Friday, March 05, 2021
Seanergy Maritime (SHIP)
Offering Funds Cape Acquisition and Reduces Debt
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.
Equity offering funds acquisition and lowers financial leverage. Recently, 44.5 million shares were issued at $1.75/share to raise approximately $70 million in a well-timed offering. A portion of the proceeds will fund the acquisition of the Tradership, a 2010- built Cape for $17 million. The acquisition is likely to close in early 2Q2021 and the fleet will increase to 12. Debt of $33.6 million will also be repaid early.
Adjusting EBITDA estimates to reflect current dry bulk market conditions and the pending acquisition. Our EBITDA estimates moves to $14.5 million in 2020 (from $15.1 million) based on TCE rates of $12,072/day, and $40.7 million in 2021 (from $33.5 million) based on TCE rates of $17,251/day. Higher rates were counter to normal seasonality in January, but the expected 1H2020 seasonality appears to…
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.
