Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) has unveiled exceptional financial results for the second quarter and first half of 2024, showcasing a dramatic turnaround from the previous year. The Athens-based pure-play Capesize ship owner reported a net income of $14.1 million for Q2 2024, a substantial increase from $700,000 in the same period last year. For the first half of 2024, the company's net income reached $24.3 million, a significant recovery from a $3.5 million loss in H1 2023. Revenue also saw impressive growth, with Q2 net revenue up 52% year-over-year to $43.1 million and H1 revenue increasing by 75% to $81.4 million.
In light of these robust financial outcomes, Seanergy's board has decided to enhance its dividend policy, aiming to distribute about 50% of operating cash flow after debt payments. The Q2 cash dividend has been raised to $0.25 per share, up from $0.15 and $0.10 in the preceding quarters. This adjustment underscores Seanergy's dedication to shareholder returns, having already disbursed $34.7 million in cash dividends since Q1 2022.
Stamatis Tsantanis, Seanergy's Chairman and CEO, credited the record performance to the company's strategic focus on maintaining a pure-play Capesize fleet, which has allowed it to leverage the strong performance of the Capesize market. The company's fleet, currently consisting of 18 vessels, is set to expand with the acquisition of an additional modern Capesize vessel in Q3, bringing the total to 19.
The Capesize market's exceptional performance since Q1 2024, its best in over a decade, has significantly benefited Seanergy. The company's fleet achieved an average daily time charter equivalent (TCE) of $26,636 in Q2, approximately 18% higher than the Baltic Capesize Index's average. Seanergy has also resumed its stock buyback program, repurchasing $1.8 million worth of shares under its $25 million share repurchase plan initiated in December 2023.
Looking ahead, the Capesize sector's outlook remains positive, driven by increasing demand for Chinese iron ore and coal imports and growth in the Brazilian export market. With a slow-growing fleet size anticipated, dry bulk demand is expected to outpace supply in the near future. This scenario bodes well for Seanergy and its shareholders, as the company continues to capitalize on favorable market conditions.
