Seanergy Returns to Profit in Q3

Nov 8, 2017

Greek dry bulk shipping company Seanergy Maritime Holdings Corp. ended the third quarter of this year with a net income of USD 6.5 million, compared to a net loss of USD 5.9 million reported in the same period a year earlier.

Net revenues for the three-month period rose by 119 percent to USD 18.9 million from USD 8.6 million seen in Q3 2016.

In addition, EBITDA amounted to USD 14.2 million in Q3 2017, against USD -1.2 million recorded in the third quarter of 2016.

“During the third quarter of 2017, the Capesize market continued its improving course that commenced at the beginning of the year. Our fleet benefited significantly from the stronger Capesize rates. In particular, in the third quarter of 2017, the daily Time Charter Equivalent (TCE) rate of our Capesize fleet was USD 11,678, increased by 149% as compared to the same period last year,” Stamatis Tsantanis, Seanergy’s Chairman & Chief Executive Officer, explained.

During the quarter, the company completed a refinancing of one of its Capesize vessels, generating a USD 11.4 million gain and equity accretion.

“Turning to market fundamentals, in 2017 dry bulk charter rates have stabilized at higher levels than in previous years, as the Baltic Capesize Index (BCI) has averaged about 1,839 points year to date, which is 112% higher than the 868 average level recorded in the same period of 2016. Furthermore, the expected annual growth in seaborne transportation of Capesize commodities is estimated at 6% for the years 2017 and 2018 while the Capesize orderbook currently stands at 3% of the existing fleet, which is the lowest point of the last 15 years,” Tsantanis added.

“In the fourth quarter of 2017, 63% of our Capesize operating days are fixed at an average daily rate of approximately USD 15,720 and 65% of our total operating days are fixed at an average daily rate of approximately USD 14,890 as of the date of this release,” he further said.

For the first nine months of this year, the company posted a net loss of USD 3.1 million, compared to a net loss of USD 17.7 million reported in the same period of 2016.

Seanergy currently owns a fleet of eleven dry bulk carriers, consisting of nine Capesizes and two Supramaxes, with a combined cargo-carrying capacity of approximately 1.7 million dwt and an average fleet age of about 8.5 years.

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