April 3, 2017 - Athens, Greece - Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ:SHIP) announced today its financial results for the fourth quarter and twelve months ended December 31, 2016. For the fourth quarter and twelve months ended December 31, 2016, the Company generated net revenues of $10.9 and $34.7 million respectively. As of December 31, 2016 total stockholders’ equity was $30.8 million and cash and restricted cash was $15.9 million
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated: “During 2016, the dry bulk market went through the worst crisis of the last 25 years. The continuous oversupply of ships as well as the concerns over future demand for dry bulk transport led to the lowest freight rate levels since the end of the 1980’s. Despite this difficult environment, Seanergy emerged a bigger and stronger company as we managed to grow our fleet at historically favorable prices while significantly improving our financial flexibility and operational performance.
“The acquisition of two modern Capesize vessels in 2016, not only increased our dwt capacity by 30% to 1.5 million, but has also established a substantial presence for the Company in the Capesize segment. The price of $20.75 million per Capesize vessel was the lowest price paid by any of our public peers in the last five years.
“Consistent with our business plan to expand our fleet with quality tonnage, we recently agreed to acquire another modern Capesize vessel built in 2012 in Hyundai of South Korea. The agreed acquisition cost is $32.65 million and upon delivery of the vessel by the end of May 2017, our fleet dwt will expand to 1.7 million dwt. In our view, we are acquiring this additional Capesize vessel at an attractive price given the relevant historical values. Additionally, this purchase proves our ability to generate significant returns for our shareholders, which is evident with the two modern Capesize vessels that we bought in 2016.
“We strongly believe that the Capesize segment represents the best fundamentals in the dry bulk industry and our recent acquisitions will significantly improve our shareholder value. Seanergy will continue to actively pursue accretive acquisition opportunities of quality Capesize vessels.
“Seanergy also achieved a substantial improvement of its liquidity. From August 2016 to date we have raised $27.6 million gross proceeds from public offerings and we have used this capital for vessel acquisitions at historical low values and entered into agreements to reduce our debt which will create a material accretion in value for our shareholders. In March 2017, we reached an important agreement with one of our lenders for the early repayment of one of our loan facilities at a 30% discount that should generate a gain of $11.4 million. Finally, we have reached proactive agreements with our lenders to waive and defer certain major financial covenants in all of our existing banking facilities until the second quarter of 2018.
“We strongly believe that the successful implementation of our business plan along with the improving dry bulk market conditions will continue to enhance shareholder value.”