Seanergy Maritime Holdings (SHIP) Q1 FY26 earnings call: guidance and Q&A

Inquired about the sustainability of strong bauxite and iron ore volumes and the contribution of increased coal consumption to the favorable rate environment.

Stamatios Tsantanis confirmed stable iron ore volumes and expected increases in bauxite, with coal strongly contributing due to restocking. He emphasized that the favorable environment is sustainable due to both strong demand and reducing effective vessel supply from congestion and an aging fleet, which newbuilding orders are not fully compensating for.

“So it's a sustainable freight rate environment in our opinion, not only because demand will continue to be very strong or even stable, but it's going to be a supply-driven growth as far as the freight rates are concerned, not just from the actual numerical supply of ships, but also from the effective supply vessels that is going to be reducing in our opinion.”

asked by Liam Burke · answered by Stamatios Tsantanis

Requested clarification on the remaining CapEx schedule for newbuildings for the rest of 2026 and any insights into 2027 delivery timing.

Stavros Gyftakis detailed that out of $72 million remaining CapEx for Q2-Q4 2026, $36 million was paid in Q2, $17 million will be covered by predelivery debt, leaving $19 million to be sourced from cash reserves and operating cash flows. He did not provide specific 2027 delivery timing beyond "next year".

“What is remaining is $72 million from -- $72 million was actually Q2 to Q4 CapEx. We have already paid $36 million of this in the second quarter and $17 million will be sourced by predelivery financing. So that leaves us to finance through equity $19 million, which can be very comfortably covered by our current cash reserves and the very strong operating cash flow that the company has right now.”

asked by Liam Burke · answered by Stavros Gyftakis

Asked about the advancement of discussions for multiyear charter agreements with downside protection and profit sharing for newbuilds, and expected charter coverage before delivery.

Stamatios Tsantanis explained the target structure: a base rate significantly above cash breakeven, 100% company share up to a "Sealink", then a 50-50 split thereafter. He indicated that a large portion of the newbuilding order book would be covered well before delivery.

“So it's going to be the base rate. Then we will have the first part from the base rate until the [ Sealink ] that is going to be 100% for the company. And then it's going to be a 50-50% split between us and the charter from the Sealink and thereafter.”

asked by Mark La Reichman · answered by Stamatios Tsantanis

Inquired about the company's strategy regarding balancing secured forward rates for newbuilds versus maintaining exposure to potential market upside.

Stamatios Tsantanis stated that the existing fleet of 20 ships provides market upside exposure. For newbuildings, the focus is on sustainability and downside protection for the $0.5 billion investment, even if it means giving away some upside. He noted 50% of the existing fleet is covered by FFAs until year-end at $29,000/day.

“As far as newbuildings are concerned, we are -- we don't want to take any risks. We have $0.5 billion, close to $0.5 billion of order book, and we want to make sure that this investment is sustainable.”

asked by Mark La Reichman · answered by Stamatios Tsantanis

Asked for more detail on target leverage levels and financing for the remaining newbuildings, and how balance sheet flexibility is maintained.

Stavros Gyftakis stated a target of 70-75% leverage for newbuilding contracts, meaning 25-30% equity participation. This, combined with the time charter structure, ensures debt servicing. The company aims to maintain a 50% corporate and fleet LTV threshold, noting some older ships have LTVs between 20-30%.

“I mean we are targeting leveraging the new building contracts at 70% to 75%. So the equity participation will be 25% to 30% in each ship.”

asked by Mark La Reichman · answered by Stavros Gyftakis

Inquired about expectations for operating cost inflation over the next 12-24 months, specifically for crewing, maintenance, and regulatory compliance.

Stamatios Tsantanis expects OpEx to be around $7,000 to $7,200 per ship per day, in line with 2025 performance. He noted that while maintenance is extensive due to the middle-aged fleet (average 14 years), the low acquisition cost of vessels offsets higher OpEx.

“Well, we expect to be around $7,000 to $7,200 per ship per day.”

asked by Mark La Reichman · answered by Stamatios Tsantanis

Asked if the company anticipates sustaining its quarterly dividend payments given the newbuild capital commitments.

Stamatios Tsantanis affirmed the intention to maintain dividend payments, stating that rewarding shareholders is a top priority, subject to the company's formula and cash flow.

“The answer is yes, of course. We will try and maintain. We have a formula out there. And for us, rewarding our shareholders is as important as renewing our fleet.”

asked by Justin Smith · answered by Stamatios Tsantanis