Seanergy On the Brink, Executives Resign

Rob Almeida
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September 25, 2013

seanergyDry bulk shippiner, Seanergy Maritime (NASDAQ:SHIP) reported another dismal 2nd half today with net losses of $13.7 million reflecting 20 percent lower time charter rates and lower fleet utilization due to dry docking periods.

During the same period last year, Seanergy recorded losses of $34.7 million, however their fleet size at the time averaged 18.8 vessels, as compared to today’s average of 7.1.

Over the past three months, Seaenergy continued to sell off their fleet in order to repay their debt which as of June 30, 201 stands at $173.1 million. The three Handysize ships sold in the 2nd quarter will result in a 3rd quarter gain of $20 million.

Christina Anagnostara, the Company’s Chief Financial Officer, stated: “Over the second quarter of 2013, Seanergy’s revenues fell by 62% when compared to the same quarter of 2012. For the six month period ended June 30, 2013 revenues declined by 65% compared to the first half of 2012.”

In their earnings call this morning, Seanergy CEO Stamatis Tsantanis remained “bullish regarding China’s infrastructure growth” noting the infrastructure development within China “resembles the US in the industrial revolution, although on a different scale.” He notes that 186,000 miles of new roads are to be built in the next few years as well as 5,400 miles of new rail track and 440 deepwater berths for ships.

All of this is good news for dry bulk shippers like Seanergy and Tsantanis added that the Capesize index has climbed more than 800 percent over the past four quarters.

Jay Goodgal from Castalia Advisors remains skeptical however, on the full recovery of the dry bulk market noting that the order book for new bulk carriers continues to be the Achilles Heel for the dry bulk sector.

Leadership Heads for the Hills

Seanergy also announced that their Chairman Dale Ploughman, and board member George Tsimpis have resigned, and that as of 1 November, Christina Anagnostara will resign from her post as CFO.

Seanergy acknowledges that they have “defaulted under its loan agreements,” but that their one remaining lender has yet to force their hand and demand repayment of debt.

Seanergy’s fleet currently stands at four dry bulk carriers (two Panamax, and two Supramax) with a total carrying capacity of approximately 255,109 dwt and an average fleet age of 12.4 years.

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