Monday, October 04, 2021
Seanergy Maritime (SHIP)
Higher Cape Rates Implies Strong Finish to Year
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.
Refer to the full report for the price target, fundamental analysis, and rating.
Staying positive on Cape market. Cape TCE rates have moved higher due to firm demand based on infrastructure projects and global stimulus programs plus port congestion and coal shortages. At the same time, the order book remains muted, and the January 1, 2023 implementation of new carbon emission regulations (EEXI) could trigger slow steaming that effectively lowers supply. Volatility likely to continue and seasonality should be expected, but Cape TCE rates have been higher than expected.
Increasing 2021 EBITDA estimate to $90.5 million from $75.2 million based on TCE rates of $26.9k/day, up from $23.9k/day mainly due to higher 4Q2021 outlook. Limited change to our 3Q2021E EBITDA of $31.0 million and TCE rates of $31.0k/day. We had been factoring in typical seasonality, but the quarter has started strongly. 4Q2021 visibility has improved with forward cover of >50% with eight Capes …
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.
