Movers and SHAKERS
Seanergy Maritime (SHIP)
Fine tuning 2020 EBITDA Estimate
Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. Seanergy Maritime Holdings Corp. is the only pure-play Capesize shipping company listed in the US capital markets. Seanergy provides marine dry bulk transportation services through a modern fleet of 10 Capesize vessels, with total capacity of approximately 1,748,581 dwt and an average fleet age of about 9.8 years. The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company's common shares trade on the Nasdaq Capital Market under the symbol "SHIP" and class A warrants under "SHIPW".
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
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Updating 2020 EBITDA estimate. We are moving our 2020 EBITDA estimate to $19.8 million to reflect updated TCE rate guidance based on voyage charters that shift some revenue out of 3Q2020 into 4Q2020. Our revised EBITDA estimate also includes the delivery of the Goodship in August and the fixing of the Lordship at $22,000/day for the months of September and October. We also incorporated the likely impact of voyage charters on four vessels (Fellowship, Geniuship, Goodship, and Leadership) on the next two quarters. This accounting treatment does not impact the overall profitability of the voyage charter, but it creates a timing issue. As a result, our EBITDA estimate is lower at $8.2 million in 3Q2020, but higher at $12.7 million in 4Q2020. While there is no impact on our EBITDA estimate, a $5.6 million gain on the July refinancing will be recognized in 3Q2020.
Financial leverage and refinancing risk remain high. While significant capital was raised in 2Q2020 and a total of $59.9 million of debt has extended/refinanced this year, the capital structure remained highly levered. More importantly, total debt of ~$64 million matures before year end 2020; bank debt of ~$38 million, related party debt of $23.4 million and related party convert debt of ...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.