ATHENS, GREECE -- (Marketwire) -- 09/20/12 -- Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ: SHIP) announced today its operating results for the second quarter and six months ended June 30, 2012.
Second Quarter 2012
•Net Revenues of $18.1 million.
•Adjusted EBITDA of $5.4 million, which excludes non-cash losses of $13.2 million incurred on the sale of a vessel and $11.8 million impairment losses of a vessel.
•Adjusted Net Loss of $3.3 million, which excludes non-cash losses of $13.2 million incurred on the sale of a vessel and $11.8 million impairment losses of a vessel.
Six Months 2012
•Net Revenues of $35.6 million.
•Adjusted EBITDA of $10.3 million, which excludes non-cash losses of $15.6 million incurred on the sale of two vessels and $11.8 million impairment losses of a vessel.
•Adjusted Net Loss of $7.4 million, which excludes non-cash losses of $15.6 million incurred on the sale of two vessels and $11.8 million impairment losses of a vessel.
For more information we refer you to the EBITDA and adjusted EBITDA reconciliation section contained in this press release.
Dale Ploughman, the Company's Chairman and Chief Executive Officer, stated: "Over the second quarter and first half of the year, Seanergy's financial results were affected by the prevailing market weakness, as more vessels were employed under both short term contracts and index linked agreements in the current year as compared to 2011.
So far in 2012, Seanergy has sold three of its oldest vessels for a total gross consideration of about $25.3 million. The proceeds have been used to repay debt outstanding under the Marfin facility and Citibank syndicate facility. We expect this to reduce our interest and finance expenses and the cash outflows associated with future dry docking surveys, as well as the average daily operating expenses incurred by our fleet.
During the first half of 2012 the dry bulk market was particularly unfavorable. Compared to last year, rates for all vessel classes fell across the board and the BDI averaged 31% lower than in the same period of 2011. Market weakness caused by the oversupply of vessel tonnage was largely expected, while the economic uncertainty surrounding the developments, or rather, the lack thereof in the Eurozone crisis was the unexpected factor preventing a meaningful and sustained rise in charter rates over the second quarter of 2012, by dampening expectations about future growth in dry bulk demand.
Looking forward, we believe a drop in demand growth is likely to be prevented, as central banks have openly expressed their intention to support economic growth by easing monetary conditions and we expect that most governments would also have an interest to take proactive measures if economic conditions start to deteriorate. Moreover, China, whether through the government or private sector, is generally expected to continue approving major investments in steel-intensive projects that are likely to support demand for more iron ore imports. Lastly, demand for the transportation of thermal coal remains strong and the shifting dynamics of world trade in many bulk commodities point to increases in ton-mile demand.
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