Seanergy Maritime Holdings Corp. Q4 FY2024 earnings call

• Record Profitability: Seanergy achieved its fourth consecutive year of profitability, with net income in 2024 at $43.5 million compared to $2.3 million in 2023, despite one-off legal expenses from AGM litigation.
• Dividends and Share Buybacks: Declared a cash quarterly dividend of $0.10 per share in Q4 2024, totaling $0.76 per share or $15.6 million in 2024. Repurchased 226,000 shares at an average price of $9.44 in Q4.
• Fleet Expansion: Took delivery of two Japanese-built vessels in 2024, bringing the total fleet to 21 vessels with a carrying capacity of 3.8 million deadweight tons. Invested $138 million in four premium vessels in 2024-2025.
• Capesize Market Outlook: Strong demand for iron ore, bauxite, and coal; limited fleet expansion (net growth ~1.7% in 2024, projected 1.4% in 2025); favorable supply-demand balance.

In the fourth quarter of 2024, Seanergy generated revenues of $41.7 million, with daily TCE rates of $23,200 per day and net income of $6.6 million. For the full year 2024, net revenue surged to $167.5 million, up 50% year over year, with time charter equivalent reaching approximately $25,100 per day. Net income for the full year was $43.5 million, compared to $2.3 million in 2023. Earnings per share rose to $2.12 from $0.12 in 2023. The company's revenue contribution is entirely from its pure play Capesize segment.

• Q1 2025: Indicative time charter equivalent of approximately $13,400 per day.
• 2025 Outlook: Anticipates EBITDA close to $80 million based on current FFA rates. Secured 22% of available days in 2025 at an average gross rate exceeding $22,100 per day.
• Fleet: Focus on strategically fixing vessels at profitable rates to ensure cash flow visibility and maximize shareholder returns.

• Market Volatility: Short-term fluctuations in Capesize rates due to factors like Kamsarmax cannibalization, inventory cycles, and seasonality.
• Operational Risks: Dry docking off-hire days; potential impact of trade wars/geopolitical events on global trade, which could temporarily reduce overall global trade and affect Capesize segments.

Q: How did the short-term rebound in Capesize rates come about?

A: The rebound was due to low congestion in the Kamsarmax market, which led to Kamsarmaxes cannibalizing Capesize cargoes. Also, low fleet speed and limited ship supply contributed, but the initial driver was more effective supply on Kamsarmaxes into the market.

Q: Are the legal and delivery expenses from new vessels one-time?

A: OpEx for new vessels is expected to remain around $7,000 per ship per day. SG&A expenses related to litigation are expected to be lower than 2024, with a good proxy being around $1,500 to $2,000 per vessel per day going forward.

Q: What are expectations for off-hire days due to dry docking?

A: Expect around 20 to 25 off-hire days per vessel during dry docking, with a peak dry docking year for Capesizes as most vessels were built around 2009-2011.

Q: What geopolitical developments are monitored and their impact?

A: Monitors trade wars and GDP growth targets. While a full-blown trade war could temporarily reduce global trade, demand for raw materials remains strong, and the inertia of GDP growth is expected to support demand for Capesize goods.