Seanergy Maritime Holdings Corp. (SHIP) Earnings

Management highlights

• Overall Q1 2026 Performance - Delivered strong results despite Q1 being the seasonally weakest period of the year, highlighting the resilience of the company's pure-play Capesize platform. - Declared the 18th consecutive quarterly cash dividend of 20 cents per share, bringing cumulative shareholder distributions to ~$2.84 per share ($55.6 million) since inception; adjusted DPS for the quarter was 63 cents per share, among the strongest of listed dry bulk peers. - Balance sheet remains strong: cash and restricted cash totaled $68.8 million at quarter-end; total book value of assets was $640 million; shareholders' equity was $289.3 million; total debt (including lease liabilities) was $319.7 million, equal to a 43% loan-to-value ratio based on current fleet market value. • Fleet Renewal and Capital Allocation - Advanced fleet renewal strategy during the quarter: contracted three additional new eco-designed Capesize/Newcastlemax vessels at leading Chinese and Japanese shipyards (with a fourth order placed in April 2026 at Hengli Shipbuilding), and agreed to sell one older Capesize vessel at firm second-hand pricing. - Since launching the program, the company has contracted six modern newbuilds and agreed to dispose of three older vessels, which materially improves fleet quality, fuel efficiency, and long-term earnings capacity. - Financing is already secured for four of the six newbuilds at attractive terms, with $69 million in equity invested from internal funds to date; remaining CAPEX will be comfortably covered by existing cash reserves, vessel sale proceeds, and operating cash flows. • Commercial Operations - The company's index-linked chartering strategy continued to outperform in Q1, with fleet TCE exceeding the BCI 180 benchmark by ~6%. - 45% of available operating days from Q2 2026 through the end of the year are already fixed at average gross rates exceeding $29,000 per day, providing strong earnings visibility while retaining meaningful market upside exposure. • Industry Fundamentals - The Capesize market started 2026 very strongly, driven by high bauxite volumes, counter-seasonal strong iron ore exports, and growing grain trading that reduced tonnage substitution pressure. - Current supply dynamics are supportive: slow vessel speeds during high bunker prices and elevated port congestion reduce effective available vessel supply; more than 20% of the current Capesize fleet (built 2011-2012) is due for mandatory drydocking surveys in 2026-2027, further curtailing available supply. - Long-term, the global Capesize order book is only 13-14% of the existing fleet, while ~9% of the fleet is already 20+ years old; rapid fleet aging means net fleet growth over the next several years will be very manageable, with potential for effective fleet reduction.

Guidance

• Expected Q2 2026 average daily time charter equivalent is approximately $31,430 per day. • Management expects the company to continue generating strong cash flow and earnings through the remainder of 2026 at current forward freight agreement (FFA) levels. • Most newbuild vessels are scheduled for delivery in 2027, which management expects to be a highly favorable point in the market cycle given limited prompt newbuild delivery capacity for 2027-2029. • The company reaffirmed its commitment to maintaining a disciplined leverage approach, targeting an average corporate loan-to-value ratio at or below 50% going forward, matching the current low leverage level. • Management expects vessel operating expenses to hold steady at $7,000 to $7,200 per vessel per day over the next 12-24 months, consistent with 2025 levels.

Segment performance

Synergy Maritime is a pure-play Capesize dry bulk shipping platform, operating a single core business segment focused on dry bulk Cape-sized and Newcastlemax vessel operations. For Q1 2026: net revenues were $43 million (up 77.7% year-over-year from $24.2 million in Q1 2025); adjusted EBITDA was $28.2 million (up 253% year-over-year); adjusted net income was $13.4 million, compared to an adjusted net loss in the prior year period; average daily time charter equivalent (TCE) was $24,200 per day, up from $13,400 per day in Q1 2025. The segment outperformed the BCI 180 benchmark by approximately 6% in Q1 2026. There are no separate reportable product segments.

Risks & headwinds

• Management acknowledges that the current complicated geopolitical environment (including ongoing Middle East conflicts) is a source of uncertainty for global cargo demand and shipping markets. - While supply-demand fundamentals are broadly supportive, future freight rates are inherently tied to volatile global commodity trade patterns that can shift unexpectedly. - Fleet aging and drydocking requirements create near-term supply constraints but also require ongoing capital investment to maintain fleet operability and compliance. - Inflationary pressure on crewing, maintenance, and regulatory compliance costs could push operating expenses higher than projected, though management currently expects costs to remain stable.

Analyst Q&A

• Q: Analyst Liam Burke asked management to elaborate on the sustainability of current strong iron ore and bauxite cargo volumes, and how growing coal consumption is contributing to the favorable rate environment. /

  A: Management stated that iron ore volumes are stable year-over-year, while bauxite volumes are increasing and expected to continue growing. Coal demand has risen sharply driven by restocking in China (30 million tons of inventory building) and broader energy security priorities amid geopolitical tensions. Management added that the biggest support for rates is constrained effective vessel supply from global port congestion, an aging global Capesize fleet, and a low order book that will not offset retiring tonnage over the next several years, leading to a sustainable favorable rate environment.

• Q: Analyst Mark Raikman asked management to explain the tradeoff between locking in multi-year charters for newbuilds (with downside protection) and retaining exposure to potential market upside. /

  A: Management noted that the company's current 20-vessel operating fleet already retains full upside exposure to current strong markets, where Synergy has delivered among the highest TCE and EPS of any listed U.S. dry bulk company. For the ~half-billion dollar newbuild program, management prioritizes long-term investment sustainability: the multi-year charter structure provides downside protection above cash break-even, with 50/50 profit sharing above a ceiling to retain partial upside, which balances risk and reward appropriately for the new investment.

• Q: Mark Raikman also asked about expected operating expense inflation for crewing, maintenance, and regulatory compliance over the next 12-24 months. /

  A: Management expects daily operating expenses to hold steady at $7,000 to $7,200 per vessel per day, consistent with 2025 levels. While the average fleet age is ~14 years and requires ongoing maintenance, Synergy's lower book cost per deadweight ton (from acquiring vessels at lower prices) more than offsets any incremental OPEX required to maintain high vessel quality.

• Q: Analyst Justin Smith asked if Synergy will sustain its current consecutive quarterly dividend payout amid newbuild capital commitments. /

  A: Management reaffirmed that rewarding shareholders is a top priority equal to fleet renewal. The company intends to continue its current dividend practice in line with its established payout formula, subject to operating cash flow levels that management expects to remain strong enough to support both dividends and newbuild investment.