Seanergy Maritime Holdings Corp.

Thank you for standing by, ladies and gentlemen, and welcome to the Senergy Maritime Holdings Co-op conference call on the second quarter and six-month end of June 30th, 2024 financial results. We have with us Mr. Stamatis Antonis, Chairman and CEO, and Mr. Stavros Giftakis, Chief Financial Officer of Senergy Maritime Holdings Co-op. 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, if you would like to ask a question, please press star 1 and 1 on your telephone keypad. You will then hear an automated message advising your hand is raised. Please be advised that this conference call is being recorded today, Tuesday, August 6, 2024. The archive webcast of the conference call will soon be made available on the Synergy website, www.synergymaritime.com. To access today's presentation and listen to the archive audio file, visit the Synergy website following the webcast and presentation section under the investor relations page. Please now turn to slide two 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 materially from those in the forward-looking statements is contained in the second quarter and six months under June 30, 2024 earnings release, which is available on the Senergy website again, www.senergymaritime.com. I would now like to turn the conference over to one of your speakers today, the Chairman and CEO of the company, Mr. Stamatis Santanis.

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 second quarter and first six months of 2024 and an update on our recent corporate developments. We will commence our call with a brief overview of our main highlights for the second quarter which are fully aligned with our corporate strategy, namely maximizing shareholder returns while growing our fleet and maintaining a healthy balance sheet. Following a strong start to the year, the second quarter of 2024 marked another record in our profitability with a net income of $14.1 million. Synergy's focus as a pure play Cape Size owner proved advantageous as our segment outperformed the smaller drybark vessel classes. The Cape Size market continued its positive momentum with a Baltic Cape Size index averaging about $22,600 per day. During this period, our daily time shutter equivalent of $26,600 a day outpaced the KHS index by an impressive 18% thanks to our active commercial strategy, resulting in quarterly net revenues of $43.1 million, up significantly from $28.3 million in the same quarter last year. For the six months ending June 30, we reported net revenues of $81.4 million, a substantial increase from $46.4 million in the same period last year, based on a daily time charter equivalent of about $25,400 a day, which exceeded the Baltic Cape size average again. Our profit for the six-month period was $24.3 million. Given these favorable market conditions and our strong financial performance, our Board of Directors has revised our dividend policy to further enhance our focus on returning capital to our shareholders. Details of this policy will be discussed in the next slide. For the second quarter, our cash dividend will be 25 cents per share, up from a combined 15 cents per share in the first quarter of the year. Additionally, we have repurchased common shares worth approximately $1.8 million since our last update, bringing total stock repurchases to $2.7 million since the beginning of the year. We remain optimistic about the Cape Size market and expect to continue generously rewarding our shareholders in the upcoming quarters. In regards to our growth initiatives, during the second quarter we took delivery of the IconShip, a 2013 Cape Size vessel, built in Japan, acquired earlier in the year for $33.6 million. As is typically the case with our ships, the ICON ship has commenced employment under an index-linked time charter and is earning a premium to the Baltic Cape Size Index. Additionally, we expect to take delivery in September of one more Cape Size vessel built in 2012 in Japan. It is encouraging to note that both vessels have appreciated in market value since our acquisition, underscoring once again the good timing of our transactions and the strong CAPE fundamentals in play. I would also like to highlight that following $58.3 million in financing and refinancing transactions completed during 2024, we ended the second quarter with a modest fleet loan-to-value ratio comfortably below 40% when netting from the debt our robust cash reserves. Let's move on to slide number 4 to discuss our new dividend policy. We have introduced a variable formula policy to further align our dividend distributions to the CAPE size market conditions while affirming our commitment to higher shareholder returns. Our quarterly dividend will be based on an operating cash flow generated during each quarter while considering our debt service and other commitments. As mentioned earlier, the cash dividend for the second quarter will be 25 cents per share, representing approximately half of our operating cash flow net of the debt service for the quarter and will be paid to all shareholders of record as of the 27th of September on or about the 10th of October. Slide 5. In the next slide, We highlight our firm commitment to shareholder returns. Since the fourth quarter of 2021, we have paid $1.85 per share in cash dividends and repurchased $6 million in common shares and $36.9 million in convertible notes and warrants. Looking ahead, our new dividend policy, aligned with the current cap size market outlook, can deliver attractive capital returns to our shareholders. This sets Synergy apart from many of our dry bulk peers as our pure play cape size fleet outperforms smaller vessel sizes. We are dedicated to rewarding our shareholders accordingly. Lastly, I have made additional personal investments by purchasing common shares and call options on Synergy stock on the open market, reflecting once again my strong confidence in the company's future performance. Slide 6. Moving on to our commercial highlights, our fleet's daily time charter equivalent outperformed the Baltic Cape Size Index by 18% in the second quarter and by 8% over the entire six-month period. This strong performance was primarily driven by our proactive commercial strategy, including a well-timed hedging plan. For the second quarter, we secured rates of approximately $28,000 a day for half of our operating days. Additionally, half of our vessels are equipped with exhaust gas scrubbers, enhancing earnings, and many of our ships have favorable fuel consumption specifications based on earlier installation of energy-saving devices and our proactive maintenance schedule. For the third quarter of 2024, Based on the current FFA levels, we expect our daily time chart equivalent to be equal to approximately $25,500, roughly in line with the CAPE size index. This reflects the fact that we have fixed approximately 42% of our operating days for that period at a gross rate of $29,500. Overall, we have currently fixed 39% of operating days for the second half at a gross time charter equivalent rate of $29,300. Before passing the floor to Stavros, I would like to add that I am particularly pleased to see Synergy operating in a balanced manner within our stated business objectives and I view this quarter's strong financial performance as a testament of our long-term corporate strategy. Stavros, please go ahead.