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Seanergy Maritime (NASDAQ:SHIP) & Spinoff United Maritime Q1 Financial Results: Both Companies Announce Dividends And Expect Improved Profitability Based On Positive Sector Outlook

GLYFADA, GREECE / ACCESSWIRE / June 13, 2023 / Seanergy Maritime Holdings Corp. (NASDAQ:SHIP), the only pure-play Capesize shipping company listed on U.S. markets, has released its Q1 financial results and issued a share dividend of $0.025 per share. Its spinoff, United Maritime Corp., also released Q1 financial results, with a share dividend of $0.075 per share.

Seanergy Maritime Holdings Corp., Tuesday, June 13, 2023, Press release picture

Despite what the company described as a seasonally weak quarter, Seanergy outperformed the daily average of the industry Baltic Capesize Index ("BCI") of $9,144, achieving a daily Time Charter Equivalent (TCE) of $11,005. The company attributes these remarkable results, in part, to the quality of its vessels and its strategic hedging.

Despite the seasonally weaker quarter, Seanergy demonstrated resilience, with an adjusted net loss of $0.3 million and cash and cash equivalents amounting to $20.5 million as of March 31, 2023. The company maintains a positive outlook for the rest of 2023, as evident by the board's approval of the latest share dividend. With this decision, the total cash dividends now amount to $1.30 per share, or $23.4 million declared since March 2022, in addition to dividends from the successful spinoff United Maritime.

The company reports it was also able to weather the short-term uncertainty because of its balance sheet position, with a loan-to-value ratio (LVT) below 50%. Capitalizing on its financial stability, the company anticipates a substantial surge in its daily TCE increasing in Q2 to around $18,850, up almost $8,000 from Q1.

Commenting on the Q1 reports, the company's Chairman and CEO, Stamatis Tsantanis said, "Seanergy is well positioned to benefit from the positive trend in the Capesize market. We are focused on seeking opportunities to modernize our fleet and improve our carbon footprint, while maintaining our focus on shareholder returns, as evidenced by the high levels of shareholder rewards, through securities buybacks, the United spin-off and shares distribution and cash dividends, attained over the past two years."

Seanergy Spinoff Also Releases Q1 Financial Results

Seanergy spinoff United Maritime also published its financial results for Q1 of 2023. United Maritime is an international shipping company that specializes in global seaborne transportation services. While growth over the quarter was relatively slow due to the company's strategic transition from tanker to dry bulk shipping, United Maritime anticipates rapid growth in its bottom line going forward as its new fleet is now fully delivered and under employment contracts with good counterparties.

Overall, the company had an adjusted net loss of $3.7 million, with cash and cash equivalents at $20 million as of March 31, 2023. The company sold three of its tankers at the end of 2022 and began its purposeful transition toward a dynamic dry bulk fleet. Notably, the company has successfully secured agreements totaling $126 million for the acquisition of six vessels, comprising two Capesize vessels, two Kamsarmax vessels and two Panamax vessels. This investment in expanding its fleet shows the company's commitment to capturing growth opportunities in various sectors with a positive outlook within the maritime sector.

Navigating through a planned drydocking phase during a significant portion of Q1, the company proactively conducted a special survey for its remaining tanker. As a result, the Time Charter Equivalent (TCE) for Q1 was $10,294 per day. However, with the completion of the tanker's survey, and the commencement of transportation by a fleet of dry bulk vessels, the company anticipates a robust performance in Q2. Projections indicate an estimated daily net TCE for Q2 of approximately $18,000, representing an impressive surge of 75% compared to Q1.

A Dividend, And Strong Dry Bulk Market

As United Maritime anticipates growth from its dry bulk fleet, plus profits from the sale of its remaining tanker, it maintained its commitment to distribute regular dividend payments of $0.075 per share. Over the past six months, these dividends have accumulated to $1.15 per share, translating into an aggregate shareholder reward of $14.7 million which represents 62% of the company's market capitalization as of May 16, 2023.

"Looking forward, on a fully-delivered basis, we will operate a fleet of seven dry bulk vessels and one tanker vessel, with moderate levels of leverage and satisfactory levels of liquidity, allowing us to focus on further growth opportunities as well as shareholder rewards," said Stamatis Tsantanis, the company's Chairman and Chief Executive Officer (CEO).

After a successful turnover of United's initial fleet that has generated solid returns to its shareholders, it has now regrown its fleet without resorting to share capital increase i.e. without diluting its shareholders.

United Maritime aims to be a unique value play in the public shipping space targeting high and immediate shareholder returns through optimally timed sale & purchase transactions.

Though there have been some setbacks for the dry bulk shipping industry due to China's slow post-Covid reopening, the 10-year forecast for the market is one of positive growth. The global market was worth $280.4 billion in 2022. It is predicted to grow at a compound annual growth rate (CAGR) of 8.7% over the next eight years, reaching a value of $509.6 billion by 2031.

There is an optimum position for United to take advantage of another rising market cycle deriving from strong demand for raw materials over the historically low investment in new vessels.

Commenting on the company's planned shift toward dry bulk vessels in 2022, Tsantanis said, "We strongly believe that the dry bulk market will improve substantially within 2023 and our solid balance sheet will allow us to take advantage of opportunities arising in the market. We intend to follow through on our successful investment strategy, produce strong returns and continue rewarding our shareholders… Considering the favorable fundamentals of the dry bulk market and the solid financial and commercial standing of United, we remain optimistic that the quarterly cash dividend we have paid for the previous two quarters can be sustained or increased during the rest of the year."

Other shipping companies include Hapag-Llyod Aktien and Matson Inc.

Want to learn more about Seanergy Maritime Holdings Corp. and United Maritime Corp.? Visit Seanergy's website here and United's website here.

Featured photo by Luke Blazek on Unsplash.


Xeni Petrogianni

SOURCE: Seanergy Maritime Holdings Corp.

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