Seanergy Maritime Announces Repurchases of $1.6 Million of Common Shares and Agreement to Acquire a Newcastlemax Vessel through a Bareboat-in Charter
July 06 2023 - 7:29AM
Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”)
(NASDAQ: SHIP) announced today that it has repurchased 362,161
common shares, or approximately 2% of its issued and outstanding
shares, at an average price of approximately $4.35 per share
pursuant to its previously announced share repurchase program. The
average share repurchase price represents approximately a 11.2%
discount from the closing price of July 5, 2023.
Moreover, the Company entered into a 12-month
bareboat charter agreement with an unaffiliated third party in
Japan for a 2011-built Newcastlemax dry bulk vessel of 207,855 dwt
built at Nantong COSCO KHI Ship Engineering Co Ltd (NACKS).
Pursuant to the terms of the bareboat charter, Seanergy has
advanced a down payment of $3.5 million and will pay an additional
$3.5 million on delivery of the vessel to the Company, as well as a
daily bareboat rate of $9,000 over the charter period. Delivery is
estimated to take place between August and December 2023 while at
the end of the 12-month bareboat period, Seanergy has an option to
purchase the Vessel for $20.2 million.
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“Consistent with our commitment to enhance
shareholder value, we have repurchased approximately 2% of our
outstanding shares. We continue to be very confident in our
Company’s prospects and the industry’s fundamentals.
“The bareboat-in agreement for our first
Newcastlemax vessel expands our presence in the sector, without
substantial capital outlay on its delivery, and provides a purchase
option at the end of the bareboat period. We believe the overall
purchase price of approximately $30.5 million, including the
bareboat payments, is beneficial to the Company.
“Regarding current market conditions, we see
that demand for seaborne transportation of dry bulk commodities is
very robust. DWT-miles have grown by 5.8% year-on-year1, while the
relevant figures from January until the end of May are the
strongest of the last three years.
“We believe current freight-rate weakness is due
to three main factors:
-
First, the unwinding of vessel congestion has released a
significant amount of tonnage in the market creating a temporary
oversupply of vessels. We believe that later in the year this will
be reversed to historical averages that will tighten the supply of
tonnage.
-
Second, certain charterers and operators have been reluctant to
comply with new environmental rules relating to reduced carbon
emissions and resultant speed caps for their chartered-in fleets.
We believe that these vessels will eventually need to abide by the
new requirements as charterers and operators come to terms with the
new regulations and the global fleet’s average speed will be
reduced further. This is also expected to tighten the supply of
tonnage.
-
Lastly, the highly volatile trading of FFA contracts is becoming
increasingly disconnected from the fundamentals of the physical
market. Instead of its intended use as a hedging tool, following
the emergence of algorithmic trading, it is becoming a high-risk
instrument that may negatively impact sentiment, which subsequently
creeps into the physical market.
“We remain committed to the Capesize sector with
a solid operational platform and believe we have positioned
Seanergy optimally to capitalize on improvements in the dry bulk
market. We will continue to focus on shareholder returns and
sustainable growth.”
Company
Fleet:
Vessel Name |
Capacity (DWT) |
YearBuilt |
Yard |
Scrubber Fitted |
Employment Type |
FFA conversion option(1) |
Minimum T/C expiration |
Maximum T/C expiration(2) |
Charterer |
Fellowship |
179,701 |
2010 |
Daewoo |
- |
T/C Index Linked |
Yes |
06/2024 |
10/2024 |
Anglo American |
Worldship |
181,415 |
2012 |
Koyo – Imabari |
Yes |
T/C Index Linked |
Yes |
09/2023 |
01/2024 |
Cargill |
Championship |
179,238 |
2011 |
Sungdong SB |
Yes |
T/C Index Linked |
Yes |
04/2025 |
11/2025 |
Cargill |
Flagship |
176,387 |
2013 |
Mitsui |
- |
T/C Index Linked |
Yes |
05/2026 |
07/2026 |
Cargill |
Patriotship |
181,709 |
2010 |
Imabari |
Yes |
T/C Index Linked |
Yes |
11/2023 |
06/2024 |
Glencore |
Knightship |
178,978 |
2010 |
Hyundai |
Yes |
T/C Index Linked |
Yes |
10/2024 |
12/2024 |
Glencore |
Premiership |
170,024 |
2010 |
Sungdong SB |
Yes |
T/C Index Linked |
Yes |
04/2024 |
06/2024 |
Glencore |
Squireship |
170,018 |
2010 |
Sungdong SB |
Yes |
T/C Index Linked |
Yes |
05/2024 |
07/2024 |
Glencore |
Dukeship |
181,453 |
2010 |
Sasebo |
- |
T/C Index Linked |
Yes |
04/2024 |
09/2024 |
NYK |
Hellasship |
181,325 |
2012 |
Imabari |
- |
T/C Index Linked |
Yes |
12/2023 |
03/2024 |
NYK |
Honorship |
180,242 |
2010 |
Imabari |
- |
T/C Index Linked |
Yes |
02/2024 |
07/2024 |
NYK |
Geniuship |
170,057 |
2010 |
Sungdong SB |
- |
T/C Index Linked |
Yes |
04/2024 |
08/2024 |
NYK |
Friendship |
176,952 |
2009 |
Namura |
- |
T/C Index Linked |
Yes |
12/2023 |
03/2024 |
NYK |
Paroship |
181,415 |
2012 |
Koyo-Imabari |
Yes |
T/C Index Linked |
Yes |
10/2023 |
12/2023 |
Oldendorff |
Partnership |
179,213 |
2012 |
Hyundai |
Yes |
T/C Index Linked |
Yes |
09/2024 |
12/2024 |
Uniper |
Lordship |
178,838 |
2010 |
Hyundai |
Yes |
T/C Index Linked |
Yes |
08/2024 |
09/2024 |
Uniper |
Titanship3 |
207,855 |
2011 |
NACKS |
- |
TBD |
TBD |
TBD |
TBD |
TBD |
Total / Average age |
3,054,820 |
12.4 |
- |
- |
- |
- |
- |
- |
- |
(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 period.
(3) To be delivered between August and
December 2023.
About Seanergy Maritime Holdings
Corp.
Seanergy Maritime Holdings Corp. is an
international shipping company that provides marine dry bulk
transportation services through the ownership and operation of dry
bulk vessels. As of today, the Company's operating fleet consists
of 16 Capesize vessels with an average age of 12.4 years and
aggregate cargo carrying capacity of approximately 2,846,965 dwt.
Upon completion of the aforementioned transaction, the Company's
operating fleet will consist of 17 vessels (16 Capesize and 1
Newcastlemax), with an aggregate cargo carrying capacity of
3,054,820 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”.
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; broader
market impacts arising from war (or threatened war) or
international hostilities, such as between Russia and Ukraine;
risks associated with the length and severity of the pandemics,
(including COVID-19), including 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.Paul Lampoutis 230 Park Avenue Suite 1540New
York, NY 10169Tel: (212) 661-7566E-mail:
seanergy@capitallink.com
___________________________1 According to independent
research
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