Saturday, March 25, 2023
HomeDry CargoUnited Maritime Expecting Significant Dry Bulk Market Recovery This Year

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

United Maritime Expecting Significant Dry Bulk Market Recovery This Year

United Maritime Corporation, announced its financial results for the fourth quarter ended December 31, 2022 and the period from commencement of its operation on July 6, 2022 to December 31, 2022. The Company also declared a quarterly dividend of $0.075 per share.

For the quarter ended December 31, 2022, the Company generated net revenues of $14.9 million, while EBITDA for the quarter was $38.9 million. Net Income and Adjusted Net Income for the quarter were $36.5 million and $39.8 million respectively. The daily Time Charter Equivalent (“TCE”3) of the fleet for the fourth quarter of 2022 was $32,161.

For the period from commencement of its operation to December 31, 2022, the Company generated net revenues of $22.8 million, while EBITDA for the period was $41.8 million. Net Income and Adjusted Net Income for the period were $37.5 million and $40.9 million respectively, and the daily TCE of the fleet for the period was $28,752, while the average daily OPEX was $7,265.

Cash, cash-equivalents and restricted cash, as of December 31, 2022, stood at $69.9 million. Shareholders’ equity at the end of the fourth quarter was $64.6 million. Long-term debt net of deferred charges stood at $42.6 million, including a cash-collateralized $15.2 million loan tranche which will be collateralized by the two Capesize bulkers in the first quarter of 2023, while the book value of our fleet, including advances paid for the acquisition of the two Capesize bulkers, stood at $50.2 million.

Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:

“We are pleased to report a very profitable first operating period. We generated a net income of $37.5 million in just six months since the Company’s commencement of operations, which represents an amount significantly higher than our current market cap. This was achieved mainly as a result of the optimally timed vessel acquisitions and sales. For the three vessels that we sold, our return on equity exceeded 350% in less than six months.

“Consistent with our commitment to reward our shareholders, we paid a special dividend of $1 per share and completed $6 million in buybacks of common shares, totaling an amount of approximately $13.4 million, or approximately 52% of our current market cap. In addition, we redeemed the $10.0 million convertible preferred shares issued to Seanergy Maritime Holdings Corp. (“Seanergy”) as part of our initial spin-off transaction. All the above add up to approximately $23.4 million in shareholder reward initiatives, a figure which is not far from our current market cap. Finally, our board of directors has decided to initiate a regular quarterly dividend of $0.075 per share for the fourth quarter of 2022, that will be payable in April.

“As regards our financial performance during the quarter, we generated net revenue of $14.9 million. Adjusted EBITDA and Adjusted Net Income for the quarter was $42.3 million and $39.9 million respectively, including a gain of $36.1 million on the sale of vessels. The daily TCE of the fleet for the fourth quarter of 2022 was $32,161 reflecting the solid earnings of the tankers in the subject period, while our only Capesize vessel was earning a fixed daily rate of approximately $28,000 until the end of November 2022. As of the balance sheet date, we had approximately $70.0 million of cash4 and $42.6 million of debt outstanding. Both figures include a cash-collateralized $15.2 million loan, previously secured by the LR2 tanker that was sold. Book value of our vessels stood at approximately $50.2 million, capturing also approximately $12.7 million in advances for the acquisition of the two Capesize vessels. Stockholders’ equity stood at $64.6 million, compared to a market capitalization of $25.5 million as of February 17, 2023.

“As regards United’s next steps, we believe that the most compelling opportunities are currently in the dry bulk space, and we position the Company in order to benefit from the anticipated recovery, into a diversified range of vessel sizes. The recent weakness in the dry bulk market has been driven mainly by temporary factors, while the long-term supply and demand fundamentals remain fully intact and are stronger than what is implied by current vessel market values and spot rates. As the economic reality in China gradually improves towards the second half of 2023, we expect to see a tightening market for Capesize and Panamax vessels in the coming months.

“We have recently agreed to acquire five dry bulk vessels for a total consideration of approximately $98 million5, consisting of two Capesize vessels and two Kamsarmax vessels along with an 18-month bareboat charter agreement with a purchase option for one Panamax vessel built in Japan in 2013. Through these agreements, our fleet will increase to seven vessels and our cargo carrying capacity will be restored to 877.3 thousand tons, funded without diluting our shareholders.

“We strongly believe that the dry bulk market will improve substantially within 2023 and our solid balance sheet will allow us to take advantage of opportunities arising in the market. We intend to follow through on our successful investment strategy, produce strong returns and continue rewarding our shareholders.”

Related Posts

Video

Finance & Economy
Shipping News
Ports

Eva Birgitte Bisgaard steps down as chief commercial officer at Maersk Tankers

Eva Birgitte Bisgaard is stepping down from her role as chief commercial officer at Maersk Tankers. Christian M. Ingerslev, chief executive officer of Maersk Tankers,...

Frontline’s Fredriksen appointed to Euronav supervisory board

Belgium’s Euronav said its shareholders had overwhelmingly voted to elect John Fredriksen of peer Frontline, a major investor that pulled out of a merger...

UBS Likely to Shrink Credit Suisse’s $10 Billion Shipping Portfolio – Report

UBS Group AG will likely shrink Credit Suisse Group’s $10 billion shipping portfolio that it inherited as part of its emergency takeover on Sunday,...

Braemar: Record revenue & profitability

Braemar Plc., a provider of expert investment, chartering, and risk management advice to the shipping and energy markets, announced an update on trading...

Oldendorff Carriers announces change of leadership

Effective today, the board of OLDENDORFF CARRIERS has appointed Patrick Hutchins as the new President and CEO of the company. Patrick succeeds Peter Twiss, who...

Global Goods Trade Softening from 2022’s Record Level

International commerce soared to a record of $32 trillion in 2022, but goods trade...

New Hybrid Ferry ‘P&O Pioneer’ Docks At DP World Limassol For Bunkering

P&O Ferries’ newly commissioned Fusion Class vessel ‘P&O Pioneer’ has docked at DP World...

Baltic index gains as capesize rates rebound

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Minerva puts cost of fuel theft as high as $5.2 bil/year

The bunkering industry is losing as much $5.2 billion of fuel annually to quantity...

Baltic index logs worst day in five weeks on tepid demand for larger vessels

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Drewry: Port Throughput Index Down 4.5% Year-on-Year

The Drewry Container Port Throughput Indices are a series of calendar adjusted volume growth/decline indices based on monthly throughput data for a sample of...

Port of Los Angeles moves 487,846 container units in February

The Port of Los Angeles processed 487,846 Twenty-Foot Equivalent Units (TEUs) in February, a 43% decrease from the previous February’s all-time record. “February declines were...

Piraeus Port Authority: Strong growth in 2022

PPA S.A. announced Full Year 2022 financial results, marking a consecutive year of growth with a turnover of €194.6 million compared to €154.2 million...

WLP welcomes 14 strategic Vietnamese partners to its growing network of international traders

World Logistics Passport (WLP), a Dubai-led global initiative designed to smooth the flow of world trade, has welcomed 14 Vietnamese partners to its global...

Port of Hedland February Iron Ore Exports 2% Down

Pilbara Ports Authority has delivered a total monthly throughput of 54.8 million tonnes (Mt) for February 2023. This throughput was a five per cent increase...