Seanergy Maritime Holdings Corp. announced its financial results for the second quarter and six months ended June 30, 2018.
For the quarter ended June 30, 2018, the Company generated net revenues of $16.8 million, an 8% decrease compared to the second quarter of 2017. For the six-month period ended June 30, 2018, net revenues were $38.1 million, up 20% from the first half of 2017. As of June 30, 2018, stockholder’s equity was $28.6 million and cash and cash equivalents, including restricted cash, was $13 million.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“During the first half of 2018 our efforts were primarily focused on improving our liquidity and capital structure. We refinanced successfully two Capesize vessels that were acquired in 2016, achieving a capital release of approximately $10 million. In addition, the value appreciation of our fleet combined with the uninterrupted servicing of all of our loan facilities has led to an increase of our net asset value. Finally we expanded our banking relationships further in the Chinese market, establishing Seanergy as a key business partner of a major Chinese financing institution.
“Our results for the second quarter of 2018, were affected by the seasonal weakness of the Brazilian exporting volumes and other temporary adverse conditions of the Capesize market. Since the beginning of the third quarter, the market has recovered significantly reflecting the very strong fundamentals of the Capesize sector.
“We expect that the positive momentum will continue going forward and that the market will rise further towards the historical averages. In the third quarter of 2018 our Capesize vessels have been fixed for 73% of their ownership days at a TCE of approximately $23,420, while our fleet has respectively been fixed for 77% of its ownership days at a TCE of approximately $20,680. This represents a 133% increase compared to the 2Q18 TCE.
“We are very optimistic for the market conditions for the remaining of the year. Demand for seaborne transportation of iron ore and coal will exceed its initial expectations, while fleet growth is negligible. Beyond the current year, we expect that the limited newbuilding ordering activity seen recently and the implementation of the IMO 2020 regulations will contribute to sustained strength in the Capesize market for the next years.
“As a final note, we are continuously pursuing transactions that will increase our net asset value, enhance our shareholders value and ensure our compliance with the upcoming environmental regulations.”
Highlights of the Second Quarter of 2018:
- Net revenues: $16.8 million in Q2 2018, down 8% compared to $18.4 million in Q2 2017
- EBITDA1: $1.9 million in Q2 2018, as compared to an EBITDA of $3.5 million in Q2 2017
- Net loss: $8.9 million in Q2 2018, as compared to a net loss of $3.3 million in Q2 2017
Highlights of First Half of 2018:
- Net revenues: $38.1 million in the six months ended June 30, 2018, up 20% compared to $31.7 million in 2017
- EBITDA: $6.5 million in the six months ended June 30, 2018, up 86% as compared to an EBITDA of $3.5 million in 2017
- Net loss of $12.3 million in the six months ended June 30, 2018, as compared to a Net loss of $9.6 million in 2017
- Stockholder’s equity of $28.6 million, up 18% compared to $24.3 million at June 30, 2017