Seanergy announced its financial results for the second quarter and six months ended June 30, 2022. The Company also declared a quarterly dividend of $0.025 per common share for the second quarter of 2022.
For the quarter ended June 30, 2022, the Company generated Net Revenues of $32.8 million, a 18% increase compared to the second quarter of 2021. Adjusted EBITDA for the quarter was $17.3 million, a 53% increase compared to $11.3 million in the same period of 2021. Net Income and Adjusted Net Income for the quarter were $5.9 million and $7.1 million a 203% and 187% increase respectively, compared to Net Income of $2.0 million and Adjusted Net Income of $2.5 million in the second quarter of 2021. The daily Time Charter Equivalent (“TCE rate”1) of the fleet for the second quarter of 2022 was $23,251, marking a 16% increase compared to $20,095 for the same period of 2021.
For the six-month period ended June 30, 2022, Net Revenues were $62.5 million, increased by 30% when compared to $48.2 million in same period of 2021. Adjusted EBITDA for the first six months of 2022 was $34.1 million, a 77% increase compared to $19.2 million in the same period of 2021. The daily TCE of the fleet for the first six months of 2022 was $21,207 compared to $18,327 in the first six months of 2021. The average daily OPEX was $6,510 compared to $5,766 of the respective period of 2021.
Cash, cash-equivalents and restricted cash, as of June 30, 2022, stood at $41.4 million. Shareholders’ equity at the end of the second quarter was $233.7 million. Long-term debt (senior loans, convertible note and other financial liabilities) net of deferred charges stood at $257.6 million, while the book value of our fleet stood at $455.0 million.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“Seanergy reported record financial results for the second quarter and the first half of the year. Based on the sustained profitability of Seanergy, we are declaring a quarterly dividend of $0.025 per share for Q2 2022, which represents approximately 63% of our adjusted net income for the period. Over the last three quarters, we will have distributed approximately $18.0 million or $0.10 per share to our shareholders.
“Concerning our results for the second quarter of 2022, our daily TCE was $23,251, marking an increase of 16% compared to the TCE of the second quarter of 2021. The TCE for the first 6 months of 2022 was $21,207 per day as compared to a daily TCE of approximately $18,327 in the first half of 2021. Most importantly, the TCE of our fleet outperformed the Baltic Capesize Index (“BCI”) average in the first six months of 2022 by 17%. Our guidance for the third quarter is $23,650 per day.
“Adjusted EBITDA for the second quarter and first half of 2022 was $17.3 million and $34.1 million, respectively, marking a 53% and a 77% increase versus the respective periods of 2021. Net income for the quarter was approximately $5.9 million, while that of the first half was $9.6 million.
“We also recently completed the spin-off of United, which commenced trading on the NASDAQ Capital Market on July 6, 2022, under the ticker “USEA”. The distribution of all of United’s common shares to our shareholders represents a significant return of value.
“Lastly, concerning our shareholder rewards plan, following the successful execution of two buyback plans of shares and equity-linked instruments totaling $26.7 million, our Board of Directors authorized an additional share repurchase plan of $5 million. Including the aforementioned dividend payments, a total of $44.7 million of the Company’s cash has been allocated to activities which directly reward our shareholders since the fourth quarter of 2021.
“In the second quarter, we concluded the acquisition of another quality Japanese Capesize vessel, replacing the M/V Gloriuship that was spun out to United. The new acquisition, renamed M/V Honorship, was delivered to us in June and immediately commenced its period employment for approximately 2 years with NYK Line.
“On the financing front, in 2022 to-date, we have successfully concluded new financings and refinancings of $80.3 million while obtaining a commitment letter from a prominent European lender for the last remaining loan maturity in 2022. In addition to the replacement of legacy debt at considerably improved terms, one of our new facilities includes a significant sustainability-linked element. This is aligned with our intention to incorporate our ESG agenda in every aspect of our corporation.
“Concerning our fleet developments, we have now successfully completed installations of ballast water treatment systems on 100% of our fleet and have upgraded various vessels by installing Energy Saving Devices. In most cases, these projects are accompanied by agreements with our charterers to increase the daily hire rate, reflecting the improved performance of the underlying vessels, as well as to extend the respective time-charter periods. As a result, we believe our fleet is optimally positioned commercially and operationally.
“Looking ahead, considering the favorable demand and vessel-supply fundamentals of our sector, we are optimistic about the prospects of the Capesize market for the coming years.”