Seanergy Maritime Holdings Corp. SHIP is a leading player in the global shipping industry and specializes in the Capesize sector, which refers to the largest dry bulk carriers in the world. Seanergy currently has a modern fleet of 16 Capesize dry bulk vessels with an average age of 12.4 years and aggregate cargo carrying capacity of 2,846,965 deadweight tons (dwt).
Seanergy recently announced the acquisition of a Newcastlemax dry bulk vessel, expanding its operational fleet to a total of 17 vessels (1 Newcastlemax and 16 Capesize). This acquisition has increased the company's total cargo-carrying capacity to 3,054,820 dwt, further enhancing its presence in the sector.
The company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. Seanergy's recently spun off United Maritime Corp. USEA, demonstrating its growing presence in the industry. Both Seanergy and United Maritime recently released promising financial results.
Seanergy has reported healthy financial results thus far in 2023, maintaining profitability in a weaker-than-expected freight market, looking to showcase strong potential in the industry. The company surpassed expectations by exceeding the Baltic Capesize Index (BCI) by 20% in both the second quarter and first half of 2023. Seanergy's consistent ability to generate higher revenues from its Capesize fleet compared to industry benchmarks could help set it apart from other shipping companies like Hapag-Llyod Aktien LLYD and Matson Inc. MATX.
Demonstrating its commitment to enhancing shareholder value, Seanergy declared a quarterly cash dividend of $0.025 per share for the second quarter of 2023. Over the period since March 2022, the company has distributed a total of $1.325 per share in cash dividends, amounting to $23.9 million. Seanergy has also undertaken stock buybacks of $1.6 million, repurchasing approximately 2% of its issued and outstanding shares. Since November 2021, the company has repurchased various securities, including common shares, convertible notes, and warrants, with a total value of approximately $39.6 million.
In line with its growth strategy, the Newcastlemax acquisition is reported to be made through a 12-month bareboat charter with a purchase option, enhancing the company's fleet and further expanding its capabilities in the dry bulk transportation sector. Additionally, Seanergy has successfully refinanced $53.8 million during the second quarter, leading to improved loan terms and providing the company with an extra $15.0 million in liquidity. This refinancing has also removed any loan maturities until the second quarter of 2025, ensuring increased financial flexibility and stability for Seanergy.
Seanergy’s spinoff company United Maritime has seen similar growth and success, narrowing its loss despite a relatively weak freight market. In the first investment cycle, the company generated substantial returns by selling its remaining LR2 tanker vessel for a gross sale price of $37.5 million, resulting in a notable return on equity of approximately 400%. Additionally, United Maritime's strategic sale and purchase transactions of four tanker vessels generated a combined profit of $48 million in the past year.
Embarking on its second investment cycle, United Maritime is focused on acquiring larger size dry bulk vessels. The company has already secured agreements to purchase two Japan-built Panamax dry bulk vessels and has entered into a bareboat-in charter with a purchase option. These strategic moves are expected to allow United Maritime to capitalize on the growing demand for the dry bulk shipping sector. The aggregate investment of $143.6 million for two Capesize, two Kamsarmax, and three Panamax vessels, has been funded to date through the proceeds from the company’s first investment cycle without diluting its shareholders.
United Maritime has consistently demonstrated its commitment to rewarding shareholders by means of regular cash dividends. In the second quarter of 2023 alone, the company declared a quarterly cash dividend of $0.075 per share, bringing the total cash dividends declared since November 2022 to $1.225 per share, amounting to $9.4 million. Additionally, United Maritime has executed buybacks of approximately $0.2 million common shares in the second quarter of 2023 and has repurchased approximately 3.4 million common shares in the last 12 months at an average price of $1.84, further demonstrating its commitment to enhancing shareholder value.
Speaking on the company’s success, Stamatis Tsantanis the CEO and Chairman, shared, “Despite a challenging and volatile market environment, our financial results for the second quarter of 2023 were profitable… Seanergy is in a favorable position to perform well amidst what we believe is the best Capesize market fundamentals seen over the past three decades and we will continue to be focused on maintaining high shareholder returns and the reduction of our carbon footprint.”
Featured photo by John Simmons on Unsplash
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