United Maritime Corporation (“United” or the “Company”) (NASDAQ:
USEA), announced today its financial results for the period from
commencement of its operation on July 6, 2022 to September 30,
2022.
For the period from commencement of its
operation to September 30, 2022, the Company generated Net Revenues
of $7.9 million, while EBITDA was $2.9 million. Net Income for the
period was $1.0 million. The daily Time Charter Equivalent (“TCE
rate”) of the fleet was $23,639 for the period.
Cash and cash-equivalents, as of September 30,
2022, were $21.2 million. Shareholders’ equity at the end of the
third quarter was $44.3 million. Long-term debt net of deferred
charges was at $76.3 million.
Stamatis Tsantanis, the Company’s
Chairman & Chief Executive Officer, stated:
“We are pleased to report United’s first
financial results for its initial period of operations. Further to
the successful spinoff from Seanergy Maritime and the commencement
of trading on Nasdaq in July 2022, we completed the highly
accretive acquisition of two Aframax and two LR2 tankers. The
timing of the acquisitions was exceptional given the subsequent
upsurge of tanker spot rates and accelerating tanker vessel
values.
“Regarding United’s financial performance, the
initial reporting period ending September 30, 2022, has been
transitional given that the majority of our fleet was delivered
towards the end of the period with limited contribution in our
revenue stream. Nonetheless, we recorded net income of $1.0
million, on TCE revenue of $5.8 million, despite the significant
predelivery expenses related to the acquisition of the four
tankers. This was attributed to the operation of our single
capesize vessel under a profitable time-charter at a gross daily
rate of approximately $28,000, well above the respective spot
rates, and the strong income stream of the tanker vessels following
their delivery.
“In September we agreed to sell the two Aframax
tankers, securing a gain of approximately $19 million, or more than
50% over their purchase price, within just a two-month period since
the respective acquisitions. The significant profit from the sale
of these two vessels is expected to be recorded in our fourth
quarter results. This agreement is a testament to our investment
strategy, focusing on value opportunities across the main shipping
sub-sectors that may be highly rewarding for our shareholders.
“As regards to our commercial strategy, one of
the two remaining LR2 product tankers is currently employed in the
spot market, while the other is on a fixed rate time charter until
March 2023. Given the favorable tanker market conditions and
outlook, we expect both vessels to generate significant free cash
flow. The time charter of our only capesize vessel runs at a fixed
rate until the end of the year, supplementing the robust revenue
stream of the tankers. Looking to the next quarter, we have covered
88% of our ownership days at an average TCE of $33,200 per day.
“Furthermore, through two separate stock buyback
programs we have repurchased approximately 3.3 million shares in
the open market to date, at an average price of $1.81, for a total
cash outflow of about $6.0 million. Through these buybacks, we have
reduced the number of shares outstanding by approximately 24%.
Given what we perceive to be the significant undervaluation of our
common stock, we recently announced the initiation of a third $3.0
million buyback program. We have also decided to redeem the 6.5%
Series C Preferred Shares issued to Seanergy Maritime in connection
with the spin-off. This will increase the net income per share
available to common shareholders, while eliminating the risk of
potential dilution from outstanding share-linked instruments.
“On the financing front, the Company’s debt
consists only of fixed-rate loans, providing protection against the
rapid rise in interest rates; additionally, as a result of the
increase in the values of the tanker vessels, our gearing is at
moderate levels. Our cash reserves are strong, standing in excess
of $3.00 per share as of September 30, 2022, or $4.80 per share,
pro forma for the net proceeds following the sale of the two
Aframax tankers and the redemption of the Series C Preferred
Shares.
“Looking forward, our capital deployment
strategy will be balanced between pursuing attractive investments
in new vessels and rewarding our shareholders.”
_________________________________1 EBITDA and
TCE rate are not recognized measurements under U.S. generally
accepted accounting principles, or U.S. GAAP. Please see the
reconciliation below of EBITDA to net income and TCE rate to net
revenues from vessels, in each case the most directly comparable
U.S. GAAP measure.
Current Company
Fleet:
Vessel Name |
Sector |
Capacity (DWT) |
Year Built |
Yard |
Employment Type |
Minimum T/C expiration |
Maximum T/C expiration(1) |
Gloriuship |
Dry Bulk / Capesize |
171,314 |
2004 |
Hyundai |
T/C Index Linked(2) |
Dec-22 |
Apr-23 |
Minoansea |
Tankers / LR2 |
108,817 |
2008 |
SWS |
Spot |
N/A |
N/A |
Epanastasea |
Tankers / LR2 |
109,647 |
2008 |
Dalian |
Fixed Rate T/C(3) |
Mar-23 |
Apr-23 |
Total/Average age |
|
389,778 |
15.9 |
|
|
|
|
Held for Sale
Fleet4:
Vessel Name |
Sector |
Capacity (DWT) |
Year Built |
Yard |
Parosea |
Tankers / Aframax |
113,553 |
2006 |
Samsung |
Bluesea |
Tankers / Aframax |
113,553 |
2006 |
Samsung |
Total/Average age |
|
227,106 |
16.6 |
|
(1) The latest redelivery dates do not include
any additional optional periods.
(2) Chartered by Pacbulk Shipping and delivered
to the charterer for an initial period of about 4 to about 7
months. Following various extensions, in December 2021, the T/C was
further extended until minimum December 2022, up to maximum May
2023. The daily charter hire is based on the BCI and an FFA
conversion option is embedded.
(3) The vessel was delivered to the charterer on
September 2, 2022, with an attached time-charter with A.D.N.O.C.
and a remaining period of three months. In October 2022, the T/C
was further extended until minimum March 2023, up to maximum April
2023. The daily charter hire is currently $26,500 increasing to
$43,500 for the period from December 17, 2022, until the
expiration.
(4) The M/T Parosea was delivered to her new
owners on November 8, 2022. The delivery of the M/T Bluesea is
expected within November.
Fleet Data:
(Amounts in U.S. Dollars)
|
From July 6, 2022 to September 30, 2022 |
|
Ownership days (1) |
|
248 |
|
Operating days (2) |
|
244 |
|
Fleet utilization (3) |
|
98.4 |
% |
TCE rate (4) |
$ |
23,639 |
|
Daily Vessel Operating Expenses (5) |
$ |
7,573 |
|
(1) Ownership days are the total number of
calendar days in a period during which the vessels in a fleet have
been owned or chartered in. Ownership days are an indicator of the
size of the Company’s fleet over a period and affect both the
amount of revenues and the amount of expenses that the Company
recorded during a period.
(2) Operating days are the number of available
days in a period less the aggregate number of days that the vessels
are off-hire due to unforeseen circumstances. Operating days
includes the days that our vessels are in ballast voyages without
having finalized agreements for their next employment.
(3) Fleet utilization is the percentage of time
that the vessels are generating revenue and is determined by
dividing operating days by ownership days for the relevant
period.
(4) TCE rate is defined as the Company’s net
revenue less voyage expenses during a period divided by the number
of the Company’s operating days during the period. Voyage expenses
include port charges, bunker (fuel oil and diesel oil) expenses,
canal charges and other commissions. The Company includes the TCE
rate, a non-GAAP measure, as it believes it provides additional
meaningful information in conjunction with net revenues from
vessels, the most directly comparable U.S. GAAP measure, and
because it assists the Company’s management in making decisions
regarding the deployment and use of our vessels and because the
Company believes that it provides useful information to investors
regarding our financial performance. The Company’s calculation
of TCE rate may not be comparable to that reported by other
companies. The following table reconciles the Company’s net
revenues from vessels to the TCE rate.
(In thousands of U.S. Dollars, except operating days and TCE
rate)
|
From July 6, 2022 to September 30, 2022 |
Net revenues from vessels |
|
7,852 |
Less:
Voyage expenses |
|
2,084 |
Time
charter equivalent revenues |
|
5,768 |
Operating days |
|
244 |
TCE
rate |
$ |
23,639 |
(5) Vessel operating expenses include crew
costs, provisions, deck and engine stores, lubricants, insurance,
maintenance and repairs. Daily Vessel Operating Expenses are
calculated by dividing vessel operating expenses, excluding pre
delivery costs of acquired vessels, by ownership days for the
relevant time periods. The Company’s calculation of daily vessel
operating expenses may not be comparable to that reported by other
companies. The following table reconciles the Company’s vessel
operating expenses to daily vessel operating expenses.
(In thousands of U.S. Dollars, except ownership days and Daily
Vessel Operating Expenses)
|
From July 6, 2022 to September 30, 2022 |
Vessel operating expenses |
|
2,179 |
Less:
Pre-delivery expenses |
|
301 |
Vessel
operating expenses before pre-delivery expenses |
|
1,878 |
Ownership days |
|
248 |
Daily
Vessel Operating Expenses |
$ |
7,573 |
|
|
|
Net Income to EBITDA Reconciliation:
(In thousands of U.S. Dollars)
|
From July 6, 2022 toSeptember 30, 2022 |
Net income attributable to common
shareholders |
889 |
Add: Interest and finance costs, net |
948 |
Add: Depreciation and amortization |
946 |
Add: Dividends on series C preferred shares |
139 |
EBITDA |
2,922 |
Earnings Before Interest, Taxes, Depreciation
and Amortization (“EBITDA”) represents the sum of net income /
(loss), net interest and finance costs, depreciation and
amortization and, if any, income taxes during a period. EBITDA is
not a recognized measurement under U.S. GAAP.
EBITDA is presented as we believe that this
measure is useful to investors as a widely used means of evaluating
operating profitability. EBITDA as presented here may not be
comparable to similarly titled measures presented by other
companies. This non-GAAP measure should not be considered in
isolation from, as a substitute for, or superior to, financial
measures prepared in accordance with U.S. GAAP.
Interest and Finance Costs to Cash
Interest and Finance Costs Reconciliation:
(In thousands of U.S. Dollars)
|
From July 6, 2022 to September 30, 2022 |
|
Interest and finance costs, net |
(948 |
) |
Add: Amortization of deferred finance charges and other
discounts |
128 |
|
Cash interest and finance costs |
(820 |
) |
Fourth Quarter 2022 TCE Guidance:
As of the date hereof, approximately 88% of the
Company fleet’s expected ownership days in the fourth quarter of
2022 have been fixed at an estimated TCE of approximately $33,2002.
Our TCE guidance for the fourth quarter of 2022 includes the
conversion of an index-linked charter to fixed for the
Gloriuship.
_________________________________2 This guidance
is based on certain assumptions and there can be no assurance that
these TCE estimates, or projected utilization will be realized. TCE
estimates include certain floating (index) to fixed rate
conversions concluded in previous periods. Spot estimates are
provided using the load-to-discharge method of accounting. Over the
duration of the voyage (discharge-to-discharge) there is no
difference in the total revenues and costs to be recognized. The
rates quoted are for days currently contracted. Increased ballast
days at the end of the quarter will reduce the additional revenues
that can be booked based on the accounting cut-offs and therefore
the resulting TCE will be reduced accordingly.
Third Quarter and Recent Developments:
Share Buybacks
In September and October 2022, the Company
completed two share buyback plans, repurchasing approximately 3.3
million common shares at an average price of $1.81 per share for a
total amount of $6.0 million.
In October, as previously announced, the Board
of Directors authorized an additional share buyback plan, under
which the Company may repurchase up to $3.0 million of its
outstanding common shares in the open market through the period
ending March 31, 2023.
Redemption of the $10 million 6.5%
Series C Cumulative Convertible Perpetual Preferred
Shares
A special independent committee of the Company’s
Board of Directors has authorized the redemption of the Series C
Preferred Shares issued to Seanergy Maritime in connection with the
spin-off in order to provide working capital to United. Pursuant to
the terms of the Series C Preferred Shares, the Company has the
right, at its option, to redeem the shares at 105% of face value
plus accrued and unpaid dividends to the date of redemption. The
redemption is expected to take place in the fourth quarter of
2022.
Vessel transactions and commercial
updates
Aframax Tankers (M/T Parosea and M/T
Bluesea)
In August 2022, the Company took delivery of the
two 113,553 dwt Aframax tankers, built in 2006 in South Korea,
which were renamed M/T Parosea and M/T Bluesea. The two vessels
entered a leading Aframax tanker pool tracking the earnings of the
spot market.
In September 2022, the Company entered into two
separate definitive agreements with an unaffiliated third party for
the sale of the two vessels. The M/T Parosea was delivered to her
new owners on November 8, 2022, and the M/T Bluesea is expected to
be delivered to her new owners within November 2022.
LR2 Tankers (M/T Minoansea and M/T
Epanastasea)
In August 2022, the Company took delivery of the
108,817 dwt LR2 tanker, built in 2008 in China, which was renamed
M/T Minoansea. The vessel has been deployed since then in the spot
freight market.
In September 2022, the Company took delivery of
the 109,647 dwt LR2 tanker, built in 2008 in China, which was
renamed M/T Epanastasea. The vessel was delivered with a T/C
attached for a remaining period of three months at a gross daily
rate of $26,500. In October 2022, the T/C was extended until
minimum March 26, 2023, up to maximum April 2023. The daily charter
hire after the extension, starting on December 17, 2022, is fixed
at $43,500.
Financing Updates
Underwritten Public
Offering
In July 2022, United completed an underwritten
public offering of 8,000,000 units at a public offering price of
$3.25 consisting of (i) one common share (or one pre-funded warrant
in lieu of one common share) and (ii) one Class A warrant to
purchase one common share at an exercise price of $3.25. The gross
proceeds of the offering were approximately $26.0 million.
Four Tankers Facility
In August 2022, the Company successfully
concluded a new facility of $63.6 million to partially finance the
acquisition of four tankers, on a fixed rate of 7.90% per annum.
The facility has a term of 18 months after the drawdown of the last
tranche and would amortize through three quarterly instalments
averaging $4.0 million commencing nine months from the drawdown
date, followed by a $51.6 million balloon payable at maturity.
Regarding the two Aframax tanker sales, the
Company shall prepay the respective tranches upon the delivery of
each vessel, for an aggregate amount of $32.4 million. The
outstanding amount of the facility will stand at $31.2 million,
with the average of three instalments reduced to $2.0 million
followed by a $25.2 million balloon payment at maturity.
M/V Gloriuship Facility
In August 2022, we concluded the refinancing of
$14.0 million of our existing facility at an improved fixed rate of
7.90% per annum, reduced from 10.5% per annum. The facility has a
term of 18 months and will amortize through three quarterly
instalments of $1.0 million each commencing nine months from the
refinancing date, followed by a $11.0 million balloon payable at
maturity.
In connection with the sale of the two Aframax
tankers, the Company has agreed to prepay $2.0 million against the
M/V Gloriuship Facility. An amount of $1.0 million was prepaid at
the delivery of the first tanker and was applied against the
balloon of the facility. The remaining $1.0 million will be prepaid
at the delivery of the second tanker and will be applied equally
against the next two instalments of the facility. Following the
completion of prepayments, the outstanding amount of the facility
will be $12.0 million.
Update on Number of Common Shares Issued
and Outstanding
As of November 14, 2022, the Company has
7,222,213 common shares issued and outstanding.
Conference
Call:
The Company’s management will host a conference
call to discuss the financial results today, Wednesday, November
16, 2022 at 10:00 a.m. Eastern Time.
Audio
Webcast:
There will be a live, and then archived, webcast
of the conference call through the Company’s website. To listen to
the archived audio file, visit our website, in the “Investors”
section. Participants to the live webcast should register on the
website approximately 10 minutes prior to the start of the webcast,
following this link.
Conference Call
Details:
Participants have the option to register for the
call using the following link. You can use any number from the list
or add your phone number and let the system call you right
away.
|
United Maritime CorporationUnaudited Condensed
Consolidated Balance Sheets(In thousands of U.S. Dollars) |
|
|
|
September 30,2022 |
|
ASSETS |
|
|
|
Cash and cash equivalents |
|
21,215 |
|
Vessels, net and vessels held for sale |
|
98,202 |
|
Other assets |
|
8,645 |
|
TOTAL
ASSETS |
|
128,062 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Long-term debt |
|
76,281 |
|
Other liabilities |
|
7,508 |
|
Stockholders’ equity |
|
44,273 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
128,062 |
|
|
|
|
|
United Maritime CorporationUnaudited Condensed
Consolidated Statements of Operations (In thousands of U.S.
Dollars, except for share and per share data, unless otherwise
stated) |
|
|
|
|
|
From January 20, 2022 (date of inception) to September 30,
2022 |
|
Vessel revenue,
net |
|
7,852 |
|
Expenses: |
|
|
|
Voyage expenses |
|
(2,084 |
) |
Vessel operating expenses |
|
(2,179 |
) |
Management fees |
|
(230 |
) |
General and administrative expenses |
|
(442 |
) |
Depreciation and amortization |
|
(946 |
) |
Operating
income |
|
1,971 |
|
Other income /
(expenses): |
|
|
|
Interest and finance costs, net |
|
(948 |
) |
Other, net |
|
5 |
|
Total other expenses,
net: |
|
(943 |
) |
Net
income |
|
1,028 |
|
Dividends on series C preferred shares |
|
(139 |
) |
Net income
attributable to common stockholders |
|
889 |
|
|
|
|
|
Net income per common
share, basic |
|
0.24 |
|
Net income per common
share, diluted |
|
0.14 |
|
Weighted average number of
common shares outstanding, basic |
|
3,682,695 |
|
Weighted average number of
common shares outstanding, diluted |
|
6,639,101 |
|
|
|
|
|
United Maritime CorporationUnaudited Condensed
Consolidated Cash Flow Data (In thousands of U.S. Dollars) |
|
|
|
|
|
|
From January 20, 2022 (date of inception) to September 30,
2022 |
|
Net cash provided by
operating activities |
|
1,893 |
|
Net cash used in
investing activities |
|
(19,604 |
) |
Net cash provided by
financing activities |
|
38,926 |
|
|
|
|
|
About United Maritime Corporation
United Maritime Corporation is an international
shipping company specializing in worldwide seaborne transportation
services. Following the disposal of its two recently-sold vessels,
the Company will operate a fleet of two tanker vessels and one dry
bulk vessel with an aggregate cargo carrying capacity of 389,778
dwt.
The Company is incorporated under the laws of
the Republic of the Marshall Islands and has executive offices in
Glyfada, Greece. The Company's common shares trade on the Nasdaq
Capital Market under the symbol “USEA”.
Please visit the Company’s website at:
www.unitedmaritime.gr
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 may identify forward-looking statements, but the
absence of these words does not mean that a statement is not
forward-looking. 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, shipping
industry trends, including charter rates, vessel values and factors
affecting vessel supply and demand; the impact of changes in
regulatory requirements or actions taken by regulatory authorities
on the Company's operating or financial results; the Company's
financial condition and liquidity, including its ability to service
its indebtedness; competitive factors in the market in which the
Company operates; increased operating costs associated with vessel
aging; vessel damage; future, pending or recent acquisitions and
dispositions, business strategy, areas of possible expansion or
contraction, and expected capital spending or operating expenses;
dependence on affiliates of the Company’s former parent and
third-party managers to operate the Company’s business;
availability of crew, number of off-hire days, classification
survey requirements and insurance costs; changes in the Company’s
relationships with contract counterparties; potential liability
from future litigation and incidents involving the Company’s
vessels; broader market impacts arising from war (or threatened
war) or international hostilities, such as between Russia and
Ukraine; risks associated with the length and severity of the
ongoing novel coronavirus (COVID-19) outbreak, including its
effects on demand for crude oil, petroleum products, dry bulk
products, other types of products and the transportation thereof;
and other factors listed from time to time in the Company's filings
with the SEC, including its registration statement 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:
United Investor RelationsTel: +30 213 0181 522E-mail:
ir@usea.gr
Capital Link, Inc.Paul Lampoutis230 Park Avenue Suite 1540New
York, NY 10169Tel: (212) 661-7566E-mail: usea@capitallink.com
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