The following is a summary of the Seanergy Maritime Holdings Corp. (SHIP) Q3 2024 Earnings Call Transcript:
Financial Performance:
Seanergy reported a Q3 net income of $12.5 million and adjusted EBITDA of $26.8 million, compared to a prior year's Q3 net loss of $5 million and adjusted EBITDA of $9.5 million.
For the first nine months, net income was $36.8 million with an adjusted EBITDA of $78 million.
The Board of Directors approved a dividend of $0.26 per share and continued share buybacks, with an annualized yield of approximately 11.1%.Quarterly buybacks amounted to $1 million with a total capital return per share of approximately $0.30.
Business Progress:
Seanergy completed strategic acquisitions, adding the 2012 built Kaizenship, and exercised a purchase option on the 2011 built Titanship.
Secured 40% of Q4 days at a fixed rate of $28,000 daily, above the current spot rate of approximately $15,300.
Locked in earnings for 2025 for two vessels at an average rate of $24,000 per day, with additional profit sharing provisions.
Managed a robust financing strategy, including a new $34 million loan facility and a $28.5 million sale and leaseback agreement for the Kaizenship acquisition.
Opportunities:
Seanergy's Capesize market trends are favorable, with a focus on returns through dividends and share buybacks combined with strategic fleet growth.
Positioned to capitalize on increased cargo flows and the Simandou iron ore project expected to boost Capesize demand by 2026.
Risks:
Potential short-term market fluctuations due to inventory cycles, weather conditions, and disruptions like the rumored export ban in Guinea which could affect the Capesize market dynamics.
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