Coming Off A Record-Setting 2024, Seanergy Maritime Says It Is Positioned For More Growth

The capesize dry bulk market is having a moment and Seanergy Maritime Holdings Corp. SHIP is there for it. As a pure-play capesize shipping company, Seanergy reports it is cashing in on a massive surge in freight rates — up 300% since mid-November, skyrocketing from $6,000 per day to $24,000 per day and handily outperforming all other dry bulk sectors. 

That performance isn't going unnoticed. Positioned exclusively in the capesize market — where supply and demand fundamentals are by far the strongest, Seanergy believes it stands out with a balanced strategy of fleet growth and capital returns. Aiming for disciplined fleet expansion and a shareholder-centric approach, the company is confident it has solid potential to grow dividends over time as the capesize market remains strong.

So, what's driving this surge? Tight supply meets booming demand. Seaborne shipments of iron ore, bauxite and coal are climbing, with Brazilian iron ore exports up 6% year-over-year and Guinea's bauxite exports soaring over 15%. In 2024, exports of Brazilian iron ore surged by about 6% year-over-year, while Guinea's bauxite exports grew by over 15%, reports the company. At the same time, capesize fleet growth increased by only 1.7% for all of 2024, according to Seanergy Maritime.

Strength Likely To Carry Into 2025 

It's not only last year that saw a supply/demand imbalance. For 2025, Seanergy Maritime says capesize fleet growth is projected to slow further to 1.4%, setting the stage for an even tighter supply-demand balance this year. 

"We believe that the long-term outlook for capesize demand is robust, driven by rising Atlantic Basin iron ore and bauxite exports, a historically low orderbook and tightening environmental regulations that are expected to restrict capesize supply further," said Seanergy Maritime chairperson and CEO, Stamatis Tsantanis, when the company reported fourth quarter and full-year 2024 earnings earlier this month. 

Stamatis Tsantanis noted that all eyes are on the long-anticipated Simandou iron ore project in Guinea, which is set to kick off this year and which he expects to significantly boost ton-mile demand further. 

On top of that, the industry, and Seanergy in particular, could potentially benefit from surging energy needs across the globe, particularly in emerging economies, as technology-driven industries such as AI, data centers and semiconductor manufacturing require significant base-load power. 

Record-Setting Earnings Year

All of that was on display when Seanergy reported full-year 2024 results that showed 

a 52% increase in net revenue to $167.5 million and adjusted EBITDA of $98.4 million, compared to $53.0 million for the same period a year ago. Net income of $43.5 million, compared to $2.3 million for all of 2023, set a record for the shipping company. 

Meanwhile, the daily Time Charter Equivalent (TCE) rate for the year was $25,063, up from $17,501 in the same period last year. The company ended the year with $34.9 million in cash, cash equivalents and restricted cash. For the fourth quarter, Seanergy posted a 6% increase in net revenue to $41.7 million. Seanergy credits that with its focus and efficiency, saying it enables the company to generate what it calls "substantially superior results" compared to industry peers. 

For the first quarter the company expects TCE to be about $13,400 per day, which is reflective of the typical seasonal softness in the first three months of the year but is still 44% above the year-to-date BCI average of approximately $9,300 per day, reports Seanergy. The company says its fixed-rate charters are at $22,100 per day, outperforming spot levels.

Rewarding Shareholders And Investing For The Long Haul

In addition to setting records for all of 2024, Seanergy rewarded shareholders by declaring a cash dividend of $0.10 per common share for the fourth quarter of 2025 payable on or about April 10, 2025, to all shareholders of record as of March 27, 2025. Seanergy's dividend yield on a forward basis is 6%, much higher than Diana Shipping which is at 2%. 

To further benefit shareholders, the company also repurchased 115,000 common shares in the fourth quarter at an average price of $8.52 per share. Since kicking off its share repurchase program in December 2023, Seanergy has repurchased 532,411 common shares for $4.9 million. 

Seanergy says its long-term investment strategy drives its success and strengthens its commitment to shareholders. The company's growth strategy is focused on expanding its fleet and at the same time maintaining a healthy balance sheet. That appears to place it in a strong position to capitalize on growing demand.

It doesn't hurt that the global capesize bulk carrier market is projected to reach $112.7 billion by 2032, growing at a CAGR of nearly 7%. In addition to the demand to ship commodities in bulk, Seanergy believes it is poised to benefit from stricter environmental regulations that require more fuel-efficient and environmentally friendly cargo ships. That's a sweet spot for Seanergy. After all, since the second quarter of 2024, Seanergy has poured $138 million into four capesize vessels. It now reports a fleet of 21 units. 

"This strategic expansion further strengthens our profitability and cash flow generation potential, allowing us to continue capitalizing on the strength of the capesize market," says Tsantanis. 

With demand for bulk shipping rising thanks to growth in the commodities market and with limited vessels to handle the shipments, Seanergy seems to be positioning itself to benefit. It’s adding to its vessel count, keeping costs in line and rewarding shareholders. With more to come in 2025, this is one company that appears to be setting sail for unchartered territories.

Seanergy Maritime Seeks To Boost Growth With New Bond Issue 

The company is taking a big step to fuel its growth by arranging fixed-income investor meetings in the Nordic bond market starting March 28, 2025. This could lead to a four-year USD-denominated senior unsecured bond issue, depending on market conditions.

The company plans to use the proceeds for general corporate purposes, including debt refinancing and expanding its fleet. As Seanergy continues to benefit from the strong demand in the Capesize shipping market, the company says this move will give it additional flexibility to take advantage of future growth opportunities.

With record-setting financial results recently and what it says is a solid market position, Seanergy Maritime is confident it is well on its way to maintaining momentum in 2025.

United Maritime Expands And Rewards Investors

Seanergy Maritime reports that while it enjoys a dominant position in the market as a prominent pure-play Capesize shipping company, its spin-off, United Maritime Corp. USEA, is also capitalizing on shipping's momentum with its fleet enhancements, financial positioning and consistent shareholder rewards.

United Maritime, which focuses on diversified dry bulk shipping, is playing its own game by optimizing its fleet and maintaining a disciplined financial strategy. The company wrapped up 2024 with a series of strategic moves, including acquiring a modern 2016-built Kamsarmax dry bulk vessel while offloading its oldest Capesize ship, built in 2004. The company believes this balance of renewal and efficiency positions United to ride the long-term demand for bulk commodities.

A Payout Streak That Keeps On Giving

United isn't just expanding — it's also rewarding its investors. The company declared its ninth consecutive quarterly cash dividend, keeping its promise to shareholders with a $0.01 per share payout for Q4 2024. Since November 2022, United has distributed a total of $1.61 per share in dividends — amounting to $12.8 million in total payouts — a noteworthy return relative to its market cap, which stands at around $12 million.

Strengthening The Balance Sheet For Future Growth

On the financial side, United is making moves to reinforce stability. The company secured $48.3 million in financing during 2024, helping it lock in favorable purchase options on two Panamax vessels — another step in optimizing its fleet for efficiency and profitability. And with no debt maturities until Q4 2026, United has breathing room to maneuver in an increasingly dynamic shipping market.

As the global dry bulk sector potentially benefits from rising commodity demand and a constrained fleet supply, United Maritime is positioning itself to capture the upside. With fleet enhancements, shareholder rewards and a disciplined financial approach, this small-cap shipping player is confident it is navigating strong tailwinds into 2025.

Featured photo by Seanergy Maritime Holdings Corp.

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