Seanergy Maritime (NASDAQ: SHIP) Raises Dividend Following Record-Breaking Q2 And H1 Results, United Maritime (NASDAQ: USEA) Rises Through Strategic Investments
Detroit, Michigan
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September 04, 2024 09:00 AM Eastern Daylight Time
By Gerelyn Terzo, Benzinga
Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) reported a record-breaking second quarter, with performance extending through the first half of the year. To reward shareholders, the U.S.-listed, Athens-based company boosted its quarterly dividend and introduced a new payout policy, underscoring its commitment to driving growth and delivering value to investors.
Seanergy Maritime, a leading pure-play Capesize ship owner, is sailing at peak performance in 2024. The company’s 18-vessel fleet, including 1 Newcastlemax and 17 Capesize vessels, has driven record results. In Q2 2024, Seanergy posted a net income of $14.1 million, a fresh all-time high which compares with $700,000 in the year-ago period. For the first half of 2024, net income surged to $24.3 million, a major turnaround from the $3.5 million loss in the same period last year. Q2 net revenue soared by 52% year-over-year to $43.1 million, while H1 revenue grew by 75% to $81.4 million. Earnings per share reached $0.68 for Q2 and $1.18 for H1.
Seanergy's reported financial fundamentals have led the board to enhance its dividend policy, aiming to deliver even more value to shareholders. With a focus on distributing around 50% of operating cash flow after debt payments, the company boosted its Q2 cash dividend to $0.25 per share – up from $0.15 and $0.10 in the previous two quarters. This move continues their commitment to rewarding investors, having already returned $34.7 million in cash dividends since Q1 2022.
Seanergy continues to boost shareholder value by resuming stock buybacks. The company repurchased $1.8 million worth of shares at an average price of $10.56 per share, under its $25 million share repurchase plan launched in December 2023.
Chairman and CEO, Stamatis Tsantanis revealed he has been scooping up common shares and call options in the open market, with plans to acquire more SHIP stock in the upcoming quarters. “Based on our strong and visible cash flow generation, we expect to be able to continue returning significant capital to our shareholders in the coming quarters,” he said.
Investors who might want to join in can learn more about Seanergy’s stock performance here.
Seanergy’s Results Driven by Strategic Moves
Seanergy’s CEO, Stamatis Tsantanis, attributed the record performance in Q2 and H1 2024 to the company’s strategic decision to position itself as a leading dry bulk operator with a pure-play Capesize fleet. The company says this move allowed the company to capitalize on the strong performance of the wider Capesize market, outpacing other dry bulk segments, catapulting the company ahead of the broader asset class.
Seanergy has agreed to acquire, as previously announced, a modern Capesize vessel, enhancing its current fleet. The company expects to take delivery of a Japanese-built Capesize in Q3. After the latest additions, its fleet will comprise 19 high-quality Capesize vessels, up from 17 in early 2024.
The Capesize market has been sailing smoothly since Q1 2024, according to Seanergy, marking its best performance in over a decade. This strong momentum continued into Q2, boosting Seanergy’s fleet to an average daily time charter equivalent (TCE) of $26,636. With a strategic hedging plan in place, Seanergy’s TCE was roughly 18% higher than the Baltic Capesize Index’s average of $22,600.
“Seanergy is well positioned to continue performing strongly amidst the favorable Capesize market fundamentals, and we will remain focused on delivering high shareholder returns while opportunistically growing our fleet,” said Tsantanis.
Seanergy Spin-Off Makes Strategic Investments
United Maritime Corporation (Nasdaq: USEA), which was spun off from Seanergy two years ago, has also made strategic moves, capitalizing on opportunities across various diversified sectors. Following a recent swing to profitability in the second quarter, United Maritime has declared its seventh consecutive quarterly dividend of $0.075 per share. Additionally, the company is making a minority investment in a new offshore Energy Construction Vessel (ECV) project through a partnership with Norwegian counterparts, with expected completion in 2027.
The ECV will serve both the oil and gas and renewable energy sectors, where demand is currently outpacing supply. United Maritime also partnered to charter-in an Aframax tanker, which is run by a reputable tanker pool operator, for as long as nine months. United Maritime has also secured $48.3 million year-to-date in financing deals, the proceeds of which will be directed toward refinancing multiple ship leases.
Robust Vessel Demand
Seanergy and United Maritime remain optimistic about the outlook for the Capesize sector, in which both report being advantageously positioned. Vessel demand remains robust amid a backdrop in which China's iron ore and coal imports are growing while a similar demand story unfolds in the Brazilian export market. Orderbook data suggests a slow-growing fleet size will persist, in response to which dry bulk demand is likely to outpace supply for the foreseeable future, according to the companies.
Investors who are interested in diversifying their portfolios with exposure to the maritime industry with a leader in the Capesize space can learn more about Seanergy Maritime Holdings Corp. and United Maritime Corporation by visiting Seanergy’s website here and United’s website here.
Featured photo courtesy of Seanergy.
Contact Details
Seanergy Investor Relations
E-mail: ir@seanergy.gr
United Investor Relations
E-mail: ir@usea.gr
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