Wednesday, March 31, 2021
Seanergy Maritime (SHIP)
Another Acquisition Increases Leverage – Upgrading to Outperform
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.
Another acquisition expands the Cape fleet to 15. Four pending acquisitions should close in 2Q2021. Industry sources reported that a 2012-built 181k DWT Cape was acquired for $29 million. The transaction was formally announced yesterday and the pro forma fleet increases to 15. At TCE rates of $20.0k/day and cash opex of $7.7k/day, each Cape could add EBITDA of ~$2.2 million, or a total of $9.0 million, over 2H2021.
Recent equity offering and new debt should fund the four acquisitions. The first step in financing the acquisitions is a commitment for a $15.5 million five-year term loan secured by the Goodship and Tradership. The other pending acquisitions (Patriotship/Flagship/Hellaship) could be financed with 50% of debt, or ~$42 million …
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.
