Seanergy Maritime Holdings Corp. Q2 FY2025 earnings call

• The Capesize market rebounded in the second quarter with the Baltic Capesize Index averaging $18,700, up from $13,000 in the first quarter.
• In Q2, net income was $2.9 million on net revenues of $37.5 million, driven by stronger TCE. For the first half, net revenue was $61.7 million with a net loss of $4 million but positive operating cash flow of $16.2 million.
• Closed Q2 with 21 Capesize vessels, took delivery of two newly acquired vessels, and completed financing/refinancing transactions totaling approximately $110.6 million.
• Commercial strategy involves index-linked and fixed rate charters to balance upside potential and stability; 52% of Q3 operating days fixed at $22,400/day.
• Balance sheet: cash position $25.4 million, debt-to-capital ratio marginally above 50%, total shareholders' equity $258 million.

In the second quarter of 2025, Seanergy recorded a net income of $2.9 million on net revenues of $37.5 million. For the first 6 months of 2025, net revenue totaled $61.7 million with a net loss of $4 million. The second quarter Capesize average time charter equivalent (TCE) was approximately $19,800 per day, and for the first half, it stood at $16,700 per day. The Capesize segment's revenue contribution is tied to the performance of iron ore, bauxite, and other cargoes, with the market showing resilience despite macroeconomic uncertainty.

• Confident Capesize market remains fundamentally strong with low newbuilding order book and increasing Atlantic Basin shipments supporting charter rates.
• Anticipate further financial improvement in the second half due to seasonally stronger period and hedged fleet; expect Q3 TCE ~$23,100/day based on FFA rates.
• Cautiously optimistic about achieving full-year profitability despite first half net loss, with ongoing investment in fleet and dynamic hedging strategy.

• Macroeconomic uncertainty and trade policies could impact freight rates.
• Dry dockings result in off-hire days affecting earnings.
• Limited secondhand and newbuilding opportunities for fleet growth, making fleet renewal challenging.

Q: Coal imports in China have declined, why is the Capesize segment showing resilience with regards to China?

A: Slight decrease in coal volumes into China was compensated by higher iron ore and bauxite shipments.

Q: Could you talk about your strategy going forward regarding locking up rates?

A: We will continue locking in rates dynamically, ranging from 25% to 75% of the fleet depending on circumstances, while managing dry dockings.

Q: Is bauxite a large portion of your fleet's cargo?

A: Bauxite is relatively balanced, with around 20% of the fleet transporting bauxite, 40% iron ore, and 40% coal.

Q: Is there still available financing today compared to last year?

A: There are still lots of available financing alternatives, with interest from many lenders both existing and new.

Q: How does the aging fleet and low order book affect fleet growth?

A: Limited sell and purchase opportunities in secondhand market, and newbuild market not favorable unless structured products are available.

Q: What affects operating cash flow?

A: Mainly timing of working capital and payments for dry dockings.