment and of the associated
off-hires were borne by the charterer, in a combination of
immediate reimbursement of the expenses incurred and a fixed
premium over the index-linked charter-hire.
B. M/V
Championship
After the successful commissioning of the
Scrubber on the M/V Championship on October 18, 2019, the vessel
continued its employment under its five-year time charter agreement
with a leading American commodities trader, which commenced on
November 7, 2018. As in the case of M/V Lordship and M/V
Partnership, the daily hire is based on the TCE of the Baltic
Capesize Index. The Company has the option to convert to a fixed
rate for a period of up to 12 months, based on the prevailing
Capesize FFA for the respective period.
Furthermore, pursuant to the agreement with the
charterer of this vessel, concurrently with the Scrubber fitting,
we completed the installation of certain energy saving devices in
order to increase its energy efficiency by reducing the specific
oil consumption and subsequently the vessel’s carbon footprint.
The study of these upgrades was developed in
cooperation with the charterer, who also funded the cost of
procurement and installation of the equipment. In addition, the
option period under the related time charter was extended to 27
months, from about 16 to 18 months initially. Within the option
period, the Company will be entitled to receive a premium over the
daily index-linked hire depending on the improvement in the fuel
consumption realized.
The Company is expected to also complete the
installation of open loop U-Type scrubbers on the M/V Premiership
and M/V Squireship by the end of 2019.
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“Seanergy is actively implementing its plan to
be fully compliant with the upcoming environmental regulations of
IMO 2020. Moreover, our top priority is the Company’s Environmental
Social Governance (“ESG”). In close cooperation with our leading
charterers, we have already applied the results of these practices
on one of our Capesize vessels and we are looking to expand this
further in the fleet. Given the challenges that the industry is
facing, through the execution of these projects, we are excited to
announce that the vessel scrubber installations are being completed
timely and within the initial budget range.
We are continuously taking the necessary actions
to ensure that our fleet is well-positioned to be at the forefront
of technical developments in our industry and this remains an
important priority for our Company. From a financial perspective,
we expect that the significant investments made to improve our
vessels, in cooperation with our strategic partners that are the
end-users of our vessels, will increase the commercial and market
value of our fleet without any investment outlays by the Company.
This is the first of similar initiatives that we are continuously
exploring.”
About Seanergy Maritime Holdings
Corp.
Seanergy Maritime Holdings Corp. is the only
pure-play Capesize ship-owner publicly listed in the United States.
Seanergy provides marine dry bulk transportation services through a
modern fleet of 10 Capesize vessels, with a cargo-carrying capacity
of approximately 1,748,581 dwt and an average fleet age of
approximately 10.6 years.
The Company is incorporated in the Marshall
Islands with executive offices in Athens, Greece and an office in
Hong Kong. The Company's common shares trade on the Nasdaq Capital
Market under the symbol "SHIP", its Class A warrants under "SHIPW"
and its Class B warrants under “SHIPZ”.
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. 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, areas of possible expansion or
contraction, and expected capital spending or operating expenses;
risks associated with operations outside the United States; and
other factors listed from time to time in the Company's filings
with the SEC, including its most recent annual report 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 obligation 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:
Capital Link, Inc.Judit Csepregi230 Park Avenue
Suite 1536New York, NY 10169Tel: (212) 661-7566E-mail:
seanergy@capitallink.com
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