Seanergy Maritime Holdings Corp. Q1 FY2025 earnings call

Key Points

• Financial results: Revenue of $24.2M, EBITDA $6.6M, net loss $6.8M; cash balance $31M at quarter-end.
• Operational highlights: In February, took delivery of two Capesize vessels; Blue Ship acquired via six-month bareboat charter, May Ship acquired with cash/bank financing, both employed with first-class operators.
• Financing: Concluded $88.1M in transactions to refinance debt of four vessels and fund May Ship acquisition; refinancings remove all debt maturities for next four quarters.
• Commercial: Q1 TCE $13,400, 3% above Baltic Capesize Index; Q2 guidance ~$19,100 based on FFA curve as of May 23; 39% of Q2 fleet operating days hedged at avg $22,700, and one-third of available days hedged for end of year at >$22,000.

In the first quarter of 2025, Seanergy recorded revenue of $24.2 million, EBITDA of $6.6 million, and a net loss of $6.8 million. Cash balance at quarter-end stood at $31 million. The daily time charter equivalent (TCE) was $13,400 in Q1 2025, which was about 3% above the Baltic Capesize Index average. Revenue for the same period last year was $38.3 million with a TCE of $24,100. Adjusted EBITDA was $8 million, and adjusted net loss was $5.2 million.

Guidance

• Q2 guidance: Approximately $19,100 based on prevailing FFA curve as of May 23.
• Expectation to return to profitability in Q2, with TCE levels expected to recover to over $19,000 per day.
• Hedging: 39% of Q2 fleet operating days hedged at avg $22,700, and one-third of available days hedged for end of year at >$22,000.

Risks

• Market volatility: Short-term volatility due to economic sentiment and trade policy uncertainty.
• Weather disruptions: Severe weather affecting Australian exports in Q1 impacted cargo flows.
• Commodity demand fluctuations: Temporary drop in thermal coal imports in China due to high inventories and surge in hydropower.

Q: Would you please walk us through the dry dock schedule?

A: Stavros mentioned approximately seven ships remaining for dry docking this year, with some pushed to first quarter of next year depending on market conditions; expecting around ten to fourteen million in CapEx for dry dockings in second, third, and fourth quarters, around twenty days per vessel, with four vessels already dry docked in 2025.

Q: Could you elaborate on the company's strategic and capital allocation priorities?

A: Stavros stated 2025 would be consistent with 2024, focusing on capital returns, no immediate further acquisitions due to scarce assets in the market.

Q: When ship opportunities arise, are you competing against some of the trading houses, large mining companies?

A: Stamatis mentioned the company has a right of first offer on some ships, and benefits from long-standing relationships with sellers and charters, allowing lucrative chartering agreements.

Q: How are the company's daily OpEx per vessel dropping nicely? Is it quarter-to-quarter variability or something else?

A: Stavros explained OpEx is better viewed on an annual basis, with reduced OpEx as more ships acquired in last three years go through dry dockings with in-house technical management, expecting this trend to continue.

Q: What are the near-term market catalysts for Capesize rates?

A: Stamatis discussed splitting of cargoes, where Panamax Kamsarmaxes took coal cargoes from Capesize vessels due to reduced congestion; miner export projections and expected increase in volumes to meet targets are key catalysts, with upside potential in Capesize rates for the remainder of the year.