Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP)
announced today that it has entered into commercial agreements for
the installation of exhaust gas cleaning systems (“scrubbers”) on
five of its capesize bulk carriers before the January 1, 2020
implementation date of the IMO sulfur emission cap regulations.
Upon completion of the installations scheduled for Q2 and Q3 2019,
the vessels will commence index linked period employment with three
leading dry-bulk charterers ranging in durations between three and
five years.
The Company has secured the scrubber equipment
from Hyundai Materials, a well-known Korean manufacturer and has
reserved retrofitting slots at an experienced dry-dock facility in
China. The total investment, to be covered by the charterers, is
expected to exceed $12.5 million, including equipment and
installation costs.
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“We are very excited to announce these
commercial agreements which should result in approximately $12.5
million accretion in our NAV. We believe that the significant
investment that will be implemented in full cooperation with our
charterers represents a balanced and comprehensive approach towards
the new environmental regulations scheduled to become effective as
of January 1, 2020.
“Such strategic direction comes after careful
consideration of the various aspects of the new regulations and
their implications in our sector, given that Seanergy was one of
the first Greek dry-bulk companies to conclude a feasibility study
on scrubbers, in cooperation with the American Bureau of Shipping
(ABS).
“This significant investment by our charterers,
in combination with innovative charter agreements, is expected to
increase the market value of the subject vessels without our
Company incurring additional debt or diluting our shareholders.
“It is important to further note that the
underlying time-charters are index linked, maximizing Seanergy’s
exposure to the positive fundamentals and outlook of the Capesize
market. Moreover, through profit sharing agreements calculated on
the spread between high and low sulfur fuel, we believe we will be
able to capitalize on short-term distortions in the bunker
market.
“We aim to complete the installations of the
scrubbers during 2019 before the IMO 2020 regulations come into
force. Finally, upon implementation of the new IMO regulations, all
of Seanergy’s fleet will be fully compliant with the new
rules.”
Details of the Agreements:
A. M/V Partnership and M/V
Lordship
The Company has entered into two time charter
agreements with a major European utility company, for M/Vs
Partnership and Lordship, for a firm period of 33 to 37 months plus
one additional period of 11 to 13 months at charterer’s option.
B. M/V Premiership and M/V
Squireship
The Company has entered into two time charter
agreements with a leading multinational commodity trading and
mining company, for the M/Vs Premiership and Squireship, for a firm
period of 36 to 42 months plus two additional periods of 11 to 13
months at charterer’s option.
C. M/V Championship
The Company has entered into an agreement for
the sale and leaseback and a five year time charter with a large
international commodity trading company for the M/V Championship,
for a firm time-charter period of 60 months plus an additional 18
month period at charterer’s option.
The latter two agreements are subject to the
conclusion of definitive documentation.
The daily hire on all three agreements is
index-linked rate based on the 5-routes T/C average of the Baltic
Exchange Capesize Index (BCI).
As part of the time charter agreements, the
charterers will cover 100% of the equipment and installation cost
for retrofitting the vessels with exhaust gas cleaning systems
(scrubbers). On top of the daily hire, the Company will receive an
additional compensation based on the spread between the price of
High Sulphur Fuel Oil and the price of Marine Gas Oil or other
IMO-compliant and ISO certified Low Sulphur Fuel Oil throughout the
term of the time charters.
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is an
international shipping company that provides marine dry bulk
transportation services through the ownership and operation of dry
bulk vessels. The Company currently operates a modern fleet of ten
dry bulk carriers, consisting of nine Capesizes and one Supramax,
with a combined cargo-carrying capacity of approximately 1,625,763
dwt and an average fleet age of about 9.6 years.
Upon the completion of the sale of the second
Supramax and the purchase of the new Capesize previously announced,
the Company's operating fleet shall consist of ten Capesize vessels
with an average age of 9.6 years and aggregate cargo carrying
capacity of 1,748,638 dwt.
The Company is incorporated in the Marshall
Islands with executive offices in Athens, Greece and an office in
Hong Kong. The Company's common shares and class A warrants trade
on the Nasdaq Capital Market under the symbols “SHIP” and “SHIPW”,
respectively.
Please visit our company website at:
www.seanergymaritime.com
Forward-Looking Statements
This press release contains forward-looking
statements (as defined in Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended) concerning future events. Words such as "may",
"should", "expects", "intends", "plans", "believes", "anticipates",
"hopes", "estimates", and variations of such words and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks and are based upon
a number of assumptions and estimates, which are inherently subject
to significant uncertainties and contingencies, many of which are
beyond the control of the Company. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, the Company's ability
to continue as a going concern; the Company's operating or
financial results; the Company's liquidity, including its ability
to pay amounts that it owes and obtain additional financing in the
future to fund capital expenditures, acquisitions and other general
corporate activities; the conclusion of definitive documentation,
competitive factors in the market in which the Company operates;
shipping industry trends, including charter rates, vessel values
and factors affecting vessel supply and demand; future, pending or
recent acquisitions and dispositions, business strategy, areas of
possible expansion or contraction, and expected capital spending or
operating expenses; risks associated with operations outside the
United States; and other factors listed from time to time in the
Company's filings with the SEC, including its most recent annual
report on Form 20-F. The Company's filings can be obtained free of
charge on the SEC's website at www.sec.gov. Except to the extent
required by law, the Company expressly disclaims any obligations or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Company's expectations with respect thereto or any change in
events, conditions or circumstances on which any statement is
based.
For further information please
contact:Capital Link, Inc.Paul Lampoutis230 Park Avenue
Suite 1536New York, NY 10169Tel: (212) 661-7566E-mail:
seanergy@capitallink.com
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