Seanergy Maritime Holdings Corp. Reports
Financial Results for the Second Quarter and Six Months Ended June
30, 2021
Highlights of the Second Quarter of
2021:
-
Gross revenues:
$28.9
million in Q2 2021 compared to $9.3 million in Q2
2020, up
209%
-
Net income: $2.0 million
in Q2 2021, as compared to a net loss of $11.3 million in Q2
2020
-
EBITDA1: $10.8
million in Q2 2021, as compared to
negative $2.1 million in Q2
2020
-
Adjusted EBITDA1:
$11.3 million in Q2 2021,
as compared to negative
$1.8 million in Q2
2020
Highlights of First
Six Months of
2021:
-
Gross revenues:
$50.0 million in
6M 2021 compared to $23.1 million in 6M 2020, up
116%
-
Net income:
$0.6
million in 6M 2021, as compared to a net loss of $19.6
million in 6M 2020
-
EBITDA1: $17.3
million in 6M 2021 as compared to
negative $1.1 million in
6M 2020
-
Adjusted
EBITDA1: $19.2
6M 2021, as compared to
negative $0.5 million in
6M 2020
Second Quarter of 2021 and
Recent
Developments:
-
Fleet increase by 45%
with the delivery of 5 modern
Japanese Capesizes
-
Fleet modernization through substitution of the fleet’s
oldest Capesize with
an eight year
younger
vessel
-
New time charter agreements with prominent
charterers
-
Financing and refinancing transactions of
$117.3 million
including a $30.9 million sale and leaseback
& new loan commitment
July
29, 2021 - Athens, Greece -
Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP),
announced today its financial results for the second quarter ended
June 30, 2021.
For the quarter ended June 30, 2021, the Company
generated gross revenues of $28.9 million, a 209% increase compared
to the second quarter of 2020. Adjusted EBITDA for the quarter was
$11.3 million, from negative $1.8 million in the same period of
2020. Net income for the second quarter was $2.0 million compared
to net loss of $11.3 million in the second quarter of 2020. The
daily Time Charter Equivalent (“TCE”)1 of the fleet for the second
quarter of 2021 was $20,095, marking a 270% increase compared
$5,424 for the second quarter of 2020.
For the six-month period ended June 30, 2021,
gross revenues were $50.0 million, increased by 116% when compared
to $23.1 million in same period of 2020. Adjusted EBITDA for the
first six months of 2021 was $19.2 million, compared to a negative
adjusted EBITDA of $0.5 million in the same period of 2020. The
daily TCE of the fleet for the first six months of 2021 was $18,327
compared to $6,985 in the first six months of 2020. The average
daily OPEX was $5,766 compared to $5,353 of the respective period
of 2020.
Cash and cash-equivalents, restricted cash and
term deposits as of June 30, 2021 stood at $56.4 million.
Shareholders’ equity at the end of the second quarter was $199.4
million, vs. $95.7 million in December 31, 2020. Long-term debt
(senior and junior loans and financial leases) stood at $203.8
million as of June 30, 2021, from $169.8 million as of the end of
2020. In the same period, following the addition of four of our new
acquisitions, the book value of our fleet (including vessels held
for sale and advances for vessel acquisitions) increased by 43.3%
to $367.9 million from $256.7 million.
Third Quarter 2021 TCE
Guidance:
As of the date hereof, approximately 94% of the
Company fleet’s expected operating days in the third quarter of
2021 have been fixed at an estimated TCE of approximately $28,8802,
or 63% higher than the TCE recorded in the first half of the year.
Our TCE guidance for the third quarter of 2021 includes certain
conversions (8 vessels) of index-linked charters to fixed for the
3-month period ending on September 30, 2021 which were concluded in
the first and second quarter of 2021 as part of our freight hedging
strategy. The following table provides the break-down:
|
Operating Days |
TCE |
TCE - fixed rate (index-linked conversion) |
719.6 |
$28,049 |
TCE - fixed rate |
136.6 |
$28,782 |
TCE - index linked & spot |
591.9 |
$29,913 |
Total / Average |
1,448.1 |
$28,880 |
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“The six-month period that ended on June 30,
2021, marks a significant turning point for Seanergy, with strong
financial performance, being the first profitable first-half since
the Company’s relaunching in 2015. Most importantly, we have
successfully concluded many milestone transactions that saw
Seanergy’s fleet growing by more than 60% while solidifying our
financial standing.
Concerning our results for the second quarter of
2021, our daily TCE was approximately $20,000, marking an increase
of 270% compared to the TCE of the second quarter of 2020. The TCE
of the fleet for the first 6 months of 2021 was about $18,300 per
day as compared to a daily TCE of approximately $7,000 in the first
half of 2020. As discussed in our last earnings release, our TCE
performance in the second quarter was affected by certain less
favorable conversions of index-linked charters to fixed which were
concluded in the fourth quarter of 2020 as part of our freight
hedging strategy. However, our Q3 guidance is very strong at close
to $29,000 per day. Adjusted EBITDA for the second quarter and
first half of 2021 was $11.3 million and $19.2 million
respectively, as compared to negative adjusted EBITDA by $1.85
million and $0.5 million in the respective periods of 2020. Net
result for the quarter was a profit of $2.0 million, which was
sufficient to reverse the slight losses of the first quarter of the
year resulting in a profitable first half for our
Company.
Regarding our fleet growth and renewal strategy,
since the beginning of the year, our investment in our fleet has
totaled approximately $160 million, and we have agreed to acquire 6
high-quality Japanese Capesize bulkers of an average age of 10.5
years, with the most recent acquisition being that of the 2009
built M/V Friendship. This vessel will essentially replace the
oldest vessel in our fleet, the 2001 built M/V Leadership, which we
agreed to sell to third-party buyers. This asset swap is improving
the age profile of our fleet and enhances its competitiveness and
compliance with the upcoming environmental regulations.
To date we have taken delivery of five out of
the six new acquisitions and the last vessel, the 2012 built
Worldship is scheduled to be delivered to us in August, followed by
the delivery of the M/V Leadership to her new owners in September.
The total investment capex of about $160 million has been fully
funded by our cash reserves, which remain strong following these
acquisitions, and newly concluded debt financing arrangements.
On the debt financing front, in the first half
of 2021, we have successfully concluded new financings and
refinancings of $104.3 million whilst making $69.7 million
prepayments and repayments on our legacy debt facilities. The
resulting net increase in our debt by $34.6 million, against an
increase in the book value of our fleet by $158.9 million, implies
a 22% effective loan-to-value on our new acquisitions. Next to the
significant deleveraging of the balance sheet, the retirement of
expensive debt and its replacement with competitively priced
financings reflects positively on our bottom line. Indicatively,
the weighted average interest rate on the facilities that were
fully prepaid was 8.4% as compared to 3.35% for the new $104.3
million financings. We also expect that the terms of our financings
will improve further going forward.
Concerning the commercial deployment of our
fleet, in 2021 to date, we have concluded seven new period
employment agreements ranging from 12 months to 5 years. All
time-charters have been concluded with world-leading charterers in
the Capesize sector, including NYK, Cargill, Anglo American and
Ssangyong. The underlying rates are mainly index-linked, in most
cases with options to convert to fixed based on the prevailing
freight futures curve, allowing us to capitalize on potential
spikes in the day-rates. Taking advantage of the strong market
conditions, we have concluded fixed rate T/Cs at rates exceeding
$31,000 per day for periods ranging from 12 to 18 months for two
vessels. We continue to position our fleet optimally for what we
believe to be an unfolding commodities super-cycle, which will
underscore the importance of dry bulk shipping and especially that
of the Capesize sector in global seaborne trade.
With respect to the implementation of our ESG
agenda and as part of our continuous efforts to improve the energy
efficiency rating of our fleet, we have installed Energy Saving
Devices (“ESDs”) on an additional vessel and we have agreed with
Cargill to install ESDs on another vessel in the coming months.
Moreover, we have partnered with DeepSea for the installation of
Artificial Intelligence performance systems on our fleet with
proven benefit on fuel consumption. Finally we are in progressed
discussions with other charterers for similar ESD projects, as well
as for biofuel blend trials, which we believe to be one of the most
efficient ways to transition into a greener future for
shipping.
Regarding current market conditions, we are very
pleased to see a consistent positive trend in our sector with daily
rates above $20,000/ day since the beginning of April. Looking
ahead, we are entering the seasonally “strong” period for Brazilian
iron ore exports as local miners are ramping up production,
supported by favorable weather conditions and “clean” plant
maintenance schedules. At the same time coal prices are at the
highest level of the last decade resulting in steadily rising
seaborne coal volumes - a positive trend that defies the seasonal
patterns of the last years. On that basis, and considering the
favorable vessel-supply fundamentals of our sector with the
orderbook standing at the lowest level of the last 25 years, as
amplified by the catalytic effect of the upcoming environmental
regulations, we feel confident about the prospects of the Capesize
market.
As mentioned earlier, our daily TCE for the
third quarter, based on 94% of our available days, stands at
approximately $29,000, which is 63% higher than our 1H TCE. As part
of our forward rates hedging strategy, we have triggered the
“floating to fixed” feature on 8 of our index-linked charterers at
an average net daily rate of approximately $28,050. This in
combination with the solid outlook for our sector will form the
basis for what we expect to be a further improved financial
performance in the next quarter.
On a closing note, we have worked tirelessly and
determinedly over the last 18 months to execute consistently on our
strategic initiatives and place Seanergy amongst the most prominent
Capesize owners globally. We remain committed to delivering
additional value for our shareholders.”
Company Fleet following
vessels’ deliveries
and the sale of the M/V
Leadership:
Vessel Name |
Vessel Size Class |
Capacity (DWT) |
Year Built |
Yard |
Scrubber Fitted |
Employment Type |
Minimum T/C duration |
Partnership |
Capesize |
179,213 |
2012 |
Hyundai |
Yes |
T/C Index Linked (1) |
3 years |
Championship |
Capesize |
179,238 |
2011 |
Sungdong |
Yes |
T/C Index Linked (2) |
5 years |
Lordship |
Capesize |
178,838 |
2010 |
Hyundai |
Yes |
T/C Index Linked (3) |
3 years |
Premiership |
Capesize |
170,024 |
2010 |
Sungdong |
Yes |
T/C Index Linked (4) |
3 years |
Squireship |
Capesize |
170,018 |
2010 |
Sungdong |
Yes |
T/C Index Linked (5) |
3 years |
Knightship |
Capesize |
178,978 |
2010 |
Hyundai |
Yes |
T/C Index Linked (6) |
3 years |
Gloriuship |
Capesize |
171,314 |
2004 |
Hyundai |
No |
T/C Index Linked (7) |
10 months |
Fellowship |
Capesize |
179,701 |
2010 |
Daewoo |
No |
T/C Index Linked (8) |
1 year |
Geniuship |
Capesize |
170,058 |
2010 |
Sungdong |
No |
T/C Index Linked (9) |
11 months |
Hellasship |
Capesize |
181,325 |
2012 |
Imabari |
No |
T/C Index Linked (10) |
11 months |
Flagship |
Capesize |
176,387 |
2013 |
Mitsui |
No |
T/C Index Linked (11) |
5 years |
Patriotship |
Capesize |
181,709 |
2010 |
Saijo - Imabari |
Yes |
T/C Fixed Rate-$31,000/day (12) |
1 year |
Tradership |
Capesize |
176,925 |
2006 |
Namura |
No |
T/C Index Linked(13) |
11 months |
Friendship |
Capesize |
176,952 |
2009 |
Namura |
No |
T/C Index Linked(14) |
17 months |
Goodship |
Capesize |
177,536 |
2005 |
Mitsui |
No |
Voyage/Spot |
|
Worldship (15) |
Capesize |
181,415 |
2012 |
Japanese Shipyard |
Yes |
T/C Fixed Rate -$31,750/day(16) |
1 year |
Total / Average age |
2,829,631
11.4 |
|
|
|
|
(1) Chartered by a major European utility and
energy company and delivered to the charterer on September 11, 2019
for a period of minimum 33 to maximum 37 months with an optional
period of about 11 to maximum 13 months. The daily charter hire is
based on the BCI. In addition, the Company has the option to
convert to a fixed rate for a period of between 3 and 12 months,
based on the prevailing Capesize Forward Freight Agreement Rate
(“FFA”) for the selected period.
(2) Chartered by Cargill. The
vessel was delivered to the charterer on November 7, 2018 for a
period of employment of 60 months, with an additional period of
about 24 to about 27 months at the charterer’s option. The daily
charter hire is based on the BCI plus a net daily scrubber premium
of $1,740. In addition, the time charter provides the option to
convert the index linked rate to a fixed rate for a period of
between 3 and 12 months based on the Capesize FFA for the selected
period.
(3) Chartered by a major
European utility and energy company and delivered on August 4, 2019
for a period of minimum 33 to maximum 37 months with an optional
period of 11-13 months. The daily charter hire is based on the BCI
plus a net daily scrubber premium of $3,735 until May 2021. In
addition, the Company has the option to convert to a fixed rate for
a period of between three and 12 months, based on the prevailing
Capesize FFA for the selected period.
(4) Chartered by Glencore and
was delivered to the charterer on November 29, 2019 for a period of
minimum 36 to maximum 42 months with two optional periods of
minimum 11 to maximum 13 months. The daily charter hire is based on
the BCI plus a net daily scrubber premium of $2,055.
(5) Chartered by Glencore and
was delivered to the charterer on December 19, 2019 for a period of
minimum 36 to maximum 42 months with two optional periods of
minimum 11 to maximum 13 months. The daily charter hire is based on
the BCI plus a net daily scrubber premium of $2,055.
(6) Chartered by Glencore and
was delivered to the charterer on May 15, 2020 for a period of
about 36 to about 42 months with two optional periods of minimum 11
to maximum 13 months. The daily charter hire is based on the
BCI.
(7) Chartered by Pacbulk
Shipping and delivered to the charterer on April 23, 2020 initially
for a period of about 10 to about 14 months. Upon expiration of the
current T/C period, in June 2021, the vessel commenced the second
extension period up to minimum January 1, 2022 to maximum April 30,
2022. The daily charter hire is based on the BCI. In addition, the
Company has the option to convert to a fixed rate, based on the
prevailing Capesize FFA for the selected period.
(8) Chartered by Anglo
American, a leading global mining company, and expected to be
delivered to the charterer towards the beginning of June 2021 for a
period of minimum 12 to maximum 15 months from the delivery date.
The daily charter hire is based on the BCI. In addition, the
Company has the option to convert to a fixed rate for a period of
minimum three and maximum 12 months, based on the prevailing
Capesize FFA for the selected period.
(9) Chartered by Pacbulk
Shipping and was delivered to the charterer on March 22, 2021 for a
period of about 11 to about 14 months from the delivery date. The
daily charter hire is based on the BCI. In addition, the Company
has the option to convert to a fixed rate based on the prevailing
Capesize FFA for the selected period.
(10) Chartered by NYK Line and
was delivered to the charterer on May 10, 2021 for a period of
minimum 11 to maximum 15 months. The daily charter hire is based at
a premium over the BCI.
(11) Chartered by Cargill. The
vessel was delivered to the charterer on May 10, 2021 for a period
of 60 months. The daily charter hire is based at a premium over the
BCI minus $1,325 per day. In addition, the time charter provides
the option to convert the index linked rate to a fixed rate for a
period of minimum 3 to maximum 12 months based on the Capesize FFA
for the selected period.
(12) Chartered by a European
cargo operator and was delivered to the charterer on June 7, 2021
for a period of minimum 12 to maximum 18 months. The daily charter
hire is fixed at $31,000.
(13) Chartered by a major South
Korean industrial company and was delivered to the charterer on
June 15, 2021 for a period employment of 11 to 15 months. The daily
charter hire is based on the BCI.
(14) Chartered by NYK Line and
was delivered to the charterer on July 29, 2021 for a period of
minimum 17 to maximum 24 months. The daily charter hire is based at
a premium over the BCI.
(15) Prompt delivery
(16) Chartered by a U.S.
commodity trading company and will be delivered to the charterer
upon its delivery for a period of about 12 to 16 months. The daily
charter hire is fixed at $31,750.
Fleet Data:
(U.S. Dollars in thousands)
|
Q2 2021 |
Q2 2020 |
6M 2021 |
6M 2020 |
Ownership days (1) |
1,164 |
910 |
2,155 |
1,820 |
Operating days (2) |
1,122 |
863 |
2,055 |
1,764 |
Fleet utilization (3) |
96.4% |
94.8% |
95.4% |
96.9% |
TCE rate (4) |
$20,095 |
$5,424 |
$18,327 |
$6,985 |
Daily Vessel Operating Expenses (5) |
$5,908 |
$5,140 |
$5,766 |
$5,353 |
(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.
Operating days includes the days that our vessels are in 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 the Company’s vessels
and in evaluating their 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)
|
Q2 2021 |
Q2 2020 |
6M 2021 |
6M 2020 |
Net revenues
from vessels |
27,832 |
9,042 |
48,230 |
22,381 |
Less: Voyage
expenses |
5,285 |
4,361 |
10,567 |
10,060 |
Net operating
revenues |
22,547 |
4,681 |
37,663 |
12,321 |
Operating
days |
1,122 |
863 |
2,055 |
1,764 |
TCE rate |
$20,095 |
$5,424 |
$18,327 |
$6,985 |
(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 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)
|
Q2 2021 |
Q2 2020 |
6M 2021 |
6M 2020 |
Vessel
operating expenses |
8,879 |
4,677 |
14,428 |
9,742 |
Less:
Pre-delivery expenses |
2,002 |
- |
2,002 |
- |
Vessel
operating expenses excluding pre-delivery expenses |
6,877 |
4,677 |
12,426 |
9,742 |
Ownership
days |
1,164 |
910 |
2,155 |
1,820 |
Daily Vessel
Operating Expenses |
5,908 |
5,140 |
5,766 |
5,353 |
Net Loss to EBITDA and Adjusted EBITDA
Reconciliation:
(In thousands of U.S. Dollars)
|
Q2 2021 |
Q2 2020 |
6M 2021 |
6M 2020 |
Net
income/(loss) |
1,961 |
(11,286) |
640 |
(19,629) |
Add: Net interest and finance cost |
4,277 |
5,556 |
8,307 |
11,244 |
Add: Depreciation and amortization |
4,520 |
3,674 |
8,337 |
7,308 |
EBITDA |
10,758 |
(2,056) |
17,284 |
(1,077) |
Add: stock based compensation |
528 |
207 |
1,931 |
589 |
Adjusted EBITDA |
11,286 |
(1,849) |
19,215 |
(488) |
Earnings Before Interest, Taxes, Depreciation
and Amortization ("EBITDA") represents the sum of net income /
(loss), interest and finance costs, interest income, 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,
which the Company believes is 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.
Interest and Finance Costs to Cash
Interest and Finance Costs Reconciliation:
(In thousands of U.S. Dollars)
|
Q2 2021 |
Q2 2020 |
6M 2021 |
6M 2020 |
Interest and finance costs,
net |
(4,277) |
(5,556) |
(8,307) |
(11,244) |
Add: Amortization of deferred finance charges |
985 |
177 |
1,702 |
349 |
Add: Amortization of convertible note beneficial conversion
feature |
61 |
1,279 |
1,238 |
2,416 |
Add: Amortization of other deferred charges |
333 |
149 |
174 |
302 |
Cash interest and finance
costs |
(2,898) |
(3,951) |
(5,193) |
(8,177) |
Second Quarter and Recent
Developments:
Update on Vessel Acquisitions and
Time-Charter Agreements
Deliveries and Time Charters
Commencement
During the first half, the Company has agreed to
acquire six high-quality Japanese Capesize bulkers and has taken
delivery of five, while the sixth vessel is scheduled to be
delivered in August. All newly acquired units have been fixed on
medium to long-term time charters as of their respective
deliveries.
M/V Hellasship
In May 2021, the Company took delivery of the
181,325 dwt Capesize bulk carrier, built in 2012 in Japan, which
was renamed M/V Hellasship. The M/V Hellasship was fixed on a time
charter with NYK Line, a leading Japanese shipping company and
operator. The T/C commenced on May 10, 2021 and will have a term of
minimum 11 to maximum 15 months. The gross daily rate of the T/C is
based at a premium over the BCI.
M/V Flagship
In May 2021, the Company took delivery of the
176,387 dwt Capesize bulk carrier, built in 2013 in Japan, which
was renamed M/V Flagship. The M/V Flagship is the second vessel of
the Company’s fleet time-chartered to Cargill International S.A.
(“Cargill”). The daily hire is based on the BCI, while the Company
has the option to convert the index-linked hire to fixed for a
minimum period of three months to a maximum of 12 months based on
the prevailing Capesize FFA curve. The rate is 102% of the BCI
minus $1,325 per day. The term of the T/C is 5 years from the
delivery of the vessel to Cargill, which took place on May 10,
2021.
M/V
Patriotship
In June 2021, the Company took delivery of the
181,709 dwt Capesize bulk carrier, built in 2010 in Japan, which
was renamed M/V Patriotship. The M/V Patriotship has been fixed on
a time charter with a major European cargo operator. The T/C
commenced on June 7, 2021 and will have a term of minimum 12 to
maximum 15 months. The gross daily hire is $31,000.
M/V Tradership
In June 2021, the Company took delivery of the
176,925 dwt Capesize bulk carrier, built in 2006 in Japan, which
was renamed M/V Tradership. The M/V Tradership has been fixed on a
time charter with a major South Korean industrial company. The T/C
commenced on June 15, 2021 and will have a term of minimum 11 to
maximum 15 months. The gross daily rate of the T/C is based on the
BCI.
M/V Worldship
In May 2021, the Company agreed to acquire a
181,415 dwt Capesize bulk carrier, built in 2012 in Japan, which
will be renamed M/V Worldship. The M/V Worldship has been fixed on
a T/C with a world-leading U.S. commodity trading company, at a
gross daily rate of $31,750 for a period of minimum 12 to maximum16
months. The T/C is expected to commence immediately upon
the vessel’s upcoming delivery, which is anticipated within
August 2021.
Vessel
Replacement
M/V Friendship
In July 2021, the Company took delivery of the
176,952 dwt Capesize bulk carrier, built in 2009 in Japan, which
was renamed M/V Friendship. The M/V Friendship has been fixed on a
time charter with NYK Line, a leading Japanese shipping company and
operator. The T/C will commence promptly, upon finalization of the
customary handover process and will have a term of minimum 17 to
maximum 24 months. The gross daily rate of the T/C is based on 102%
of the BCI.
M/V
Leadership
Additionally, the Company has agreed to sell the
2001-built M/V Leadership to an unaffiliated party for a net sale
price of $12.0 million. The substitution will improve the average
age of the Company’s fleet. The vessel’s delivery to her new owners
is anticipated within September 2021.
Financing Updates
During the second quarter, the Company has
successfully concluded new financings and refinancing of $104.3
million and has received a commitment letter for a loan facility of
up to $13.0 million.
Alpha Bank
S.A.
On May 20, 2021, the Company entered into a
$37.45 million credit facility to (i) refinance the existing
facilities of $25.5 million secured by the M/V Leadership and the
M/V Squireship and (ii) finance the previously unencumbered M/V
Lordship. The earliest maturity date of the facility will be in
December 2024 and the interest rate is 3.5% plus LIBOR per
annum.
Aegean Baltic Bank S.A.
On April 22, 2021, the Company entered into a
credit facility for an amount of $15.5 million secured by the M/V
Goodship and the M/V Tradership. The facility has a term of 4.5
years, with latest maturity date falling in December 2025 and bears
interest of LIBOR plus 4% per annum.
Cargill International S.A.
On May 11, 2021, the Company entered into a sale
and leaseback transaction with Cargill to partially fund the
acquisition cost of the M/V Flagship. The financing amount is $20.5
million at an implied interest rate of approximately 2% all-in,
fixed for five years.
New Financing Agreement of $30.9
million
In June 2021, the Company successfully concluded
the financing of two of its new acquisitions, the 2012-built
Capesize M/V Hellasship and the 2010-built M/V Patriotship through
a sale and leaseback agreement with a major Chinese financial
institution. The vessels were sold and chartered back on a bareboat
basis for a five-year period, the combined financing amount is
$30.9 million and the applicable interest rate is LIBOR + 3.50%
p.a.
Alpha Bank Commitment Letter
- Friendship
In July 2021, the Company obtained a commitment
letter from Alpha Bank S.A. for a loan facility of up to $13.0
million, in order to finance the acquisition of the 2009-built
Capesize M/V Friendship. The interest rate will be LIBOR plus 3.25%
p.a., and the term of the loan will be four years. The facility
will be repaid through 4 quarterly instalments of $0.7 million
followed by 12 quarterly instalments of $0.38 million and a balloon
of $5.7 million payable together with the last instalment. The new
loan facility will be structured as an additional loan tranche in
the existing Alpha Bank facility secured by the M/Vs Lordship,
Squireship and Leadership mentioned above.
Seanergy Maritime Holdings
Corp.Unaudited Condensed Consolidated Balance Sheets(In
thousands of U.S. Dollars)
|
|
June 30, 2021 |
|
|
December 31, 2020* |
|
ASSETS |
|
|
|
|
|
|
Cash and cash
equivalents, restricted cash and term deposits |
|
56,394 |
|
|
23,651 |
|
Vessels, vessel
held for sale and advances for vessels’ acquisitions, net |
|
367,897 |
|
|
256,737 |
|
Other assets |
|
16,483 |
|
|
14,857 |
|
TOTAL
ASSETS |
|
440,774 |
|
|
295,245 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Long-term debt and other financial
liabilities |
|
203,829 |
|
|
169,762 |
|
Convertible
notes |
|
16,196 |
|
|
14,516 |
|
Other
liabilities |
|
21,335 |
|
|
15,273 |
|
Stockholders’
equity |
|
199,414 |
|
|
95,694 |
|
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
440,774 |
|
|
295,245 |
|
* Derived from the audited consolidated financial statements as
of the period as of that date
Seanergy Maritime Holdings
Corp.Unaudited Condensed Consolidated Statements of
Operations(In thousands of U.S. Dollars, except for share and per
share data, unless otherwise stated)
|
|
Three months endedJune 30, |
|
Six months endedJune 30, |
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
|
2020 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Vessel revenues |
|
28,867 |
|
9,341 |
|
50,023 |
|
|
23,148 |
|
|
Commissions |
|
(1,035 |
) |
(299 |
) |
(1,793 |
) |
|
(767 |
) |
|
Vessel
revenue, net |
|
27,832 |
|
9,042 |
|
48,230 |
|
|
22,381 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
|
(5,285 |
) |
(4,361 |
) |
(10,567 |
) |
|
(10,060 |
) |
|
Vessel operating expenses |
|
(8,879 |
) |
(4,677 |
) |
(14,428 |
) |
|
(9,742 |
) |
|
Management fees |
|
(348 |
) |
(251 |
) |
(629 |
) |
|
(503 |
) |
|
General and administrative expenses |
|
(2,566 |
) |
(1,786 |
) |
(5,296 |
) |
|
(3,145 |
) |
|
Depreciation and amortization |
|
(4,520 |
) |
(3,674 |
) |
(8,337 |
) |
|
(7,308 |
) |
|
Operating income/(loss) |
|
6,234 |
|
(5,707 |
) |
8,973 |
|
|
(8,377 |
) |
|
Other income /
(expenses): |
|
|
|
|
|
|
|
|
|
|
|
Interest and finance costs, net |
|
(4,277 |
) |
(5,556 |
) |
(8,307 |
) |
|
(11,244 |
) |
|
Other, net |
|
4 |
|
(23 |
) |
(26 |
) |
|
(8 |
) |
|
Total
other expenses, net: |
|
(4,273 |
) |
(5,579 |
) |
(8,333 |
) |
|
(11,252 |
) |
|
Net
income/(loss) |
|
1,961 |
|
(11,286 |
) |
640 |
|
|
(19,629 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
per common share, basic and
diluted |
|
0.01 |
|
(0.65 |
) |
0.01 |
|
|
(2.05 |
) |
|
Weighted average number of common shares outstanding, basic |
|
160,171,874 |
|
17,478,283 |
|
137,590,311 |
|
|
9,588,854 |
|
|
Weighted average number of common shares outstanding, diluted |
|
174,592,644 |
|
17,478,283 |
|
152,052,538 |
|
|
9,588,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is the only
pure-play Capesize ship-owner publicly listed in the US. Seanergy
provides marine dry bulk transportation services through a modern
fleet of Capesize vessels. On a ‘fully-delivered’ basis, the
Company's fleet will consist of 16 Capesize vessels with an average
age of 11.4 years and aggregate cargo carrying capacity of
2,829,631 dwt.
The Company is incorporated in the Marshall
Islands and has executive offices in Glyfada, Greece. 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; risks
associated with the length and severity of the ongoing novel
coronavirus (COVID-19) outbreak, including its effects on demand
for dry bulk products and the transportation thereof; 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 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:
Seanergy Investor RelationsTel: +30 213 0181 522E-mail:
ir@seanergy.gr
Capital Link, Inc.Daniela Guerrero230 Park Avenue Suite 1536New
York, NY 10169Tel: (212) 661-7566E-mail:
seanergy@capitallink.com
1 EBITDA and Time Charter Equivalent (“TCE”) rate are non-GAAP
measures. Please see the reconciliation below of EBITDA to net loss
and TCE rate to net revenues from vessels, in each case the most
directly comparable U.S. GAAP measure.
2 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 an
index-linked T/C is equal to the last invoiced average of the BCI
for the respective T/C, which is approximately equal to $30,000 as
compared to an average FFA rate of $36,000 per day for August and
September 2021 as of July 26, 2021. Spot estimates are provided
using the load-to-discharge method of accounting. Load-to-discharge
accounting recognizes revenues over fewer days as opposed to the
discharge-to-discharge method of accounting used prior to 2018,
resulting in higher rates for these days and only voyage expenses
being recorded in the ballast days. Over the duration of the voyage
(discharge-to-discharge) there is no difference in the total
revenues and costs to be recognized. The rates quoted are for days
currently contracted. Increased ballast days at the end of the
quarter will reduce the additional revenues that can be booked
based on the accounting cut-offs and therefore the resulting TCE
will be reduced accordingly.
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