Seanergy Marine, United Maritime provide financial update

Seanergy Maritime Holdingsreported a fourth-quarter net profit of $10.8 million, a significant increase from $0.5 million in the previous year. The company’s revenue also grew to $39.4 million compared to $28.5 million for the same quarter last year. Despite a very volatile Capesize market, Seanergy’s daily time charter equivalent outperformed the Baltic Capesize Index by 7% in 2023. For the first three months of 2024, the company is projecting a TCE of $23,219 per day. During the full-year period, they recorded a net income of $2.3 million, while their fleet’s average daily rate was $17,501, exceeding the Baltic Capesize Index average of $16,389. Seanergy says its consistent ability to generate higher revenues from its Capesize fleet compared to industry benchmarks sets it apart from other shipping companies like Hapag-Llyod Aktien and Matson Inc. In the first quarter, experiencing the strongest start for the Capesize market since 2011, Seanergy reports it has capitalized on the surge in freight futures prices. Seanergy has utilized the freight futures market to fix the rates for approximately half of its ownership days in the second quarter at around $28,300 per day, securing strong cash flow and profitability. In February 2024, Seanergy acquired a 2013 Japanese-built Capesize dry bulk vessel with a capacity of 181,392 deadweight tons, which will be renamed M/V Iconship. The purchase price was $33.7 million, however, the value of the bulker has increased to $38 million since. Seanergy’s spin-off company, United Maritime Corporation completed a sale-and-leaseback transaction to generate liquidity and potentially expand its fleet of bulkers. The transaction allowed United Maritime to refinance an existing $13 million loan facility. The six-year lease gives United Maritime options to repurchase the vessel after the first two years, with ownership transferred at no additional cost. In 2023, United Maritime successfully regrew its fleet, continuing the shareholders’ reward program, and managed to record a positive bottom line. The net revenues for 2023 were $36.1 million, which increased by 58% compared to 2022, but so did voyage expenses, interest and finance costs. As a result, their fleet earned an average daily TCE rate of about $15,400 in 2023, compared to $28,800 in 2022. United Maritime recorded $11.6 million in net revenues, with adjusted EBITDA at $4.6 million for the fourth quarter. Despite the quarterly loss of $0.7 million, United Maritime maintained the dividend of $0.075 per share, reflecting a solid 11% annualized yield. United Maritime anticipates that the fleet’s daily TCE earnings could see additional growth if the physical market aligns with the forward curve for freight rates this quarter. Furthermore, it is securing higher rates for some of the ownership days in the second quarter compared to those achieved in the first quarter