Seanergy Maritime Q3 Earnings Call Highlights

Key Points

• Seanergy reported sharply higher results as strong Capesize rates boosted third-quarter net income to $26 million from $12.8 million a year earlier; it also raised its quarterly dividend 14% to $0.40 per share.
• The company’s approximately $855 million fleet-renewal program covers 12 vessels and is expected to expand capacity by more than 50%. Seanergy plans to fund about 65%–70% of remaining commitments with debt, with the balance from cash, vessel sales, and operations.
• Market conditions remain supportive: Seanergy expects fourth-quarter TCE rates of about $33,300 per day and cited limited fleet growth and long-haul iron ore and bauxite demand, while noting possible volatility tied to Chinese commodity demand.

Seanergy Maritime NASDAQ: SHIP reported higher third-quarter earnings and raised its quarterly dividend as strong Capesize shipping rates supported cash generation and a fleet renewal program that is expected to expand capacity by more than 50% over the next few years.

Third-quarter net income more than doubled to $26 million from $12.8 million a year earlier, while net revenue rose to $57.5 million from $47 million, Chief Financial Officer Stavros Gyftakis said on the company’s earnings call. Adjusted earnings per share increased to $1.25 from $0.67, and adjusted EBITDA rose to $40.8 million from $28.9 million.

The fleet earned approximately $34,500 per day on a time charter equivalent, or TCE, basis, up 46% year over year, Chairman and CEO Stamatis Tsantanis said. For the first nine months of 2026, net income reached a record $61.9 million, while adjusted EBITDA more than doubled to $110.5 million. Nine-month adjusted earnings per share rose to $3.21 from $0.60 a year earlier.

The board increased the quarterly cash dividend by 14% to $0.40 per share, marking the company’s 20th consecutive quarterly dividend, Tsantanis said. Including share buybacks, Seanergy has returned approximately $117 million to shareholders, he said.

Fleet expansion and financing

Seanergy’s investment program comprises 12 Capesize and Newcastlemax vessels: nine newbuildings and three Japanese-built secondhand ships. The program represents approximately $855 million of investment and 2.3 million deadweight tons of capacity, according to Tsantanis.

Since its second-quarter results, the company has added four vessels to the program for approximately $264 million. The additions include the 2019-built Capesize Midnightship, expected to join the fleet in January 2027, and two newbuildings scheduled for delivery in 2029.

Seanergy’s first Capesize newbuilding at Hengli is also expected in January 2027, about four months ahead of schedule. Tsantanis attributed the earlier delivery to operating efficiencies at the Chinese shipyard.

At the same time, Seanergy has agreed to sell its oldest vessel, the 2009-built Friendship, to United Maritime for $33 million. Tsantanis said the transaction was negotiated and approved by a special committee of independent directors. Delivery is expected in January 2027, generating approximately $20 million of net liquidity and a book gain of about $12 million. Seanergy will continue to manage the vessel for United Maritime.

Gyftakis said Seanergy had paid approximately $127 million toward the fleet program, or 15% of its capital expenditure. The company expects to pay roughly $354 million in 2027, $75 million in 2028 and $298 million in 2029. About $177 million of the 2027 payments is covered by secured financing, he said.

Financing has not yet been concluded for the Midnightship or a Japanese Capesize newbuilding scheduled for July 2027. Gyftakis estimated their combined debt capacity at approximately $100 million. In response to an analyst’s question, Tsantanis said the company expects to fund approximately 65% to 70% of remaining capital commitments with debt, with the balance coming from cash reserves, vessel sales and operations.

Seanergy ended the third quarter with approximately $168 million of cash and restricted cash and $419 million of debt, including a €100 million unsecured bond, Gyftakis said. Its net loan-to-value ratio was 28%.

Rates and market outlook

For the fourth quarter, Seanergy had fixed approximately 86% of its operating days at close to $33,000 per day on a TCE basis. Based on the forward freight agreement curve, Tsantanis said the company expects a fourth-quarter TCE of approximately $33,300 per day.

Tsantanis said four vessels, excluding newbuildings, had been converted to fixed rates for 2027 at an average of about $35,000 per day. Later in the call, he referred to five ships fixed at roughly that average, in addition to the newbuildings.

The CEO said the company had secured or was close to securing multiyear charters for four of the six vessels joining the fleet by the end of 2028. The arrangements have floor rates above the vessels’ cash break-even levels and include profit sharing above specified levels, he said.

Tsantanis described the Capesize market as strong, citing limited effective fleet growth and long-haul demand for iron ore and bauxite. He said the Baltic Capesize Index averaged approximately $41,400 per day in the third quarter and peaked near $50,000 in early September, its highest level since 2021.

While noting potential volatility and uncertainty around Chinese commodity demand in 2027, Tsantanis said he remained positive on the longer-term market. He cited the ramp-up of the Simandou iron ore project in West Africa and continued bauxite exports as sources of demand.

Asked about fleet size, Tsantanis said an average of 19 vessels in 2027 and 20 at year-end appeared reasonable. The company might sell one or two older ships as additional vessels are delivered, he said.

About Seanergy Maritime (NASDAQ:SHIP)

Seanergy Maritime Holdings Corp. is an international shipping company focused on the seaborne transportation of dry bulk commodities. It owns and operates a fleet of dry bulk vessels, primarily Capesize ships designed to carry large cargoes over long distances. The company's vessels transport commodities such as iron ore, coal and grain for customers involved in global trade. Seanergy serves international shipping routes connecting commodity producers with markets around the world. Seanergy is incorporated in the Marshall Islands and has its executive offices in Athens, Greece.

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