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Seanergy Maritime (SHIP) Tops Q4 EPS by 8c, Revenues Miss

February 13, 2020 8:04 AM EST

Seanergy Maritime (NASDAQ: SHIP) reported Q4 EPS of $0.12, $0.08 better than the analyst estimate of $0.04. Revenue for the quarter came in at $27.8 million versus the consensus estimate of $34.76 million.

Highlights of the Fourth Quarter of 2019:

  • Net revenues: $27.8 million in Q4 2019, compared to $27.0 million in Q4 2018
  • Net Income: $3.1 million in Q4 2019, as compared to a net loss of $3.2 million in Q4 2018
  • EBITDA1: $11.9 million in Q4 2019, up by 102% from $5.9 million in Q4 2018
  • TCE1: $22,935 in Q4 2019, as compared to $15,312 in Q4 2018

Stamatis Tsantanis, the Company’s Chairman and Chief Executive Officer, stated:

“In 2019 the positive Capesize market trend from previous years remained in place, despite the high volatility seen during the year. This was reflected in the daily earnings of our fleet, which have marked consecutive year-on-year improvements over the last 3 years. The average time charter equivalent of our vessels in the fourth quarter of the year was $22,935, outperforming the average daily time charter rate of the Baltic Capesize Index for the same period, which stood at $22,184. In the second half of 2019, Seanergy achieved profitability over the course of two consecutive quarters and a significant increase in EBITDA, which demonstrates the operating leverage of Seanergy close to mid-cycle levels.

The present condition of the freight market is attributable to multiple factors such as the fuel price adjustment in the Baltic Exchange indices, the heavy rain season and floodings in Brazil, as well as the coronavirus outbreak in the midst of the Chinese New Year celebrations. Looking beyond the current weakness, we envisage 2020 to be a positive year. Brazilian iron ore exports are expected to ramp up considerably as per Vale’s guidance from the reduced levels of 2019, while China’s steel production, supported by growth in real-estate and infrastructure projects, could experience a growth rate of up to 7% in the year to compensate for the weaker first quarter. Additionally, fuel prices are reducing from the transitional period of IMO 2020 implementation in January, which makes our spot voyages more profitable. As a result, the long-term positive trend in the Capesize market is expected to continue.

Furthermore, as regards Seanergy’s scrubber installation program, five exhaust-gas cleaning system installations scheduled for 2019 were completed in timely fashion and the vessels have been delivered to their charterers under long-term time charters. We are pleased to view our charterers as strategic partners that are willing to invest in our vessels in ways that increase the commercial and market value of our fleet during a time of heightened uncertainty concerning environmental regulations. We also proactively procured sufficient quantity of compliant fuel (MGO) at competitive pricing early in the second half of 2019 in order to cover the needs of our five non-scrubber fitted vessels for the majority of the first quarter of 2020, ensuring the seamless compliance of the Company’s non-scrubber fitted vessels with the IMO 2020 regulation while providing for a natural hedge against the adverse movements in the price of compliant fuel oil.

Moreover, I would like to stress that seven out of our ten vessels went through dry-docking in 2019, incurring 233 repair days as compared to only 13 days in dry-dock during 2018, which significantly limited our fleet’s earning capacity in 2019. Following our Company’s particularly heavy dry-docking schedule in 2019 we expect to see minimal such disruptions in 2020, which will further improve cash generation and profitability.

Finally, we recently received from NASDAQ an additional six months extension in relation to the bid price deficiency, thus moving the curing period to mid-July 2020.”

For earnings history and earnings-related data on Seanergy Maritime (SHIP) click here.



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