Seanergy Maritime Counts on Higher Capesize Rates in Next Two Years

Greek owner Seanergy Maritime is relying on higher charter rates in the second half of 2019 after widening its loss in 2018.

The company reported a net loss of USD 21 million for 2018, as opposed to a net loss of USD 3.2 million in 2017.

Net revenues reached USD 91.5 million for the year, representing an increase of 22% compared to USD 74.8 million seen in 2017.

“During the full year of 2018, the earnings of our fleet benefited from the stronger Capesize market of the second half of the year,” Stamatis Tsantanis, the company’s Chairman & Chief Executive Officer, stated.

Daily time charter equivalent (TCE) rates for the twelve months of 2018 stood at USD 13,156, increasing by 27% from USD 10,395 in 2017.

The company also succeeded in becoming the only pure-play Capesize company listed in the US capital markets in 2018 as it sold its final two Supramax vessels in November 2018. Seanergy additionally expanded its fleet last year by acquiring the Korean-built Capesize M/V Fellowship.

“We remain optimistic about the Capesize market in 2019 and 2020, despite the recent temporary market slowdown,” Tsantanis said.

“The drastic reduction of new vessel deliveries in combination with the fleet disruptions from the implementation of the new environmental rules as well as the anticipated installation of scrubbers, especially in bigger vessels such as Capesizes, are expected to lead to a significant tonnage supply contraction and in turn, to higher charter rates in the second half of 2019.”