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11/05/2009Press Releases

SEANERGY MARITIME HOLDINGS CORP. REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2009

“Despite the continued market volatility, we are pleased to report strong results for the third quarter of 2009, our fourth consecutive profitable quarter since the completion of our business combination in August 2008. These results reflect our strong cash flow, the high fleet utilization and our operational efficiency on the cost side.

In the third quarter of 2009, we doubled our controlled fleet with the acquisition of BET, which was achieved with minimal cash outlay and without sacrificing our strong balance sheet. In addition, we reinforced our capital structure with the conversion of the $28.25 million promissory note issued in our business combination into common stock, which enhances our ability to pursue additional accretive fleet expansion taking advantage of opportunities that may come up in today’s market conditions.

We expect the dry bulk market to continue to experience volatility for the remainder of 2009 and in 2010. Stimulus packages passed by major world economies helped revive global trade growth from its collapse at the beginning of 2009. Despite the challenges facing major world economies in the U.S. and Europe, which appear to be recovering at a slower pace, we believe that demand for dry bulk commodities from the developing markets, especially China and India, will continue as a result of domestic infrastructure development in those countries. The significant orderbook remains a concern, but in the first nine months of 2009 the slippage between scheduled and actual deliveries of newbuildings exceeded 35%. We believe that a continuation of this trend, coupled with increased scrapping, should have a positive impact on fleet supply, which, however, is difficult to quantify. Therefore, we expect freight rates to remain volatile, continuing to put pressure on asset values which, particularly in respect to the smaller units, are too high in relation to the freight market. With our experienced management, strong balance sheet, high liquidity and significant charter coverage of 76% for 2010, we believe that Seanergy is well positioned to take advantage of opportunities to expand its fleet, further enhancing shareholder value for the longer term.” 
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