Seanergy Maritime Holdings Corp. (NASDAQ:SHIP)
Shares of Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) gained 21.36% after the international shipping company reported third quarter financial results that beat Wall Street Expectations. Improvement in the Capesize market allowed the company to post a 119% increase in revenues.
The better than expected financial results appear to have strengthened investor confidence in the stock after being under pressure in recent years. The stock has gained more than 40% in the past month as investors react to improving fundamentals in the shipping industry. The rally has helped support the stock’s listing credentials, after being hit with a non-compliance notice in May, by the NASDAQ Capital Market.
The shipping industry, which has been on the decline in recent years, is slowly picking up. Baltic Capesize Index has averaged about 1,839 points year to date, a 112% increase from last year’s average levels.
Increase in shipping rates and orders has allowed the likes of Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) to generate significant revenues after years of declines. Annual growth in the seaborne transportation of Capesize commodities is estimated at 6% for this year and next year.
“During the third quarter of 2017, the Capesize market continued its improving course that commenced at the beginning of the year. Our fleet benefited significantly from the stronger Capesize rates,” said CEO Stamatis Tsantanis.
Q3 Financial Results
For the three months ended September 30, 2017, Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) generated net revenues of $18.9 million compared to $8.6 million reported in Q3 2016. Net revenues for the first nine months of the year increased 112% to $50.5 million.
Net income came in at $6.5 million compared to a net loss of (-$5.9) million reported last year. Net loss for the first nine, months of the year stood at (-$3.1) million compared to a net loss of (-$17.7) million reported last year.
Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) completed a refinancing of one of its Capesize vessels in the quarter consequently generating an $11.4 million gain and equity accretion. The transaction resulted in a 38% increase in the Company’s total equity value.
During the quarter, the company also added a tranche of up to $16.5 million to the senior secured loan facility with Amsterdam Trade Bank entered in May. Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) also issued a convertible promissory note worth $13.75 million to repay a loan agreement with Jelco.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.