This Shipping Company Just Posted Record Numbers as the Dry Bulk Sector Moves

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Seanergy Maritime Holdings Corp. SHIP, an international shipping company that engages in the seaborne transportation of dry bulk commodities, mostly iron ore and coal, through capesize vessels, posted 3rd quarter record earnings.

The company generated gross revenues of $50 million, a 146% increase compared to the 3rd quarter of 2020. Adjusted EBITDA for the quarter was $32.2 million, up 312% from $7.8 million in the same period of 2020. Net income for the 3rd quarter was $20.1 million, an increase of 459% from $3.6 million in the 3rd quarter of 2020. 

“I am very excited to announce our financial results for the 3rd quarter and 9-month period that ended on Sept. 30, 2021, marking a record profit for Seanergy since we started acquiring our current fleet in 2015,” Seanergy Chairman and CEO, Stamatis Tsantanis, said. “The exceptional financial performance of our company is attributed to the combination of the well-timed acquisitions that we executed in the past year as well as the highest dry bulk market of the last decade.”

For the 9-month period ended Sept. 30, gross revenue was $100 million, an increase of 130% over the $43.5 million reported during the same period of 2020. Adjusted EBITDA for the first 9 months of 2021 was $51.4 million, up 602% compared to an adjusted EBITDA of $7.3 million in the same period of 2020.

Cash and cash equivalents as of Sept. 30, stood at $52.6 million. Shareholders’ equity at the end of the 3rd quarter was $222.3 million, more than double compared to $95.7 million on Dec. 31, 2020. Long-term debt net of deferred charges stood at $204.6 million as of Sept. 30 from $169.8 million at the end of 2020.

Book value of Seanergy's fleet, totaling 17 ships, increased by 55% to $396.8 million from $256.7 million as of December 31, 2020. Seanergy states that the fleet’s market value increased from $195 million to more than $530.

The company invested about $200 million in 2021 for 7 Japanese-built Capesize vessels with an average age of 11 years. 

The most recent acquisition was the 2010-built M/V Dukeship. Despite the ongoing port restrictions due to the pandemic, Seanergy says it took timely delivery of 2 Capesize vessels during the 3rd quarter and delivered the M/V Leadership to its new owners. The total investment has been fully funded by Seanergy’s cash reserves, as well as its new financing arrangements.

Compared to competitors such as Eagle Bulk Shipping Inc. EGLE, Diana Shipping Inc. DSX, Navios Maritime Holdings Inc. NM, EuroDry Ltd. EDRY, Seanergy believes that it has some distinct advantages, such as:

1. Consistent top-and bottom-line growth on its income statement. 
2. Manageable debt load in relation to increased cash flow generation capacity.
3. A balance sheet with sizeable cash reserves and a solid equity position.
4. High capital investments, which may be set to create revenue growth and accretive returns to shareholders, as explained in its earnings release.

With supply-chain bottlenecks in nearly every industry and the demand for energy and iron ore increasing, Seanergy Maritime believes it is in a prime position to harness growth for years to come.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.