SOURCE: Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp.

August 09, 2010 07:30 ET

Seanergy Maritime Holdings Corp. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2010

ATHENS, GREECE--(Marketwire - August 9, 2010) - Seanergy Maritime Holdings Corp. (the "Company") (NASDAQ: SHIP) (NASDAQ: SHIPW) announced today its operating results for the second quarter and six months ended June 30, 2010.

Second Quarter 2010 Financial Highlights:

Net Revenues of $22.6 million

Adjusted EBITDA of $11.7 million

Operating Income of $4.0 million

Six Months 2010 Financial Highlights:

Net Revenues of $40.8 million

Adjusted EBITDA of $23.6 million

Operating Income of $9.2 million

Dale Ploughman, the Company's Chief Executive Officer, stated: "The second quarter of 2010 was another milestone in the development of our Company. Without, in our opinion, sacrificing the strength of our balance sheet, we concluded another transformational transaction with the acquisition of a controlling interest in Maritime Capital Shipping Limited ('MCS'). We expanded our controlled fleet to a total of 20 dry bulk vessels and decreased its average age from 14.5 years to 12.8 years. In addition, we enhanced our fleet's operational versatility, as we increased our presence in all dry bulk vessel classes. Furthermore, as a result of the acquisition of MCS, our fleet now has a more balanced charter portfolio which we believe will enable us to benefit both from secured cash flows from period employment and from the market upside with some of our vessels opening for re-chartering. MCS EBITDA contribution to the Company in the second quarter of 2010 was $4.6 million. The projected MCS EBITDA contribution to the Company for the remainder of 2010 and 2011 is estimated to be $22.2 million and $32.5 million.

"Our results during the second quarter of 2010 reflected the volatile market environment. Our TCE rates were 67% lower compared to the same period of last year and we incurred higher finance costs resulting from our expanded fleet, as well as from losses related to interest rate swap agreements. At the same time, we achieved fleet utilization excluding scheduled drydocking off-hire days of 99.5% for the second quarter of 2010.

"The Baltic Dry Index has shown signs of life after a historic 35 consecutive day drop which was the result of a combination of new fleet deliveries and China importing less iron ore. We also believe the slowdown was seasonal as less demand for coal and iron ore is normal during the summer months. The upcoming harvest season in the northern hemisphere coupled with Russia cancelling all grain export is expected to help rates improve from current levels. Additionally, as stock piles of iron ore decrease in China, we expect demand for the commodity to increase, as the country continues its pace of robust growth. Coal, the other major commodity in the dry bulk sector, should also see its demand grow as we enter winter months.

"In the short period of just two years as an operating company we have more than tripled our controlled fleet from six to 20 vessels and quadrupled our cargo-carrying capacity. We will continue to work to build Seanergy into a leading player in the global shipping industry with what we feel are prudent, well-timed and accretive acquisitions. As a first step, we expect to explore ways to acquire the minority shares of MCS and BET, thereby bringing the full impact of their revenue and profit generation capacity to Seanergy. We believe Seanergy is one of the most undervalued companies amongst our peers and we will continue to make every effort to increase Seanergy's shareholder value."

Christina Anagnostara, the Company's Chief Financial Officer, stated: "Our results for the second quarter 2010 correspond to a daily TCE, or time charter equivalent rate, of $17,276.

"As of June 30, 2010 and following the MCS acquisition, our total assets are $727.9 million and our total debt is $421.6 million. As of June 30, 2010 our cash reserves were $81.1 million, reflecting $16.4 million in cash generated from operations. Our significant cash position enables us to meet remaining debt repayments and anticipated capital expenditures in 2010.

"The Company now operates a fleet of 20 vessels with secured period employment of 93% for 2010, 59% for 2011, 27% for 2012 and 19% for 2013 providing us with significant cash flow visibility.

"On June 2, 2010, we entered into an agreement with Marfin Bank and extended the waiver on our market value to loan covenant from January 1, 2011 through January 3, 2012, thereby enhancing our financial and operational flexibility."

Second Quarter 2010 Financial Results

Net Revenues for the second quarter of 2010 slightly increased to $22.6 million from $22.1 million in the same quarter in 2009.

The Company operated a fleet of 15.1 vessels on average during the second quarter of 2010, earning a TCE rate of $17,276 as compared to an average of 6 vessels and TCE rate of $52,292 during the second quarter of 2009. For continuing operations the decreased TCE results from lower market imposed time charter rates earned by our vessels whose original charters expired during the third quarter of 2009. MCS contributed $6.0 million into Seanergy's revenue for the second quarter of 2010. MCS acquisition was concluded at the end of May 2010; however it is consolidated as of May 21, 2010 as the transaction was between two entities under common control.

EBITDA was $10.2 million for the second quarter of 2010 as compared to $16.3 million in the same quarter in 2009 due to lower income received during the period, higher vessel operating expenses due to increased owned fleet and loss on interest rate swap agreements. Adjusted EBITDA which excludes losses on interest rate swap agreements was $11.7 million for the second quarter of 2010.

Operating income amounted to $4.0 million for the three months ended June 30, 2010, as compared to an Operating income of $8.6 million for the same quarter in 2009 due to higher operating expenses from the addition of vessels to our fleet.

Net Loss was $1.5 million, or $0.03 per basic and diluted share for the three months ended June 30, 2010, as compared to Net Income of $7.2 million, or $0.32 per basic and $0.30 per diluted share, for the same quarter in 2009, based on weighted average common shares outstanding of 60,200,170 basic and diluted for 2010, 22,361,227, basic, and 24,621,227 diluted, for 2009.

The decrease in Net Income is primarily the result of a 67% decrease in TCE to $17,276 per day for the three months ended June 30, 2010 compared to $52,292 per day in the prior period, as well as a $1.7 million increase in interest expense from $1.5 million to $3.2 million in the respective period and losses of $1.5 million relating to interest rate swap agreements associated with the BET and MCS debt facilities as compared to nil in the prior period.

Six Months 2010 Financial Results

Net Revenues for the first half of 2010 were $40.8 million compared $48.3 million in the same period in 2009. For continuing operations the decrease in revenues is mainly attributable to lower TCE rates earned by our vessels as a result of lower market imposed time charter rates whose original charters expired during the third quarter of 2009 as compared to the same period in 2009. Seanergy's revenues for the first half of the year incorporate MCS as of May 21, 2010.

The Company operated a fleet of 13 vessels on average during the first half of 2010, earning a TCE rate of $17,729 as compared to an average of 6 vessels and TCE rate of $51,982 during the same period of 2009.

EBITDA was $20.9 million for the first half of 2010 as compared to $37.6 million in the same period in 2009 due to lower income received during the period and loss on interest rate swap agreements. Adjusted EBITDA which excludes loss on interest rate swap agreements was $23.6 million for the first half of 2010.

Operating Income amounted to $9.2 million for the six months ended June 30, 2010, as compared to an Operating Income of $22.2 million for the same period in 2009.

Net Loss was $1.4 million, or $0.03 per basic and diluted share for the period ended June 30, 2010, as compared to Net Income of $19.3 million, or $0.86 per basic and $0.80 per diluted share, for the same period in 2009, based on weighted average common shares outstanding of 54,803,982 basic and diluted for 2010 and 22,361,227, and 24,621,227 basic and diluted for 2009 respectively.

The decrease in Net Income is primarily the result of a 66% decrease in TCE to $17,729 per day for the six months ended June 30, 2010 compared to $51,982 per day in the prior period, as well as a $2.3 million increase in interest expense from $3.1 million to $5.4 million in the respective period and losses of $2.8 million relating to interest rate swap agreements associated with the BET and MCS debt facilities as compared to nil in the prior period.

Conference Call Details:

The Company's management team will host a conference call to discuss the financial results today, Monday, August 9, 2010 at 10:00 A.M. EDT.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from the US), 0(800) 953-0329 (from the UK) or + (44) (0) 1452 542 301 (from outside the US). Please quote "Seanergy."

A replay of the conference call will be available until August 16, 2010. The United States replay number is 1(866) 247-4222; from the UK 0(800) 953-1533; the standard international replay number is (+44) (0) 1452 550 000 and the access code required for the replay is: 2094507#.

Slides and Audio Webcast:

There will also be a simultaneous live webcast over the Internet, through the Company's website (www.seanergymaritime.com). Participants desiring to view the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

Fleet Profile as of August 9, 2010


                                                                  Charter
                  Vessel   Capacity   Year                         Expiry
Vessel Name       Class     (DWT)     Built    Charter Rate ($)   (latest)
                --------- --------- --------- ------------------ ----------
M/V Bremen Max    Panamax    73,503      1993             15,500 Sept. 2010
                --------- --------- --------- ------------------ ----------
M/V Hamburg Max   Panamax    72,338      1994             15,500 Sept. 2010
                --------- --------- --------- ------------------ ----------
M/V Davakis G.   Supramax    54,051      2008             21,000  Jan. 2011
                --------- --------- --------- ------------------ ----------
M/V Delos
 Ranger          Supramax    54,051      2008             20,000  Mar. 2011
                --------- --------- --------- ------------------ ----------
M/V African
 Zebra (1)       Handymax    38,623      1985              7,500  Sep. 2011
                --------- --------- --------- ------------------ ----------
M/V African
 Oryx (1)       Handysize    24,110      1997              7,000  Sep. 2011
                --------- --------- --------- ------------------ ----------
M/V BET
 Commander       Capesize   149,507      1991             24,000  Dec. 2011
                --------- --------- --------- ------------------ ----------
M/V BET Fighter  Capesize   173,149      1992             25,000  Sep. 2011
                --------- --------- --------- ------------------ ----------
M/V BET Prince   Capesize   163,554      1995             25,000  Jan. 2012
                --------- --------- --------- ------------------ ----------
M/V BET Scouter  Capesize   171,175      1995             26,000  Oct. 2011
                --------- --------- --------- ------------------ ----------
M/V BET
 Intruder         Panamax    69,235      1993             15,500  Sep. 2011
                --------- --------- --------- ------------------ ----------
                                              BHSI increased by
M/V Fiesta      Handysize    29,519      1997 100.63% minus Opex  Nov. 2013
                --------- --------- --------- ------------------ ----------
M/V Pacific                                   BHSI increased by
 Fantasy        Handysize    29,538      1996 100.63% minus Opex  Jan. 2014
                --------- --------- --------- ------------------ ----------
M/V Pacific                                   BHSI increased by
 Fighter        Handysize    29,538      1998 100.63% minus Opex  Nov. 2013
                --------- --------- --------- ------------------ ----------
M/V Clipper                                   BHSI increased by
 Freeway        Handysize    29,538      1998 100.63% minus Opex  Feb. 2014
                --------- --------- --------- ------------------ ----------
M/V African Joy Handysize    26,482      1996             13,250  Aug. 2010
                --------- --------- --------- ------------------ ----------
M/V African
 Glory          Handysize    24,252      1998             14,500  Dec. 2010
                --------- --------- --------- ------------------ ----------
M/V Asian Grace Handysize    20,412      1999             13,500  Oct. 2010
                --------- --------- --------- ------------------ ----------
M/V Clipper
 Glory          Handysize    29,982      2007             25,000  Aug. 2012
                --------- --------- --------- ------------------ ----------
M/V Clipper
 Grace          Handysize    29,987      2007             25,000  Aug. 2012
                --------- --------- --------- ------------------ ----------
Total                     1,292,544  12.8 yrs
                --------- --------- --------- ------------------ ----------

(1) Represents gross floor charter rates excluding a 50% adjusted profit share distributed equally between owners and charterers calculated on the average spot Time Charter Routes quoted on the Baltic Supramax Index for a period of 22 to 25 months.

Fleet Data:


                                   Six        Six       Three      Three
                                  Months     Months     Months     Months
                                  Ended      Ended      Ended      Ended
                                 June 30,   June 30,   June 30,   June 30,
                                  2010       2009       2010       2009
                                ---------  ---------  ---------  ---------
          Fleet Data
                                ---------  ---------  ---------  ---------
Average number of vessels (1)        13.0        6.0       15.1        6.0
                                ---------  ---------  ---------  ---------
Ownership days (2)                  2,360      1,086      1,370        546
                                ---------  ---------  ---------  ---------
Available days (3)                  2,258        916      1,273        417
                                ---------  ---------  ---------  ---------
Operating days (4)                  2,247        909      1,266        411
                                ---------  ---------  ---------  ---------
Fleet utilization (5)                95.2%      83.7%      92.4%      75.3%
                                ---------  ---------  ---------  ---------
Fleet utilization excluding
 drydocking off hire days (6)        99.5%      99.2%      99.5%      98.6%
                                ---------  ---------  ---------  ---------
    Average Daily Results
                                ---------  ---------  ---------  ---------
TCE rate (7)                       17,729     51,982     17,276     52,292
                                ---------  ---------  ---------  ---------
Vessel operating expenses (8)       5,123      5,360      5,457      5,513
                                ---------  ---------  ---------  ---------
Management fee (9)                    521        568        457        577
                                ---------  ---------  ---------  ---------
Total vessel operating
 expenses (10)                      5,644      5,928      5,914      6,090
                                ---------  ---------  ---------  ---------

(1) Average number of vessels is the number of vessels that constituted the Company's fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of the Company's fleet during the relevant period divided by the number of calendar days in the relevant period.

(2) Ownership days are the total number of days in a period during which the vessels in a fleet have been owned. Ownership days are an indicator of the size of the Company's fleet over a period and affect both the amount of revenues and the amount of expenses that the Company recorded during a period.

(3) Available days are the number of ownership days less the aggregate number of days that vessels are off-hire due to major repairs, dry dockings or special or intermediate surveys. The shipping industry uses available days to measure the number of ownership days in a period during which vessels should be capable of generating revenues.

During the six months ended June 30, 2010, the Company incurred 102 off hire days for vessel scheduled drydocking.

During the three months ended June 30, 2010, the Company incurred 97 off hire days for vessel scheduled drydocking.

(4) Operating days are the number of available days in a period less the aggregate number of days that vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.

(5) Fleet utilization is the percentage of time that our vessels were generating revenue, and is determined by dividing operating days by ownership days for the relevant period.

(6) Fleet utilization excluding drydocking off hire days is calculated by dividing the number of the fleet's operating days during a period by the number of available days during that period. The shipping industry uses fleet utilization excluding drydocking off hire days to measure a Company's efficiency in finding suitable employment for its vessels and excluding the amount of days that its vessels are off-hire for reasons such as scheduled repairs, vessel upgrades, or dry dockings or special or intermediate surveys.

(7) TCE rates are defined as our net revenues less voyage expenses during a period divided by the number of our operating days during the period, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and other commissions.

(In thousands of US Dollars, except operating days and daily time charter equivalent rate)

                                   Six Months  Ended    Three Months Ended
                                       June 30,              June 30,
                                --------------------- ---------------------
                                   2010       2009       2010       2009
                                ---------- ---------- ---------- ----------
Net revenues from vessels           40,821     48,309     22,612     22,067
Voyage expenses                        984      1,057        741        575

Net operating revenues              39,837     47,252     21,871     21,492
                                ========== ========== ========== ==========

Operating days                       2,247        909      1,266        411

Daily time charter equivalent
 rate                               17,729     51,982     17,276     52,292

(8) Average daily vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs, are calculated by dividing vessel operating expenses by ownership days for the relevant time periods:

(In thousands of US Dollars, except ownership days and daily vessel operating expenses)

                                  Six Months  Ended    Three Months Ended
                                      June 30,              June 30,
                                --------------------- ---------------------
                                  2010       2009       2010       2009
                                ---------- ---------- ---------- ----------
Operating expenses                  12,090      5,821      7,476      3,010
Ownership days                       2,360      1,086      1,370        546

Daily vessel operating expenses      5,123      5,360      5,457      5,513

(9) Daily management fees are calculated by dividing total management fees by ownership days for the relevant time period.

(10) Total vessel operating expenses or TVOE is a measurement of total expenses associated with operating the vessels. TVOE is the sum of vessel operating expenses and management fees. Daily TVOE is calculated by dividing TVOE by fleet ownership days for the relevant time period.

Recent Developments:

Acquisition of 51% ownership interest in MCS

On May 28, 2010, after entering into a share purchase agreement with Maritime Capital Shipping (Holdings) Limited ("Maritime Capital"), the Company completed the final documentation for the acquisition of a 51% ownership interest in MCS for a consideration of $33.0 million. The consideration was paid to Maritime Capital from the proceeds of the Company's recent equity offering completed in February 2010 and from the Company's cash reserves. Maritime Capital has retained a 49% ownership interest in MCS. As a result of the acquisition, the size of the Company's fleet increased from 11 to 20 dry bulk vessels, consisting of four Capesize, three Panamax, two Supramax, one Handymax and 10 Handysize dry bulk carriers, with a combined cargo-carrying capacity of approximately 1,292,544 dwt and an average fleet age of 12.8 years.

Estimated Drydocking and Maintenance Schedule

The BET Scouter's scheduled drydocking, which commenced on March 26, 2010, was completed on May 17, 2010. The total cost of the BET Scouter's drydocking amounted to $1.5 million. On May 14, 2010, the BET Prince commenced its scheduled drydocking, which was completed on June 28, 2010. The cost of the BET Prince's drydocking amounted to $1.0 million.

Other Matters

On July 22, 2010 the Company announced the results of the annual meeting of its shareholders held on Wednesday, July 21, 2010 at the Company's executive offices. At the meeting the following proposals were approved and adopted: 1) the re-election of Messrs. Elias Culucundis, Dimitrios Panagiotopoulos, Dimitrios Anagnostopoulos and George Taniskidis, as Class A Directors to serve until the 2013 Annual Meeting of Shareholders, 2) the amendment of the Company's Amended and Restated Articles of Incorporation to increase the number of authorized shares of common stock, par value $0.0001 per share from 200,000,000 to 500,000,000 shares and 3) the appointment of PricewaterhouseCoopers S.A. as the Company's Independent Registered Public Accounting Firm for the Fiscal Year ending December 31, 2010. Mr. George Koutsolioutsos, Chairman and member of the Board of Directors, has resigned from his position as the Chairman and Director. Following the annual meeting of its shareholders, the Board of Directors thanked Mr. Koutsolioutsos for his contribution to Seanergy and appointed Mr. Dale Ploughman, CEO and Director, as the Chairman of the Board. Seanergy's Board now consists of nine members.

On June 2, 2010, the Company executed an addendum no. 3 to the Company's loan agreement with Marfin Bank and extended the waiver on the Company's market value to loan covenant from January 1, 2011 through January 3, 2012. In connection with the addendum and extension of the waiver, Marfin made certain changes to the loan agreement including increasing the interest payable during the waiver period from LIBOR plus 3.00% to LIBOR plus 3.50% in respect of the term loan and from LIBOR plus 3.50% to LIBOR plus 4.00% in respect of the revolving facility and accelerating the due dates of certain of the Company's principal installments.

On May 20, 2010, the voting agreement expired between certain of the Company's shareholders who are affiliated with members of the Restis family and Seanergy Maritime's founding shareholders, (Mr. Georgios Koutsolioutsos, the former Chairman of the Company's Board of Directors, and Mr. Alexios Komninos and Mr. Ioannis Tsigkounakis, two of the Company's former Directors). On May 20, 2010, Mr. Komninos resigned from his position as a member of the Company's Board of Directors following the expiration of the voting agreement and due to other professional engagements he has undertaken.

                     Seanergy Maritime Holdings Corp.
              Reconciliation of Net Income to Adjusted EBITDA
           (All amounts expressed in thousands of U.S. Dollars)



                                                        Three      Three
                                Six Months Six Months   Months     Months
                                  Ended      Ended      Ended      Ended
                                 June 30,   June 30,   June 30,   June 30,
                                   2010       2009       2010       2009
                                ---------  ---------- ---------  ----------
Net income / (loss)
 attributable to Seanergy
 Maritime Holdings                 (1,409)     19,283    (1,519)      7,167
                                ---------  ---------- ---------  ----------
Plus: Net income attributable
 to the noncontrolling interest     2,740           0       951           0
                                ---------  ---------- ---------  ----------
Plus: Interest and finance
 costs, net (including interest
 income)                            5,131       2,875     3,009       1,411
                                ---------  ---------- ---------  ----------
Plus: Income taxes                     31           -        31           -
                                ---------  ---------- ---------  ----------
Plus: Depreciation and
 amortization                      14,384      15,439     7,719       7,767
                                ---------  ---------- ---------  ----------
EBITDA                             20,877      37,597    10,191      16,345
                                ---------  ---------- ---------  ----------
Plus: Loss on interest rate
 swaps                              2,761           -     1,468           -
                                ---------  ---------- ---------  ----------
Adjusted EBITDA                    23,638      37,597    11,659      16,345
                                ---------  ---------- ---------  ----------




                     Seanergy Maritime Holdings Corp.
  Reconciliation of Net Cash Provided by Operating Activities to Adjusted
                                  EBITDA
           (All amounts expressed in thousands of U.S. Dollars)


                                   Six        Six       Three      Three
                                  Months     Months     Months     Months
                                  Ended      Ended      Ended      Ended
                                 June 30,   June 30,   June 30,   June 30,
                                   2010       2009       2010       2009
                                ---------  ---------  ---------  ---------
Net cash flow provided by
 operating activities              16,389     34,500      9,039     14,284
                                ---------  ---------  ---------  ---------
Changes in operating assets and
 liabilities                          468     (1,635)    (1,464)    (1,408)
                                ---------  ---------  ---------  ---------
Fair value of contracts               160          -         80          -
                                ---------  ---------  ---------  ---------
Change in fair value of
 financial instruments             (1,968)         -     (1,308)         -
                                ---------  ---------  ---------  ---------
Payments for dry-docking              920      2,245        920      2,231
                                ---------  ---------  ---------  ---------
Amortization and write-off of
 deferred charges                    (254)      (388)      (116)      (173)
                                ---------  ---------  ---------  ---------
Interest and finance costs, net
 (includes interest income)         5,131      2,875      3,009      1,411
                                ---------  ---------  ---------  ---------
Income taxes                           31          -         31          -
                                ---------  ---------  ---------  ---------
EBITDA                             20,877     37,597     10,191     16,345
                                ---------  ---------  ---------  ---------
Plus: Loss on interest rate
 swaps                              2,761          -      1,468          -
                                ---------  ---------  ---------  ---------
Adjusted EBITDA                    23,638     37,597     11,659     16,345
                                ---------  ---------  ---------  ---------

EBITDA consists of earnings before interest and finance cost, taxes, depreciation and amortization. Adjusted EBITDA consists of earnings per share before interest and finance cost, taxes, depreciation and amortization and gain or losses on interest rate swaps. EBITDA and adjusted EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America, and does not represent cash flow from operations. EBITDA and adjusted EBITDA are presented solely as supplemental disclosures because management believes that they are common measures of operating performance in the shipping industry.

                     Seanergy Maritime Holdings Corp.
                  Condensed Consolidated Balance Sheets
              June 30, 2010 (unaudited) and December 31, 2009
       (In thousands of US Dollars, except for share and per share data,
                        unless otherwise stated)



                                                    June 30,
                                                      2010     December 31,
                                                  (unaudited)     2009
                                                  -----------  -----------
ASSETS
Current assets:
  Cash and cash equivalents                            70,898       63,607
  Restricted cash                                      10,196            -
  Accounts receivable trade, net                          875          495
  Due from related parties                              2,045          265
  Inventories                                           1,429        1,126
  Prepaid insurance expenses                              558          623
  Prepaid expenses and other current assets -
   related parties                                         66           58
  Insurance claims                                        467        1,260
  Other current assets                                    714           39
                                                  -----------  -----------
         Total current assets                          87,248       67,473
                                                  -----------  -----------
Fixed assets:
  Vessels, net                                        613,776      444,820
  Office equipment, net                                    39           20
                                                  -----------  -----------
         Total fixed assets                           613,815      444,840
                                                  -----------  -----------
Other assets
  Goodwill                                             17,275       17,275
  Deferred charges                                      9,343        8,684
  Other non-current assets                                180          180
                                                  -----------  -----------
 TOTAL ASSETS                                         727,861      538,452
                                                  ===========  ===========

LIABILITIES AND EQUITY
Current liabilities:
  Current portion of long-term debt                    48,585       33,206
  Trade accounts and other payables                     3,290          990
  Due to underwriters                                       -           19
  Accrued expenses                                      3,879        1,719
  Accrued interest                                        924        1,508
  Financial instruments                                 6,288        3,556
  Deferred revenue - related party                        886          894
  Deferred revenue                                      1,961          246
                                                  -----------  -----------
         Total current liabilities                     65,813       42,138
                                                  -----------  -----------
  Long-term debt, net of current portion              372,997      267,360
  Financial instruments, net of current portion         4,271        1,550
  Below market acquired time charters                     425          585
                                                  -----------  -----------
         Total liabilities                            443,506      311,633
                                                  -----------  -----------

Commitments and contingencies                               -            -

EQUITY
  Seanergy shareholder's equity
  Preferred stock, $0.0001 par value; 1,000,000
   shares authorized; none issued                           -            -
  Common stock, $0.0001 par value; 200,000,000
   authorized shares as at June 30, 2010 and
   December 31, 2009, respectively; 60,200,170
   and 33,255,170 shares, issued and outstanding
   as at June 30, 2010 and December 31, 2009,
   respectively                                             6            3
  Additional paid-in capital                          239,701      213,232
  Accumulated deficit                                  (6,155)      (4,746)
                                                  -----------  -----------
         Total Seanergy shareholders' equity          233,552      208,489
                                                  -----------  -----------
  Noncontrolling interest                              50,803       18,330
                                                  -----------  -----------
         Total equity                                 284,355      226,819
                                                  -----------  -----------
TOTAL LIABILITIES AND EQUITY                          727,861      538,452
                                                  ===========  ===========




                     Seanergy Maritime Holdings Corp.
           Unaudited Condensed Consolidated Statements of Income
          For the three and six months ended June 30, 2010 and 2009
      (In thousands of US Dollars, except for share and per share data,
                        unless otherwise stated)



                              Three months ended       Six months ended
                                   June 30,                June 30,
                            ----------------------  ----------------------
                               2010        2009        2010        2009
                            ----------  ----------  ----------  ----------
Revenues:
   Vessel revenue - related
    party                       10,950      22,633      24,068      49,548
   Vessel revenue               12,414           -      18,138           -
   Commissions - related
    party                         (372)       (566)       (826)     (1,239)
   Commissions                    (380)          -        (559)          -
                            ----------  ----------  ----------  ----------
   Vessel revenue, net          22,612      22,067      40,821      48,309
Expenses:
   Direct voyage expenses         (530)       (292)       (535)       (438)
   Vessel operating
    expenses                    (7,476)     (3,010)    (12,090)     (5,821)
   Voyage expenses - related
    party                         (211)       (283)       (449)       (619)
   Management fees                 (58)          -         (58)          -
   Management fees - related
    party                         (568)       (315)     (1,171)       (617)
   General and administration
    expenses                    (1,886)     (1,617)     (2,622)     (2,807)
   General and administration
    expenses - related party      (166)       (150)       (348)       (355)
   Amortization of deferred
    dry-docking costs             (769)         (9)     (1,467)         (9)
   Depreciation                 (6,950)     (7,758)    (12,917)    (15,430)
                            ----------  ----------  ----------  ----------
Operating income                 3,998       8,633       9,164      22,213
Other income (expense),
 net:
   Interest and finance
    costs                       (3,156)     (1,354)     (5,412)     (2,819)
   Interest and finance
    costs - shareholders             -        (172)          -        (312)
   Interest income                 147         116         281         256
   Loss on financial
    instruments                 (1,468)          -      (2,761)          -
   Foreign currency exchange
    (loss)/gain, net               (58)        (56)         90         (55)
                            ----------  ----------  ----------  ----------
                                (4,535)     (1,466)     (7,802)     (2,930)
                            ----------  ----------  ----------  ----------
Net (loss)/income before
 taxes                            (537)      7,167       1,362      19,283
                            ----------  ----------  ----------  ----------
   Income taxes                    (31)          -         (31)          -
                            ----------  ----------  ----------  ----------
Net (loss)/income                 (568)      7,167       1,331      19,283
                            ----------  ----------  ----------  ----------
   Less: Net income
    attributable to the
    noncontrolling
    interest                      (951)          -      (2,740)          -
                            ----------  ----------  ----------  ----------
Net (loss)/income
 attributable to Seanergy
 Maritime Holdings Corp.
 Shareholders                   (1,519)      7,167      (1,409)     19,283
                            ==========  ==========  ==========  ==========
Net (loss)/income per
 common share
   Basic                         (0.03)       0.32       (0.03)       0.86
                            ==========  ==========  ==========  ==========
   Diluted                       (0.03)       0.30       (0.03)       0.80
                            ==========  ==========  ==========  ==========
Weighted average common
 shares outstanding
   Basic                    60,200,170  22,361,227  54,803,982  22,361,227
                            ==========  ==========  ==========  ==========
   Diluted                  60,200,170  24,621,227  54,803,982  24,621,227
                            ==========  ==========  ==========  ==========




                     Seanergy Maritime Holdings Corp.
           Unaudited Condensed Consolidated Statements of Equity
               For the six months ended June 30, 2010 and 2009
       (In thousands of US Dollars, except for share and per share data,
                        unless otherwise stated)



                                      Retained   Total
              Common stock   Addi-    earnings/ Seanergy
            ---------------- tional   (Accumu-  share-   Noncontroll-
               # of     Par  paid-in   lated    holders   ing         Total
              Shares   Value capital  deficit)  equity    interest   equity
            ---------- ----- -------  --------  -------  ---------- -------

Balance,
 December
 31, 2008   22,361,227     2 166,361   (34,798) 131,565           - 131,565
            ---------- ----- -------  --------  -------  ---------- -------
Net income
 for the
 six months
 ended
 June 30,
 2009                -     -       -    19,283   19,283           -  19,283
            ---------- ----- -------  --------  -------  ---------- -------
Balance,
 June 30,
 2009       22,361,227     2 166,361   (15,515) 150,848           - 150,848
            ---------- ----- -------  --------  -------  ---------- -------

                                                 Total
              Common stock   Addi-              Seanergy
            ---------------- tional   (Accumu-  share-   Noncontroll-
               # of     Par  paid-in   lated    holders   ing         Total
              Shares   Value capital  deficit)  equity    interest   equity
            ---------- ----- -------  --------  -------  ---------- -------

Balance,
 December
 31, 2009   33,255,170     3 213,232    (4,746) 208,489      18,330 226,819
            ---------- ----- -------  --------  -------  ---------- -------
Issuance of
 common
 stock      26,945,000     3  28,523         -   28,526           -  28,526
Consolidation
 of
 subsidiary
 acquired            -     -  (2,054)        -   (2,054)     29,733  27,679
Net (loss)/
 income for
 the six
 months
 ended June
 30, 2010            -     -       -    (1,409)  (1,409)      2,740   1,331
            ---------- ----- -------  --------  -------  ---------- -------
Balance,
 June 30,
 2010       60,200,170     6 239,701    (6,155) 233,552      50,803 284,355
            ---------- ----- -------  --------  -------  ---------- -------




                     Seanergy Maritime Holdings Corp.
        Unaudited Condensed Consolidated Statements of Cash Flows
             For the six months ended June 30, 2010 and 2009
       (In thousands of US Dollars, except for share and per share data,
                        unless otherwise stated)



                                                        Six months ended
                                                            June 30,
                                                      --------------------
                                                        2010       2009
                                                      ---------  ---------
Cash flows from operating activities:
Net income                                                1,331     19,283
Adjustments to reconcile net income to net cash
 provided by operating activities:
   Depreciation                                          12,917     15,430
   Amortization of deferred finance charges                 254        388
   Amortization of deferred dry-docking costs             1,467          9
   Payments for dry-docking                                (920)    (2,245)
   Change in fair value of financial instruments          1,968          -
   Amortization of acquired time charters                  (160)         -
   Changes in operating assets and liabilities:
   (Increase) decrease in -
      Due from related parties                           (1,779)       795
      Inventories                                           (40)       176
      Accounts receivable trade, net                       (370)       (27)
      Insurance claims                                      793          -
      Other current assets                                 (103)         -
      Prepaid insurance expenses                            248        389
      Prepaid expenses and other current assets -
       related parties                                       (8)       (20)
      Trade accounts and other payables                     167       (209)
      Due to underwriters                                   (19)      (286)
      Accrued expenses                                      915      1,323
      Accrued charges on convertible note due  to
       shareholders                                           -        411
      Premium amortization on convertible note due
       to shareholders                                        -       (181)
      Accrued interest                                   (1,087)       (54)
      Deferred revenue - related party                       (8)      (682)
      Deferred revenue                                      823          -
                                                      ---------  ---------
Net cash provided by operating activities                16,389     34,500
                                                      ---------  ---------
Cash flows from investing activities:
Additions to vessels                                          -         (6)
Additions to office furniture and equipment                 (31)       (15)
Acquisition of subsidiary, including cash acquired       17,913          -
                                                      ---------  --------- 
Net cash used in investing activities                    17,882        (21)
                                                      ---------  ---------
Cash flows from financing activities:
Deemed distribution upon  subsidiary acquisition         (2,054)
Net proceeds from issuance of common stock               28,526          -
Repayment of long term debt                             (45,907)   (15,000)
Deferred finance charges                                   (801)         -
Increase in restricted cash                              (6,744)         -
                                                      ---------  ---------
Net cash (used in) financing activities                 (26,980)   (15,000)
                                                      ---------  ---------
Net increase in cash and cash equivalents                 7,291     19,479
Cash and cash equivalents at beginning of period         63,607     27,543
                                                      ---------  --------- 
Cash and cash equivalents at end of period               70,898     47,022
                                                      =========  =========
SUPPLEMENTAL CASH FLOW INFORMATION
   Cash paid for interest                                 4,719      2,501

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp., the successor to Seanergy Maritime Corp., is a Marshall Islands corporation with its executive offices in Athens, Greece. The Company is engaged in the transportation of dry bulk cargoes through the ownership and operation of dry bulk carriers.

The Company's initial fleet comprised two Panamax, two Supramax, one Handymax and one Handysize dry bulk carriers that Seanergy purchased and took delivery of in the third and fourth quarters of 2008 from companies associated with members of the Restis family. In August 2009, the Company acquired a controlling interest in Bulk Energy Transport (Holdings) Limited, which owns four Capesize and one Panamax dry bulk carriers. In May 2010, the Company acquired a controlling interest in Maritime Capital Shipping Limited, which owns nine Handysize dry bulk carriers.

The Company's current controlled fleet includes 20 drybulk carriers (four Capesize, three Panamax, two Supramax and one Handymax and 10 Handysize vessels) with a total carrying capacity of approximately 1,292,544 dwt and an average fleet age of 12.8 years.

The Company's common stock and warrants trade on the NASDAQ Global Market under the symbols "SHIP" and "SHIP.W", respectively.

Forward-Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures to implement such strategy. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that such expectations will prove to have been correct, these statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the scope and timing of Securities and Exchange Commission ("SEC") and other regulatory agency review, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the SEC. The Company's filings can be obtained free of charge on the SEC's website at www.sec.gov. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Contact Information

  • For further information please contact:

    Seanergy Maritime Holdings Corp.
    Dale Ploughman
    Chief Executive Officer
    Christina Anagnostara
    Chief Financial Officer
    Tel: +30 210 9638461
    E-mail: ir@seanergymaritime.com

    Investor Relations / Media
    Capital Link, Inc.
    Paul Lampoutis
    230 Park Avenue Suite 1536
    New York, NY 10169
    Tel: (212) 661-7566
    E-mail: seanergy@capitallink.com