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01/15/2015Press Releases

SEANERGY MARITIME HOLDINGS CORP. REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2014 AND ANNOUNCES AGREEMENT TO ACQUIRE A SECONDHAND CAPESIZE

“Since the successful completion of the Company’s financial restructuring in March 2014, we have worked towards rebuilding the Company’s fleet so we can initiate the positive cash-flow generation that will deliver value to our shareholders.

“Regarding our immediate expansion plans we have been cautiously monitoring the deterioration of the asset values for the last six months, where certain dry bulk asset values suffered value reduction of more than 20%, bottoming close to historical lows. Taking advantage of these market trends, we decided to proceed with a secondhand vessel acquisition and we are pleased to announce that we entered into an agreement with an unaffiliated third party for the acquisition of a Capesize vessel.

“The vessel was built in 2001 at a renowned Japanese shipyard and is expected to be delivered to the Company between mid of the first quarter and early of the second quarter of 2015. The gross purchase price of the vessel, which is $17.3 million, will be funded by secured senior bank debt as well as financing by one of the Company’s major shareholders.

“In respect of the announced acquisition of four Capesize vessels, due to the significant deterioration of the dry bulk freight market conditions, it was deemed that it would be to the best interests of our shareholders to reevaluate certain terms of the initial agreement of April 2014. We have now agreed with the sellers of the four Capesize vessels to defer the transaction to a later time in 2015. Continued discussions could lead to changes in the transaction, subject to certain conditions and sellers’ third party required consents.

“At the same time, certain of our major shareholders have showed their continued commitment to Seanergy’s prospects and plans and made a cash contribution of $0.96 million in exchange for new shares in order to support the Company’s equity for the period ended September 30, 2014. In addition, one of our major shareholders contributed another $1.11 million on December 30, 2014 which will allow us to execute on our business plan.

“Turning to the financial results, in the nine months ended September 30, 2014, Seanergy reported net income of $81.6 million, which includes a non-cash restructuring gain that took place in the first quarter of the year. The Company ended the third quarter of 2014 with approximately $2.8 million in shareholders’ equity, zero debt and $2.9 million in cash and cash equivalents.

”Given that a large portion of the overall returns in shipping relate to the timing and price of asset acquisitions, we believe that Seanergy represents today a unique platform and opportunity for growth in the dry bulk space. With a clean balance sheet and no contingencies of any sort, we are rebuilding our fleet acquiring vessels close to their historic lows.”
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