Seanergy Maritime Boosts Dividend Following Record-Breaking Financial Performance

Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) has announced a record-breaking performance for the second quarter and the first half of 2024, which has resulted in a significant increase in its quarterly dividend. The U.S.-listed, Athens-based company, known for its pure-play Capesize fleet, has demonstrated its commitment to shareholders by enhancing its payout policy amidst stellar financial results.

In Q2 2024, Seanergy reported a net income of $14.1 million, a dramatic rise from $700,000 in the same period last year. The company's net income for the first half of 2024 also saw a substantial increase, reaching $24.3 million compared to a $3.5 million loss in the previous year. Revenue figures were equally impressive, with Q2 net revenue increasing by 52% year-over-year to $43.1 million and H1 revenue growing by 75% to $81.4 million. Earnings per share came in at $0.68 for Q2 and $1.18 for H1.

In light of these strong financials, Seanergy's board has decided to boost its dividend policy, aiming to distribute approximately 50% of operating cash flow after debt payments. Consequently, the Q2 cash dividend was raised to $0.25 per share from $0.15 and $0.10 in the previous two quarters. This move highlights Seanergy's long-standing commitment to rewarding its investors, having already returned $34.7 million in cash dividends since Q1 2022.

Additionally, Seanergy has resumed its stock buyback program, repurchasing $1.8 million worth of shares at an average price of $10.56 per share. The company's chairman and CEO, Stamatis Tsantanis, has also been actively buying common shares and call options, further signaling confidence in the company's future performance. “Based on our strong and visible cash flow generation, we expect to be able to continue returning significant capital to our shareholders in the coming quarters,” Tsantanis stated.

Seanergy's record-breaking results are largely attributed to its strategic positioning as a leading dry bulk operator with a pure-play Capesize fleet. This focus has allowed the company to capitalize on the strong performance of the Capesize market, which has outpaced other dry bulk segments. Seanergy is set to enhance its fleet further with the acquisition of a modern Japanese-built Capesize vessel expected to be delivered in Q3 2024, bringing the total fleet to 19 vessels.

The Capesize market has shown remarkable strength since Q1 2024, marking its best performance in over a decade. This momentum continued into Q2, enabling Seanergy’s fleet to achieve an average daily time charter equivalent (TCE) of $26,636, which is approximately 18% higher than the Baltic Capesize Index’s average of $22,600.

In a related development, United Maritime Corporation (Nasdaq: USEA), spun off from Seanergy two years ago, has also made strategic moves that have led to profitability in Q2. United Maritime declared its seventh consecutive quarterly dividend of $0.075 per share and announced a minority investment in a new offshore Energy Construction Vessel (ECV) project, expected to be completed by 2027. The ECV will cater to both the oil and gas and renewable energy sectors.

Both Seanergy and United Maritime remain optimistic about the outlook for the Capesize sector, buoyed by robust vessel demand driven by increasing imports of iron ore and coal in China and export growth in Brazil. With a slow-growing fleet size and strong dry bulk demand, the companies believe they are well-positioned for continued strong performance.

Investors interested in diversifying their portfolios with exposure to the maritime industry can learn more about Seanergy Maritime Holdings Corp. and United Maritime Corporation by visiting their respective websites.