Seanergy Maritime Holdings Corp. (SHIP)

[surfer44]

This is from the company presentation. EV of the company is 223 million so each ship is valued at 22.3 million, way below the historical average for 10 year old Capes. The company could sell the ships, pay off the debt, and make a nice profit. But why do that when shipping is at a cyclical low and rates are increasing. Better to keep the ships through the cycle and maybe at some point become a dividend payer (which shippers do in good times).

Capesize Sector - Compelling Investment Opportunity
Significant upside potential
Capesize Historical Time
Charter Earnings
(in $)1
5-yr old
Cape price
(in $ million)20-yr old
Cape price
(in $ million)3
15-yr average 34,000 53.9 38.7
15-yr (excl. peaks and troughs) 22,900 43.8 31.5
May 2019 year to date 9,000 31.04 24.54
1. Weekly Average of the Five T/C routes of the Baltic Capesize Index; Source: Clarksons Timeseries
2. Capesize 180K 5 Year Old Secondhand Prices; Source: Clarksons Timeseries
3. Capesize 180K 10 Year Old Secondhand Prices; Source: Clarksons Timeseries
4. Vessel Values as of the end of month; Source: Clarksons Timeseries
The Capesize sector is recovering from its all time lows, presenting a compelling
opportunity to profit from a rebound in freight rates and asset values
? 5yr old Capesize vessel price (~ $31 million), 42% below the 15-yr historical average
? 10yr old Capesize vessel price (~ $24.5 million), 37% below the 15-yr historical average
? Capesize spot earnings YTD (~ $9,000), 73% below the 15-yr historical average
Superior medium-term returns achieved through vessel acquisitions at historically low
prices, cost efficient operations and improved charter rates