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Strong capesize rates benefit Seanergy Maritime in 3Q17

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Dry Bulk,

International Greece-based shipping company, Seanergy Maritime Holdings Corp. has announced its financial results for 3Q17.

For the third quarter ended 30 September 2017, the company generated net revenues of US$18.9 million, a 119% increase compared to 3Q16. For the nine-month period ended 30 September 2017, net revenues were equal to US$50.5 million, up 112% compared to the same period of 2016. As of 30 September 2017, stockholders’ equity was US$41.4 million and cash and cash equivalents, including restricted cash, was US$10.9 million.

Stamatis Tsantanis, the Company’s Chairman & CEO, stated: “During the third quarter of 2017, the capesize market continued its improving course that commenced in the beginning of the year. Our fleet benefitted significantly from the stronger capesize rates. In particular, in the third quarter of 2017, the daily Time Charter Equivalent (TCE) rate1 of our capesize fleet was US$11 678, increased by 149% as compared to the same period last year. For the nine months ended 30 September 2017, the daily TCE rate of our capesize fleet was US$11 017, increased by 153% as compared to the same period last year.”

“This was reflected in our operating results where our adjusted EBITDA1 was US$2.8 million and US$6.3 million for the third quarter and nine months of 2017, respectively. In regards to our profitability in the third quarter of 2017, net income stood at US$6.5 million, as compared to a net loss of US$5.9 million in the same period of 2016,” he continued.

“In addition, we completed the previously-announced refinancing of one of our capesize vessels, generating a US$11.4 million gain and equity accretion. This transaction resulted in a material increase of about 38% of the company’s total equity value. Turning to market fundamentals, in 2017 dry bulk charter rates have stabilised at higher levels than in previous years, as the Baltic capesize Index (BCI) has averaged about 1839 points year to date, which is 112% higher than the 868 average level recorded in the same period of 2016. Furthermore, the expected annual growth in seaborne transportation of capesize commodities is estimated at 6% for the years 2017 and 2018 while the capesize orderbook currently stands at 3% of the existing fleet, which is the lowest point of the last 15 years,” added Tsantanis.

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