Thursday, March 03, 2022
Seanergy Maritime (SHIP)
Another Refinancing Completed – Positive Outlook Intact
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 Capesize vessels. Upon delivery of the M/V Dukeship, the Company’s operating fleet will consist of 17 Capesize vessels with an average age of 11.5 years and aggregate cargo carrying capacity of approximately 3,011,083 dwt. The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP”, its Class A warrants under “SHIPW” and its Class B warrants under “SHIPZ”.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Debt refinancing boosts liquidity by $4.3 million. Debt secured by the 2012-built Partnership Cape was refinanced with a sale/leaseback with an eight year term. The Partnership will be sold and leased back in March. The lease of $21.3 million will pay off 210 basis point higher cost debt and boost liquidity by $4.3 million. The lease payments will be $590k/quarter and there is a buyback option of $2.4 million at the end of the lease.
Fine tuning 4Q2021 EBITDA and 2022 EBITDA estimate to reflect higher opex and current market conditions. 4Q2021 TCE rates should be above $35.0k/day, but opex is higher so EBITDA moves to $38.7 million. 1Q2022 forward cover of ~35% included six of 17 Capes fixed at ~$28.0k/day, but 1Q2022 weakness expected with a 2Q2022 pickup. Our new 2022 EBITDA estimate of $101.9 million is based on TCE rates 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.
