Seanergy Maritime Holdings Corp. (NASDAQ: SHIP; SHIP.W) announced today its operating results for the first quarter ended March 31, 2011.
First Quarter 2011
* Net Revenues of $25.2 million
* EBITDA of $12.9 million
* Net Loss of $1.5 million
Dale Ploughman, the Company’s Chairman and Chief Executive Officer, stated:
“Against challenging conditions, with the BDI down 50% from Q1 2010, Seanergy’s strategy of securing long term agreements with reputable charterers, as well as the fact that we have been operating a larger fleet this year, effectively insulated our revenues from the worsening market environment seen during the first quarter of the year. In accordance with our strategy, we were able to secure long term employment for one of our Panamax vessels at a higher rate than current market levels, which further enhances our cash flow visibility over the next year. We believe that our strong period charter coverage for the next two years can minimize the effect of short term freight rate volatility.
Furthermore, we expect that our current cash position might afford us the opportunity to engage into accretive acquisitions as the continuing weak market conditions might translate in lower asset purchase prices.
Over the first quarter of 2011 a number of factors contributed to a difficult operating environment characterized by low freight rates and heightened uncertainty.
Unexpected events such as the recent storms in Australia and the natural disaster in Japan have affected shipping activity while the seasonal decrease in trade attributable to the Chinese New Year celebrations reduced demand and maintained the negative pressure on freight rates. Furthermore, persistent fiscal worries in developed countries and the monetary tightening taking place in most major Asian countries are generating increased economic uncertainty.
Under these circumstances the large number of vessels entering service in 2011 has proved difficult to absorb while the large outstanding orderbook is creating a supply overhang that could prevent a sustained rebound in freight rates. It seems that the following months are going to be characterized by volatile conditions, as there are a multitude of factors that can affect the market, which are hard to predict. Looking beyond short term uncertainty however, it is our belief that long term fundamentals in dry bulk shipping remain solid and that Seanergy is well positioned to continue its growth.”
Christina Anagnostara, the Company’s Chief Financial Officer, stated: “During the first quarter of 2011 the Company operated 20 fully owned vessels. We are pleased to report a 38% increase in revenues for the first quarter of 2011 as compared to the same quarter in 2010. We believe that the end of the first quarter of 2011 finds Seanergy in a solid balance sheet position. Our cash balance and future contracted revenue stemmin from our charters puts us in a position that we believe will permit us to cover all capital commitments for the coming year while allowing us to pursue further growth.
The loss experienced in the first quarter is a result of lower average time charter equivalent (“TCE”) rates earned by our vessels and higher depreciation, amortization and financial expenses as compared to the first quarter of 2010. The increased size of our fleet compared to the same period last year nevertheless helped us increase revenues even amidst such adverse market conditions.
As of the date of this press release, our vessels have secured period employment of 85% for 2011, 40% for 2012 and 19% for 2013.”
Source: Seanergy Maritime Holdings