Q2 2025 Seanergy Maritime Holdings Corp Earnings Call
We have with us, Mr. Stamatis. Santis, chairman and CEO and Mr. Stavros gyftakis Chief Financial Officer of synergy. Maritime Holdings, Corp.
At this time, all participants are in a listen-only mode.
There will be a presentation followed by a question and answer session.
At which time if you would like to ask a question, please press star 1, 1 on your telephone keypad and you will then hear an automated message advising. Your hand is raised
Please be advised that this conference call is being recorded today. Tuesday, August 5th, 2025
The archived webcast of the conference call will soon be made available on the Synergy website www.cinergy.tv.
To access today's presentation and listen to the archived audio file. Visit the Synergy website, following the webcast and presentation section under the investor relations page.
Please now turn to slide 2 of the presentation.
Many of the remarks today contain forward-looking statements based on current expectations.
Actual results May differ materially from the results projected from those forward-looking statements.
Additional information concerning factors that can cause actual results to differ materially from those. In the forward-looking statements is contained in the second quarter and first half for the period ended. June 30th 2025 earnings release which is available on the scenery website. Again, www.synergy.com
I would now like to turn the conference over to 1 of your speakers today, the chairman and CEO of the company. Mr. Stamatis Santana. Please go ahead, sir.
Thank you and welcome everyone.
Today, we're going to be presenting synergies Financial results and Company updates for the second quarter of 2025.
Slide 3.
After this, it did not slow down the cape size market, which rebounded meaningfully in the second quarter.
the Baltic cape has index averaged 18,700 a significant increase from the first quarter as average of 13,000 demonstrating, the markets resilience, despite microeconomic uncertainty
Looking ahead, we're confident in the cape Size Market, that remains fundamentally strong.
The historically low Cape-size new building order book, coupled with increasing Atlantic Basin shipments of iron ore and bauxite, are expected to continue supporting the Cape rates.
Tending to our financial performance, in the second quarter, Synergy recorded, the net income of 2.9 Million on net revenues of 37.5 million. The significant improvement from first quarter, figures driven by stronger Daily Times at the equivalent
for the portion of our Fleet already heads that profitable levels. We anticipate further improvement in our financial performance as we transition into decisionally stronger, second half of the year,
On the fleet development front, we close a quarter with 21 Cape sized vessels over the first 6 months of 2025. We continue to grow our platform with high quality Cape size Acquisitions that, enhance our Landings power, and scale,
in that context, we took the liberty of 2, newly acquired vessels, the cape size and a new customer Max, both of which are already trading under index, link, 10 chapters
We also continued to streamline our financial position.
Since the beginning of the year, we have successfully completed financing or financing transactions totaling approximately 110.6 million effectively addressing loan maturities until the second quarter of 2026.
This enhanced Financial flexibility, allows us to return Capital to our shareholders. While also retaining our capacity to pursue attractive growth opportunities.
Overall seems to 2020. We have grown our Fleet by 97% in that way. Terms while maintaining a disciplined Fleet loan to value ratio of approximately 50%,
Reflecting both the positive direction of the cape Size Market and our healthy balance sheet. Our board of directors is declared a discretionary cast dividend of 5 cents per share.
In line with our distribution in the first quarter.
As the market conditions continue to improve, we remain optimistic about the potential to further enhance. Shareholder returns in the final 2 quarters of the year.
Using this as a segue, we can turn into slide 4 where we emphasize our long-term commitment to Capital return strategy.
Slide 4.
69 million to shareholders our Capital attendance at the G. Prioritizes dividends with 44.2 million paid in common share cash, dividends in additional 45.2, million in share purchases, we continue to actively assess therapy purchases as well as part of our Dynamic Capital return approach.
Slide number 5, commercial, snapshot.
Moving on to slide number 5 now, which provides a brief overview of our commercial performance. During the second quarter of 2025, our Fleet achieved an average times at the equivalent of approximately 19,800 per day.
For the first 6 months of the year, the corresponding figures to that 16,700 per day.
In both instances are performance exceeded. The average levels of the Baltic Cape size index for the respective periods.
Our commercial strategy is designed to balance upside potential with stability, by employing indexing Charters, we capture the market strength in June.
3rd coverage. For part of our Fleet mitigates downside risk, providing earning stability.
Looking ahead in the third quarter, we have already fixed about 62% of our operating days at the gross rate of 22400 a day, and we expect to end a times at the equivalent approximately 23,100 a day for the whole quarter based on the prevailing FSA rates for the remaining of the period.
That being said, we know that the cape site Freight Market is in backwardation, hence future earnings might end up being higher.
As regards, the second quarter of the year, 7 out of our 21 vessels are fixed at profitable levels of approximately 22,400 a day. Providing strong earnings visibility for the second half of the year.
We view this profitable rate as supportive for our financial results and cash generation in the final 2 quarters of the year.
Given the backdrop of microeconomic uncertainty that has emerged due to trade policies and general growth and certainty. We believe that our disciplined and flexible commercial approach, offers an appropriate balance between earnings visibility and exposure to Market upside.
On that note, I would like to turn the call over to Stavros to continue. Slide number 6, Stavro, please go ahead.
Thank you so much. Welcome to everyone joining us for today's earnings call.
Let's begin with slide 6 where we will review the key highlights of our financial performance for the second quarter and the 6-month period. End date June 3025.
We are pleased to report a return to profitability in the second quarter capitalizing on the output momentum in the cape Size Market, particularly in June, as the month is mentioned earlier.
Our net revenue for the quarter reached 37.5 million compared to 43.1% the same period last year.
Adjusted DBA rows to 18.3 million, which was approximately 10 million lower than last year's figure. It highlights, our ability to navigate the volatile Market environment effectively,
Our net income and adjusted net income. For the quarter, it's 2.9 and 3.8 million respectively, translating to earnings per share of 18 cents.
For the first 6 months of 2025, net revenue totaled, 61.7 million with a just DB dog of 26.3 million below the levels recorded in the same period last year reflecting the software Freight environment for most of the first half of the year.
Consequently, we reported a net loss of 4 million for the 6-month period.
Nevertheless considering the improving fundamentals and there is some positive momentum in the cape size segment. We remain cautiously optimistic about achieving profitability for the full year.
Notably, despite the challenges we generated positive operating cash flow of 16.2 million during the first half of the year.
Tenure balance sheet, our cash position. On the end of the quarter was 25.4 million or approximately 1.2 million per vessel.
This was accomplished even as we continue regular dividend distributions, scheduled that repayments completed the acquisition of 2 additional vessels and an extensive Dry Dock program. But so 3 ships being dried docked in the second quarter alone and 5 in the first half of the year.
Million.
which translate into a data Capital ratio, marginally above 50%, based on total book value of assets of 1098 million,
Finally, as of June 3rd, 2025 total shareholder Equity, reached 258, million demonstrating the resilience of our capital structure.
Let's now turn to slide. 7 to discuss our profitability performance.
Our robust commercial strategy, including our hedging activities through FSA conversions once again enabled us to outperform the gaps Market.
In the second quarter, our time, Charter equivalent stood at 19,800.
For the first half of the Year, our PC reached 16,700 to surpassing the public cap size index by 6%.
Our adjusted be done for the first half of the year total 26.3 million. While this figure is lower, year-over-year reflecting the software fright market conditions early in 2025, we are encouraged by the resilience of our cash flow profile with our custom margins standing on 26%.
Uh, just to give you the margin once again, exceeded. 40% underscoring. The operational efficiency for platform.
it's important to note that this results were achieved despite approximately 150 of higher days for vessel dry dockings, which naturally reflect on earnings,
On the coast front, we successfully maintained daily Opex per vessel below 7,000 in line with the previous year performance despite the inflationary pressures.
Now looking ahead, we remain optimistic about profitability trajectory in the second half of the year. We believe our ongoing investment in our Fleet coupled with our operational efficiency and dynamic hedging strategy position as well to continue. Delivering good results.
Moving out, slide 8, let me provide an overview of our capital structure and financing activities.
Our understanding that, including Finance liabilities, at the end of the second quarter was 312 million based on the market value of our Fleet, as of the end of the second quarter, this equates to a long to Fleet value ratio slightly below 50%.
Our paper vessel stands at roughly 14.9 million, nearly 15 million less than the average market value for ships.
Lastly, approximately 70% of our debt is covered by the scrap value for Fleet, which has an average age of 14.1 years.
With cash reserves of 25.4 million or 1.2 million per vessel, we can effectively manage our financial obligations. While being able to support gradual Fleet renewal through selective vessel acquisitions.
Regarding the financing activities, we have been particularly active, the first 6 Months of the Year executing transaction totaling around 111 million.
Earlier this year, we concluded the 54 million sustainability linked loan to part Finance the acquisition of the nation. In Newcastle marks next to the financing of the Wall Street, and the ownership and 2 selling lease bag, agreements totaling, 34.5 million, addressing the volume payments, and the, the loans of The Squire sheet, and the friendship,
Most recently we agreed on a 22.5 million sale in misburg transaction with a reputable Japanese owner to finance the purchase obligation for the blue ship and ensuring no impact on our liquidity position.
Additionally, Alpha Bank has agreed to reduce the interest rate of the facility secured by the Duke Ship by 50 basis points.
As a result of this actions, we improved our daily interest costs further within the first 6 Months of the Year, reducing the weighted average margin to approximately 2.3%.
Finally, as we move to slide 9, I want to emphasize that Synergy is strategically positioned capitalized on any upward movement to the gaps. As Market as current Dynamics, suggest to constructive rate environment in the second half of the year.
As some other highlighted earlier, we have already secured, 62% of our third quarter days at an average rate of 22,400 while for the second half of 2025, set. 3% of our free days are hedged at an average rate Nearing 22,400.
I will now hand the call back to somatus who will provide insights on the cape's market and broader industry fundamentals. Stamatin over to you.
Thank you. So
let's look at demand Trends on. Slide number 10,
Cape sized on M demand is primarily driven by the growing volume of iron ore in boxside exports from the Atlantic basin.
The longer routes to the Far East from these regions, effectively increase the number of vessels required.
The effective number of vessels required, which supports demand.
The first 6 months of 2025, we have seen a 6% increase in shipments originating from the Atlantic.
Expansion has provided meaningful support to keep size demand, even against the backdrop of heightened microeconomic uncertainty.
More specifically box side, shipments from Guinea, loaded on capes Rose, by more than 30% year on year. 300 while I don't know. Keep loading originating in Brazil and Canada but approximately 4.5% up
Looking ahead to the remainder of 2025, it was encouraging to note that recent reform of full year production and shipment targets by the major iron ore producers implies that shipments during the second half of the year will exceed those of the first half.
The Rebound in trade volumes that has taken place since June, including a record-breaking month for the Australian armed or shipments. Further, strengthens our conviction for a stronger second half.
when focusing on long-term picture beyond the current year, the sustained growth in the Atlantic exports is projected to continue mainly through the expansion of vales sd11 iron ore mining project in Brazil and Rio tinto's, Sim do mine in Guinea it is expected to start exports in late 2025
Lastly end user demand for both steel and aluminum seems resilient despite certain fluctuations in economic conditions as both are used extensively.
In manufacturing and construction.
Currently still demand remains supported by industrial and Manufacturing activity. Even during the real estate with Miss in China, which seems very encouraging and boats. Well, for the future,
Flight. Number 11.
The supply side, the supply side, we believe is a key driver for a bullish Outlook. The cape size order book is historically low at about 9% of the existing Fleet.
Meanwhile, approximately 7% of the fleet is 20 years or older and becoming less competitive due to strict environmental regulations.
As far as the current situation.
only 20 vessels have been delivered in the first 6 months of 2025 and based on the delivery schedule for the rest of the year, the full year figures likely to Mark, 1 of the lowest Cape size delivery years in a long, long time,
The same time, only 20 new building orders have been placed in the year also placing us on track for 1 of the lowest ordering years on record. Lastly, as regards, the future Supply Dynamics. It is evident that new building activity, remains muted, as current vessel prices, and long-term. Charter rates do not justify new Investments,
As a result, the combination of the above factors demands supply points to highly constrained Cape size split growth over the next few years, as vessel demand remains resilient against this favorable supply backdrop. We believe that the chatter race for the Cape-sized vessels is likely to remain at very profitable levels for the next years.
To conclude.
Synergy is optimally positioned to benefit from the positive long-term story of the cape Size Market.
Our strategy remains centered on, delivering shareholder value, through disciplined Capital returns and selectively growth, aim to generating strong Returns on Capital.
With our strong position, we are ready to capitalize on Rising crates and further enhance shareholder returns.
On that note.
I would like them to call over to the operator.
To open the floor for your questions. Operator please take the call, thank you.
Thank you.
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Thank you. The first question is from the line of Mark rashman from Noble Capital markets. Please go ahead. Your line is open
First question is, uh, you know, coal Imports. Uh, in China have have declined pretty significantly from 2024 and I, I was just curious. You know why, why is the cape size segment of the dry book Market?
Showing resilience with regards to to China.
Well, good morning and thank you for your question.
Indeed, we have seen a slightly decreasing, the volumes of coal coming into China but that has been more than compensated by higher iron ore as well as box side. So long-term uh long hold box side from as uh increased shipments of, I don't know have more than compensated for the slight reduction of the call shipments.
Okay. And then the second question is, you've really done a great job managing the fleet uh, outperforming the Baltic Cape size index? Uh, could you talk a little bit about your strategy going forward? I mean, we you you expect to continue to lock up rates uh uh and and how much of your Fleet would you expect to kind of leave open?
Well, the answer is, yes, we will continue logging in when we fill the opportunities there. It's a very Dynamic. It can range between 25 to 75% of the fleet, um, depending on the circumstances. So when we see big jumps, uh in uh the future rates, the forward rates, then we will go ahead and lock some ships that can potentially be locked. And at the same time we manage not only the cash flows but also you know the ships that are on Dry Dock and uh as we have discussed over the call it's a very Heavy D of year for us. So you know we have to juggle among all these things.
Okay and then just the last question, its kind of a normal 1. Uh and I made a best if you've already addressed it. But what are your expectations on the operational of higher days in the third and the fourth quarter?
Uh, I would like to start with a Chance of that because she's more uh, on these numbers
Sure. Uh, hi. Hi Mark. Uh,
Good to speak to you. So we had around 250 uh to 160 days uh of higher. Do you drive dockings
Uh, in the first, uh, half of the year on the second half. We have, um, uh, in total, uh, 6 vessels going into dry, dog. Uh, the last 2, uh, in December. So I don't expect this to to affect a lot the available days. Uh, so expect around, uh, 90 to 110 120, uh, of highest days for dry doings in the second half.
um half of it is going to be in this quarter and uh around uh,
60 70 days in the fourth quarter.
Okay, great. Thank you very much.
Thank you, Mark.
Thank you.
The next question is from the line of tape Sullivan from Maxim group. Please go ahead. Your line is open.
Uh, great job locking in right here and on right across. And then it had a question on the box site. I mean, it's, it's good great growth from from the exports from West Africa. It is, is it a larger percent of your complete transporting box site? Or do you think it will still be a relatively small portion of the total cargo move for your Fleet going forward, please.
Hello, ta, good morning. Uh, it's uh, pretty much balanced. We are, if I can say, around 40% for other. We then have another, you know, 40% call, and about 20% is box size. That's pretty much how it looks like, but that changes, uh, you know, quarter on quarter. Right now, it is pretty much as I just told you.
It's great. And then you had a lot of good examples of reducing your spread to so far with your financing and you talked about fairly consistently about more available financing. Do you think there's still even more available financing today compared to last year for yourself in the shipping sector or or about the same Dynamic compared to last year?
Is basically the outlook on Chinese sale and listbox following the usdr, but we expect more clarity on that front, uh, for the time being, I mean, we're happy with the exposure that we have on Chinese resource. Uh, we're not thinking of refinancing them at the end of the day, capes call, uh, much less your sports and the remaining, uh, sectors within dry bulk. Uh, so, to, to answer your question, the interest is still there and we have a number of
Alternatives when considering financing or refinancing our vessels.
Thank you. And last for me I I have not asked before but I mean periodically it is over Supply and the panamax market and maybe some cargo some shorter length carros going into China from the panamax 3. Is that a is that limits the potential upside and safe size rates? Or is there any change in that? But I am like between panamax rates and it's not great. Just coming here this year. Do you think?
Well, the answer is, you know, we are saying Bank like strength which as you know, has jumped from 9,000 in the beginning of the year or even lower to around 13 14,000 dollars, uh, recently and that's 50% in crypto. Max comes are Max, has of course, helped the cape size rates as well because it's not cannibalizing. Um, you know,
Goes from the cape size plate that, um, may be even stronger later in, Q3 it remains to be seen, we expect to see how the trade discussed. We will go us and China because that will play significant role in our opinion, how the trade is closed. We will go. What kind of normalizations? You will see. But this trade back.
Thank you.
Well, now take our next question.
Next question is from Liam Burke from B. Riley. Please go ahead. Your line is open. Good morning, Stamatios. Good morning, Stavros. How are you today?
Morning. Liam.
Um, Samantha. I look at you. Look at the supply dynamic, which is obviously well in your favor being a Cape-size pure play.
But we're looking at an aging Fleet a very, very low order book. How does that do you see any opportunity in the S&P Market to uh, to continue to grow the fleet?
Well, um, that's actually a very, very, very Point. Um, indeed, the fleet is aging and, um, there are limited, uh, sell and purchase opportunities right now, in the secondhand Market, however, Peppers to identify and lock in Newtons. Um, but uh, indeed, the universe has decreased a lot on quality purchases in the second Market. In, the street has become way more expensive.
So that would, I mean and the new bill Market just doesn't make any sense. Either I presume
No, not really. Unless there are certain idea in the new marketing method that may that
I'm sorry, real quickly on operating cash flow. I know you had year-over-year decline in, uh, a tough comps on a year-over-year basis, uh, for the first half in terms of of, of operating income. Uh, but is there anything in the cash flows? That would, uh, that were affecting the uh, operating cash flow beyond that or is it just timing of working capital?
So it's mainly time of working capital. Uh, I mean okay you start from a uh, from from a lower Top Line in any case, but uh it's it's basically time of working capital and it's also the payments for the dry dockings that are affecting uh the the cash flow uh in this year.
So otherwise, it's pretty much similar to last year.
Great. Thank you. Stop, Ross. Thank you, Smash.
Thank you, Liam.
Thank you.
We will now take our next question.
Next question is from Christopher bartky from Arctic Securities. Please go ahead.
Hi guys, thank you for taking my question. Um,
good morning. Uh, can you explain the dynamic with the
Uh, this Simon do you mind and also the Box.
It uh, volumes out again and sort of how much um should we off the top notch? Uh, should we expect at these types of this incremental? Uh, volume increases given transitions uh and the infrastructure uh in in
I believe first of all, about Sim and do that, we will start seeing ramping up later in this year has not started yet. But expectation, is that Q3 Q4, we will see uh, certain ramping up which means that Sim do is going to go off online and we will start see the first shipments. Uh, another point I want to make, which is, um, quite significant for the future, demand of, uh, raw materials is the new or that in China. I mean, people tend to under play because the Hmong Hydro power 1 of the largest man-made projects on Earth, and that is going to require massive amounts of Steel. Uh, and of course, I don't know. Our coaching call and all that. So we expect demand to
It is significantly from China given the week. Uh, housing market is going to demand in the next few years. Quite a lot together, of course, with the ramping up,
Okay, thank you, guys. That's it from me.
Thank you. Nice to hear from you.
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