The final three months of 2021 were so good for Seanergy Maritime Holdings that the capesize owner is rewarding shareholders with a bumper payout.
Last year was the Nasdaq-listed firm’s best ever, according to its chief executive.
Seanergy is paying out $0.05 per share for the last three months of 2021, comprising a quarterly dividend of $0.025 plus the same amount in a special dividend. The firm has not paid a dividend to shareholders since 2008.
It has also spent $5m on additional repurchases of its outstanding 5.5% convertible note. The prepayment was effected on Thursday, which follows another $5m repurchase made in January.
Stamatis Tsantanis, Seanergy’s chairman and CEO, said the company remains committed to “distributing a significant portion of our earnings” to shareholders, but said any future payouts will be subject to performance and the decision of its board.
“The fourth quarter dividend of $8.9m and the $26.7m in buybacks of convertible notes, warrants and common shares represent an aggregate of $35.6m in shareholder-rewarding initiatives that Seanergy’s board of directors undertook over the last four months,” he said in the firm’s fourth-quarter report.
So far this year, Seanergy has spent a total of $21.7m in repurchasing its convertible notes, warrants and common shares.
“The ultimate effect of our buyback programme will be the prevention of potential dilution by 25.95m shares. This reflects our firm belief that our share price continues to be significantly undervalued,” Tsantanis said.
Seanergy had a weighted average of 191.3m outstanding diluted shares in 2021, just under five times more than in 2020.
The company’s shares were trading at $1.34 as of mid-morning in New York on Thursday, up by over 5% since the market opened.
Tsantanis said that his open-market purchases of 300,000 Seanergy shares in 2021 shows his “strong confidence” in the company.
Results
Seanergy’s net income for the fourth quarter of 2021 was $20.6m, up from a net loss of $2.3m during the same period of 2020.
Its adjusted net income for the final three months last year was $27.9m, after non-cash gains from stock-based compensation and a $6.9m gain on the extinguishment of debt.
Net revenues during the period were 166% higher than they were during the final three months of 2020 and totalled $56.7m.
For the full year 2021, Seanergy booked a profit of $41.3m, after having posted a loss of $18.4m in 2020.
Seanergy’s fleet grew by 55% during 2021, following the delivery of seven Japan-built capesizes.
It also entered into 11 new time-charter agreements last year, which means all the Seanergy fleet is employed on period contracts.
Seanergy also financed and refinanced a total of $170.5m in debt during 2021, with improved pricing and better overall loan terms compared with its previous arrangements.
Looking ahead, Tsantanis said strong supply-demand fundamentals mean the outlook is “very positive” for the capesize market.
“Firstly, the record low orderbook coupled with the upcoming environmental regulations, will significantly limit vessel supply,” he commented.
“Secondly, the global energy supply shortages, as well as the worldwide stimuli and infrastructure projects will strongly support demand for dry bulk shipping.
“Given Seanergy’s significant operating leverage, we are well positioned to capitalise on the favourable dynamics of our sector.”
