Seanergy Maritime Holdings Corp (SHIP) Q4 2024 Earnings Call Highlights: Record Net Income and ...

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Fri, Mar 7, 2025, 12:11 AM 4 min read

Net Income: $43.5 million for 2024, up from $2.3 million in 2023.
Q4 Revenue: $41.7 million.
Full Year Revenue: $167.5 million, a 50% increase year-over-year.
Adjusted EBITDA: $98.4 million for 2024, compared to $53 million in 2023.
Earnings Per Share: $2.12 for 2024, up from $0.12 in 2023.
Cash Position: $34.9 million at year-end 2024.
Total Debt: $261.5 million with a debt-to-capital ratio of less than 50%.
Fleet Size: 21 vessels with a carrying capacity of 3.8 million deadweight tons.
Dividends: Total 2024 dividends of $0.76 per share, totaling $15.6 million.
Share Repurchases: 226,000 shares repurchased at an average price of $9.44 during Q4.
Daily TCE Rate: $23,200 for Q4 2024; $25,100 for the full year.
ROE: 17% for the full year 2024.
Operating Cash Flow Margin: 44% for 2024.
Daily OpEx per Vessel: $7,000.
Fleet Loan-to-Value: 45% at year-end 2024.

Warning! GuruFocus has detected 4 Warning Signs with SHIP.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Seanergy Maritime Holdings Corp (NASDAQ:SHIP) reported a record net income of $43.5 million for 2024, a significant increase from $2.3 million in 2023.
The company declared a cash quarterly dividend of $0.10 per share, totaling $15.6 million in distributions for 2024.
Seanergy expanded its fleet to 21 vessels with the addition of two high-quality Japanese-built vessels, enhancing its carrying capacity to 3.8 million deadweight tons.
The company successfully completed $174 million in financings and refinancings, maintaining financial flexibility while supporting fleet expansion.
Seanergy's time charter equivalent rates outperformed the Baltic Capesize Index by 27% in Q4 and 11% for the full year, demonstrating effective strategic focus on the Capesize segment.

Negative Points

The company incurred one-off legal expenses related to its AGM and litigation, impacting its bottom line for Q4 and the full year 2024.
Despite strong annual performance, the Capesize market experienced a correction in Q4 2024, with the Baltic Capesize Index averaging $18,300 a day, down from $24,900 in Q3.
Seanergy's Q1 2025 indicative time charter equivalent is expected to be approximately $13,400 per day, reflecting a weaker market environment.
The company faces potential challenges from geopolitical factors and trade dynamics, which could impact global trade and shipping demand.
Seanergy's fleet expansion and operational costs are subject to inflationary pressures and aging factors, which could affect future profitability.

Q & A Highlights

Q: What caused the steep short-term rebound in Capesize rates despite low rates in the first quarter? A: Stamatis Tsantanis, CEO, explained that the rebound was not due to the Capesize segment itself but rather the low congestion of Kamsarmax vessels. Previously, Kamsarmaxes were congested in areas like the Parana River and Panama Canal, but this congestion has cleared, leading to a collapse in Kamsarmax rates. This allowed Kamsarmax vessels to take over coal cargoes from Capesize vessels, impacting Capesize rates. However, with the market starting to reverse, futures indicate higher rates for the rest of the year.

Q: Are the one-time expenses related to new vessel deliveries and legal issues expected to continue into the next year? A: Stavros Gyftakis, CFO, stated that operational expenses (OpEx) are expected to remain stable at around $7,000 per ship per day. General and administrative (G&A) expenses, excluding the $4 million litigation costs from 2024, are expected to range between $1,500 to $2,000 per vessel per day.

Q: Do the operational days for Q1 2025 include the newly delivered vessels, Blueship and Meiship? A: Yes, Stamatis Tsantanis confirmed that the operational days include these vessels, which were delivered earlier than anticipated. This early delivery allows the company to utilize them immediately, especially as the market is expected to improve in Q2.

Q: What are the expectations for off-hire days due to dry dockings in 2025? A: Stavros Gyftakis mentioned that they expect around 20 to 25 off-hire days per vessel during dry dockings. Given the peak drydocking year for Capesizes, some unforeseen delays might occur due to congestion in Chinese shipyards.

Q: How do you view the impact of geopolitical developments and potential trade wars on the Capesize market? A: Stamatis Tsantanis expressed optimism about the Capesize market fundamentals, noting strong demand for raw materials like iron ore, coal, and bauxite. While geopolitical tensions could impact global trade, the Capesize segment is expected to remain resilient due to its strong demand fundamentals.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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