• Net Income (Q3 2024): $12.5 million, compared to a net loss of $5 million in Q3 2023.
• Adjusted EBITDA (Q3 2024): $26.8 million, up from $9.5 million in Q3 2023.
• Net Revenue (Q3 2024): $44.4 million, an 80% increase year over year.
• Net Income (Nine Months 2024): $36.8 million, compared to a net loss of $8.5 million in the same period of 2023.
• Adjusted EBITDA (Nine Months 2024): $78 million, up from $29.1 million in the same period of 2023.
• Dividend: $0.26 per share, with a total capital return of approximately $0.30 per share this quarter.
• Cash Reserves (End of Q3 2024): $41.3 million.
• Outstanding Debt (End of Q3 2024): $242.4 million, with a net debt to total assets ratio of approximately 38%.
• Share Buybacks (Year-to-Date 2024): 404,041 shares repurchased at an average price of $9.58 per share, totaling $3.9 million.
• Fleet Size: 19 vessels, with recent acquisitions including the Kaizen ship and the Newcastlemax Titan ship.
• Time Charter Equivalent Rate (Q3 2024): Approximately $26,500 per day, outperforming the Baltic Capesize Index by about 7%.
• Indicative Time Charter Equivalent (Q4 2024): Approximately $23,400 per day.

• Warning! GuruFocus has detected 3 Warning Signs with SHIP.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Seanergy Maritime Holdings Corp (NASDAQ:SHIP) reported a significant turnaround with a Q3 net income of $12.5 million, compared to a net loss of $5 million in the previous year.
• The company declared a dividend of $0.26 per share, reflecting a strong commitment to shareholder returns.
• Seanergy outperformed the Baltic Capesize Index with a Q3 daily time charter equivalent rate of $26,500, surpassing the index by about 7%.
• The company successfully expanded its fleet with strategic acquisitions, including the Kaizen and Titan ships, enhancing its market position.
• Seanergy maintained a solid liquidity position with cash reserves of $41.3 million, supporting operational flexibility and strategic growth.

Negative Points

• The capesize freight market is experiencing temporary softening, which could impact future earnings.
• Seanergy faces a heavy dry-docking schedule in 2025, which may affect operational days and revenue.
• The company has a significant debt load of $242.4 million, with a net debt to total assets ratio of approximately 38%.
• There are potential market disruptions, such as rumors of export bans in Guinea, which could affect cargo flows.
• The company is cautious about newbuild investments due to high costs and uncertain regulatory impacts, which may limit fleet modernization.

Q & A Highlights

Q: Your guidance for operating days during the fourth quarter is above our estimate. Can you provide visibility on the first and second quarters of 2025 regarding off-hire or dry-docking activities? A: We expect approximately six dry dockings next year, with three in the first quarter and one per quarter for the remaining three quarters. We aim to time these during historically softer market periods.

Q: What are your expectations for capital expenditures for the remainder of 2024 and 2025, and any thoughts on acquisitions or sales and leasebacks? A: We are open to strategic acquisitions, possibly announcing one or two ships in the coming quarters. We intend to maintain a healthy balance sheet without exceeding our leverage facility.

Q: Can you explain the decision to increase the dividend from $0.25 to $0.26 despite market rate changes? A: The dividend represents 50% of operating cash flow. We decided not to reserve any amount or account for buybacks due to a strong cash position and decent market coverage, with 40% of days secured at $28,000.

Q: How are you approaching share repurchases relative to maintaining a good level of float in the market? A: We prioritize dividends over buybacks. Buybacks are initiated dynamically when we perceive selling pressure on the stock, but overall, dividends are prioritized.

Q: How is Seanergy addressing emissions reductions and fleet positioning amid regulatory uncertainties? A: We have installed energy-saving devices and telemetry on our ships. We are skeptical about newbuildings due to high costs and minimal improvements over existing vessels. We focus on making existing ships more economical and are taking a wait-and-see approach for future vessel innovations.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.