Seanergy Maritime Q2 2026 Earnings Report

Seanergy Maritime EPS Results

• Actual EPS: $1.32
• Consensus EPS: $1.05
• Beat/Miss: Beat by +$0.27
• One Year Ago EPS: N/A

Seanergy Maritime Revenue Results

• Actual Revenue: $55.69 million
• Expected Revenue: $53.90 million
• Beat/Miss: Beat by +$1.79 million
• YoY Revenue Growth: N/A

Seanergy Maritime Announcement Details

• Quarter: Q2 2026
• Date: 7/30/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, July 30, 2026
• Conference Call Time: 10:00AM ET

Seanergy Maritime (NASDAQ:SHIP). (NASDAQ: SHIP) is a dry bulk shipping company that provides seaborne transportation services for major commodities, including iron ore, coal and grain. The company’s operations encompass both time charter and voyage charter contracts, enabling customers to secure vessel capacity on either a fixed-rate or spot basis. Its client base includes commodity producers, trading houses and industrial end users seeking global logistics solutions for bulk materials.

The company’s core assets consist of a fleet of modern dry bulk carriers, spanning Capesize, Panamax and Supramax classes. These vessels are equipped to navigate key trade routes across the Atlantic and Pacific oceans, offering flexibility in cargo sizes and voyage durations. Seanergy’s technical management and crewing arrangements are designed to meet international safety and environmental standards, ensuring compliance with regulations set by bodies such as the International Maritime Organization (IMO).

Established in 2004, Seanergy Maritime has expanded its presence in global shipping markets through strategic acquisitions and fleet upgrades. Headquartered in Athens, Greece, with operational centers positioned near major port hubs, the company services trade corridors linking exporters in South America, Australia and Africa to importers in Europe and Asia. Seanergy’s ongoing focus on fleet modernization and charter diversification underpins its efforts to adapt to evolving market conditions and regulatory requirements.

Seanergy Maritime Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Seanergy reported record second-quarter results, including $55.7 million in net revenue, $41.5 million in adjusted EBITDA and $1.32 in adjusted EPS. First-half adjusted EBITDA rose 165% year over year to $69.6 million, reflecting strong Capesize rates.
• Positive Sentiment: The company raised its quarterly dividend 75% to $0.35 per share, marking its 19th consecutive quarterly distribution and bringing total shareholder returns since 2021 to approximately $108 million.
• Positive Sentiment: Seanergy committed approximately $130 million to two Japanese-built Capesize vessels scheduled for 2029, bringing its fleet-renewal program to $591 million. Seven newbuildings and one modern secondhand vessel are expected to improve fleet age, efficiency and long-term earnings capacity.
• Positive Sentiment: Funding for the renewal program is substantially secured through $296.5 million of committed bilateral facilities, a €100 million unsecured bond and existing liquidity, covering about 90% of remaining CapEx without requiring equity issuance under the company’s contingency assumptions.
• Neutral Sentiment: Management remains constructive on Capesize fundamentals, citing resilient iron ore, bauxite and coal demand alongside constrained effective fleet supply. However, selective fixed-rate coverage for roughly 55% of second-half 2026 ownership days provides downside protection while limiting some participation if rates rise further.

Presentation

[Operator]

Thank you for standing by, ladies and gentlemen, and welcome to the Seanergy Maritime Holdings Corp. Conference call on the second quarter and first half ended June 30, 2026 financial results. We have with us Mr. Stamatis Tsantanis, Chairman and CEO, and Mr. Stavros Gyftakis, Chief Financial Officer of Seanergy Maritime Holdings Corp. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session, at which time, if you would like to ask a question, please press star one one on your telephone keypad, and you will hear an automated message advising that your hand is raised. Please be advised that this conference call is being recorded today, Thursday, July 30th, 2026. The archived webcast of the conference call will soon be made available on the Seanergy website, www.seanergymaritime.com.

[Operator]

To access today's presentation and listen to the archived audio file, visit the Seanergy website following the Webcasts and Presentations sections under the Investor Relations page. Please now turn to slide two of the presentation. Many of the remarks today contain forward-looking statements based on current expectations. Actual results may differ materially from the results projected from those forward-looking statements. Additional information concerning factors that can cause the actual results to differ materially from those in the forward-looking statement is contained in the second quarter and first half ended June 30th, 2026, earnings release, which is available on the Seanergy website, again, www.seanergymaritime.com. I would now like to turn the conference over to one of your speakers today, the Chairman and CEO of the company, Mr. Stamatis Tsantanis. Please go ahead, sir.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Thank you, operator. Welcome everyone. Seanergy delivered a record second quarter. Net revenue of $55.7 million, adjusted EBITDA of $41.5 million, and adjusted EPS of $1.32. Our fleet earned $32,355 per day, up 63% year-over-year. This is what a pure-play Capesize and Newcastlemax platform does in a strong market without diluting our story in many vessel classes. When the market is strong, we get all the benefit. For the first six months of 2026, fleet time charter equivalent increased by 69% year-over-year to $28,244 per day. Net revenues increased to $97.8 million. Adjusted EBITDA increased by 165% to almost $70 million, and adjusted earnings per share were almost $2, actually $1.96 per share, compared to an adjusted loss per share in the prior year period.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

This represents again a record first half performance through our ability to capture the upside of a strong Capesize market while having hedged our downside risk. Looking ahead, the Capesize market prospects for the second half of the year remain constructive based on resilient commodity demand, constrained effective fleet supply, and earnings visibility provided by our forward fixed-rate charter coverage. Our board declared a cash dividend of $0.35 per share. That's our 19th consecutive quarterly dividend, which we have delivered through good and bad markets. We have now returned $108 million to shareholders, and we raised the dividend 75% this quarter compared with the previous one. Moving to our recent fleet renewal initiatives. Since our last update, we have committed approximately $130 million more to acquire two high-quality Japanese vessels, both expected to join our fleet in 2029. We also completed the sale of the 2010-built M/V Squireship.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

These transactions advance our disciplined fleet renewal strategy by reallocating capital from older tonnage into modern, fuel-efficient assets at delivery points that align well with the next phase of our fleet requirements. Our latest acquisitions include a scrubber-fitted new building Capesize vessel to be built at a first-class Japanese shipyard, scheduled for delivery in the first half of 2029, and the modern 2022-built Capesize vessel constructed in Japan, with forward delivery expected in the first half of 2029. Our renewal program now represents an aggregate investment of $591 million. Funding is already advanced on competitive terms, as will be detailed in a few minutes by Stavros. I would also like to highlight the successful completion of our inaugural EUR 100 million unsecured corporate bond offering in Greece, with demand exceeding the offered amount by more than 2x.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Beyond diversifying our funding sources, its five-year bullet structure is particularly well-matched to the requirements of our fleet investment program. Slide four, consistent capital returns. Moving on to slide four, Seanergy has now returned approximately $3.19 per share to our shareholders through 19 consecutive quarterly distributions since launching our dividend program in 2021. This track record reflects our ability to translate strong Capesize market conditions into consistent and meaningful cash returns. Our approach is simple: to reward our shareholders every quarter, to keep the balance sheet strong, to invest in modern ships. We're successfully doing all three at once. A 27% payout, leverage below 50%, and $591 million committed to fleet renewal with prompt deliveries. Rewarding our shareholders remains an important priority to us. Slide five, strong commercial execution and forward earnings visibility.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Turning to Slide five, during the second quarter of 2026, Seanergy achieved a daily times charter equivalent of approximately $32,400, while our average daily TCE for the first six months of the year reached $28,200. As a market hedge, we converted a portion of our second quarter days to fixed ahead of the market rise. That capped us a bit below the index in a quarter where rates spiked considerably. It is obvious that we're trying to protect the downside and keep enough upside to the matter. Our index-linked employment gives us direct participation in the market strength. We run a very high utilization again in the quarter, which highlights the quality of our technical management. At the same time, we continue to manage freight rate volatility selectively.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Approximately 55% of our ownership days for the second half of 2026 have been converted at an average daily rate of approximately $30,800. This provides earnings visibility and downside protection for our revenue and cash flows while preserving meaningful exposure to further market upside. Our scrubber-equipped ships continue to benefit from favorable fuel spreads, providing another source of earnings enhancement. Another important point is that since 2024, we have invested approximately $37.3 million in environmental upgrades on the existing fleet, vessel improvements, and drydockings. Having completed the majority of scheduled upgrades in the previous quarters, the company expects only 50 off-hire days approximately for the remainder of 2026 in connection with scheduled drydockings, vessel repairs and environmental upgrades. Looking further ahead, the superior efficiency of our new building vessels should strengthen their commercial profile and enhance their earnings contribution. Slide six, fleet renewal program with prompt deliveries.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

To date, we have contracted seven modern eco-designed Capesize newbuildings with deliveries in 2027 till 2029, and agreed to acquire a 2022-built modern Capesize Japanese-built, with delivery also in 2029, and sold three older vessels. Together, these transactions advance both the growth and renewal of our fleet, improving its age profile, fuel efficiency and long-term earnings capacity. Importantly, four of the eight vessels are scheduled to be delivered to our fleet within 2027, allowing us to meaningfully increase the earnings contribution of our renewed fleet beginning next year. We have now finalized long-term time charters for the three 2027 delivery newbuildings being constructed in China with leading global counterparties, and I'm talking four to five years. The structure is very straightforward. Floor of $23,100 a day, which covers our cash breakeven from day one.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Above the floor, we earn a premium over the BCI 5TC index, up to about $29,750. Above that, we keep half the upside. Therefore, downside is covered while upside is retained. This is another validation of the commercial appeal of our newbuildings as it materially reduces the execution risk associated with the initial phase of our fleet renewal program. Stavros will discuss the financing implications in greater detail. The combination of attractive charter coverage, competitive financing, and prompt delivery positions materially strengthens the expected return profile of these investments. I will now pass the call to Stavros for a review of our financial performance, balance sheet highlights, and financing framework supporting our fleet renewal program. Stavros, please go ahead.

[Stavros Gyftakis, CFO at Seanergy Maritime Holdings Corp]

Thank you, Stamatis, and welcome to everyone joining today's call. Let's begin with slide seven. I will review our financial performance for the second quarter and first half of 2026, followed by an update on liquidity, leverage and growth funding. As Stamatis highlighted, the second quarter and the first half of 2026 marked the strongest financial performance in Seanergy's recent history. These results reflect the favorable Capesize market environment, disciplined commercial execution, and the operating leverage of our pure play platform. For the second quarter of 2026, net revenues increased to $55.7 million from $37.5 million in the prior year period. Adjusted EBITDA more than doubled to $41.5 million, while net income and adjusted net income reached $26.2 million and $28.5 million respectively. GAAP EPS was $1.21 and adjusted EPS was $1.32. Our fleet achieved a daily TCE of $32,400, representing a 63% year-over-year increase.

[Stavros Gyftakis, CFO at Seanergy Maritime Holdings Corp]

This strong momentum extended into our first half results. Net revenues reached $97.8 million, while adjusted EBITDA increased by 165% year-over-year to $69.6 million. We reported net income of $35.9 million and adjusted net income of $42 million compared to losses in the prior year period. GAAP EPS was $1.67, while adjusted EPS reached $1.96. Turning to our balance sheet, we ended the quarter with $59.5 million of cash and restricted cash, equivalent to approximately $3.3 million per operating vessel. This liquidity position was maintained despite investing approximately $73 million in new building installments and fleet renewal initiatives during the first half of the year, while remaining consistent on the dividend front. At the same time, our debt-to-capital ratio remained below 50%.

[Stavros Gyftakis, CFO at Seanergy Maritime Holdings Corp]

Maintaining prudent leverage while executing the largest investment program in our history demonstrates the good standing of our balance sheet and provides the flexibility required to complete our fleet renewal program. Turning to slide eight, we will highlight the quality of our earnings and the resulting strength of our cash flow generation. Our fleet achieved a daily TCE of $28,244 during the first half of 2026, increased by 69% year-over-year. Our index-linked exposure allowed us to participate directly in market strength, while selective fixed-rate conversions helped manage volatility and improve earnings visibility. The adjusted EBITDA at $69.6 million represents a margin of approximately 70%, while our operating cash flow margin was approximately 44%. These figures demonstrate the efficiency with which revenues convert into operating cash flow.

[Stavros Gyftakis, CFO at Seanergy Maritime Holdings Corp]

Adjusted EPS of $1.32 for the second quarter and $1.96 for the first half of the year provides strong coverage for the quarterly dividend while supporting the continued funding of our fleet renewal program. Turning to slide nine, which summarizes our leverage position and the financing framework supporting our fleet renewal program. As of June 30, 2026, total debt, including finance lease liabilities, stood at approximately $299 million, corresponding to a fleet loan-to-value ratio of approximately 42% based on independent broker valuations. Debt per vessel was approximately $15.7 million, compared to an average fleet market value of approximately $37.3 million per vessel, highlighting substantial embedded equity across our fleet. The estimated scrap value of our fleet covers approximately 70% of our outstanding debt, providing downside asset coverage.

[Stavros Gyftakis, CFO at Seanergy Maritime Holdings Corp]

At the same time, our weighted average financing margin declined to approximately 2.17%, reflecting the strength of our lender relationships and consistent access to competitive financings. Subsequent to quarter end, we completed our inaugural EUR 100 million unsecured corporate bond offering in Greece. The transaction represents an important enhancement of our capital structure. As Stamatis mentioned earlier, the non-amortizing nature is particularly well-suited to our new building program, preserving liquidity during the construction and aligning principal repayment with the future cash generation of the new vessels. The bond further diversified our financing sources beyond traditional secured bank financing and finance leases and provides financial flexibility as we execute the program. Needless to say that the all-in cost of 4.9% per annum is extremely attractive given the unsecured nature of the financing.

[Stavros Gyftakis, CFO at Seanergy Maritime Holdings Corp]

In parallel, we have secured approximately $296.5 million of committed bilateral financing facilities for our new building program, with unique characteristics that immunize the financing amounts against adverse movements in the market value of the vessels. Together with the bond proceeds and existing liquidity, these sources cover approximately 90% of the program's remaining CapEx. Building on the previous slide, turning to slide number 10, we provide a clearer view of the funding position and payment profile of our fleet renewal program. To date, we have already invested approximately $73 million from our own funds. This is equity participation in the program. Against the remaining installments of approximately $518 million, we have secured $296.5 million of committed bilateral pre- and post-delivery financing, while the recently issued €100 million unsecured bond, equivalent to approximately $114 million, provides an additional pool of flexible non-amortizing capital.

[Stavros Gyftakis, CFO at Seanergy Maritime Holdings Corp]

We also have approximately $59.5 million of cash and restricted cash as of June 30, 2026. For the remaining unfunded portion, we have assumed debt capacity, meaning 60% loan-to-value on the market value of the not-yet-financed vessels of approximately $126 million. On that basis, the entire remaining investment program is prudently covered with additional funding capacity relative to the scheduled installments. The chart on the right also highlights the staggered nature of the capital commitments. Payments are distributed through the first half of 2029, with the largest installments aligned with the then vessel deliveries. This gives us ample time to arrange the remaining vessel-specific financing. I would also connect the funding profile to the charter agreements Stamatis described earlier. The three 2027 new buildings will enter service under four to five-year contracts with flow rates expected to cover the vessel breakevens.

[Stavros Gyftakis, CFO at Seanergy Maritime Holdings Corp]

This establishes a contracted base of cash generation during the initial years of operation and strengthens the debt service profile of the vessels. At the same time, the commercial structures preserve meaningful earnings upside. From a financing and capital allocation perspective, these agreements materially improve the quality and visibility of the cash flow supporting the investment program. They reduce downside risk during the early amortization period, enhance the expected risk-adjusted returns of the vessels, and further de-risk the execution of the first phase of our fleet renewal strategy. In summary, the principal funding sources are substantially secured, the remaining capital commitments are staggered, and three 2027 deliveries now have multi-year commercial coverage at levels expected to protect their cash breakevens. Together, these factors provide clear funding and cash flow visibility through the initial phase of our program.

[Stavros Gyftakis, CFO at Seanergy Maritime Holdings Corp]

Finally, let's turn to slide 11, which illustrates the operating leverage embedded in our platform under different Capesize rate scenarios. Under the current FFA scenario, our model indicates full-year 2026 EBITDA of approximately $138 million, while a stronger market scenario would generate further material upside. As freight rates improve, a significant portion of incremental revenue flows through to EBITDA and cash flow, enhancing our capacity to provide shareholder returns while funding the modernization of our fleet. Importantly, approximately 55% of our second half days are already fixed at attractive rates, providing meaningful protection under more moderate market scenarios. I will now turn the call back to Stamatis for a discussion of the Capesize market outlook and broader industry fundamentals. Stamatis, please go ahead.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Thank you, Stavros. The Capesize market remained strong throughout the second quarter of 2026, with the BCI averaging approximately $36,300 per day, bringing the first half average to approximately $29,600 a day. The strong trend has clearly carried over to the third quarter of the year, with the July BCI average being close to $35,000. Asset values responded accordingly, with brokers reporting that secondhand Capesize prices increased by approximately 16% during the first half of the year. Effective vessel supply remains constrained by a combination of slower sailing speeds, elevated bunker prices due to the war, and an active dry dock schedule, all of which reduce available capacity while cargo volumes remain very healthy. Although geopolitical developments continue to create uncertainty, the underlying demand picture has so far remained very resilient. Having said this, let us please turn to the next slide to take a closer look at Capesize demand.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Iron ore. China's iron ore imports increased by 6.3% year-over-year in the first six months of 2026, while June, in particular, is setting a new monthly record. Demand for high-quality imported iron ore remains high, with policies focusing on capacity normalization and environmental efficiency. At the same time, Simandou continues to ramp up while Vale has reaffirmed its production guidance for the year. Together with a continued production outlook from Rio Tinto and BHP, these developments support a favorable long-term demand outlook for Capesize vessels. Increasing Atlantic basin exports are expected to enhance tonne-mile demand because of the longer sailing distances involved. Bauxite. Turning to bauxite, this trade continues to be one of the strongest structural growth drivers for the Capesize market. China's imports rose by 18% in the January to May period, reflecting continued growth in the use of imported bauxite in China's alumina smelters.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Short-term uncertainty about Guinean bauxite export policy may create some volatility, but we remain optimistic about cargo volume in the second half of 2026 based on the sound demand drivers. Coal. Finally, coal trade has remained resilient despite expectations of a structural decline in the recent years. Energy security continues to be a priority across many regions, while warm weather has supported summer electricity demand. Looking ahead, uncertainty surrounding natural gas inventories ahead of the winter could provide additional support for thermal coal demand. Chinese coal imports increased during the first half of the year, and we expect import demand to remain healthy during the second half, supported by relatively slower domestic production and the potential easing of export restrictions in Indonesia.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

More broadly, global coal loadings have also continued to increase while evolving trade patterns may contribute to longer sailing distances and additional fleet inefficiencies, both of which are supportive of the dry-bulk shipping. Overall, as we enter the seasonally stronger second half, the demand outlook for Capesize market remains constructive across our three core cargoes. Turning to the next slide now in order to look at the Capesize supply before concluding our prepared remarks and handing over the call for questions. Looking at the supply side, the backdrop remains very positive for the balance of 2026 as the headline fleet growth of 2.4% likely overstates actual effective supply growth due to several factors. Firstly, about one out of every five Cape vessels on the water today was built between 2010 and 2012.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

That means that roughly 20% of the world fleet goes through dry docking surveys in 2026 and 2027. As we'll be renewing our fleet, many owners will need to decide whether to spend more money on 15-year-old tonnage for dry docks. Secondly, geopolitical disruptions and the aging of the world fleet have increased slow steaming, further limiting available vessels. While we wish that the geopolitical situation improves soon, fleet aging amidst stricter environmental regulations is a longer-term story that is likely to continue in the same direction over the next years. As a result, we expect that the effective fleet growth will in fact continue to be slower than what is suggested by anticipated vessel deliveries, which even in its nominal form, remains quite low compared to other sectors of shipping.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Longer term, the low order book compared to the fast rate of vessel aging suggests that by 2030, almost one out of every four Capesizes on the water will be older than 20 years, even after accounting for new building deliveries. Limited shipyard availability further restricts future supply, supporting a constructive outlook. The Capesize market remains very strong for the next years, and as mentioned earlier in the call, Seanergy maintains downside protection for 2026 and a percentage of 2027 at highly profitable daily rates, which we believe places us in a very good position to navigate the future. Conclusion. To conclude, Seanergy enters the remainder of 2026 from a position of strength supported by record earnings, meaningful forward visibility, disciplined capital allocation, and a modernizing fleet. We are delivering record earnings, a 75% dividend increase with 19 straight quarters of cash distributions.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

In addition, $591 million committed to modern ships, majority already funded, and the 2027s mostly chartered. We are focused on the strongest asset class in a prudent and highly rewarding manner. On this note, I would like to turn the call over to the operator to take any questions you may have. Operator, please take the call. Thank you.

[Operator]

Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A roster. Our first question comes from the line of Liam Burke from B. Riley Securities. Please go ahead. Your line is open.

[Liam Burke, Analyst at B. Riley Securities]

Thank you. Hi, Stamatis. Hi, Stavros. How are you today?

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Morning, Liam. Very nice to hear from you. Thank you. Everything's fine. I hope the same with you.

[Liam Burke, Analyst at B. Riley Securities]

It is. Thank you. Good to hear from you, too. Stavros laid out a capital source with debt as you look at your funding requirements for the new build. When I factor in your cash flows and what looks to be a sustainably elevated rate environment, I can't help but think that there could be a lot more cash equity put into the new builds, or would you prefer to continue to use leverage and then use that cash for dividend or further increasing your fleet growth?

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Well, that's kind of obvious. Yes, we're not factoring in for the increased cash flow coming in from operations. This is on an as-is basis without factoring in positive cash flows. Goes without saying that it's going to be for contingency purposes. We're just going to remain and maintain a conservative approach. Our capital allocation is pretty much evident now that we increase the dividend. We of course have room to increase it further in the following quarters once we have visibility for 12 months forward later in November when we announce Q3. For the time being, we like the fact that we're very comfortable with the current order book that we have. Maybe we'll do a couple more. Then we will continue rewarding our shareholders, which is our top priority, as you can see here.

[Liam Burke, Analyst at B. Riley Securities]

Okay. Thank you. On the supply side, you pointed out the number of vessels, a certain age. The supply side of the Capesize story seems to be driving a lot of leverage where demand is inordinately high this year, but sustainable. We're looking at a multi-year upcycle in terms of sustainability of rates based on this, just the tight supply of Capesize vessels. Is that the right way to think about it beyond 2026?

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

That's an excellent way to think about it. Yes, of course. While we have visibility until the first half of 2030, we can see that there is limited order book coming in, and at the same time, we have a very aging fleet which gets older and older, and the survey requirements will get more and more steeper and demanding. For the time being, we are very conservative. We will, of course, revisit this approach in the following years, once we have the ability to see how that order book develops post 2030. What can I say here is that the Capesize order book appears to be the lowest amongst many other vessel types, not just the dry bulk, which of course is the lowest, but if you look at tankers, containers, LNGs and all that, we're talking about 40%-50% order book versus the current fleet.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Capesize is a mere 12%-15%, if at all, and you have a very aging fleet, there's no comparison into the fundamentals of the Capesize segment in the following years.

[Liam Burke, Analyst at B. Riley Securities]

Great. Thank you, Stamatis.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Thank you, Liam. Great to hear from you.

[Liam Burke, Analyst at B. Riley Securities]

Thank you.

[Operator]

Thank you. We are going to take our next question. Please stand by. Your next question comes from the line of Tate Sullivan from Maxim Group. Please go ahead. Your line is open.

[Tate Sullivan, Analyst at Maxim Group]

Hi, good day. Thank you and congratulations on the EUR 100 million bond offering, and I see it's trading above par here too, and you mentioned 2x oversubscribed. Can you go with that back to that market right away, or are there other offsetting considerations to make you return for another bond offering there, please, to start?

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Good morning, Tate. Again, great to hear from you. We feel very happy with the level of funds we have raised in the Greek market, given the strong support and the fact that we have a very good performance of the bond trading thereafter the initial offering. We are not looking for anything additional right now. We might consider some other solutions in the Greek market, but nothing imminent in the next, let's say, six months to a year. We will remain in a very comfortable cash flow position coming from operations as well as the cash buffers of the company, coffers of the company, which are at excellent levels and very happy to fund the existing investment program.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

We're very content, and we're just going to remain still for the time being, maybe add a couple of additional quality and selective potential acquisitions in Q3 and Q4. We will see about that in the next months.

[Tate Sullivan, Analyst at Maxim Group]

Yeah. Thank you. I'll follow up on that. I think you said to Stavros, during the prepared remarks about the financing margin, about 2.2%, with SOFR implies an in-debt cost before this offering about 5.8%. Just for modeling purposes, are there other considerations, maybe FX currency swaps for the offering or how should we forecast the interest expense going forward?

[Stavros Gyftakis, CFO at Seanergy Maritime Holdings Corp]

In the recent financings that we have concluded are concluded at a margin which is far below 2%. It's closer to 170. Basically, it's some of the legacy facilities that are being gradually financed that maintain higher margins, closer to 2.5% that drive the weighted average margin up. For modeling purposes, you can assume that every new financing is priced at around 170, 180. When it comes to the EUR 100 million bond offering, we have not proceeded yet with any hedging arrangements when it comes to the coupon and what have you. In dollar terms, you should model around 100 basis points or 120 basis points over the EUR coupon. That's how you should see it.

[Tate Sullivan, Analyst at Maxim Group]

I see. Okay. Thank you. Just one more for me, please, on the profit-sharing contract arrangements for the three vessels, I think you said. Can you talk about, is that a new dynamic in the market versus historically? What is in the interest of the counterparties to agree to that profit-sharing arrangement, please? Thank you.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Well, first of all, we offer them some great ships and very prompt deliveries in 2027. That by itself has a very strong value. We have decided not to be greedy on the base rate because we feel comfortable that we will see some very strong rates in 2027. We wanted to cover our all-in break-even cost together with a nominal profit, and this is what the $23,100 represents. As you can see, we have a full upside between the floor and the ceiling, and thereafter, we have 50/50 profit sharing on top of that. We didn't want to be greedy. We like the fact that we operate with long-term partners, some of them existing, some of them new, but in very good relationship and chemistry between us.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

We start with that, and we will see about the rest of the order book how we're going to fix the commercial approach. This is pretty much the ballpark figures and levels you should be expecting for the fourth ship as well, maybe a little bit of a premium, and we will see about 2028 and 2029 at a later stage.

[Tate Sullivan, Analyst at Maxim Group]

Okay, thank you. Are these the first structures of this sort that you've done at Seanergy, Stamatis? The profit sharing.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Yes, the first with base and ceiling and then profit sharing thereafter. The first ones. Again, you see some other structures with just a base and profit sharing above that. We like the way that this is structured more than other people. We're just going to follow this path if we can in the next commercial arrangements as well.

[Tate Sullivan, Analyst at Maxim Group]

Okay. Thank you very much.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Thanks, Tate.

[Operator]

Thank you. We are now going to take our next question. Please stand by. This question comes from the line of Mark Reichman from Noble Capital Markets. Please go ahead. Your line is open.

[Mark Reichman, Analyst at Noble Capital Markets]

I was wondering if maybe Stavros could just do a walkthrough on the new build program. What I'm thinking of is, if we start at the $591 million, you can fund that with your cash balance, operating cash flow, proceeds from sale of vessels or additional debt. What remains? Can you just walk me through the financing? Where would debt top out if you were going to take on more debt? Would you expect unsecured financing to become a larger component of the capital structure? If so, how might that affect your long-term leverage targets and cost of capital?

[Stavros Gyftakis, CFO at Seanergy Maritime Holdings Corp]

Thanks, Mark. There are a couple of things you should factor in here. First of all, as Stamatis said before, the graph that we're presenting on page 10 is illustrative, and mainly what we want to illustrate here is a contingency planning kind of scenario, and prove basically that we don't need to raise any equity to support the new building program. Even if the company would break even from now until the end of 2029, would realize zero excess cash flow, the program is already fully funded, we don't need any more funds for that. As Stamatis noted before, of course, as the operating cash flow and the free cash flow of the company increases, you should expect more equity to come in on the new buildings. At the same time, we have the existing debt on the existing fleet is amortizing at a very fast pace.

[Stavros Gyftakis, CFO at Seanergy Maritime Holdings Corp]

You will have a concurrent de-leveraging effect on the older ships and then a bit of a higher or more than 50% or more than 60% kind of loan-to-value in the new buildings, but it will average down. You shouldn't expect the loan-to-value of the company and the leverage ratio to basically change in the way we have been approaching it over the recent years.

[Mark Reichman, Analyst at Noble Capital Markets]

That's very helpful to my understanding. Then just lastly, obviously the Cape market fundamentals have been very strong. Rates have strengthened throughout the first half. I don't know, I kind of see that continuing into 2027. I know most of the companies really provide the most visibility through the end of 2026. I guess the question would be how sustainable do you think these market conditions are through 2027 and 2028, and what indicators are you watching most closely for signs of either further strengthening or softening?

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Well, the biggest potential concern is the oversupply of new buildings. Far, the visibility we have until the second half of 2029 appears that the new building order book remains at very low levels compared to the other dry bulk types as well as the other ship vessel categories. As long as the vessel supply of new buildings remains low, we are not concerned about the market because demand appears to be quite strong as it has been for the last 30 years. Demand is never an issue. It's always a matter of supply and oversupply. The order book limitations is evident. The shipyards are pretty much overbooked with other vessel types, so the capacity to build additional Capesize and Newcastlemax is non-existent for the next three and a half, even four years.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

As far as that is concerned, we are not really worried about the market fundamentals because, as I mentioned before, demand is always resilient and has been going up for the last 25-30 years.

[Mark Reichman, Analyst at Noble Capital Markets]

Do you think, in terms of the rates, you're always going to have that seasonality in the freight rates. Demand is always there. We've had rising demand and like you mentioned, a constrained supply. Do you see the demand continuing to strengthen? Do you see freight rates kind of leveling off at some point? Do you think there's still enough of a disconnect between supply and demand that we could see it actually strengthen into 2027, freight rates strengthen?

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Absolutely. The market is always volatile because of outside factors like geopolitics, like congestions, like a number of other factors that really affect the short-term. As far as the long-term, forward 12-18 or even 24 months, it's always going to average out and, in our opinion, remain at a pretty healthy level. We are not worried about the downside. There might be volatility short-term, but this is the nature of the game. This is shipping. Especially larger sizes appear to be more volatile. To the way that we can foresee the market for the next few years, regardless of any potential drops, there are always going to be rises and it's going to average up quite healthy.

[Mark Reichman, Analyst at Noble Capital Markets]

Thank you very much. That's very helpful. Appreciate that.

[Stamatis Tsantanis, Chairman and CEO at Seanergy Maritime Holdings Corp]

Thank you.

[Operator]

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.

Participants

Executives

• Stamatis Tsantanis, Chairman and CEO
• Stavros Gyftakis, CFO

Analysts

• Liam Burke, Analyst at B. Riley Securities
• Tate Sullivan, Analyst at Maxim Group
• Mark Reichman, Analyst at Noble Capital Markets