Seanergy Maritime Holdings Corp. Q3 FY2025 earnings call

• Seanergy delivered a profitable third quarter driven by the strength in the Capesize market. - Declared a cash dividend of $0.13 per share for the quarter, with total 2025 distributions at $0.23 per share, reaffirming commitment to shareholder returns. - Expiration of Class E warrants strengthened the capital structure. - Placed first newbuilding order, an 181,000 deadweight Capesize at Hengli shipyard, priced at ~$75 million with delivery scheduled for 2027. - Sold and delivered a vintage Capesize ship for $21.6 million, releasing net liquidity. - Vessels secure premium employment with top-tier charterers, and time charter equivalent outperforms the BCI, demonstrating the strength of the larger vessel commercial model.

In the third quarter, Seanergy achieved a profitable result with net revenue reaching approximately $47 million, adjusted EBITDA of $27.5 million, and net income totaling $12.8 million. For the first nine months of 2025, net revenue stood at $108.7 million, adjusted EBITDA was $52.8 million, and net income was $8.8 million. The company's Capesize and Newcastlemax segment contributed to these figures, with the fleet of 20 large vessels positioned to benefit from the robust Capesize cycle, and revenue contribution from the Capesize market being a key driver.

• Anticipates profitability to strengthen meaningfully in the fourth quarter supported by fixtures at higher levels. - In the process of concluding a financing package for the newbuilding with competitive structure and favorable interest margins. - Has a clear debt maturity profile through 2026 with no balloon repayments before that period, providing financial flexibility.

• Fluctuations in the Capesize market could impact earnings performance. - Fleet aging with 7% of the fleet above twenty years and 30% above fifteen years may affect operational efficiency. - Delays in newbuilding delivery or issues with shipyards could disrupt the fleet renewal strategy.

Q: How do you anticipate growing the fleet, whether by adding new builds or secondhand vessels?

A: We are constantly in the market seeking opportunities in both new builds and secondhand vessels, being selective, and will disclose more details in the coming weeks.

Q: If China's steel production returns to historical growth rates, will it increase optimism for 2026?

A: We are very optimistic about demand for iron ore, coal, and bauxite. The Simandou project and supply side factors like record low fleet growth and a large portion of the fleet being old support greater optimism rather than just the demand narrative.

Q: Regarding the new build contract payments, can you elaborate?

A: 45% of the contract price is expected to be paid over the next twelve months, and the remaining 55% at delivery in 2027. We are liable for approximately 25% of the contract price from our own cash reserves, and these installments are expected to be paid in 2026.

Q: On commercial updates and pricing power, how is it?

A: We tend to agree on extensions for a period of about twelve to fourteen months for charters. We have no concern about renewing charters thereafter and have pricing power through conversions that allow us to secure certain cash flows.

Q: What led to choosing a new build over secondhand vessels?

A: When secondhand prices of older vessels surged, it made the decision to go for a new build more attractive as we could avoid overpaying for secondhand assets that weren't overly modern.

Q: On the cost of debt, what is the expected interest rate?

A: The average cost of debt is closer to 5.5%, below 6%, due to recent financings with favorable margins and ongoing negotiations for lower interest rates.