Friday, March 19, 2021
Seanergy Maritime (SHIP)
Staying on Growth Path With Two New Acquisitions
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.
Cape fleet expanding to 14 with two new acquisitions. Two Cape acquisitions for $55 million were announced yesterday. Combined with another pending acquisition, acquisitions will total $72 million and the pro forma fleet will increase to 14 Capes with total capacity of approximately 2.5 million DWT by the end of 2Q2021. Assuming average TCE rates of $17.5k/day and cash opex of $7.2k/day, each Cape could generate annual EBITDA of $3.8 million, or a total of $11.4 million.
Cash from recent equity offering and new debt should fund the acquisitions. A combination of cash from the recent equity offering of $70 million and debt secured by the new Capes (in the 50% leverage range) will be used to fund the acquisitions of $72 million without another equity offering. In addition, the Lordship and Tradership will be unencumbered and could be part of a larger debt financing …
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.
