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, while for the full year, earnings per share reached $1.28, marking the fifth consecutive year of profitability [3][11] - Net revenue for Q4 2025 totaled $49.4 million, with adjusted EBITDA at $28.9 million and net income at $12.5 million [11] - Full year net revenue amounted to $158.1 million, adjusted EBITDA reached $81.7 million, and net income was $21.2 million, translating into earnings per share of $1.02 [11][12] - The fleet loan-to-value ratio stood at 43%, reflecting a conservative leverage profile [5][12] Business Line Data and Key Metrics Changes - The company achieved a daily time charter equivalent of approximately $26,600 in Q4 2025, while the full year average was approximately $21,000 per day [7][12] - Fleet utilization exceeded 96%, demonstrating strong operational efficiency despite a busy 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 in China [17][18] - Capesize demand in early 2026 started strong, with the BCI averaging 22,000, supported by increased bauxite exports and high iron ore cargo activity [18][19] Company Strategy and Development Direction - The company focuses exclusively on larger bulkers, specifically Capesizes and Newcastlemaxes, positioning itself favorably in a constrained supply environment [4][19] - Significant progress has been made in fleet renewal, with orders for three high-specification eco new buildings totaling approximately $226 million [4][10] - The capital allocation priorities include returning capital to investors, modernizing the fleet, and preserving financial strength [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive trend for charter rates due to limited vessel supply and increased ton-mile demand [21] - The company anticipates a constructive demand outlook for Capesize trade, with expectations of continued growth in bauxite trade and resilient iron ore production [18][19] Other Important Information - The company declared total dividends of $0.43 per share in 2025, including $0.20 for Q4 [6] - Approximately $80 million is expected to be deployed for new building investments in 2026, with financing secured on attractive terms [12][15] Q&A Session Summary Question: Market strategy regarding long-term time charters versus spot market - Management indicated that 35% of fleet days are already under long-term contracts, with plans to increase this as market conditions improve [26] Question: Balancing inflated asset values with attractive rate environment - Management is focusing on securing new buildings at high-quality shipyards while considering the disposal of older assets to manage fleet composition [28] Question: Expectations for operational off-hire days in 2026 - Management expects operational off-hire days to be consistent with or slightly lower than 2025 due to a softer dry dock schedule [36] Question: Limited 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 [38][40] Question: Dividend policy in light of new builds - Management does not expect the dividend policy to be affected by new building expenditures, as cash flow from operations will remain sufficient [44] Question: Contracting strategy for new builds - Management is considering long-term contracts for new builds but aims to avoid below-market rates to maintain operating cash flow [48]