Seanergy Benefits from Charter Rates Revival

Driven by significantly improved charter rates, the Marshall Islands-incorporated shipping company Seanergy Maritime Holdings recorded a 125 percent increase in its net revenues during the second quarter of this year. 

Net revenues rose to USD 18.4 million in the quarter ended June 30, 2017, from USD 8.2 million posted in the same period last year.

“In the first half of the year, charter rates recovered significantly from the historical lows of 2016. As expected, our low operating cost structure helped Seanergy achieve positive operating income in the second quarter of 2017 for the first time since rebuilding our fleet in 2015,” Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, commented.

“It should be noted that, although during the first half of 2017 Capesize Baltic daily rates have risen by around 146%, compared to the first half of 2016, they have not yet reached mid-cycle levels relative to historical rates and, for that reason, we are optimistic that rate improvements will continue. Our average Capesize time charter equivalent rate for the second quarter of 2017 was USD 12,720 per day, up 139% as compared to USD 5,315 per day for the second quarter of 2016 and up 54% sequentially from first quarter of 2017,” Tsantanis added.

What is more, Seanergy narrowed its net loss for the period to USD 3.3 million from USD 5.1 million reported in 2Q 2016.

During the second quarter of 2017, the company took delivery of the 2012-built Capesize M/V Partnership, which started its 12-18 month charter with an undisclosed European utility and energy company.

Moreover, the company found work for another Capesize, M/V Lordship for a period of 18-22 months.

On June 27, the company and Maxim Group LLC mutually terminated the equity distribution agreement dated February 3, 2017, pursuant to which Seanergy had sold 2.782,136 common shares for an aggregate amount of USD 2.9 million of gross proceeds. As informed, over the past year, the company has utilized equity offering proceeds to carry out three vessels’ acquisitions and finance the prepayments for the early termination of a credit facility.

In the three-month period ended June 30, 2017, Seanergy regained compliance with Nasdaq minimum bid price requirement.

“Turning to market fundamentals, we expect a steady rise in freight rates and vessel values driven by the increased demand from the end users of dry bulk commodities and the increase in ton-miles resulting from the expansion of volumes along long-haul trades at a time of a historical reduction in fleet growth. We believe Seanergy is well positioned to capitalize on favorable industry trends and we continue to actively pursue additional vessel acquisitions,” Tsantanis concluded.