Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) Completes Financial Re-Structuring


Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) the ailing Greece based cargo and bulk transportation player has had an eventful few days in the past month. After reporting its delayed results for the third quarter on 20th February, it announced on 20th March that it has completed the long drawn out restructuring in its financial outlay, followed with operational changes.

Financial Restricting

These changes included settling of its dues to lenders by selling off its four bulk carrier vessels to buyers who were identified by the lenders. This transaction wiped off all loan obligations of the bulk carrier adding up to $146 million, and has freed up the guarantee that the shipping firm had provided the lender.

4Q & Full Year Highlights

Yesterday, the firm released data for its 4Q and full year 2013 operations. In the fourth quarter, the firm reported net revenue of $6.3 million, while its net income has ballooned upwards to $7.5 million. Its earnings before tax have also gone up to $9.1 million. These gains have been accomplished by selling off its vessels in order to retire debt and right size the firm’s debt to equity ratio.

From its full year operations, the firm has net revenue of $23.1 million, while its earnings before tax came in at $20.5 million. Net income from its full year operations also went up to $10.9 million, all buoyed by the sale of assets as discussed above.

CEO Speak

Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) Chairman and Chief Executive Officer Stamatis Tsantanis while commenting on the 4Q and full year 2013 results has been quoted to have said that, “I am very pleased to announce a number of positive news for the Company: First, we have another profitable period, the fourth quarter of 2013, and most importantly a profitable year, which is the first since 2010. We successfully completed our restructuring plan, which resulted in the extinguishment of approximately $346 million of debt since 2012”


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