Seanergy Maritime Holdings Corp.

Thank you for standing by, ladies and gentlemen, and welcome to the C-Energy Maritime Holdings Corp conference call on the 4th quarter and year ended 31 December 2022, financial results. We are with us Mr. Stamatis Stanis, Chairman and CEO of Mr. Sparrow Gift Gas, CFO and Officer of C-Energy Maritime Holdings Corp. At this time, all participants are in listen-only mode. There will be a presentation, followed by a question and answer session. At which time, I wish you like to ask a question, please press star 11 on your telephone. If you would like to cancel your request, please press star 11 again. Please be advised that today's conference is being recorded. Today, Tuesday, March 14, 2023. The archived webcast of the conference call and accompanying slides will be soon made available on the Senergy website, www.senergymanagement.com. Please now turn to slide 2 of the presentation. Many of the remarks today contain forward-looking statements based on current expectations. Actual results may differ materially from the results projected from those forward-looking statements. Additional information concerning factors that can cause the actual results to differ in material from those in the forward looking statement is contained in the full Quartan and here handled December 31, 2022 earnings release, which is available on the Synergy website again. If you'd like to turn the conference over to one of our speakers today, the chairman and CEO of the company, Mrs. Tamati Stanis.

Please go ahead, sir. Thank you, Operator.

Hello, I would like to welcome everyone to our conference call. Today we are presenting the financial results for the fourth quarter and the full year period of 2022. We are also pleased to announce the distribution of another cash dividend, which is basically equal to our net profit for the fourth quarter. The fourth quarter was another profitable period for Synergy and concluded our second consecutive profitable year. First and foremost, in 2022, we clearly prioritized shareholder rewards, as I will discuss in detail in today's call. We made generous distributions to our shareholders, despite a series of microeconomic and political challenges that occurred during the year. First, there was the invasion of Ukraine by Russia and the ongoing military conflict. Second, the heightened uncertainty about the probability of a significant slowdown in the global economy due to the spike in inflation. Last but not least, 2022 marked the third consecutive year of severe lockdowns in China, which negatively affected industrial production and economic growth. However, the recent lifting of COVID-related lockdowns in China has already had a positive effect on general economic activity and still production, and we expect to see accelerated raw material imports. We are bullish for the dry bulk market outlook, and we believe that Synergy is very well positioned to benefit over the next years. Turning to our highlights with regards to our financial performance, for the full year period, net revenue reached $125 million, adjusted EBITDA was $65.6 million, while net income amounted to $17.2 million. As regards to fourth quarter, We recorded net revenues of $28.5 million and adjusted EBITDA of $12.5 million, while net income was equal to half a million. Since the fourth quarter of 2021, we delivered approximately $58.4 million of value to our shareholders in the form of dividends, share buybacks and the repurchase of convertible securities. board of directors approved the cash dividend of 2.5 cents per share for the fourth quarter of 2022 which is effectively all of our net income i'm confident that our financial performance will be able to support good shareholder returns throughout the shipping cycle regarding our vessel transactions during 2022 we sold or spun out our three oldest vessels built in 2004 2005 and 2006 while in the same period we acquired two modern japanese vessels the ownership built in 2010 and the scrubber fitted parachute built in 2012. these transactions have a positive impact both on our fleet's average age as well as our profitability based on lower fuel consumption better rating on the baltic hs index and scrubber premium earnings During the second quarter of 2022, we concluded the spin-off of United Maritime Corporation, which commenced trading on the NASDAQ capital market on July 6, 2022, under the symbol UC. All shares of United were distributed to our shareholders. United, in its first year of operations, generated a significant profit and distributed massive dividends to its shareholders and, hopefully, to Synergy's original shareholders that retained their United shares. In January 2023, we completed successfully the tender offer for Class E warrants, repurchasing approximately half of the outstanding securities, thus reducing dilution risk. On February 16, 2023, very recently, we affected a 10 to 1 reverse split of our common stock and on the 3rd of March, we regained compliance with the Nasdaq's minimum bid requirements. We expect the increase of the nominal price of our shares to have a positive effect on the marketability and trading liquidity, mainly by eliminating certain price-related trading restrictions. As regards to our financing updates, Synergy has completed new financings and refinancings of almost $125 million in 2022. We are also working closely on other deals that will improve further our financing costs and release liquidity. We are constantly working towards optimizing our capital structure and preserving our liquidity while evaluating our options to refinance our indebtedness at lower interest rates. Following up on our environmental, social and governance initiatives, in 2022 we released our first ESG report which provides an overview of our policies and commitments on ESG matters. Our board of directors has also established a sustainability committee with the aim of advising the board on relevant issues. We are guided by ESG principles in our operational and strategic objectives and we recognize the growing importance of these efforts in achieving the best outcomes for all companies, stakeholders and society. Lastly, given the large discount of our share price as compared to its intrinsic value, I have decided to personally purchase another up to $1 million in additional common shares. I intend to commence my purchases following the release of our earnings, which is now, in line with our internal trading policy and restrictions. Turning to slide 2 for a more detailed breakdown of shareholder returns, approximately 18.5 million in regular dividends and 4.5 million in extraordinary dividends have been declared since the fourth quarter of 2021. This represents approximately 20% of our current market cap. Additionally, during the same period, significant capital was deployed in repurchases of shares and other potentially diluted securities. More specifically, 3.5 million has been allocated to share and warrant repurchases, and 32 million was utilized to buy back convertible notes. On a final note, during 2022, our shareholders also received shares of our spin-off, United Maritime, which in turn, as I mentioned before, after a very profitable series of transactions, has made significant distributions to its shareholders. Since the initiation of our capital returns in the beginning of 2022, Synergy has paid approximately $22.9 million in cash dividends, translating to $1.75 per share. When including the value of the United Maritime Shares received as part of the spin-off, total distributions amount to approximately $1.61, per Synergy Share or a 26% dividend yield based on this Friday's closing price. Please turn over to slide 3 to discuss our fleet's commercial developments. Our fleet currently consists of 16 cape-sized vessels with an average age of 12 years, of which 9 have scrubbers installed. Our latest acquisition, the Paroship, was placed into an index-linked time charter with a major European operator for a period of about 10 months. Additionally, following our last quarterly update, we completed the sales of two of our oldest vessels, the Trader Ship and Good Ship, built 2005 and 2006. Both vessels were delivered to their new owners in February of 2023. As regards to our commercial performance, the daily time charter equivalent in the fourth quarter was approximately $17,300, representing a 16% premium to the average Baltic Cape Size Index. In the full year period, we recorded a daily TCE of about $20,000 per ship per day, or a 24% premium over the BCI. Our decision to focus on high-quality vessels and the scrubber premiums and by our fleet in combination with some proactive hedging through FFA conversions, have alleviated the effects of a falling spot market, and we view this as an important validation of our commercial strategy. For the first quarter of 2023, we expect to earn daily time charter equivalent rate of 10,200, which may sound very low, but it's a premium of more than 40% over the average BCI year to date. In addition, we recently decided to convert the floating index linked rates on two of our vessels to fixed rates at approximately $20,000 from the second quarter of 2023 until the end of the year. We are actively monitoring the FFA curve and considering further conversions as the market conditions and outlook improve. I will now pass the call to our CFO who is going to discuss our financial results before I return to discuss our market update. Stavros, please go ahead.