Seanergy announced its financial results for the fourth quarter and twelve months ended December 31, 2021. The Company also announced $5 million additional repurchases of its outstanding 5.5% convertible note and declared a quarterly dividend of $0.025 per share and a special dividend of $0.025 per share.
For the quarter ended December 31, 2021, the Company generated net revenues of $56.7 million, a 166% increase compared to the fourth quarter of 2020. Adjusted EBITDA for the quarter was $38.8 million, from $8.3 million in the same period of 2020. Adjusted net income for the quarter was $27.9 million, compared to net loss of $2.3 million in the fourth quarter of 2020. The daily Time Charter Equivalent rate (“TCE rate”)2 of the fleet for the fourth quarter of 2021 was $36,642, marking a 122% increase compared to $16,511 for the same period of 2020.
For the twelve-month period ended December 31, 2021, net revenues were $153.1 million, increased by 142% when compared to $63.3 million in the same period of 2020. Adjusted EBITDA for the twelve months of 2021 was $90.1 million, compared to an adjusted EBITDA of $15.6 million in the same period of 2020. The daily TCE of the fleet for the twelve months of 2021 was $27,399 compared to $11,950 in the twelve months of 2020. The average daily OPEX was $6,211, compared to $5,709 in the respective period of 2020.
Cash and cash-equivalents, restricted cash, term deposits, as of December 31, 2021, stood at $47.1 million, compared to $23.7 million as of December 31, 2020. Shareholders’ equity at the end of the fourth quarter was $244.5 million, compared to $95.7 million on December 31, 2020. Long-term debt (senior and junior loans and other financial liabilities) net of deferred charges stood at $215.2 million as of December 31, 2021, increased from $169.8 million as of the end of 2020. In the same period, the book value of our fleet increased by 66% to $426.1 million from $256.7 million.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“Seanergy reported its strongest operational year in 2021, earning an adjusted net income of $53.3 million, an adjusted EBITDA of $90.1 million on net revenue of $153.1 million. In Q4 2021, our fleet TCE was $36,642 and our estimated TCE for the first quarter of 2022 is $19,475. Despite the seasonal softening experienced in the first months of 2022, for which we were proactively hedged, the market is already trending higher.
“Consistent with our stated intention to return capital to our shareholders, our board of directors has initiated a regular quarterly dividend of $0.025 per share for the fourth quarter of 2021. In addition, based on the strong financial performance of Q4 2021 we are also declaring a special dividend of $0.025 per share. As a result, the Company will be paying a dividend of $0.05 per share for the fourth quarter of 2021 to all shareholders of record as of March 25, 2022. The fourth quarter dividend of $8.9 million and the $26.7 million in buybacks of convertible notes, warrants and common shares represent an aggregate of $35.6 million in shareholder-rewarding initiatives that Seanergy’s board of directors undertook over the last 4 months. While the amount and timing of any future dividend payments remains subject to the discretion of our board of directors and will be based on our results, investment opportunities and overall market conditions, we remain committed to continue distributing a significant portion of our earnings to our shareholders.
“In 2021 we successfully executed a substantial fleet growth program. Despite the Covid-related hindrance we took delivery of seven high-quality Japanese Capesize vessels, reducing the average age of our fleet. Investment in vessel acquisitions in 2021 totalled approximately $193.2 million.
“Moreover, we have entered into eleven new time-charter agreements with leading charterers in the Capesize sector and all our fleet operates under period employment agreements. We strongly believe this to be the optimal commercial positioning of our fleet.
“On the buyback front, since the fourth quarter of 2021, we have completed a total of $21.7 million in buybacks of convertible notes, warrants and common shares, while an additional prepayment of $5.0 million of convertible note, was effected on March 10, 2022. The ultimate effect of our buyback program will be the prevention of potential dilution by 25.95 million shares. This reflects our firm belief that our share price continues to be significantly undervalued. As previously announced, in 2021 I continued my open-market purchases of Seanergy’s shares, which indicates my strong confidence in the Company.
“New financings and refinancings since the beginning of 2021 total $170.5 million. All transactions concluded in 2021 and to date underscore our stated intention to optimize the capital structure and further reduce our financing expense. In the fourth quarter of 2021 and in the first quarter to-date, we have concluded three new financings of approximately $53.15 million. The new financings include our first sustainability-linked loan in Greece, as well as two transactions with prominent lenders in Taiwan and Japan, strengthening Seanergy’s footing in the Asian ship-financing market. In the same period, we prepaid $50.6 million of our existing financings, including legacy high-coupon facilities, all junior loans and a large part of the convertible notes. The weighted average interest rate across our indebtedness has seen a significantly year-over-year reduction of 128 basis points.
“Regarding our ESG initiatives, we primarily continue to execute on the installation of Energy Saving Devices (“ESDs”) on vessels undergoing scheduled dry-docking. In most cases the selection of the ESDs is done in cooperation with the underlying charterers, following agreement to adjust the index-linked rate to reflect the improved performance of the vessels. At the same time, we have completed biofuel trials in cooperation with two of our closest charterers. The Company’s first ESG report, analyzing material actions that Seanergy has successfully completed to date, as well as the targets set going forward, will be released within 2022.
“Over the past months we have successfully executed on a number of strategic initiatives, which have resulted in Seanergy’s transformation into one of the leading Capesize players in the U.S. capital markets.
“Our outlook for the Capesize market is very positive based on the strong supply-demand fundamentals. Firstly, the record low orderbook coupled with the upcoming environmental regulations, will significantly limit vessel supply. Secondly, the global energy supply shortages, as well as the worldwide stimuli and infrastructure projects will strongly support demand for dry bulk shipping. Given Seanergy’s significant operating leverage, we are well positioned to capitalise on the favourable dynamics of our sector.”