ATHENS, Greece, Oct. 31, 2018 (GLOBE NEWSWIRE) -- Seanergy Maritime Holdings Corp. (the “Company”) (SHIP) announced today that it has entered into commercial agreements for the installation of exhaust gas cleaning systems (“scrubbers”) on five of its capesize bulk carriers before the January 1, 2020 implementation date of the IMO sulfur emission cap regulations. Upon completion of the installations scheduled for Q2 and Q3 2019, the vessels will commence index linked period employment with three leading dry-bulk charterers ranging in durations between three and five years.
The Company has secured the scrubber equipment from Hyundai Materials, a well-known Korean manufacturer and has reserved retrofitting slots at an experienced dry-dock facility in China. The total investment, to be covered by the charterers, is expected to exceed $12.5 million, including equipment and installation costs.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are very excited to announce these commercial agreements which should result in approximately $12.5 million accretion in our NAV. We believe that the significant investment that will be implemented in full cooperation with our charterers represents a balanced and comprehensive approach towards the new environmental regulations scheduled to become effective as of January 1, 2020.
“Such strategic direction comes after careful consideration of the various aspects of the new regulations and their implications in our sector, given that Seanergy was one of the first Greek dry-bulk companies to conclude a feasibility study on scrubbers, in cooperation with the American Bureau of Shipping (ABS).
“This significant investment by our charterers, in combination with innovative charter agreements, is expected to increase the market value of the subject vessels without our Company incurring additional debt or diluting our shareholders.
“It is important to further note that the underlying time-charters are index linked, maximizing Seanergy’s exposure to the positive fundamentals and outlook of the Capesize market. Moreover, through profit sharing agreements calculated on the spread between high and low sulfur fuel, we believe we will be able to capitalize on short-term distortions in the bunker market.
“We aim to complete the installations of the scrubbers during 2019 before the IMO 2020 regulations come into force. Finally, upon implementation of the new IMO regulations, all of Seanergy’s fleet will be fully compliant with the new rules.”
Details of the Agreements:
A. M/V Partnership and M/V Lordship
The Company has entered into two time charter agreements with a major European utility company, for M/Vs Partnership and Lordship, for a firm period of 33 to 37 months plus one additional period of 11 to 13 months at charterer’s option.
B. M/V Premiership and M/V Squireship
The Company has entered into two time charter agreements with a leading multinational commodity trading and mining company, for the M/Vs Premiership and Squireship, for a firm period of 36 to 42 months plus two additional periods of 11 to 13 months at charterer’s option.
C. M/V Championship
The Company has entered into an agreement for the sale and leaseback and a five year time charter with a large international commodity trading company for the M/V Championship, for a firm time-charter period of 60 months plus an additional 18 month period at charterer’s option.
The latter two agreements are subject to the conclusion of definitive documentation.
The daily hire on all three agreements is index-linked rate based on the 5-routes T/C average of the Baltic Exchange Capesize Index (BCI).
As part of the time charter agreements, the charterers will cover 100% of the equipment and installation cost for retrofitting the vessels with exhaust gas cleaning systems (scrubbers). On top of the daily hire, the Company will receive an additional compensation based on the spread between the price of High Sulphur Fuel Oil and the price of Marine Gas Oil or other IMO-compliant and ISO certified Low Sulphur Fuel Oil throughout the term of the time charters.
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is an international shipping company that provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. The Company currently operates a modern fleet of ten dry bulk carriers, consisting of nine Capesizes and one Supramax, with a combined cargo-carrying capacity of approximately 1,625,763 dwt and an average fleet age of about 9.6 years.
Upon the completion of the sale of the second Supramax and the purchase of the new Capesize previously announced, the Company's operating fleet shall consist of ten Capesize vessels with an average age of 9.6 years and aggregate cargo carrying capacity of 1,748,638 dwt.
The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company's common shares and class A warrants trade on the Nasdaq Capital Market under the symbols “SHIP” and “SHIPW”, respectively.
Please visit our company website at: www.seanergymaritime.com
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. Words such as "may", "should", "expects", "intends", "plans", "believes", "anticipates", "hopes", "estimates", and variations of such words and similar expressions are intended to identify forward-looking statements. 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 Company's ability to continue as a going concern; the Company's operating or financial results; the Company's liquidity, including its ability to pay amounts that it owes and obtain additional financing in the future to fund capital expenditures, acquisitions and other general corporate activities; the conclusion of definitive documentation, competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the SEC, including its most recent annual report on Form 20-F. The Company's filings can be obtained free of charge on the SEC's website at www.sec.gov. Except to the extent required by law, 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.
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