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| Statement |
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| We actually had a great fourth quarter on the back of a very robust Capesize freight market and our effective operating platform |
| This has led to the strongest BCI average rate in more than a decade |
| Since the start of the fourth quarter of 2023, the Capesize market has strengthened considerably, which was carried forward into the Q1 of 2024 |
| In doing so, we have successfully navigated the extreme freight rate and stability and achieved a healthy mix of fleet growth, accretion and cash dividends |
| Liam Burke Stamatis, the outlook for the Capes looks very, very strong for 2023 |
| Strong finish to the year |
| It's a very strong and very healthy demand, and the actual variation of the freight rates will be a derivative of the effective supply of vessels |
| We are pleased to see Seanergy making parallel progress in our strategic objectives of rewarding shareholders, taking advantage of growth opportunities and maintaining a strong balance sheet |
| So, overall, I strongly believe that demand will continue to be very healthy in 2024, even if it remains at the same numbers like 2023 |
| In summary, we remain optimistic about our profitability in 2024 and our overall liquidity, affirming our ability to continue rewarding our shareholders while enhancing the composition of our fleet |
| So, the big variations of freight rates in 2023 is not attributable to demand, the demand was particularly strong, and one of the strongest demands we've seen in the last five years |
| Looking ahead to 2024 against the promising backdrop of the first quarter, we believe that our performance will remain solid |
| And I must say that the Capesize transaction seems to be extremely well done |
| It's worth mentioning that in 2023, our overall premium over the BCI for our fleet improved, reflecting our investments in the energy efficiency of our vessels and our effective commercial strategy |
| As a result, we delivered another profitable year building on our robust commercial performance, our hedging activities and the investments we have made in improving our vessels efficiency over the years |
| Our adjusted EBITDA and our net income were also significantly improved year-on-year, amounting to $23.9 million and $10.8 million, respectively |
| Despite this extreme volatility Seanergy was very well placed to take advantage of a stronger rebound in the Capesize market that transpired in the fourth quarter of 2023 |
| They produced a very strong amount of steel last year and we expect them to be consistent this year as well |
| In the current year, our outlook remains very positive |
| So, assuming all that remains the same and we don't see any normalization anytime soon, I believe that the supply deficit will continue to be dominant in the market and we will see a very strong level of rates |
| Additionally, our solid operating leverage allowed us to capitalize on the strength of the market in the fourth quarter |
| With all these actions, our adjusted EBITDA margin for the year remains strong at 48%, closely aligning with the previous year's performance |
| With regards to capital allocation, I mean, obviously, the distribution, the special dividends, it was a very positive surprise going forward into 2024 |
| Overall, 2024 ton-mile demand growth for Capesize cargoes is expected to be about 3.5% to 4% increase and given the current momentum, positive demand growth is likely to continue into 2025 with projected ton-mile growth of around 2.5% |
| The actions we have taken to grow our fleet substantially over the past three years with quality assets and strengthen our financial position have placed Synergy in a prime position to benefit from a healthy freight market as the Capesize segment enjoys the best demand and supply fundamentals in the dry bulk space |
| This strategic move is anticipated to further enhance our interest margin profile and improve the overall structure of our debt |
| As a result, we expect to generate significant cash flows that will facilitate further shareholder value creation moving forward |
| In slide seven, it is evident that despite the weaker than expected Capesize market during the first nine months of the year, we achieved another profitable year with an adjusted EBITDA of $53 million |
| Both transactions have been very well timed |
| In addition, we have focused on acquiring high quality vessels to our fleet comprised of Japanese vessels from the most reputable yards with significantly improved fuel efficiency characteristics |
| Statement |
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| This is a result of higher raw material trade flows, limited fleet growth over the past year, as well as disruptions in key areas |
| On an annual basis, our net revenues was equal to $110.2 million, slightly lower than last year due to the slower than expected Capesize market recovery in the first nine months of 2023, however, we recorded an average time charter equivalent of $17,500 outpaying once again, the BCI by approximately 7% |
| Our adjusted EBITDA was equal to $53 million and our net income reached $2.3 million, reflecting the challenges faced earlier in the year |
| Beyond the low order book, fleet efficiency has returned to historical average levels, which suggests that effective fleet supply is unlikely to grow further, except for short-term events |
| The reason why we saw the sharp decrease in the second quarter of the year, and, of course, in Q1, was the fact that the grain corridor in the Black Sea was unwound, and a lot of Panamax and Supramax vessels were automatically released, about 200 ships were released looking for employment |
| And of course, it was for the local demand and the housing crisis in China, it appeared to be quite severe |
| I remind you that in December, the Chinese iron ore stockpiles were down at 105 million tons |
| So, everybody was very gloomy about the Chinese demand for iron ore, as well as the steel production |
| Now, if in the summer, the war ends and the Houthis allow passages to continue and there is no congestion nowhere, then we might see some softening in the market |
| But overall, I think the predictions right now are that the vessel supply will continue to be constrained a lot |
| Overall net Capesize fleet growth is expected at around 2.5% in 2024 and 1.5% in 2025, both lower than the respective ton-mile demand growth in nominal figures |
| When we had experienced a very volatile year like 2023, where rates ranged from $2,500 a day to $55,000 a day, you can imagine that we must be cautious with the distribution of our cash |
| While we did not have a big increase of the fleet on a nominal basis by deliveries of new buildings in 2023, we had big variations in respect of congestion and various other trade, problems in various areas |
| In addition to our cash dividend distributions, since 2023, we have completed 2.5 million in share buybacks, or about 2% of our shares outstanding at an average price of $5.12, which is about 44% lower than the current market price |
| This makes two consecutive years of us overperforming the BCI index |
| And then the Red Sea, the Red Sea situation is something that is still, we still wait to see the effect of that problems, and the fact that the vessels are deviating around the Cape of Good Hope |
| This is despite consistent dividend payments, securities buybacks and hefty data monetization schedule |
| 2023 was one of the most volatile year for the Capesize market |
| With the expectation of a gradually lower interest rate environment, manufacturing and infrastructure investments will continue to flourish |
| Additionally, in December we repaid the 3.2 million outstanding balance under our convertible note, addressing a long-standing legacy overhang over our share price while simplifying our capital structure |
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