Seanergy Maritime Holdings Corp.

Thank you for standing by, ladies and gentlemen. Welcome to the Cinergy Maritime Holdings Corp. Conference call on the second quarter and first half for the periods ended June 30th, 2025 financial results. We have with us Mr. Stamatis Tantanis, Chairman and CEO, and Mr. Stavros Giftakis, Chief Financial Officer of Cinergy Maritime Holdings Corp. At this time, all participants are in a 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 one one on your telephone keypad, and 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 5th, 2025. The archived webcast of the conference call will soon be made available on the Cinergy website, .cinergymaritime.com. To access today's presentation and listen to the archived audio file, visit the Cinergy 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 actual results to differ materially from those in the forward-looking statements is contained in the second quarter and first half for the period's ended June 30th, 2025 earnings release, which is available on the Cinergy website. Again, .cinergymaritime.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 Fantanis. Please go ahead, sir.

Thank you, operator, and welcome everyone. Today, we're going to be presenting Cinergy's financial results and company updates for the second quarter of 2025. Slide three. After seasonal slowdown, the Cape size market rebounded meaningfully in the second quarter. The Baltic Cape size index averaged $18,700, a significant increase from the first quarter's average of $13,000, demonstrating the market's resilience despite microeconomic uncertainty. Looking ahead, we're confident the Cape size market remains fundamentally strong. The historically low Cape size new building order book, coupled with increasing Atlantic basin shipments of Aeronaur and Bokside, are expected to continue supporting the Cape size at the rates. Tending to our financial performance in the second quarter, Cinergy recorded the net income of 2.9 million on net revenues of $37.5 million, a significant improvement from first quarter figures driven by stronger daily times at the equivalent. With a portion of our fleet already hedged at profitable levels, we anticipate further improvement in our financial performance as we transition into the seasonally stronger second half of the year. On the fleet development front, we closed the quarter with 21 Cape size vessels. Over the first six months of 2025, we continue to grow our platform with high quality Cape size acquisitions that enhance our earnings power and scale. In that context, we took delivery of two newly acquired vessels, the Cape size and a Newcastle Max, both of which are already trading under index link 10 chapters. We also continued to streamline our financial position. Since the beginning of the year, we have successfully completed financing and financing transactions, totaling approximately 110.6 million, effectively addressing low maturities until the second quarter of 2036. This enhanced our flexibility allows us to return capital to our shareholders while also retaining our capacity to pursue attractive growth opportunities. Overall, since 2020, we have grown our fleet by 97% in that way terms while maintaining a disciplined fleet loan to value ratio of approximately 50%. Reflecting both the positive direction of the Cape size market and our healthy balance sheet, our board of directors has declared a discretionary cash dividend of five cents per share in line with that distribution in the first quarter. As the market conditions continue to improve, we remain optimistic about the potential to further enhance our holder returns in the final two quarters of the year. Using this as a segue, we can turn into slide four, where we emphasize our long-term commitment to capital return strategy. Slide four, since Q4, 2029, we have returned approximately $89 million to our shareholders. Our capital return strategy prioritizes dividends with 44.2 million paid in common share cash dividends and additional 45.2 million in share repurchases. We continue to actively assess share repurchases as well as part of our dynamic capital return approach. Slide number five, commercial snapshots. Moving on to slide number five now, which provides a brief overview of our commercial performance. During the second quarter of 2025, our fleet achieved an average time-charted equivalent of approximately $19,800 per day. For the first six months of the year, the corresponding figures stood at $16,700 per day. In both instances, our performance exceeded the average levels of the Baltic Cape size index for the respective periods. Our commercial strategy is designed to balance upside potential with stability. By employing index link charters, we captured the market strength in June. Simultaneously, fixed rate coverage for part of our fleet mitigates downside risk, providing earning stability. Looking ahead in the third quarter, we have already fixed about 62% of our operating days at a gross rate of $22,400 a day. And we expect to earn a time-charted equivalent approximately $23,100 a day for the whole quarter based on the prevailing FFA rates for the remaining of the period. That being said, we know that the Cape side trade market is in backwardation, hence future earnings might end up being higher. As regards the second quarter of the year, seven out of our 21 vessels are fixed at profitable levels of approximately $22,400 a day, providing strong earnings visibility for the second half of the year. We view this profitable rate as supportive for our financial results and cash generation in the final two quarters of the year. Given the backdrop of microeconomic uncertainty that has emerged due to trade policies and general growth uncertainty, we believe that our disciplined and flexible commercial approach offers an appropriate balance between earnings visibility and exposure to market upside. On that note, I would like to turn the call over to Stavros to continue with slide number six. Stavros, please go ahead. Thank

you, Stamatis. Welcome to everyone joining us for today's earnings call. Let's begin with slide six, where we'll review the key highlights of our financial performance for the second quarter and the six-month period ended June 30, 2025. We are pleased to report the return to profitability in the second quarter, capitalizing on the upward momentum in the Cape size market, particularly in June, as Stamatis mentioned earlier. Our net revenue for the quarter reached 37.5 million compared to 43.1 million during the same period last year. Adjusted EBITDA rose to 18.3 million, which while approximately 10 million lower than last year's figure, it highlights our ability to navigate a volatile market environment effectively. Our net income and adjusted net income for the quarter reached 2.9 and 3.8 million respectively, translating to earnings per share of 18 cents. For the first six months of 2025, net revenue totaled 61.7 million with adjusted EBITDA of 26.3 million below the levels recorded in the same period last year, reflecting the softer freight environment for most of the first half of the year. Consequently, we reported a net loss of 4 million for the six-month period. Nevertheless, considering the improving fundamentals and the recent positive momentum in the Cape size segment, we remain cautiously optimistic about achieving profitability for the full year. Notably, despite the challenges, we generated positive operating cash flow of 16.2 million during the first half of the year. Turning to our balance sheet, our cash position at the end of the quarter was 25.4 million or approximately 1.2 million per vessel. This was accomplished even as we continued regular dividend distributions, scheduled debt repayments, completed the acquisition of two additional vessels and an extensive dry dock program that saw three ships being dry docked in the second quarter alone and five in the first half of the year. At the close of the second quarter, our outstanding debt, including financial liabilities, stood at 312 million. This translates into a debt to capital ratio marginally above 50% based on total book value of assets of 598 million. Finally, as of June 3rd, 2025, total shareholder's equity reached 258 million, demonstrating the resilience of our capital structure. Let's now turn to slide seven to discuss our profitability performance. Our robust commercial strategy, including our hedging activities through FFA conversions, once again enabled us to outperform the capesize market. In the second quarter, our time charter equivalent stood at $19,800. For the first half of the year, our PC reached $16,700, surpassing the budget capesize index by 6%. Our adjusted EBDUF for the first half of the year totaled 26.3 million. While this figure is lower year over year, reflecting the softer freight market conditions early in 2025, we are encouraged by the resilience of our cash flow profile with our cash flow margin standing at 26%. Our adjusted EBDUF margin once again exceeded 40%, underscoring the operational efficiency of our platform. It's important to note that these results were achieved despite approximately 150 of hired days for vessel dry docking, which naturally reflect on earnings. On the cost front, we successfully maintained daily OPEC per vessel below 7,000 in line with the previous year performance, despite the inflationary pressures. Now looking ahead, we remain optimistic about profitability trajectory in the second half of the year. We believe our ongoing investment in our fleet, coupled with our operational efficiency and dynamic hedging strategy, position as well to continue delivering good results. Moving now to slide eight, let me provide an overview of our capital structure and financing activities. Our outstanding debt, including financial liabilities at the end of the second quarter was 312 million. Based on the market value of our fleet as of the end of the second quarter, this equates to a loan to fleet value ratio slightly below 50%. Our debt per vessel stands at roughly 14.9 million, nearly 15 million less than the average market value for ships. Lastly, approximately 70% of our debt is covered by the scrap value for fleet, which has an average age of 14.1 years. With past reserves of 25.4 million or 1.2 million per vessel, we can effectively manage our financial obligations while being able to support gradual fleet renewal through selective vessel acquisitions. Regarding our financing activities, we have been particularly active the first six months of the year, executing transactions, totaling around 111 million. Earlier this year, we concluded a 54 million sustainability linked loan to part-finance the acquisition of the May ship New Castlemarks next to the refinancing of the warship and the ownership, and two sale and lease back agreements totaling 34.5 million, addressing the balloon payments under the loans of the Squire ship and the Friendship. Most recently, we agreed on a 22.5 million sale and lease back transaction with a reputable Japanese owner to finance the purchase obligation for the Blue ship, ensuring no impact on our liquidity position. Additionally, Alpha Bank has agreed to reduce the interest rate of the facility secured by the Duke ship by 50 basis points. As a result of these actions, we improved our daily interest costs further within the first six months of the year, reducing the weighted average margin to approximately 2.3%. Finally, as we move to slide nine, I want to emphasize that synergy is strategically positioned to capitalize on any upward momentum in the Cape size market as current dynamics suggest a constructive rate environment in the second half of the year. As the mothers highlighted earlier, we have already secured 62% of our third quarter days at an average rate of $22,400, while for the second half of 2025, 33% of our fleet days are hedged at an average rate nearing $22,400. We expect that this strengthened EBITDA outlook will enable us to deliver greater value to shareholders. That concludes my overview. I will now hand the call back to Stamatis who will provide insights on the Cape size market and broader industry fundamentals. Stamatis, over to you.