Seanergy Maritime (SHIP) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q4 2025, the company reported earnings per share of $0.68, and for the full year, earnings per share were $1.28, marking the fifth consecutive year of profitability [3][11] - Net revenue for Q4 2025 totaled $49.4 million, while full-year net revenue amounted to $158.1 million, with adjusted EBITDA reaching $81.7 million [11][12] - The company's net income for the full year was $21.2 million, translating into an EBITDA margin of approximately 50% and an operating cash flow margin of roughly 33% [12][14] Business Line Data and Key Metrics Changes - The company achieved a daily time charter equivalent of approximately $26,600 in Q4 2025, with a full-year average of about $21,000 per day [6][12] - Fleet utilization exceeded 96%, reflecting strong operational efficiency despite an intense drydocking schedule [7] Market Data and Key Metrics Changes - The Baltic Capesize Index averaged approximately $21,300 per day in 2025, with a strong recovery in the second half of the year driven by iron ore and coal restocking activity in China [18] - Capesize demand in early 2026 started strong, with the BCI averaging 22,000, supported by a 14% year-over-year growth in Guinea bauxite exports [19] Company Strategy and Development Direction - The company is focused on a fleet renewal strategy, having secured three high-specification eco new buildings at leading Chinese shipyards, with a total investment of approximately $226 million [4][10] - Capital allocation priorities include returning capital to investors, modernizing the fleet, and preserving financial strength, with total dividends declared in 2025 amounting to $0.43 per share [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable Capesize environment, citing constrained fleet supply growth and increasing long-haul demand as key factors [4][18] - The outlook for 2026 and 2027 remains constructive, with expectations of continued demand growth for bauxite and iron ore, despite potential supply tightness due to dry docking of older vessels [20][23] Other Important Information - The company maintained a strong liquidity position with $62.7 million in cash and cash equivalents, equating to approximately $3.1 million per vessel [12] - The fleet loan-to-value ratio stood at 43%, reflecting a conservative leverage profile supported by disciplined balance sheet management [5][15] Q&A Session Summary Question: Market Strategy on Long-term Time Charters - Management indicated that 35% of fleet days are already under long-term contracts, with plans to increase this as market conditions strengthen [28] Question: Balancing Asset Values and Rate Environment - Management noted that inflated prices for older vessels are prompting a focus on new builds, with plans to dispose of older assets while securing new ships [30] Question: Expectations for Operational Off-hire Days - Management expects operational off-hire days in 2026 to be consistent with or slightly lower than 2025 due to a softer dry dock schedule [37] Question: Shipyard Availability and Order Book - Management clarified that while global shipbuilding capacity is high, the order book for Capesize vessels is limited due to demand from other ship types [40] Question: Dividend Policy in Light of New Builds - Management confirmed that the dividend policy will not be affected by new builds, as cash flow from operations and asset sales will cover expenditures [46] Question: Contracting Strategy for New Builds - Management is considering long-term contracts for new builds but aims to avoid below-market rates to maintain cash flow [49]