Highlights | |||||
(in million USD, except EPS) | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |
Net Revenues | |||||
Net (loss) / income | ( | ( | |||
Adjusted net (loss) / income1 | ( | ||||
EBITDA1 | |||||
Adjusted EBITDA1 | |||||
(Loss) / earnings per share Basic1,2 | ( | ( | |||
(Loss) / earnings per share Diluted1,2 | ( | ( | |||
Adjusted (loss) / earnings per share Basic1,2 | ( | ||||
Adjusted (loss) / earnings per share Diluted1,2 | ( | ||||
Other Highlights and Developments:
- Fleet Time Charter Equivalent (“TCE” 3) overperformance of Baltic Capesize Index (“BCI”) by 14% in 3Q23 & by 18% in 9M23
- Consistent quarterly cash dividend of
$0.025 per share for Q3 2023- Total cash dividends of
$1.35 per share, or$24.4 million declared sinceMarch 2022
- Total cash dividends of
- Delivery of the M/V Titanship, a 2011-built Newcastlemax, acquired through a 12-month bareboat charter with a purchase option
- About 30% of the fleet fixed for Q4 2023 at an average rate above
$20,000 - Q4 2023 combined TCE average earned to date of
$21,640 4
For the quarter ended
For the nine-month period ended
Cash and cash-equivalents and restricted cash, as of
_________________________________
1 Adjusted earnings / (loss) per share, Adjusted Net Income / (loss), EBITDA and Adjusted EBITDA are non-GAAP measures. Please see the reconciliation below of Adjusted earnings / (loss) per share, Adjusted Net Income / (loss), EBITDA and Adjusted EBITDA to net income, the most directly comparable
2 All references to number of shares, share prices, warrant prices and “per share” figures in this document are adjusted to reflect the one-for-ten reverse stock split effected on
3 TCE rate is a non-GAAP measure. Please see the reconciliation below of TCE rate to net revenues from vessels, the most directly comparable
4 See analysis on the TCE guidance in the relevant section below.
“For the third quarter of 2023, Seanergy reported a TCE of
“Net loss for the third quarter of 2023 was
“In the first nine months of 2023 we recorded a time charter equivalent of
“Moving on to other developments, we took delivery of our latest acquisition, a 2011-built Newcastlemax on
“Moving on to a brief comment about the Capesize market, since the beginning of the year we have seen substantial increases ranging from 3% to 8% in ton-mile demand for the major raw materials of iron ore, coal and bauxite, against an increase of about 2% in the size of the fleet. Despite this very favorable demand backdrop the freight market did not perform according to our expectations for most of the nine-month period ending in
“We firmly believe that Seanergy’s ability to deal with short term volatility has been proven over the past nine months and the combination of our strong balance sheet and effective freight hedging initiatives put us in the best position to benefit from what we believe to be the best Capesize market fundamentals of the past three decades.”
Company Fleet:
Capacity (DWT) | Year Built | Yard | Scrubber Fitted | Employment Type | FFA conversion option(1) | Minimum | Maximum | Charterer | |
Titanship(3) | 207,855 | 2011 | - | T/C Index Linked | Yes | 09/2024 | 01/2025 | Olam | |
Patriotship | 181,709 | 2010 | Imabari | Yes | T/C Index Linked | Yes | 05/2024 | 06/2024 | Glencore |
Dukeship | 181,453 | 2010 | Sasebo | - | T/C Index Linked | Yes | 04/2024 | 09/2024 | NYK |
Paroship | 181,415 | 2012 | Koyo -Imabari | Yes | T/C Index Linked | Yes | 10/2023 | 12/2023 | Oldendorff |
Worldship | 181,415 | 2012 | Koyo – Imabari | Yes | T/C Index Linked | Yes | 09/2023 | 01/2024 | |
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 |
Fellowship | 179,701 | 2010 | Daewoo | - | T/C Index Linked | Yes | 06/2024 | 10/2024 | Anglo American |
Championship | 179,238 | 2011 | Sungdong SB | Yes | T/C Index Linked | Yes | 04/2025 | 11/2025 | |
Partnership | 179,213 | 2012 | Hyundai | Yes | T/C Index Linked | Yes | 09/2024 | 12/2024 | Uniper |
Knightship | 178,978 | 2010 | Hyundai | Yes | T/C Index Linked | Yes | 10/2024 | 12/2024 | Glencore |
Lordship | 178,838 | 2010 | Hyundai | Yes | T/C Index Linked | Yes | 08/2024 | 09/2024 | Uniper |
Friendship | 176,952 | 2009 | Namura | - | T/C Index Linked | Yes | 12/2023 | 03/2024 | NYK |
Flagship | 176,387 | 2013 | Mitsui | - | T/C Index Linked | Yes | 05/2026 | 07/2026 | |
Geniuship | 170,057 | 2010 | Sungdong SB | - | T/C Index Linked | Yes | 04/2024 | 08/2024 | NYK |
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 |
Total / Average age | 3,054,820 | 12.7 years | |||||||
(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 periods.
(3) The vessel is operated by the Company on the basis of a 12-month bareboat charter-in contract with the owners of the vessel, including a purchase option at the end of the bareboat charter.
Fleet Data:
(
Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |||||
Ownership days (1) | 1,472 | 1,569 | 4,467 | 4,650 | ||||
Operating days (2) | 1,460 | 1,557 | 4,423 | 4,380 | ||||
Fleet utilization (3) | 99.2% | 99.2% | 99% | 94.2% | ||||
TCE rate (4) | ||||||||
Daily Vessel Operating Expenses (5) | ||||||||
(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. Available days are the number of ownership days less the aggregate number of days that our vessels are off-hire due to major repairs, dry-dockings, lay-up or special or intermediate surveys. Operating days include the days that our vessels are in ballast voyages without having finalized agreements for their next employment. The Company’s calculation of operating days may not be comparable to that reported by other companies.
(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, which is not a recognized measure under
(In thousands of
Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |||||
Vessel revenue, net | 23,105 | 32,963 | 68,135 | 95,476 | ||||
Less: Voyage expenses | 770 | 867 | 2,078 | 3,513 | ||||
Time charter equivalent revenues | 22,335 | 32,096 | 66,057 | 91,963 | ||||
Operating days | 1,460 | 1,557 | 4,423 | 4,380 | ||||
TCE rate | ||||||||
(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, excluding pre delivery costs, 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
Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |||||
Vessel operating expenses | 10,282 | 12,201 | 31,371 | 32,642 | ||||
Less: Pre-delivery expenses | - | 287 | 362 | 671 | ||||
Vessel operating expenses before pre-delivery expenses | 10,282 | 11,914 | 31,009 | 31,971 | ||||
Ownership days | 1,472 | 1,569 | 4,467 | 4,650 | ||||
Daily Vessel Operating Expenses | ||||||||
Net income / (loss) to EBITDA and Adjusted EBITDA Reconciliation:
(In thousands of
Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |||||
Net (loss) / income | (5,040 | ) | 7,140 | (8,547 | ) | 16,746 | ||
Interest and finance cost, net | 4,983 | 3,949 | 15,185 | 10,099 | ||||
Depreciation and amortization | 7,110 | 7,497 | 21,290 | 20,796 | ||||
Taxes | - | - | - | (28 | ) | |||
EBITDA | 7,053 | 18,586 | 27,928 | 47,613 | ||||
Stock based compensation | 2,474 | 2,920 | 8,601 | 6,762 | ||||
Loss on extinguishment of debt | - | - | 540 | 1,285 | ||||
Loss on forward freight agreements, net | 4 | 335 | 148 | 407 | ||||
Gain on sale of vessels, net | - | - | (8,094 | ) | - | |||
Gain on spin-off | - | (2,800 | ) | - | (2,800 | ) | ||
Adjusted EBITDA | 9,531 | 19,041 | 29,123 | 53,267 | ||||
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") represents the sum of net income / (loss), net interest and finance costs, depreciation and amortization and, if any, income taxes during a period. EBITDA is not a recognized measurement under
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. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. 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
Adjusted Net income / (loss) Reconciliation and calculation of Adjusted Earnings Per Share
(In thousands of
Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |||||
Net (loss) / income | (5,040 | ) | 7,140 | (8,547 | ) | 16,746 | ||
Stock based compensation | 2,474 | 2,920 | 8,601 | 6,762 | ||||
Loss on extinguishment of debt (non-cash) | - | - | 300 | 1,285 | ||||
Loss on forward freight agreements, net | 4 | 335 | 148 | 407 | ||||
Gain on spin-off | - | (2,800 | ) | - | (2,800 | ) | ||
Adjusted net (loss) / income | (2,562 | ) | 7,595 | 502 | 22,400 | |||
Adjusted net (loss) / income – common shareholders | (2,600 | ) | 7,595 | 388 | 22,400 | |||
Adjusted (loss) / earnings per common share, basic | (0.14 | ) | 0.43 | 0.02 | 1.29 | |||
Adjusted (loss) / earnings per common share, diluted | (0.14 | ) | 0.42 | 0.02 | 1.26 | |||
Weighted average number of common shares outstanding, basic | 18,138,600 | 17,570,670 | 18,177,002 | 17,353,902 | ||||
Weighted average number of common shares outstanding, diluted | 18,138,600 | 17,908,986 | 18,177,002 | 17,842,518 | ||||
To derive Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share, both non-GAAP financial measures, from Net Income/(Loss), we exclude non-cash items, as provided in the table above. We believe that Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share assist our management and investors by increasing the comparability of our performance from period to period since each such measure eliminates the effects of such non-cash items as stock based compensation, gain/(loss) on extinguishment of debt, gain/(loss) on forward freight agreements and other items which may vary from year to year, for reasons unrelated to overall operating performance. In addition, we believe that the presentation of the respective measure provides investors with supplemental data relating to our results of operations, and therefore, with a more complete understanding of factors affecting our business than with GAAP measures alone. Our method of computing Adjusted Net Income/(Loss) and Adjusted Earnings/(Loss) Per Share may not necessarily be comparable to other similarly titled captions of other companies due to differences in methods of calculation.
Interest and Finance Costs to Cash Interest and Finance Costs Reconciliation:
(In thousands of
Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | |||||
Interest and finance costs | (5,133 | ) | (4,110 | ) | (15,528 | ) | (10,282 | ) |
Add: Interest income | 150 | 161 | 344 | 183 | ||||
Add: Amortization of deferred finance charges and other discounts | 387 | 641 | 1,861 | 1,916 | ||||
Cash interest and finance costs | (4,596 | ) | (3,308 | ) | (13,323 | ) | (8,183 | ) |
Fourth Quarter 2023 TCE Rate Guidance5:
As of the date hereof, approximately 59% of the Company fleet’s expected operating days in the fourth quarter of 2023 have been fixed at an estimated TCE rate of approximately
- Assuming that for our remaining operating days the average of the BCI will be equal to the average Capesize Forward Freight Agreement (“FFA”) rate of
$15,700 per day (based on the FFA curve as ofNovember 7, 2023 ), our estimated TCE rate for the fourth quarter of 2023 will be approximately$19,480 (“1st scenario” mentioned in the table below). - Assuming that for our remaining operating days the BCI will be equal to the average spot rate incurred from the beginning of the fourth quarter of 2023 at
$23,700 per day, our estimated TCE rate for the fourth quarter of 2023 will be approximately$22,800 (“2nd scenario” mentioned in the table below).
The following table provides the breakdown of index-linked charters and fixed-rate charters in the fourth quarter of 2023:
Operating Days | TCE 1st scenario | TCE 2nd scenario | |
TCE - fixed rate (index-linked conversion) | 460 | 20,494 | |
TCE - fixed rate | 0 | N/A | N/A |
TCE – index-linked | 1,080 | ||
Total / Average | 1,540 | $19,480 | $22,770 |
______________________________
5 This guidance is based on certain assumptions and there can be no assurance that these TCE rate 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 rate realized will vary with the underlying index, and for the purposes of this guidance, in the 1st scenario the BCI rate assumed for the remaining operating days of the quarter for index-linked T/Cs is equal to the average FFA rate of
Third Quarter and Recent Developments:
Dividend Distribution for Q2 2023 and Declaration of Q3 2023 Dividend
On
Continuing its quarterly dividend payments, the Company declared a cash dividend of
Vessel Transactions and Commercial Updates
M/V Titanship - Bareboat Agreement and time charter agreement
On
In
M/V Patriotship - Time charter extension
On
Conference Call:
The Company’s management will host a conference call to discuss financial results on
Audio Webcast:
There will be a live, and then archived, webcast of the conference call available on the Company’s website. To listen to the archived audio file, visit our website, following the Webcast & Presentations section under our Investor Relations page. Participants to the live webcast should register on Seanergy’s website approximately 10 minutes prior to the start of the webcast, following this link.
Conference Call Details:
Participants have the option to register for the call using the following link. You can use any number from the list or add your phone number and let the system call you right away.
Unaudited Condensed Consolidated Balance Sheets (In thousands of | ||||||
2023 | 2022* | |||||
ASSETS | ||||||
Cash and cash equivalents and restricted cash | 22,045 | 32,477 | ||||
Vessels, net and Vessels held for sale | 416,543 | 462,385 | ||||
Other assets | 17,089 | 18,738 | ||||
TOTAL ASSETS | 455,677 | 513,600 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Long-term debt and other financial liabilities | 220,221 | 244,866 | ||||
Convertible notes | 3,076 | 10,833 | ||||
Other liabilities | 14,532 | 36,202 | ||||
Stockholders’ equity | 217,848 | 221,699 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 455,677 | 513,600 |
* Derived from the audited consolidated financial statements as of that date
Unaudited Condensed Consolidated Statements of Operations (In thousands of | ||||||||||||
Three months ended | Nine months ended | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Vessel revenue, net | 23,105 | 32,963 | 68,135 | 95,476 | ||||||||
Fees from related parties | 1,347 | 1,017 | 2,671 | 1,017 | ||||||||
Revenue, net | 24,452 | 33,980 | 70,806 | 96,493 | ||||||||
Expenses: | ||||||||||||
Voyage expenses | (770 | ) | (867 | ) | (2,078 | ) | (3,513 | ) | ||||
Vessel operating expenses | (10,282 | ) | (12,201 | ) | (31,371 | ) | (32,642 | ) | ||||
Management fees | (161 | ) | (324 | ) | (535 | ) | (1,077 | ) | ||||
General and administrative expenses | (6,104 | ) | (4,524 | ) | (16,785 | ) | (13,044 | ) | ||||
Depreciation and amortization | (7,110 | ) | (7,497 | ) | (21,290 | ) | (20,796 | ) | ||||
Loss on forward freight agreements, net | (4 | ) | (335 | ) | (148 | ) | (407 | ) | ||||
Gain on sale of vessel | - | - | 8,094 | - | ||||||||
Operating income | 21 | 8,232 | 6,693 | 25,014 | ||||||||
Other income / (expenses): | ||||||||||||
Interest and finance costs | (5,133 | ) | (4,110 | ) | (15,528 | ) | (10,282 | ) | ||||
Loss on extinguishment of debt | - | - | (540 | ) | (1,285 | ) | ||||||
Interest and other income | 76 | 177 | 958 | 336 | ||||||||
Gain on spin-off | - | 2,800 | - | 2,800 | ||||||||
Other, net | (4 | ) | 41 | (130 | ) | 163 | ||||||
Total other expenses, net: | (5,061 | ) | (1,092 | ) | (15,240 | ) | (8,268 | ) | ||||
Net (loss) / income | (5,040 | ) | 7,140 | (8,547 | ) | 16,746 | ||||||
Net (loss) / income attributable to common shareholders | (5,078 | ) | 7,140 | (8,661 | ) | 16,746 | ||||||
Net (loss) / income per common share, basic | (0.28 | ) | 0.41 | (0.48 | ) | 0.96 | ||||||
Net (loss) / income per common share, diluted | (0.28 | ) | 0.40 | (0.48 | ) | 0.94 | ||||||
Weighted average number of common shares outstanding, basic | 18,138,600 | 17,570,670 | 18,177,002 | 17,353,902 | ||||||||
Weighted average number of common shares outstanding, diluted | 18,138,600 | 17,908,986 | 18,177,002 | 17,842,518 | ||||||||
Unaudited Condensed Consolidated Cash Flow Data (In thousands of | ||||||
Nine months ended | ||||||
2023 | 2022 | |||||
Net cash provided by operating activities | 11,050 | 29,040 | ||||
Proceeds from sale of assets | 23,910 | - | ||||
Vessels acquisitions and improvements | (146 | ) | (38,565 | ) | ||
Finance lease payments | (3,500 | ) | - | |||
Deposits assets, non-current | 1,325 | - | ||||
Investments | - | (10,139 | ) | |||
Term deposits | - | 1,500 | ||||
Other fixed assets, net | (176 | ) | (99 | ) | ||
Net cash provided by / (used in) investing activities | 21,413 | (47,303 | ) | |||
Proceeds from secured long-term debt | 53,750 | 80,300 | ||||
Repayments of long-term debt and other financial liabilities | (79,374 | ) | (57,769 | ) | ||
Repayments of convertible notes | (8,000 | ) | (10,000 | ) | ||
Payments of financing and stock issuance costs | (1,318 | ) | (1,022 | ) | ||
Dividend payments | (5,539 | ) | (13,376 | ) | ||
Payments for repurchase of common stock | (1,583 | ) | - | |||
Payments for repurchase of warrants | (808 | ) | - | |||
Payments for fractional shares of reverse stock split | (23 | ) | - | |||
Proceeds from issuance of common stock and warrants, net of underwriters fees and commissions | - | 70 | ||||
Net cash used in financing activities | (42,895 | ) | (1,797 | ) | ||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||
Cash paid during the period for interest | 13,652 | 8,283 | ||||
Noncash investing activities | ||||||
Vessels acquisitions and improvements | - | 2,765 | ||||
Noncash financing activities | ||||||
Dividends declared but not paid | 491 | 4,548 | ||||
About
The Company is incorporated in the
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
For further information please contact:
Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr
Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1540
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com
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