Seanergy Maritime Holdings Corp. Aktie

Thank you for standing by, ladies and gentlemen, and welcome to the Seanergy Maritime Holdings Corp. Conference Call on the First Quarter ended March 31, 2026, Financial Results. We have with us Mr. Stamatios Tsantanis, Chairman and CEO; and Mr. Stavros Gyftakis, Chief Financial Officer of Seanergy Maritime Holdings Corp. [Operator Instructions]

Please be advised that this conference call is being recorded today, Thursday, May 28, 2026. The archived webcast of the conference call will soon be made available on the Seanergy website, www.seanergymaritime.com, under the Webcast and Presentations section under the Investor Relations page.

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 first quarter ended March 31, 2026, earnings release, which is available on the Seanergy website again, www.seanergymaritime.com.

I would now like to turn the conference over to one of your speakers today, the Chairman and CEO of the company, Mr. Stamatios Tsantanis. Please go ahead, sir.

Thank you, operator, and welcome, everybody. Seanergy delivered a very strong first quarter despite what is typically the seasonally weakest period of the year, highlighting the earnings power and resilience of the pure-play Capesize platform that we have built diligently over the past years.

Net revenues increased to $43 million from $24.2 million in the same quarter of last year, while adjusted EBITDA of $28.2 million, up 253% year-over-year. Adjusted EPS for the quarter was $0.63 per share, one of the strongest amongst listed dry bulk peers, reflecting both favorable market conditions and the operating leverage embedded in our platform.

Based on our strong performance and disciplined capital return policy, we declared our 18th consecutive quarterly cash dividend of $0.20 per share, bringing cumulative shareholder distributions to approximately $2.84 per share or $55.6 million since inception. The execution of our strategy continues to develop among our main long-term objectives of rewarding our shareholders, sustainable fleet development and maintaining a strong balance sheet.

During the quarter, we significantly advanced our fleet renewal strategy by contracting 3 additional vessels at leading shipyards in China and Japan with the latest order placed at Hengli Shipbuilding this April, while agreeing to sell one of our older Capesize vessels at firm secondhand pricing. Since the launching of the program, we have contracted 6 modern eco-design newbuildings of Capesizes and Newcastlemax and agreed to dispose of three older vessels, materially enhancing the quality, efficiency and long-term earnings capacity of our fleet.

Importantly, we have already secured financing for 4 of the 6 vessels at attractive terms, while approximately $69 million of equity has been invested from internal funds. We believe the combination of favorable delivery positions next year, basically, most of them, competitive financing and selective vessel disposals represents a disciplined capital allocation strategy capable of generating long-term results.

Our newbuilding strategy combines with prudent risk management. In this context and based on advanced discussions with leading charterers, we expect these vessels to secure multiyear time charters with downside protection above cash breakeven levels, complemented by profit-sharing structures, preserving meaningful upside exposure. Given the limited global availability of prompt delivery positions of newbuilding, Capesizes and Newcastlemaxes, particularly for 2027 to 2029, we believe these vessels are entering the market at a highly favorable point in the cycle.

On the commercial side, our index-linked chartering strategy continued to outperform during the quarter with fleet time charter equivalent exceeding the BCI-180 by average approximately 6% at $24,200 per day. This figure, I believe, is one of the strongest of the U.S.-listed public dry bulk companies.

Looking ahead, we expect the second quarter of 2026 time charter equivalent to be approximately $31,430 per day. In addition, 45% of our available operating days from Q2 onwards until the end of the year have already been fixed at average gross rates exceeding $29,000 per day, providing meaningful earnings visibility while preserving substantial market exposure.

I will now pass the call to Stavros, who will fill you in on our financial information for the quarter as well as discussing our balance sheet and debt refinancings. Stavros, please go ahead.

Thank you, Stamatios. Our first quarter results reflected both the strength of the Capesize market and the effectiveness of our commercial strategy. Net revenues reached $43 million, corresponding to a time charter equivalent of $24,200 per day compared to $24.2 million and a time charter equivalent of $13,400 per day in the same period last year. Adjusted EBITDA totaled $28.2 million, while adjusted net income amounted to $13.4 million compared to an adjusted net loss in the prior year period.

Our balance sheet remains strong with cash and restricted cash totaling $68.8 million despite $31 million invested into the newbuilding program during the quarter. We have already agreed approximately $237 million of financing for 4 of our 6 newbuildings, including predelivery financing, while discussions for the remaining vessels are progressing constructively. During the quarter, we also completed several financing and vessel sale transactions that further enhance liquidity and financial flexibility or are expected to do so in the immediate following quarters.

Our remaining newbuilding CapEx for the second to fourth quarters of 2026 is approximately $72 million, of which $36 million has already been paid during the second quarter, while $17 million will be sourced by predelivery debt arrangements, leaving $19 million, which can be comfortably covered by our strong cash reserves, upcoming sale proceeds and operating cash flows. Total assets stood at $640 million in book values, including vessels under construction, while shareholders' equity amounted to $289.3 million.

Total debt, including liabilities under finance leases, stood at $319.7 million at the end of the first quarter, corresponding to a loan-to-value ratio of approximately 43% based on the market value of our fleet, reflecting our controlled approach towards leverage while advancing an ambitious fleet renewal strategy.

Before moving on, let me briefly highlight our financing activity. Over the past months, we secured several refinancings and new facilities that enhanced liquidity, lowered borrowing costs and extended our maturity profile. Importantly, we secured attractive financing for multiple newbuildings, including predelivery funding while maintaining limited covenant restrictions and enhanced flexibility. These actions reinforce the strength of our balance sheet and support the disciplined execution of our fleet renewal strategy.

Lastly, concerning our future profitability at current FFA levels, we expect our platform to continue generating strong cash flow and earnings through the remainder of 2026. The combination of index-linked exposure, improving charter coverage and operating leverage position Seanergy to benefit materially from continued strength in the Capesize market.

Overall, Seanergy remains very well positioned financially and operationally with strong liquidity, improving earnings visibility and a disciplined approach to growth and capital allocation. We believe we are very well placed to continue delivering attractive shareholder returns while maintaining meaningful exposure to market upside.

I will now pass the call back to Stamatios, who will discuss the Capesize market and industry fundamentals. Stamatios?

Thank you, Stavros. The Capesize market has started 2026 off in a very strong manner. The first quarter was one of the strongest recorded in recent years, driven by exceptionally strong bauxite volumes as well as counter seasonal iron ore export strength driven by a combination of dry weather and healthy end user demand. Lastly, strong growth in grain trading also complemented Capesize strength by supporting the earnings of smaller dry bulk vessels and reducing an incentive for cargo splitting tonnage substitution.

The strong trend has clearly carried over to the second quarter of the year, and it appears for the rest of the year as well, driven by a combination of factors. Specifically, slower vessel sailing speeds during the high bunker prices and higher port waiting times are contributing to a dearth of available vessels during a period with strong cargo demand. Looking to the rest of the current year, we obviously must acknowledge the complicated geopolitical picture, which is a source of uncertainty, but we even so remain optimistic about cargo demand.

We expect seaborne coal volume growth as energy security and reliability take center stage during the Middle East conflicts amidst strong restocking demand ahead of warm summer months. Iron ore seaborne trade remains supported due to expansion of supply of high-quality iron ore production in Brazil and West Africa.

Looking at the supply side, the backdrop remains positive for the balance of 2026 with little expected to change in the short term. The extensive dry docking requirements of the Capesize fleet are curtailing supply meaningfully as more than 20% of Capesize vessels were built in 2011 and 2012 are now due for scheduled surveys within 2026 and 2027.

Longer term, the Capesize order book is about 13% to 14% of the existing fleet compared to about 9% of the fleet being 20 years or older. While factoring in the rapid fleet aging along with the efficiency losses associated with older vessels, ultimately, fleet growth over the next years should remain very manageable and -- might even see effective fleet reduction. The Capesize outlook remains very strong for the next years. And as mentioned earlier in the call, Seanergy maintains downside protection for 2026 at highly profitable daily rates, which we believe places us in a very good position to navigate the future.

To conclude, Seanergy is entering the remainder of 2026 from a position of strength, supported by strong earnings visibility, disciplined capital allocation and a modernizing fleet. We remain focused on generating attractive shareholder returns while maintaining balance sheet discipline and positioning the company to benefit from a structurally supportive 2027 to 2029 market environment.

On that note, I would like to turn the call over to the operator and take any questions you may have. Operator, please take the call. Thank you.

[Operator Instructions] And now we're going to take our first question, and it comes from the line of Liam Burke of B. Riley Securities.

Stamatios, Stavros, nice quarter. Can we go into the macro again for a second? You talked about bauxite and iron ore. Can we just take it into two pieces, the sustainability of those volumes and how has coal, the increased consumption of coal contributed to the favorable rate environment?

Well, it's a combination of things. Number one, you have the increased iron ore cargoes, which are not so much increased as last year, but they're pretty similar year-on-year. So we're very happy with these volumes. Bauxite has also increased, and I think that we will continue to see increases on the bauxite as well.

Coal, like you very well said, has come into play because of restocking of reserves in the Far East, especially China. There's 30 million tons of restocking in China and various other factors in different places. So coal has come strongly into play. So we do not see any slowing down of demand anytime soon. We think that demand will be stable in the next few years. But what actually tips the scale to our favor is the fact that we have -- the effective vessel supply is reducing because there's a lot of congestion in various areas of the world.

And don't forget that even though the newbuilding order book of the Capesize fleet has been increasing, it's still one of the lowest across the mainstream sectors of shipping. But most importantly, we have an aging fleet. So we expect hundreds of ships to turn 20 years old from '26, '27, '28 and '29. And newbuilding order book is nowhere close to compensate for the loss of tonnage that we will experience over the next few years. 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 of vessels that is going to be reducing in our opinion.

Great. And Stavros, I apologize in advance for making you repeat this, but could you give us the cadence of CapEx for the balance of the year? I know you gave it once, I didn't quite get it. And any color on '28 -- '27 when you see the timing of deliveries?

Sure. No problem at all. So I mean, we have paid the lion's share of the CapEx that is basically to be sourced by equity for the newbuildings for 2026. 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.

Now we're going to take our next question, and the question comes from the line of Mark Reichman from NOBLE Capital Markets.

So management highlighted the expectations for the multiyear charter agreements with the downside protection and profit sharing mechanisms for the newbuilds. So how advanced are discussions with charterers? And what level of charter coverage do you expect prior to vessel delivery?

Well, we certainly want to have something that is going to be, if not significantly above the cash flow breakeven, but quite above the cash flow breakeven. 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. So we find this extremely advantageous because it covers a downside for the period of at least 4 years or 5 years. We are negotiating that now. And as far as uncertainty is concerned, you can really count that a big portion of the fleet of the newbuilding order book will be covered well before going to the delivery of the ships.

So how do you kind of view the trade-off between locking in the strong forward rates versus maintaining exposure to potential market upside?

Well, we have a good fleet of 20 ships in the water right now that are pretty much exposed to the upside of the market, and we're very content with that. As you can see, we are among the first, if -- the first in reporting the highest TCE and EPS among the dry bulk shipping companies. I think we have the highest EPS among the dry bulk shipping companies with the fleet that we have right now. And our time charter equivalent is either the first or the second among the dry bulk shipping companies. So we're very content with the fleet that we have already in the water.

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. So yes, we might give away some of the upside, but we might have some -- give away some of the upside, but we want to make sure that the investment is sustainable for the next 5 years, at least once we get delivery.

As far as the existing fleet is concerned, we have 50% covered in FFAs until the year-end at around $29,000 a day. So we're also happy with that. I mean we're not greedy. We want to make sure that we're covered on the downside, and we will deliver one of the best possible upsides from all the dry bulk shipping companies out there. So we're very happy with that.

And then could you maybe provide a little more detail on expected leverage levels and financing plans for the remaining vessels, while you kind of maintain that balance sheet flexibility?

Yes. Mark, this is Stavros. 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. That's in line with what we have done already now on 4 out of the 6 ships. This, combined with the time charter structure that Stamatios described before, so downside protection in the sense that we will be definitely covering the breakevens, provides certainty as to the servicing of the debt from these ships. And at the same time, I mean, as we aggressively repay the indebtedness of the existing fleet, we expect to maintain the 50% threshold on corporate and fleet level going forward. To give you an idea, I mean we have ships now or some of our older ships are at a loan-to-value between 20% and 30%. So basically, on average, we will be maintaining the same LTV that you see today.

And then just the last question on vessel operating expenses. What are your expectations for operating cost inflation, say, like over the next 12 to 24 months? And I'm kind of referring to the crewing, the maintenance, the regulatory compliance costs, et cetera.

Yes. Well, we expect to be around $7,000 to $7,200 per ship per day. And we are kind of satisfied with this number because our ships are middle age. They are around 14 years old as a global fleet average. We do extensive maintenance on the vessels, but don't forget that we have the highest book value per deadweight ton among the peers -- the lowest, sorry, we have the lowest book value per deadweight ton among the peers, which means that we have bought our ships quite cheap. In order to maintain them in good quality, we have to pay a little bit more, but paying a bit more on the OpEx doesn't really compensate the fact that we saved millions of dollars in acquiring those vessels cheaper.

Right. So you said $7,000 to $7,200?

Yes.

Yes, which is in line with the performance of 2025. I mean it's not much different. I mean the ships are not getting any younger.

Now we're going to take our next question, and the question comes from the line of Justin Smith of Maxim Group.

This is Justin on for Tate this morning. My question was just about the dividend and with all the newbuild capital commitments you guys have, if you're anticipating sustaining the dividend payments you guys have been making every quarter here going forward or if you see any change to that?

Nice to hear from you. 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. It's actually top important for us as a top priority to reward our shareholders. So that goes without saying that our intention is to continue rewarding our shareholders subject, of course, to the formula and the cash flow that we have already declared.

Thank you. Dear speakers, there are no further questions for today. This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.

Thank you for standing by, ladies and gentlemen, and welcome to the Seanergy Maritime Holdings Conference Call on the fourth quarter and year ended December 31, 2025 financial results.

We have with us Mr. Stamatios Tsantanis, Chairman and CEO; and Mr. Stavros Gyftakis, Chief Financial Officer of Seanergy Maritime Holdings Corp. [Operator Instructions]. Please be advised that this conference call is being recorded today, Tuesday, February 17, 2026.

The archived webcast of the conference call will soon be made available on the Seanergy website www.seanergymaritime.com. To access today's presentation and listen to the archived audio file visit the Seanergy Maritime website following the Webcast and Presentations section under the Investor Relations page.

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 materially from those in the forward-looking statements is contained in the fourth quarter and year ended December 31, 2025 earnings release. which is available on the Seanergy website again, www.seanergymaritime.com.

I would now like to turn the conference over to one of your speakers today is the Chairman and CEO of the company; Mr. Stamatios Tsantanis. Please go ahead, sir.

Thank you, operator, and welcome, everyone. Today, we are pleased to present our financial results and company updates for the fourth quarter and full year of 2025. 2025 marked our fifth consecutive year of profitability and another important milestone for Seanergy. We delivered strong earnings generated meaningful cash flow advanced our fleet renewal strategy and continue the returning capital to our shareholders, significant capital to our shareholders, all while further strengthening our balance sheet.

For the fourth quarter of 2025, we reported earnings per share of $0.68 and for the full year period of 2025, we reported earnings per share of $1.28. Both our net income as well as the appreciation in value of vessels acquired since 2021 underscore the operating leverage embedded in our platform. Our profitable track record validates our long-term consistent strategy of focusing exclusively on larger bulkers, Capesizes and Newcastlemax. Seanergy is optimally positioned in what we believe is a favorable Capesize environment supported by expanding long haul demand while fleet supply growth remains constrained. Aging tonnage, limited new ordering and environmental regulations are creating a structured tighter supply environment.

With respect to fleet renewal and optimization, we have made significant progress. To date, we have secured three high-specification eco newbuildings, two Capesizes and one Newcastlemax at leading Chinese shipyards with deliveries between Q2 '27 and Q2 '28, totaling approximately $226 million. At the same time, we recently concluded the sale of the 2010 built Dukeship at a firm price. In addition to the sale of the 2010 built Guinea Ship earlier in 2025. Both transactions released significant capital for the company. The current strength in secondhand values allows us to execute our fleet transition in a disciplined and measured manner while maintaining a strong balance sheet.

At the year-end, our fleet loan value stood at 43%, reflecting a conservative leverage profile by disciplined balance sheet management. As a pure-play Capesize operator, we maintained balanced leverage that preserves financial resilience while retaining meaningful exposure to market upside. Let us turn now to Slide 4 for an overview of our capital distributions. Slide 4. In this profitable market environment, our capital allocation priorities remain clear. return capital to our investors, modernize our fleet and preserve financial strength.

In 2025, we declared total dividends of $0.43 per share, including $0.20 for the fourth quarter. Since Q4 2021, we have returned approximately $96 million to our shareholders through dividends, share buybacks and note repurchases. Based on our track record and current market strength, we remain constructive on future distributions subject to market conditions and capital commitments. Slide #5, commercial snapshot. Turning to Slide #5. 2025 demonstrated the strength of our chartering strategy. During the fourth quarter, Seanergy achieved a daily times charter equivalent of approximately $26,600 while our full year terms at equivalent was approximately $21,000 a day.

Fleet utilization exceeded 96% despite the intense dry docking schedule, reflecting our strong operating efficiency. In what was an extremely volatile year for the Capesize market, we are very pleased with our balanced commercial strategy, combining index-linked exposure with selective forward features and that has allowed us to participate in market upside while securing cash flows visibility and reducing volatility. Looking forward for the first quarter of 2026, we expect our time charter equivalent to be about $25,300 per day based on the FFA curve for the remaining days of February and March. We're closely tracking Capesize index during the period of counter-seasonal strength.

As the market remains on a clear positive trend, we aim to selectively fix a percentage of all of our available days at attractive rates securing high cash flows and in terms of invested capital. For the period from Q2 until Q4 of 2026, we have fixed approximately 32 of our available fleet days at an average gross rate of $27,300, subject, of course, to further increase as a result of the profit savings scheme for two of our vessels. $27,300.

Looking further ahead, the upcoming delivery of our new buildings will further improve the commercial profile of Seanergy, and we are currently considering our options with regards to their employment. Slide 6. Since our previous quarterly update, we have taken decisive steps towards fleet renewal and placed orders for two additional new buildings at first-class shipyards based in China. For now, we have two sister Capesize newbuildings for mid-2027 and one Newcastlemax for Q2 2028.

The combined contract cost stands at approximately $226 million which we believe represents a very, very competitive value given the pronged deliveries and the quality of the yards. Our three newbuilding vessels have already attracted strong interest from both existing and prospective charters. However, given the continued strengthening of the market, we remain flexible and have not yet committed to any long-term employment agreements. The superior fuel and environmental performance, enhance their attractiveness to major dry bulk charterers and position them very well as regulatory requirements will come to tighten the market.

On that note, I would like to turn the call over to Stavros for an overview of our financial performance as well as our financing developments with regards to our existing and new building vessels. Stavros, please go ahead.

Thank you, Stamatios, and good morning to everyone joining us. Let's begin with Slide 7, where we will review the key highlights of our financial performance.

Before turning to the numbers, I would like to emphasize the continued strength and resilience of our platform as 2025 marks our fifth consecutive year of profitability. For the fourth quarter of 2025, the strong Capesize market supported robust financial results. Net revenue for the quarter totaled $49.4 million, while adjusted EBITDA and net income reached $28.9 million and $12.5 million, respectively, reflecting the strength of the second half of the year. For the full year, net revenue amounted to $158.1 million adjusted EBITDA reached $81.7 million and net income was $21.2 million, translating into earnings per share of $1.02.

These results underscore the effectiveness of our chartering strategy and risk management framework. Turning to the balance sheet. We maintained a strong liquidity position with $62.7 million in cash and cash equivalents or approximately $3.1 million per vessel. This liquidity provides operational resilience and supports the execution of our fleet organization strategy. Now regarding our new building program, the investment plan has been carefully structured with a larger schedule to ensure alignment with our shareholder reward strategy and financial flexibility. Approximately $8 million is expected to be deployed this year, $100 million in 2027 and $50 million in 2028.

Financing for two of these vessels has been secured on attractive terms while we are in active discussions for the third. Our debt capital ratio remained well below 50%. This conservative leverage profile, combined with strong cash generation provides flexibility as we enter 2026 and supports the funding of our newbuilding program. Overall, 2025 was characterized by consistent profitability, disciplined balance sheet management and solid castration positioning us well to continue delivering value to our shareholders moving forward.

Moving on to Slide 8. For the full year, our TCE averaged 2,957 per day closely aligned with the annual BCI average. This reflects the effectiveness of our chartering strategy, which balances index exposure with selective forward pictures to manage volatility while preserving upside. Adjusted EBITDA reached $81.7 million for the year, significantly above our 5-year average. The strong performance in the second half demonstrates the operating leverage inherent in our fleet. Our EBITDA margin of approximately 5% operating cash flow margin of roughly 33% highlights the quality and resilience of our earnings, even amid a volatile freight market we generated meaningful and recurring cash flows supporting both shareholder returns and fleet modernization.

Daily operating expenses per vessel averaged approximately $7,000 only modestly higher year-over-year despite the inflationary pressures in the aging profile of our fleet. Moving on to Slide 9. Let's look at our leverage profile and overall debt position. We closed the year with approximately $294 million of total debt to gross of deferred finance fees. Fleet loan-to-value declined to about 43% with net LTV supported by financing activity and resilient vessel valuations. This places us in a comfortable position relatively to both historical levels and industry benchmarks. Debt per vessel stands at about $14.7 million versus an average market value of $34.1 million, reflecting substantial embedded equity.

Additionally, approximately 7% of our total debt is covered by scrap value offering meaningful downside protection, Daily cash interest expense per vessel decreased to approximately $2,570 per day, representing a 6% year-over-year improvement and enhancing our cash flow profile entering 2026. Before moving on, let me briefly touch on our recent refinancing activity. Over the past month, we executed several refinancings to strengthen liquidity, lowered margins and extended our maturity profile. At the same time, we secured competitive funding for two of our newbuilding vessels looking at attractive pricing well ahead of delivery.

These facilities were structured with prudent amortization line covenant restrictions and enhanced flexibility, including purchase and repayment options. Overall, our actions reinforce balance resilience and provide the financial flexibility needed to support fleet renewal while maintaining disciplined leverage. Specific details of these financings are outlined in our earnings release. With a strengthened balance sheet and enhanced financial flexibility in place, let us now turn to Slide 10 to instate the operating leverage of editing our platform and the sensitivity of our earnings to movements in the cape sales market. At current FFA levels, we estimate full year EBITDA of approximately $122 million.

Our 2025 average BI level, EBITDA would approximate $5 million providing a reference point based on current market assumptions. At rates above 30,000 EBITDA would increase materially, reflecting the operating leverage embedded in our platform. That concludes my review of our financial results and updates. I will now turn the call back to Stamatios, who will provide insights in the Capesize market and his concluding remarks March. Stamatios, please?

Thank you, Stavros. Slide 11. 2025 was another strong year for the CFS market despite the initial volatility. The Baltic Capesize Index averaged approximately $21,300 per day. The year began on a softer note during the first half before iron ore and coal restocking activity in China supported the strong recovery in the second half of the year. Record iron ore exports from Brazil and the record bauxite export from Guinea provided a meaningful tailwind to Capesize mile demand, reinforcing the constructive long-term demand outlook for the segment.

In addition, market sentiment and broader travel fundamentals were further supported by strength in the Panamax market driven by increased grain exports from Brazil and the United States as well as additional coal and stocking towards the year-end. Moving to 2026 in regards of Capesize demand, we have started very strongly with the BCI averaging 22,000 over the first 2 weeks of the year, marking one of the strongest first quarters of the past decades.

Guinea bauxite exports have grown by 14% year-over-year, while dry weather in Brazil and Australia has resulted in high iron ore cargo activity during a traditionally weak seasonal period. For the rest of 2026, the demand outlook remains constructive, with bauxite trade expected to continue its growth path and iron ore miners production and sales outlook pointing to resilient trade volumes. This trend looks set to continue into 2027 with a Simandou mining project in West Africa, ramping up its output. China's demand for high-grade iron ore remains healthy, supporting demand for imported iron ore versus lower-quality domestically produced one.

Moving on to Capesize supply. The supply picture for the larger bulkers, especially Capesizes, points to further tightness and limited vessel availability for the next few years. The order book currently represents 12% of the fleet compared to about 9% of the fleet being 20 years or older. Moreover, what is significantly important is that right now, 40% of all the larger bulkers. Capesize, Newcastlemax and VOCs, 40% exceeds 15 years of average rates. So we are talking about an excessively aging fleet. At the current pace of vessel ordering and given the limited capacity of shipyards to deliver new buildings, it becomes clear that the supply tightness is likely to continue over the next many years.

As regards our near-term forecast, 2026 and 2027 are also likely to be affected by the extensive dry docking of the current ships that usually entails considerable downtime. With more than 20% of the World Capesize plate built 2011, 2012, a significant portion of vessels will undergo their 15-year special survey in 2026, 2027 temporarily reducing the effective supply plus, of course, a significant cost. This is expected to result in a fleet capacity reduction of more than 1.5% in both years while some estimates calling for 2% to 2.5% reduction. This should not be underestimated as it would counteract the 2.2% expected fleet growth due to newbuilding deliveries and could continue to contribute to periods of significant market tightening during the next 2 years.

To summarize, as we have seen in the past, the Capesize market will always be subject to considerable volatility stemming from multiple unpredicted factors, but the limited vessel supply that is shaping up over the next few years, along with increased ton mile demand should result in positive trend for charter rates. We're pleased to see this positive trend unfold over the past 2 to 3 years, and we're confident in our view of a strong market in the following years. As I mentioned before, Seanergy is optimally positioned to deliver our stated priorities of capital returns and fleet growth, while maintaining a sustainable balance sheet throughout the cycle.

In our view, we're very well placed to deliver strong financial performance over the next few years and we are, therefore, excited about our prospects. On this note, I would like to turn the call over to the operator and answer any questions you may have. Operator, please take the call. Thank you.

[Operator Instructions]. And the questions come from the line of Liam Burke from B. Riley Securities.

Hello, Liam. Good morning.

Stamatios, you've been very nimble in terms of managing your fleet and maximizing the rate environment. I mean, a year ago, you were out dissing the BCI even when rates are low. But are you seeing anything in the market where it's more prudent to add longer-term time charters versus moving more of the fleet into the spot market?

Well, we constantly are. If you see the release, we have about 35% of our days already pretty much in some sort of long-term contracts. that carry all the way to the end of the year. As we are progressing after the Chinese New Year that we expect to see more strengthening in the market. We will continue switching more and more ships from floating to fixed. So already, we have 35% at around 27,000. And as the year we'll be progressing, we will do some more.

Okay. You have gotten -- how are you balancing going forward, inflated asset values, some of your older vessels versus what looks to be a fairly attractive rate environment for the next 2 to 3 years.

Well, that's exactly what we're doing right now. I mean we were able to secure very prone delivery slots for new buildings. First of all, let me step back a little bit. The 5-year-old ships, as you know, have been very much inflated. So for 5-year-old ships, it's kind of and no goal for acquisitions. So it's pretty much identical to new buildings or a bit lower than that. So we decided to seek new buildings at high-quality shipyards. But then the question was whether we're going to have debt capital in these orders or not. And then due to our connections and excellent relationships, we're able to secure very prone for the caps market delivery slots.

And we weren't ahead and we placed a couple of ships. Actually three ships for 2027 and one for 2028. So that's how we manage. So once we identify prompt slots for new buildings, we will likely continue doing a few more. While at the same time, we might be disposing some of our older assets. the way that we did it right now with Dukeship from Seanergy to United or some other more, let's say, interesting ideas, but that's how much we're going to do it. So if we were able to add three ships and dispose of a couple or you're going to add a few more. That's how we're going to do it.

We are now going to proceed with our next question. And the questions come from the line of Mark Reichman from Noble Capital Markets.

Maybe Slide 6 would be the slide to look at. But just following up on the last question, how -- it is a favorable financing environment. You're able to get these sustainable linked loans. But when you think about these -- the high asset values of the existing fleet versus the new builds, what are your expectations in terms of your weighted average cost of capital and your your return on invested capital on maybe some of these new builds. And would you expect the difference to widen or kind of how are you thinking about that and managing that into your decisions?

Well, that's an excellent question, and thank you. The answer is yes. We are seeing inflation and inflated prices all across the shipping new building assets. So it's not only a Capesize or Newcastlemax situation. We are seeing that all over the place. You see that on tankers, containers LNG and, of course, on other dry bulk, smaller dry bulk ships. At the end of the day, however, the amount of money you spend for the CapEx is basically what you expect to make in return, like you very well asked.

Thanks to the very -- to the excellent efforts from our finance department, we're able to secure financing terms that will keep the all-in cash breakeven of these new acquisitions at around $20,000 a day. So the forward rate now stands anywhere between, let's say, 26,000 and 30,000 for a standard Cape. If you count in the premium of these modern ships, that exceeds 30,000 loss day. So if we're able to secure anywhere between $8,000 and $12,000, $13,000 a day on a net cash flow basis and you do the math you can automatically see that the return on equity on these assets is quite significant. That's how we approach.

That's very helpful. And then I kind of always asked this question on the conference calls. What are your expectations in terms of operational off-hire days for 2026?

I believe it's going to be consistent with 2025, but maybe a little lower than that. we have a much softer dry dock schedule in '26 compared to '25. So I believe it's going to be a bit lower than 2025.

Okay. And then just a last question. This is really a client-driven question. Could you speak to the limited shipyard availability? I guess the question was really kind of the low order book versus the limited shipyard availabilities into growing.

Well, again, that's an excellent question. There is no such thing as a limited shipbuilding capacity. I believe that the global shipbuilding capacity especially coming from China, as well as Korea and Japan is all-time high. But the good thing is that it's pretty much covered by other types of chips. We have tremendous order book on containers, also on the tankers as well as smaller bulkers and other ships. So the order book for the standard Capesize and the Newcastlemax is quite limited. Because it's pretty much covered by all the other asset classes.

Also, it's too far down the road. I mean, if you ask for a spar today, it's likely going to come back with 2029 or 2030. So given the fact that a very big percentage of the current fleet is already quite old, I don't expect to be in a position. I don't expect to be in a position to be replaced with modern tonnage until well before 2031, '32, just to have a normal churn rate to put it this way.

[Operator Instructions]. We are now going to proceed with our next question. The questions come from the line of Tate Sullivan from Maxim Group.

Great comments and congratulations on the new builds. And in light of the newbuild program. Can you comment and remind us on the current dividend policy and how you're looking at evaluating the dividend with the newbuild expenditures going forward, please? Because I think there's a discretionary cash reserve element in the dividend, but wanted to double check.

Thank you very much for your question. We do not expect the dividend policy to be affected by the new buildings. The sale of the [ YuXIP ] some other planned things that we intend to make. If we are to put additional new buildings will likely be more than sufficient in order to cover all the cash expenditure and of course, the efforts of Stavros at the finance department to get the financing in place will it's going to be unlikely to affect our dividend policy. So we will and we expect to be in a position to start renewing our fleet. Without affecting the operating cash flow and the dividend that we will continue to pay to our shareholders.

And the second question, you mentioned already having some very early contracting discussions regarding the new builds. And it seems like in the last 5 years, maybe the tanker sector would lock in multiyear contracts that below market fixed rates maybe at the rest of the lenders. How are you strategizing of contracting the new builds? Are you considering the multiyear? Or is that a dynamic part of the conversation you have with the lenders, please?

Well, not so much. I mean, our lenders are very comfortable with the fact that our balance sheet is very solid. We have very low loan to value right now. We have a very significant cash balance. So as far as we keep our order book in a well-managed situation, I don't think that any of our existing lenders is going to have an issue. And we see a very strong appetite from new lenders in order to provide additional financing. So I don't see that as an issue altogether.

Now fixing the ships for 5 years or 7 years, we are, of course, considering and we feel that these ships are in very high demand from our charters. I think closer to the delivery may be in a few months from now, end of the year. we will be in a position to fix some of the ships in long-term periods. But I don't want them to be below market just to sacrifice the operating cash flow of the ships.

Thank you. This concludes the question-and-answer session and today's conference call. Thank you for participating. You may now disconnect your lines. Speakers,please stand by.

Thank you for standing by, ladies and gentlemen, and welcome to the Seanergy Maritime Holdings Corp. Conference Call on the third quarter and 9 months ended September 30, 2025 financial results. We have with us Mr. Stamatios Tsantanis, Chairman and CEO; and Mr. Stavros Gyftakis, Chief Financial Officer of Seanergy Maritime Holdings Corp. [Operator Instructions] Please be advised that this conference call is being recorded today, Thursday, November 13, 2025. The archived webcast of the conference call will soon be made available on the Seanergy website www.seanergymaritime.com. To listen to the archived audio file, visit the Seanergy website following the Webcast and Presentations section under the Investor Relations page.

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 third quarter and 9 months ended September 30, 2025 earnings release, which is available on the Seanergy website, again, www.seanergymaritime.com.

I would now like to turn the conference over to one of your speakers today, the Chairman and CEO of the company, Mr. Stamatios Tsantanis. Please go ahead, sir.

Thank you, operator, and welcome, everyone. Today, we're pleased to present another quarter of strong performance for Seanergy, underlying our consistent profitability, disciplined strategy and the continued success of our focused Capesize and Newcastlemax platform, a model that we expect will deliver superior earnings capacity versus most peers. Following the strong momentum established in the second quarter, Seanergy delivered a profitable third quarter driven by our large vessel exposure and the ongoing strength in the Capesize market. Net revenue reached approximately $47 million, adjusted EBITDA was $27.5 million and net income totaled $12.8 million, demonstrating Seanergy's superior earnings capacity and operational leverage.

Over the first 9 months of the year, we generated net revenue of $108.7 million, adjusted EBITDA of $52.8 million and net income was $8.8 million. In line with our dividend policy, we declared a dividend -- cash dividend of $0.13 per share for the quarter, bringing total 2025 distributions to $0.23 per share and reaffirming our commitment to regular shareholder returns. The expiration of our Class E warrants removed legacy dilution and further simplified our capital structure, fully aligning long-term performance with shareholder value. With a fleet of 20 large Capesize vessels and Newcastlemax and fleet loan-to-value ratio around 45%, Seanergy is very well positioned to benefit from a robust Capesize cycle.

Moving on to fleet developments. We continued executing our disciplined fleet renewal strategy. In October, we placed our first ever newbuilding order at 181,000 deadweight Capesize at Hengli Shipyard, marking the next phase of a large vessel strategy focused on efficiency, scale and modernization. The vessel is priced at approximately $75 million with delivery scheduled for the second quarter of 2027, offering strategic delivery window ahead of most comparable projects. This decision reflects attractive newbuilding economics versus surging secondhand values and position Seanergy to capture stronger long-term returns from a modern fuel-efficient fleet. The project's timing aligns with the expected upswing in iron ore and bauxite trade through 2027 and thereafter.

In parallel, we sold and delivered the Vintage Capesize ship for $21.6 million, releasing approximately $12 million in net liquidity and further optimizing our fleet composition. Our vessels continue to secure premium employment with top-tier charters, supported by index-linked charters that preserve full market exposure. This disciplined structure complemented by selective FFA hedging ensures resilience across cycles. Our time charter equivalent has consistently outperformed the BCI, confirming the strength of our larger vessel commercial model and positioning us for sustained earnings momentum heading into 2026.

To conclude the first part of this call, I'll focus on larger Capesize and Newcastlemax vessels continues to differentiate Seanergy. These assets deliver superior earnings capacity and long-term value compared to smaller bulk segments. Our boutique platform is built on scale where it matters vessel size and operational performance, maximizing value creation per share. With a modern efficient fleet, prudent leverage and consistent dividends Seanergy remains very well positioned to lead in shareholder value among listed dry bulk companies.

I will now pass the floor to Stavros to discuss our financial update, and I will conclude later with our comments on the market.

Stavros, please go ahead.

Thank you, Stamatios, and welcome to everyone joining us today. Let me walk you through the key highlights of our financial performance for the third quarter and the 9-month period ended September 30, 2025. The third quarter delivered another period of solid profitability and balance sheet strength for Seanergy, underscoring our disciplined financial management and focus on capital efficiency. For the quarter, net revenue reached $47 million, representing a 6% increase year-over-year, while adjusted EBITDA came in at $26.6 million, broadly in line with last year's performance.

Net income and adjusted net income for the quarter was $12.8 million and $14 million, respectively, translating to earnings per share of $0.61. For the first 9 months of 2025, net revenue amounted to $108.7 million with adjusted EBITDA of $52.8 million. Net income for the period reached $8.8 million with earnings per share of $0.42. While these figures are below last year's level due to a softer market during the first half we expect profitability to strengthen meaningfully in the fourth quarter, supported by features already secured at higher levels.

Turning to our balance sheet, our cash position strengthened to approximately $37 million at the end of the quarter, equivalent to $1.8 million per vessel. This reflects our disciplined approach to cost management as outflows related to vessel acquisitions earlier in the year were effectively offset by the net proceeds from the sale of our older Capesize vessel during the third quarter. In parallel, we continue to fund dividend distributions and an extensive dry docking program underscoring the company's ability to invest in its fleet while maintaining robust liquidity.

This healthy cash position provides financial flexibility enabling us to pursue attractive opportunities and support our newbuilding project with confidence. Notably, our financial performance and stability has enabled us to declare nearly $5 million in cash dividends so far this year despite the challenging conditions of the first half reaffirming our commitment to consistent shareholder returns. As of quarter end, our total debt stood at approximately $292 million. Based on the current market value of our fleet, this corresponds to a loan to fleet value ratio below 45%, reflecting a healthy and conservatively capitalized profile.

On a per vessel basis, our debt stands at roughly $14.6 million, which is nearly $18 million below the average market value of our ships, highlighting the strong asset coverage supporting our balance sheet. In terms of financing activity, this quarter, we maintained a measured pace following an exceptionally active first half of the year, during which we executed transactions totaling $110.6 million.

Nevertheless, we are now in the final stages of concluding a highly attractive financing package for our newbuilding, featuring a competitive structure and compelling interest margin. We expect to be in a position to disclose additional details on upcoming financings soon. The constructive ship finance environment offering multiple options across both bank and leasing markets has been an important consideration decision to pursue newbuildings at this stage. At the same time, we continue to assess opportunities to optimize our capital structure and expect to report additional progress in the coming months.

It is also worth noting that we have a clear debt maturity profile through the second quarter of 2026, with no ballon repayments before that period. This provides variable flexibility and ensures that we can time our future financing strategically without pressure. Finally, as of September 30, 2025, total shareholders' equity reached $271 million, with both Class B and Class C warrants now fully eliminated Seanergy's capital structure is stronger, simpler and fully aligned with shareholder interests. That concludes my overview.

I will now hand the call back to Stamatios, who will provide insights on the Capesize markets and broader industry fundamentals. Stamatios, over to you.

Thank you, Stavros. The Capesize market continued to show sustained strength in Q3 with average rates of about $24,600 per day, the highest levels in the recent quarters. This performance was driven by a 2% increase in ton mile demand against only 1.3% growth in available tonnage reflecting a very tight market balance. Iron ore remains the main catalyst. Australian exports recovered strongly from early year weather disruptions, while Brazilian record volumes surge supported by Vale's output increase and long-haul routes that amplify ton mile demand.

Looking ahead, the upcoming Simandou project in West Africa, combined with steady steel production and iron ore demand in China underpins a solid multiyear outlook for the Capesize trade. Bauxite continues to be another key growth driver with shipments rising more than 15% year-over-year in Q3 and 20% for the 9-month period. This trend, coupled with Atlantic basin cargoes growth is expected to support high utilization levels going forward. Coal flows were also supported led by an 8-month import high in China and increased demand across South Korea, Japan and Southeast Asia.

On the supply side, 2025 marked a record low year for Capesize deliveries with less than 1.5% fleet growth. Only 38 newbuilding orders were placed the lowest since 2020, while 7% of the fleet is above 20 years and 30% is above 15 years. With the global shipyard capacity effectively booked through 2029, supply growth will remain structurally constrained for several years. Overall, the combination of rising Atlantic-based trade, a historically low order book and limited yard availability supports a sustained high earnings environment for Capesize vessels.

To conclude, Seanergy's pure-play Capesize and Newcastlemax focus continues to differentiate our platform. These larger vessels generate superior earnings capacity and long-term value compared to smaller bulker segments, reinforcing our boutique model based on scale where it matters, vessel size and operational performance. Our strategy remains on core on 3 priorities: capital returns, maintain a consistent dividend policy and pursue share buybacks when accretive; fleet renewal and growth, enhance fleet efficiency and environmental performance through disciplined high-return investments; financial health, preserve balance of strength and prudent leverage, ensuring flexibility throughout market cycles. We are executing on all 3 fronts and remain confident that Seanergy will continue to deliver industry-leading value per share as Capesize market enters another strong phase.

On that note, I would like to turn the call back to the operator and receive any questions you may have. Operator, please take the call. Thank you.

[Operator Instructions] Our first question comes from the line of Liam Burke from B. Riley Securities.

Stamatios, you've been very active in the fleet renewal program with the ordering and even with the sale of older assets. If I look forward, you have the financial flexibility, how do you anticipate growing the fleet? Would it be to add new builds or to mix in some secondhand vessels?

We are constantly in the market seeking opportunities both in more modern and secondhand ships as well as a few newbuilding vessels that we believe could add value to the company. We want to avoid having the so-called debt capital, invest money in advances while the ships will be delivered in 2030 or whatever. So we have to be very selective. And the reason why we chose that particular shipyard is not only its quality, but also the fact that it's basically going to deliver the ship in 1.5 years from today. So that eliminates that issue. We're constantly looking for both. I cannot give you an answer right now because there's few opportunities that we are getting closer to. So in the next few weeks, we'll be in a position to discuss more.

Great. And just taking a look at the macro, it looked like you have the best of all worlds here. As we end the year, it looks like China steel production will be down. If I flip the narrative and say China steel goes back to its historical growth rate of 1% or 2%, does that even increase your optimism for '26? Or is that sort of baked in and how you look at the demand side of the Capesize equation?

We were never worried about the demand side even when people were downplaying China and its ability to keep up with the housing crisis and the real estate problems. We're very optimistic about demand for iron ore, coal and bauxite. The Simandou starting now in November and December is going to pick up a lot of long-haul demand for high-quality iron ore, and this is going to ramp up in '26 and '27. So demand is not going to be an issue.

What is very interesting to note is the fact that about 23%, 24% of the global Capesize, Newcastlemax and VLOC fleet is older than 16 years, and that gives you a sense while the order book is, of course, at the lowest point. So that gives you a sense of potential supply squeezes getting into '26 and '27. So that makes us feel way more optimistic than the demand narrative.

Our next question comes from the line of Mark Reichman from NOBLE Capital Markets.

Just really 2 questions for me on this new build contract, the 5 installment payments. Can we just think about that as the $41.25 million or 55% paid in the -- on the fifth payment and then the balance of the $33.75 million spread over the first 4 payments? And what quarter do those payments begin?

Mark, this is Stavros. Yes. I mean, your assessment is correct. I expect the 45% to be paid over the next 12 months and then at delivery, which is approximately 1 year and 5 months from now, the remaining 55%. Based on the financing that we're contemplating for this unit, we will be liable from our own cash reserves for approximately 25% of the contract price, and these installments we expect to be paid in the first quarter of 2026. Everything else will come from debt.

From debt, okay. And then the -- just a second question on the commercial updates. I was just kind of curious kind of the tenor going into maybe some of these renewals. I mean do you have -- do you feel like you've got more pricing power. I mean I noticed that in some instances, the daily hire is based on a revised premium over the BCI and I was just wondering if that premium, I'm kind of assuming that premium went up.

Well, we tend to agree the extensions for a period of about 12 to 14 months. This is what we like, and that's what the charters are comfortable about. We have no concerning to renewing them thereafter. So it's not going to be an issue. And we have proven to be in a position to renew our ships consistently with very high-quality charters all the way until they become close to 20 or sometimes above 20 years old. So we see no issue in renewing anything for longer periods. We like it the way it is right now. And that provides flexibility on both sides of the transaction, both for us and the charterers and we would like to like this.

Just to go back, I mean, in terms of the pricing power, is that even something that you kind of think about? Or I mean, do you have greater leverage in this market? Or just -- or can you even comment on the revised premium over the BCI on some of those contracts?

Yes. The way that we obtain this premium that we achieved this premium is with the conversions that we do. So whenever we feel the time is right, then the forward rate is above the BCI, that's when we trigger certain conversions, and we feel comfortable about securing certain cash flows. And I'm not going to say coincidentally, but in most cases, that leads us to the premium over the BCI. In certain cases, of course, we may not be able to get the full extent of that. But we like that we hedge the downside. We feel way more confident and comfortable to have a certain stream of cash flows, even if we lose a couple of thousand from the upside, where we feel better off by securing the downside risk in certain quarters that might be weaker throughout the year.

[Operator Instructions] Our next question comes from Tate Sullivan from Maxim Group.

Congratulations on the new builds and consistent with how you've been talking about the market for the last at least 2 years. Was there a specific secondhand transaction in the market that made you decide to go to the new build route or at what point the [ S&P ] prices increase to a level where new builds are more attractive, please?

Thanks for the question. Yes, I mean, there comes a time where we have triggering events. We were chasing a couple of secondhand acquisitions and the -- and we missed on those because the higher bidders paid more than 20% or 10% -- 15%, 20% than what we had anticipated or what we consider to be the fair value of that asset for that particular time. So when you see this kind of abrupt increases in prices of secondhand vessels, which are not like really modern. I mean we're doing about close to 15 years old or 12 years old or 13 years old, then it kind of drives you the decision automatically gets taken. So that's how the triggering events happen.

And how can you -- how were you able to secure a 2027 delivery? Was it the last slot in the China shipyard or one of the last slots? Did you consider other countries as well too?

Well, quality above all. So we're not going to sacrifice any delivery for inferior quality, as you can understand. So we found this -- I mean we have been in discussions with various shipyards for quite some time. We chose that, we might be seeking other solutions as well at similar other shipyards of high quality in China. So we will not sacrifice the quality of this vessel for early delivery. In this particular case, we had the win-win situation where we had prompt delivery -- kind of prompt delivery and at the same time, very high quality. So we feel comfortable with that. We have certain good connections with a lot of people in the Far East. So we believe we will be able to source some other deals as well.

Okay. You mentioned that earlier you will look after those. And then, Stavros, on the cost of your debt, your interest rate going forward? Sorry if I missed it, but what -- do you think you're now at about the 7% interest rate level or even lower with where floating rates are now?

It's lower than that. I mean, look, the financings that we have concluded recently, the margins are at around 2%, and as we move forward, the ones that we are negotiating now a couple of packages in connection with a newbuilding and some refinancing that we want to do are even lower. I mean from quarter-to-quarter, you might see variations because there are certain fees that are being paid in order to break a financing or get into another financing, which sometimes charge under the interest expenses. But overall, judging where so far is today, I would estimate the average cost to be closer to 5.5% below 6%.

[Operator Instructions] There are no further questions. This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please standby.

Thank you for standing by, ladies and gentlemen, and welcome to the Seanergy Maritime Holdings Corp. Conference Call on the Second Quarter and First Half for the period ended June 30, 2025, financial results. We have with us Mr. Stamatios Tsantanis, Chairman and CEO; and Mr. Stavros Gyftakis, Chief Financial Officer of Seanergy Maritime Holdings Corp. [Operator Instructions] Please be advised that this conference call is being recorded today, Tuesday, August 5, 2025. The archived webcast of the conference call will soon be made available on the Seanergy website, www.seanergymaritime.com.

To access today's presentation and listen to the archived audio file, visit the Seanergy website following the Webcast and Presentations section under the Investor Relations page.

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 actual results to differ materially from those in the forward-looking statements is contained in the second quarter and first half for the period ended June 30, 2025, earnings release, which is available on the Seanergy website, again, www.seanergymaritime.com.

I would now like to turn the conference over to one of your speakers today, the Chairman and CEO of the company, Mr. Stamatios Tsantanis Please go ahead, sir.

Thank you, operator, and welcome, everyone. Today, we're going to be presenting Seanergy's financial results and company updates for the second quarter of 2025.

Slide 3. After a seasonal slowdown, the Capesize market rebounded meaningfully in the second quarter. The Baltic Capesize Index averaged $18,700, a significant increase from the first quarter's average of $13,000, demonstrating the market's resilience despite macroeconomic uncertainty. Looking ahead, we're confident the Capesize market remains fundamentally strong. The historically low Capesize newbuilding order book, coupled with increasing Atlantic Basin shipments of iron ore and bauxite are expected to continue supporting the Capesize charter rates.

Turning to our financial performance. In the second quarter, Seanergy recorded a net income of $2.9 million on net revenues of $37.5 million, a significant improvement from first quarter figures, driven by stronger daily time charter 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 Capesize vessels. Over the first 6 months of 2025, we continue to grow our platform with high-quality Capesize acquisitions that enhance our earnings power and scale.

In that context, we took delivery of two newly acquired vessels, the Capesize and a Newcastlemax, both of which are already trading under index-linked time charters. We also continued to streamline our financial position. Since the beginning of the year, we have successfully completed financing and refinancing transactions totaling approximately $110.6 million, effectively addressing loan maturities until the second quarter of 2026. This enhanced financial 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 deadweight terms while maintaining a disciplined fleet loan-to-value ratio of approximately 50%. Reflecting both the positive direction of the Capesize market and our healthy balance sheet, our Board of Directors has declared a discretionary cash dividend of $0.05 per share, in line with our distribution in the first quarter. As the market conditions continue to improve, we remain optimistic about the potential to further enhance shareholder returns in the final 2 quarters of the year. Using this as a segue, we can turn into Slide 4, where we emphasize our long-term commitment to capital return strategy.

Slide 4. Since Q4 2021, 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 an 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 #5, commercial snapshot. Moving on to Slide #5 now, which provides a brief overview of our commercial performance. During the second quarter of 2025, our fleet achieved an average time charter equivalent of approximately $19,800 per day. For the first 6 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 Capesize Index for the respective periods.

Our commercial strategy is designed to balance upside potential with stability. By employing index-linked charters, we captured the market strength in June. Simultaneously, fixed rate coverage for part of our fleet mitigates downside risk, providing earnings stability. Looking ahead in the third quarter, we have already fixed about 52% of our operating days at a gross rate of $22,400 a day, and we expect to end a time charter 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 Capesize freight market is in backwardation, hence, future earnings might end up being higher.

As regards to the second quarter of the year, 7 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 2 quarters of the year. Given the backdrop of macroeconomic 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 #6. Stavros, please go ahead.

Thank you, Stamatios. Welcome to everyone joining us for today's earnings call. Let's begin with Slide 6, where we will review the key highlights of our financial performance for the second quarter and the 6-month period ended June 30, 2025. We are pleased to report a return to profitability in the second quarter, capitalizing in the upward momentum in the Capesize market, particularly in June, as Stamatios 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 million and $3.8 million, respectively, translating to earnings per share of $0.18. For the first 6 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 6-month period. Nevertheless, considering the improving fundamentals and the recent positive momentum in the Capesize 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 3 ships being dry docked in the second quarter alone and 5 in the first half of the year. At the close of the second quarter, our outstanding debt, including finance lease liabilities, stood at $312 million, which translates into a debt-to-capital ratio marginally above 50% based on total book value of assets of $598 million. Finally, as of June 30, 2025, total shareholders' equity reached $258 million, demonstrating the resilience of our capital structure.

Let's now turn to Slide 7 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 TCE reached $16,700, surpassing the Baltic Capesize Index by 6%. Our adjusted EBITDA 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 EBITDA 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 off-hire days for vessel dry dockings, which naturally reflect on earnings. On the cost front, we successfully maintained daily OpEx 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 us well to continue delivering good results.

Moving now to Slide 8. Let me provide an overview of our capital structure and financing activities. Our outstanding debt, including finance lease 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 of our ships. Lastly, approximately 70% of our debt is covered by the scrap value of our fleet, which has an average age of 14.1 years.

With cash 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 in the first 6 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 Meiship, Newcastlemax next to the refinancing of the Worldship and the Honorship and two sale and leaseback agreements totaling $34.5 million, addressing the balloon payments under the loans of the Squireship and the Friendship.

Most recently, we agreed on a $22.5 million sale and leaseback transaction with a reputable Japanese owner to finance the purchase obligation for the Blueship, ensuring no impact on our liquidity position. Additionally, Alpha Bank has agreed to reduce the interest rate of the facility secured by the Dukeship by 50 basis points. As a result of these actions, we improved our daily interest cost further within the first 6 months of the year, reducing the weighted average margin to approximately 2.3%.

Finally, as we move to Slide 9, I want to emphasize that Seanergy is strategically positioned to capitalize on any upward momentum in the Capesize market as current dynamics suggest a constructive rate environment in the second half of the year. As Stamatios 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 Stamatios, who will provide insights on the Capesize market and broader industry fundamentals. Stamatios, over to you.

Thanks, Stavros. Let's look at demand trends on Slide #10. Capesize ton-mile demand is primarily driven by the growing volume of iron ore and bauxite exports from the Atlantic Basin. The longer routes to the Far East from these regions effectively increased the number of vessels required -- the effective number of vessels required, which supports demand. The first 6 months of 2025, we have seen a 6% increase in shipments originating from the Atlantic. The expansion has provided meaningful support to Capesize demand even against the backdrop of heightened macroeconomic uncertainty.

More specifically, bauxite shipments from Guinea loaded on Capes rose by more than 30% year-on-year, 3-0, while iron ore Cape loadings originating in Brazil and Canada were approximately 4.5% up. Looking ahead to the remaining of 2025, it was encouraging to note the recent reaffirmation of full year production and shipment targets by the major iron ore producers, which implies that shipments during the second half of the year will exceed those of the first half. The rebound in trade volumes that has taken place since June, including a record-breaking month for the Australian iron ore shipments further strengthens our conviction for a stronger second half.

When focusing on long-term picture beyond the current year, the sustained growth in the Atlantic exports is projected to continue mainly through the expansion of Vale's SD11 iron ore mining project in Brazil and Rio Tinto's Simandou mine in Guinea that is expected to start exports in late 2025. Lastly, end-user demand for both steel and aluminum seems resilient despite short-term fluctuations in economic conditions as both are used extensively in manufacturing and construction. Currently, steel demand remains supported by industrial manufacturing activity even during the real estate weakness in China, which seems very encouraging and bodes well for the future.

Slide #11, the supply side. The supply side, we believe, is a key driver for our bullish outlook. The Capesize order book is historically low at about 9% of the existing fleet. Meanwhile, approximately 7% of the fleet is 20 years or older and becoming less competitive due to stricter environmental regulations. As far as the current situation, only 20 vessels have been delivered in the first 6 months of 2025. And based on the delivery schedule for the rest of the year, the full year figure is likely to mark one of the lowest Capesize delivery years in a long, long time. At the same time, only 20 newbuilding orders have been placed in the year, also placing us on track for one of the lowest ordering years on record.

Lastly, as regards to future supply dynamics, it is evident that newbuilding activity remains muted as current vessel prices and long-term charter rates do not justify new investments. As a result, the combination of the above factors, demand supply points to highly constrained Capesize fleet growth over the next few years as vessel demand remains resilient against this favorable supply backdrop, we believe that the charter rates for the Capesize vessels are likely to remain at very profitable levels for the next few years.

To conclude, Seanergy is optimally positioned to benefit from the positive long-term story of the Capesize market. Our strategy remains centered on delivering shareholder value through disciplined capital returns and selective fleet growth aimed at generating strong returns on capital. With our strong position, we are ready to capitalize on rising rates and further enhance shareholder returns.

On that note, I would like to turn the call over to the operator to open the floor for your questions. Operator, please take the call. Thank you.

[Operator Instructions] The first question is from the line of Mark Reichman from NOBLE Capital Markets.

First question is coal imports in China have declined pretty significantly from 2024. And I was just curious, why is the Capesize segment of the dry bulk market showing resilience with regards to China?

Well, thank you for your question. Indeed, we have seen a slightly decrease in the volumes of coal coming into China, but that has been more than compensated by higher iron ore as well as bauxite. So long-term long-haul bauxite from West Africa as well as increased shipments of iron ore have more than compensated for the slight reduction of the coal shipments.

Okay. And then the second question is you've really done a great job managing the fleet, outperforming the Baltic Capesize Index. Could you talk a little bit about your strategy going forward? I mean, will you -- do you expect to continue to lock up rates? And how much of your fleet would you expect to kind of leave open?

Well, the answer is yes. We will continue locking in when we feel the opportunity is there. It's very dynamic. It can range between 25% to 75% of the fleet depending on the circumstances. So when we see big jumps in the future rates, the forward rates, then we will go ahead and lock some ships that can potentially be locked. And at the same time, we manage not only the cash flows, but also the ships that are on dry dock and as we have discussed over the call, it's a very heavy dry dock year for us. So we have to juggle among all these things.

Okay. And then just the last question. It's kind of a normal one, and I may have missed it if you've already addressed it, but what are your expectations on the operational off-hire days in the third and the fourth quarter?

I would let Stavros answer that because he's more on these numbers.

Sure. Mark, good to speak to you. So we had around 150 to 160 days off-hire due to dry dockings in the first half of the year. On the second half, we have in total 6 vessels going into dry dock, the last two in December. So I don't expect this to affect a lot of the available days. So expect around 90 to 110, 120 off-hire days for dry dockings in the second half. Half of it is going to be in this quarter and around 60 to 70 days in the fourth quarter.

The next question is from the line of Tate Sullivan from Maxim Group.

Great job walking locking in backwardation. And then I had a question on the bauxite. I mean it's great growth from the exports from West Africa. Is it a larger percent of your fleet transporting bauxite? Or do you think it will still be a relatively small portion of total cargo move for your fleet going forward?

The answer is no, it's pretty much balanced. We are -- if I can say, around 40% iron ore. And then we have another 40% coal and about 20% is bauxite. That's pretty much how it looks like. But that changes quarter-on-quarter. Right now, it is pretty much as I just told.

Great. And then you had a lot of good examples of reducing your spread to SOFR with your financing. And you've talked fairly consistently about more available financing. Do you think there's still even more available financing today compared to last year for yourself in the shipping sector or about the same dynamic compared to last year?

There is still lots of available financing alternatives, and we see interest from many lenders, both from existing and from new ones. One, I wouldn't say exactly restrictive factor, but something that has changed is basically the outlook on Chinese sale and leasebacks following the USTR. But we expect more clarity on that front. For the time being, I mean, we are happy with the exposure that we have on Chinese lessors. We're not thinking of refinancing them. At the end of the day, Capes coal much less U.S. ports than the remaining sectors within dry bulk. So to answer your question, the interest is still there, and we have a number of alternatives when considering to finance or refinance our vessels.

And last for me, I have not asked before, but I mean, periodically, there's oversupply in the Panamax market and maybe some cargoes, some shorter length cargoes going into China from the Panamax fleet. Did that limit the potential upside in Capesize rates? Or is there any change in that dynamic between Panamax rates and Capesize rates this coming year, this year, do you think?

Well, the answer is yes, indeed. We are seeing Panamax strength, which, as you know, has jumped from $8,000, $9,000 in the beginning of the year or even lower to around $13,000, $14,000 recently. And that 50% increase in Panamax comes -- of course, helped the Capesize rates as well because it's not cannibalizing cargoes from the Capesize fleet. That may be even stronger later in Q3. It remains to be seen. We expect to see how the trade discussions will go between U.S. and China because that will play a significant role in our opinion as to how the trade flows will go and what kind of normalizations you will see. But given the fact that we have all these trade barriers the volumes continue to be quite strong.

We will now take our next question. Next question is from Liam Burke from B. Riley.

Stamatios, if you look at the supply dynamic, which is obviously well, well in your favor being a Capesize pure play. But we're looking at an aging fleet, a very, very low order book. How does that -- do you see any opportunity in the SMP market to continue to grow the fleet?

Well, that's actually a very, very good point. Indeed, the fleet is aging and there are limited sell and purchase opportunities right now in the secondhand market. However, we're doing our best to identify and lock in new tonnage, but indeed, the universe has decreased a lot on quality purchases in the secondhand market. And certainly it has become way more expensive.

So that would -- and the new build market just doesn't make any sense either, I presume.

No, not really. Unless there are certain criteria in the newbuilding market that may facilitate commercial and financing, how do you say it -- structured products. Otherwise it will be difficult.

Real quickly on operating cash flow. I know you had year-over-year decline in tough comps on a year-over-year basis for the first half in terms of operating income. But is there anything in the cash flows that would -- that were affecting the operating cash flow beyond that? Or is it just timing of working capital?

No, it's mainly timing of working capital. I mean, okay, you start from a lower top line in any case, but it's basically timing of working capital, and it's also the payments for the dry dockings that are affecting the cash flow in this year. So otherwise, it's pretty much similar to last year.

We will now take our next question. Next question is from Kristoffer Barth Skeie from Arctic Securities.

Can you explain the dynamic with the Simandou mine and also the Bauxite volumes out of Guinea and sort of how much should we -- of the tonnage should we expect that this ties up this incremental volume increase given transshipments and the infrastructure in Guinea?

I believe, first of all, about Simandou that we will start seeing ramping up later in this year. It has not started yet. But the expectation is that Q3, Q4, we will see a certain ramping up, which means that Simandou is going to go online, and we'll start to see the first shipments. Another point I want to make, which is quite significant for the future demand of raw materials is the new dam in China. I mean people tend to underplay the new construction of Medog Hydropower station. Which is going to be one of the largest man-made projects on earth. And that is going to require massive amounts of steel and of course, iron ore, coking coal and all that. So we expect demand to increase significantly from China given the weak housing market. So the market is going to demand in the next few years quite a lot together, of course, with the ramping up.

[Operator Instructions] There are no further questions at this time. This does conclude today's conference call. Thank you for participating, and you may now disconnect.

Thank you for standing by, ladies and gentlemen, and welcome to the Seanergy Maritime Holdings Corp. Conference Call on the First Quarter ending March 31, 2025 Financial Results. We have with us Mr. Stamatios Tsantanis, Chairman and CEO; and Mr. Stavros Gyftakis, Chief Financial Officer of Seanergy Maritime Holdings Corp. [Operator Instructions] Please be advised that this conference call is being recorded today, Tuesday, May 27, 2025. The archived webcast of the conference call will soon be made available on the Seanergy website, www.seanergymaritime.com, under the Webcast & Presentations section under the Investor Relations page.

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 first quarter ended March 31, 2025 earnings release, which is available on the Seanergy website again, www.seanergymaritime.com.

I would now like to turn the conference over to one of your speakers today, the Chairman and CEO of the company, Mr. Stamatios Tsantanis. Please go ahead, sir.

Thank you, operator, and welcome, everyone. Today, we're going to be presenting our financial results and company updates for the first quarter of 2025. Following a year of record financial performance, significant shareholder rewards and targeted fleet expansion, Seanergy entered 2025 with strong momentum and a clear strategic vision. We positioned the company to fully leverage the positive long-term fundamentals of the Capesize market and our actions in the first quarter of the year reflect our continued commitment to disciplined growth, balance sheet strength and delivering value to our shareholders.

Despite a softer earnings environment in the first quarter, our conviction on the long-term strengths of the Capesize segment remain unchanged. The market's core supply and demand fundamentals remain intact and this confidence is reflected in our Board's decision to declare a dividend of $0.05 per common share. The payout exceeded what our formula would typically dictate, but the Board acted decisively to uphold our commitment to consistent shareholder returns even during temporary market softness. The subsequent rebound in spot Capesize rates to normalized levels further supports this decision and our market outlook.

Turning to our financial results. In the first quarter of 2025, we recorded revenue of $24.2 million, EBITDA of $6.6 million and a net loss of $6.8 million. As of quarter end, our cash balance stood at $31 million. Despite the quarterly loss, I want to emphasize the strength and flexibility of our balance sheet, which positions us to ramp up capital returns as the Capesize market continues to recover.

On the operational front, in February, we took delivery of 2 high-quality Japanese-built Capesize vessels. The Blueship built in 2011 at Mitsui shipbuilding in Japan was acquired via a 6-month bareboat charter and has commenced employment with a first-class operator on an index-linked hire contract plus a fixed premium. The Meiship, a larger Newcastlemax built in 2013 at Imabari Shipbuilding of Japan was acquired through a combination of cash and bank financing and is also employed with a first-class operator under a contract offering index-linked hire with a guaranteed profitable floor. Both acquisitions were consistent with our focus on modern, fuel-efficient Japanese tonnage secured at favorable terms and delivering immediate cash flow visibility.

On the financing front, during the quarter, we concluded 2 separate transactions totaling $88.1 million with proceeds used to refinance the existing debt of 4 vessels and to fund the acquisition of the Meiship. We're pleased with the timely execution of these deals completed at improved pricing and terms. These refinancings effectively remove all debt maturities for the next 4 quarters, enabling us to focus on capital returns and market opportunities.

From a commercial standpoint, we achieved a daily time charter equivalent of $13,400 in Q1 2025, about 3% above the Baltic Capesize Index average, once again validating our commercial strategy. Our guidance, however, for Q2 stands at approximately $19,100 based on the prevailing FFA curve as of May 23, a strong quarter-on-quarter improvement that should support a return to normalized capital distributions. We've also acted decisively to manage forward visibility. Approximately 39% of our fleet operating days for Q2 are hedged at an average rate of approximately $22,700.

In addition, we have secured long-term coverage for roughly 1/3 of our available days throughout the end of the year at an average daily rate exceeding $22,000. These decisions reflect our commitment to securing profitable cash flows while ensuring a high return on capital and maintaining sustainable fleet growth.

I will now pass the call to Stavros, who will fill you in on our financial information for the quarter as well as discussing our balance sheet and debt refinancings. Stavros, please go ahead.

Thank you, Stamatios, and welcome to everyone joining us on today's earnings call. Let's begin with a review of the key highlights from our financial performance for the first quarter ended March 31, 2025. Our net revenue for the quarter totaled $24.2 million over a TCE of $13,400 per day compared to $38.3 million and a TCE of $24,100 in the same period last year. However, it's worth stating that our TCE still outperformed the Baltic Capesize Index, reflecting the advantages of our hedging within the context of our overall commercial strategy. Adjusted EBITDA stood at $8 million, while we recorded an adjusted net loss of $5.2 million.

Looking ahead, we expect to return to profitability in the second quarter, supported by a stronger market and the freight hedging activities discussed previously by Stamatios. Current estimates indicate a recovery in TCE levels to over $19,000 per day. On the expense side, we have successfully reduced our daily OpEx by 7% year-over-year, thanks to the improving efficiency of our ship management team.

Now moving on to our balance sheet. Our cash position stood at $31 million. Despite the soft Capesize market and cash outlays for the acquisition of the Meiship and the Blueship, our cash balance declined only moderately during the quarter. This was achieved on the back of our proactive financing strategy, which enables a healthy balance between liquidity and leverage. This active management of our loan book in combination with the consistent strong market valuation of our fleet supports our financial resilience. It has allowed us to sustain dividend distribution, maintain operational flexibility and fund investments on our vessels that are scheduled to go through dry docking in the coming quarters.

Our total assets stand at $603.5 million, while balance sheet equity stood at $254.8 million. Our debt, including liabilities under finance leases, amounted to $323.7 million at the end of the first quarter, resulting to a loan-to-value ratio below 50% based on the market values of our fleet, which have remained relatively steady in the last 6 months.

Now before moving forward, I'd like to briefly recap our latest financing activities. In February, we finalized a new sustainability-linked loan with Piraeus Bank to refinance existing debt of Worldship and Honorship at a significantly improved terms, while also partially funding the acquisition of Meiship. The total amount of the transaction was $53.6 million with a 5-year term and an interest rate of 2.05% plus term SOFR per annum, 55 basis points lower than the rate of the refinance facility. This rate is subject to further reduction based on the achievement of specific emission reduction targets.

In March, we entered into 2 separate sale and leaseback agreements with Squireship and Friendship with entities affiliated with Huarong Financial Leasing totaling $34.5 million. The proceeds were used to refinance the outstanding debt of the respective vessels under a loan facility with Alpha Bank. The vessels were sold and chartered back on a bareboat basis for a period of 5 years with Seanergy retaining continuous purchase options at predetermined prices. Each bareboat charter also includes a purchase obligation at the end of the charter period. The financings bear interest at a rate of 3-month term SOFR plus 2.15% per annum, 130 basis points lower than the average rate of the refinance facility.

At the same time, we're in advanced discussions with potential financiers to fund the purchase option price of the Blueship due later this summer. Our goal is to secure favorable terms while minimizing impact on our liquidity. On this note, it is important to highlight that Seanergy has no balloon payments due until the second quarter of 2026. Overall, we remain optimistic about the profitability in the coming quarters and confident in the strength and flexibility of our balance sheet. This positions us well to continue delivering on our strategic priorities, disciplined fleet growth and meaningful shareholder returns across the market cycle. This concludes my review of our financial results and updates.

I will now pass the call back to Stamatios, who will now discuss the Capesize market and industry fundamentals. Stamatios?

Thank you, Stavros. After registering a strong performance in 2024, the Capesize market experienced a temporary correction in the first quarter of 2025, consistent with historical seasonality, but this time exasperated by severe weather disruptions affecting Australian exports and the strong inventories built up in 2024, especially on coal. Capesize daily charter rates rebounded sharply in March as normal cargo flows resumed with the Baltic Capesize Index recovering from a low of about $6,000 a day to a high of approximately $23,000 within the same quarter. While short-term volatility continues to be shaped by cautious economic sentiment and evolving trade policy uncertainty, the long-term Capesize fundamentals remain firmly positive. The primary reason is highly constrained vessel supply growth, combined with steady and resilient demand for major dry bulk commodities.

On the supply side, the Capesize and Newcastlemax order book is currently slightly below 8%, one of the lowest levels historically, especially significant given the increasing demand for fleet renewal due to a tightening environmental regulations. Approximately 10% of the existing fleet is over 20 years old and becoming less and less competitive due to the rising cost of environmental compliance. New orders remain limited due to constrained yard capacity, high newbuilding prices and uncertainty about propulsion technology.

Only 6 new Capesize and Newcastlemax orders have been placed year-to-date compared to 77 for all of 2024. Net fleet growth is expected at just 1.5% in 2025 and 1.9% in 2026, nothing basically. Factoring in increased dry docking, effective growth may be even negative during the year. Vessel speeds have stayed historically low due to EEXI and CII regulations and are expected to remain subdued, further reducing the effective supply. Taken together, this points to minimal net fleet growth for several years, creating a very supportive environment for Capesize earnings.

On the demand side, global steel demand remains resilient. Although China steel production is nearly flat year-on-year, iron ore imports are growing due to depletion of domestic mines and a pivot towards higher-grade imported ore. Australia's iron ore exports were disrupted early in the year by severe floodings and cyclones with year-to-date volumes down 2.6%. However, miners have reaffirmed 2025 export guidance, pointing to a significant upside for the rest of the year.

Brazilian iron ore exports are up 4.6% year-to-date despite a high base from Q1 2024. The peak export season from May to November is now starting, adding to the relevant momentum. Vale Brazil continues to deliver on efficiency gains and high-grade iron ore output, which bodes well for long-term export growth. Since Brazilian cargoes require triple the tonnage of Australian cargoes, the impact on Capesizes and its demand is magnified.

The Simandou iron ore project in Guinea remains on track to start exports in November 2025. With one of the lowest cost structures globally, Simandou is a game changer, a long-haul premium grade Capesize exclusive trade. It's a key structural opportunity that we intend to capitalize on. Iron ore ton-miles are expected to grow by about 5% annually in both 2026 and 2027. Guinea's exports of bauxite are up 43% year-to-date. Full year production is expected to reach 200 million tons, up from 145 million tons in 2024, driven by aluminum demand. Thermal coal imports dropped around 8% year-to-date as inventory started high and hydropower generation surge in China. However, as stockpiles normalize, seasonal demand is expected to rebound in the second half of the year.

Taken together, demand across all major Capesize, commodities and raw materials remain robust and well supported by global infrastructure, energy consumption and manufacturing needs. With extremely low fleet growth and structural inefficiencies such as slow speeds and increased dry dockings, Capesize utilization is projected to tighten progressively in the quarters ahead.

To conclude, Seanergy is very well positioned as a pure-play Capesize company fully aligned with these long-term market tailwinds. Our strategy is built on these 3 pillars: capital returns, we remain committed to delivering shareholder value through stable dividends and targeted share buybacks; strategic fleet growth, our expansion is disciplined and opportunistic, focused on aligning with favorable market conditions; balance sheet strength, our capital structure remains healthy and flexible, allowing us to sustain returns and pursue value-enhancing opportunities as they arise. With these foundations, we are confident in our ability to maintain a leadership position in the Capesize space.

On that note, I would like to turn the call over to the operator for any questions you may have. Operator, please take the call. Thank you.

[Operator Instructions] We will now take our first question from the line of Mark Reichman from NOBLE Capital Markets.

Yes. Would you please walk us through the dry dock schedule? I mean we had assumed 50 days in each of the first and fourth quarters and 100 days in each of the second and third quarters, so basically 25 days per vessel?

Mark, this is Stavros. Thanks for your question. Yes, basically, I mean, we have approximately 7 ships remaining for dry docking this year, which we're trying to push a couple of ships to the first quarter of next year, depending also on the prevailing market conditions. If the market remains at current levels, we will do as much as possible this year, expecting next year to be a bit stronger. We expect in the second, third and fourth quarter in total around $10 million to $14 million of CapEx concerning the dry dockings and around 20 days per vessel. We have already dry docked 4 vessels this year, 1 in the fourth quarter and 3 on the second. So basically, this is what remains.

Okay. Great. That's very helpful. And then just secondly, would you just please elaborate on the company's strategic and capital allocation priorities? I mean, I think in the commentary, you mentioned capital returns and market opportunities. And so I was kind of wondering now that you've concluded deliveries of the 2 new vessels, kind of what's next for your fleet?

It is going to be consistent with last year. As you saw last year, we had the top priority to distribute a very significant part of our cash flow in dividends. We did some buybacks as well. And at the same time, we arranged to buy a few ships. So I believe that 2025 will also be consistent. We do not have anything lined up in respect of further acquisitions, not because we don't want to, but because the selection of assets right now is scarce and limited. So unfortunately, there are not any, how do you say, compelling candidates right now in place. But if I were to give a good prediction, I would say that we will stay along the lines with last year.

We will now take the next question from the line of Tate Sullivan from Maxim Group.

Can you talk about day ship opportunities [indiscernible] when the opportunities to buy Capesize arises, are you competing against some of the trading houses, large mining companies? Or who are some of the other buyers out there in this type of market fleet?

Well, we are fortunate to have some kind of a right of first offer on a number of ships that are potentially available for sale or purchase by us. So that's very helpful in the event that we have these opportunities. And as far as the commercial agreements, we are also fortunate to have some key partners that are ready to provide us with lucrative agreements for chartering the ships. So in both cases, thanks to all these long-standing relationships we have with a number of potential sellers as well as commercial operators and charterers, we have the ability to buy and charter ships as we have proven very successfully.

As a testament to that is the 2 recent purchases that we did. As you can see, not only were in both cases, ships that were not available for sale and they were not into the sales reports at all up until the moment that we concluded the deal. The chartering arrangements were also above market at very profitable rates. not because it's only the relationship, but the fact that we upgrade the vessels with all these devices and things that we do for better operation. So overall, thanks to our long-standing relationships and the good work that our operations and technical department are performing, we're able to provide good contracts and overall great projects for our shareholders.

We will now take the next question from the line of Liam Burke from B. Riley Securities.

Stamatios, you talked about the macro on iron ore. You've got greater ton miles because it's being sourced further away with the capacity come on in Guinea and pretty stable underlying steel production. Bauxite has given you a nice follow-through on Capesize demand. Can you give us a little more detail on how much more -- how much we can see that bauxite supporting demand over time?

Well, as you know, the bauxite exports have basically gone up by almost 40%, 45% since last year. So it's a major, major commodity now for transportation on a long-haul basis and we expect that to continue. I cannot really say that it's going to go another 40% next year, and I don't really anticipate that. I see a flat demand, maybe 5% up for the remainder of the year and for 2026, which already, as I mentioned before, has increased significantly since last year. So bauxite has become a dominant commodity raw material for the transportation by Capesize vessels. So both iron ore and bauxite are expected to be quite good, up year-on-year, even though we had some sort of a weak period year-to-date. But I'm confident that as we turn into Q3 and everything, we will see bigger and bigger volumes coming up from West Africa. We don't see any slowdown as the information from the brokers are telling us.

Great. Stavros, your daily OpEx per vessel dropped nicely. Is that just quarter-to-quarter variability? Or is there something else?

Liam, so as I've told you in previous calls, I mean, we prefer to look OpEx at OpEx on an annual basis because, I mean, you avoid these fluctuations quarter-over-quarter. But basically, as more of the ships that we have acquired in the last 3 years go through dry dockings with our own technical management team, then I mean, you have a direct impact on OpEx after the dry docking. So this will be -- you will see reducing or stabilizing at around the levels that you see in the first quarter. We are happy to see a drastic improvement so far, and we hope that this trend will continue into the next quarters.

We will now take the next question from the line of Lars Moen Eide from Arctic Securities.

I guess I have a question on the market. It was touched upon briefly during the presentation as well. But I was wondering about with the Capesize rates having been somewhat directionless recently. And in terms of near-term market catalysts, what do you consider to be the most impactful over the upcoming months? What are you tracking the closest? Is it like geopolitics? Is it stimulus announcements or something different?

Can you please repeat the first part of the question because we kind of lost you for a moment.

I was saying that with the Capesize rates being somewhat directionless recently. And in terms of like near-term market catalysts, is it something you're tracking? What do you think will be the most impactful over the next coming months? Or it something you're tracking closely? Or is it -- yes, if you just elaborate a bit on that, that would be great.

Yes, that's a great question. Thank you. So for us, it's not a matter of demand. Yes, it has been slightly lower the volumes compared to last year, but not enough to make such a big damage that we incurred, especially in the first quarter -- in the beginning of first quarter in February. The biggest issue, as I have repeated many, many times, is the splitting of cargoes. We had a big variation between the Capesizes and Panamax, Kamsarmaxes and basically 0 congestion on the smaller sizes, which meant that in order to secure employment, the Panamax, Kamsarmaxes took a lot of coal cargoes from the Capesize vessels. So it's not a matter of demand. I mean the overall volumes are pretty much stable. We have not really seen any material decrease in demand. It was the increase of the effective supply, which is, as I mentioned, driven by the Kamsarmax, Panamax incremental effective availability because of significantly reduced congestion levels all over the world.

Now for the second half of the year, the positive news is that all the major miners have reiterated their export projections, which means that in order to catch the figures that they have said that they will be able to meet, export levels will need to increase substantially just to get where they have reiterated that we will get. Having said that, I believe that once we see the increased volumes or the increased push of commodities that are completely aligned with last year or maybe slightly lower, we expect we will see rates being significantly higher for the remainder of the year.

Just to give you some thoughts on this matter further, 2023, that was, let's say, the weakest year of the last 5 years, we had an overall average 5 BCI of $17,500 approximately. In order to get to the weakest year in 2025, assuming that is our low case scenario, the remainder of the year needs to be anywhere between $23,000 and $25,000 on the Capes, which means that we see a lot of upside on that. And as an absolute downside risk, I would say that this is where the FFAs are telling us today. I see material upside as far as we are concerned, above that, which may be anywhere in the $22,000, $23,000 or even in the high 20s for the remainder of the year. I cannot give you that, but this is the kind of internal predictions we have made.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.