Thank you for standing by, ladies and gentlemen, and welcome to the Seanergy Maritime Conference Call on the Third Quarter 2017 Financial Results. We have with us Mr. Stamatis Tsantanis, Chairman and Chief Executive Officer of the Company. At this time, all participants are in a listen-only mode. There will be presentation followed by a question-and-answer session. [Operator Instructions] I must advise you that this conference is being recorded today. Please be reminded that the Company publicly released its financial results which are available to download on the Seanergy website at seanergymaritime.com. If you do not have a copy of the press release, you may contact Capital Link at 212-661-7566 and they will be happy to send it to you. Before turning the call over to Mr. Tsantanis, we would like to remind you that this conference call 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. 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 competitive factors in the market in which the Company operates, risks associated with operations outside of the United States, change in rules and regulations applicable to the shipping industry, and other risk factors including from time-to-time in the Company’s Annual Report on Form 20-F and other filings with the Securities and Exchange Commission, 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 of statement is based. Now, I will pass the floor to Mr. Tsantanis. Please go ahead, sir.

Thank you, Judy. Good morning, everyone, and thank you for joining us today. During the nine months period ended September 30, 2017, which for the drybulk market trading at considerably higher levels compared to the same period last year. The Baltic Capesize Index, BCI is currently more than 3100 points and has averaged at more than 1800 points from the beginning of the year. This is 112% higher than the average of 868 points recorded in the same period of 2016. Our fleet benefited significantly from stronger Capesize rates and this was reflected in our operating results. Net revenues were $18.9 million in the third quarter 2017 and $50.7 million in the nine months period of 2017, up by 119% and 112% compared to the respective periods of 2016. As regards to our operating profitability, EBITDA was equal to $14.2 million and $17.7 million in the third quarter and the nine month period of 2017 respectively while net income was $6.5 million for the quarter of 2017 and net loss for the first nine months of 2017 was $3.1 million as compared to net losses of $5.9 million and $17.7 million for the respective periods of 2016. It is important to highlight that after several quarters, the company returned to profitability in the third quarter of 2017 as part that is attributed to the 2007 drybulk freight market as well as the successful financing at a material discount of one of our bank facilities. Year-to-date in 2017, the drybulk market improved considerably compared to the historical lows in recent 2016. The Baltic Capesize Index has reached levels of more than $20,000 per day since October and a value of five year old Capesize exceeds $33 million. Just to put things into perspective about the Capesize market, the relevant 20 year…

[Operator Instructions] Your first question comes from James Jang from Maxim Group. Please go ahead.

Good afternoon guys.

Hi, James. Good morning.

So, good results. It seems drybulk effect there is really entering the upturn. So, as you move into the seasonally strong fourth quarter, what should we expect in terms of utilization on rates? I mean, are you looking at 96% plus utilization for the quarter? Would that be fair?

Well, generally, yes. I mean, on a fully utilization basis, I think that, the 95% to 96% is a fair rate and I think that currently, on a weighted average basis I think that we may see levels of close to $18,000 a day. Like we said in the release, we are still 63% fixed and we are in the process of fixing some additional long haul 3 to 17 days, but whatever we do, I think by the end of the year, it’s going to be in excess of $18,000 a day.

Great. And, so on the Capesize, fundamentals looks good, so this is super. Can you give us some color on what that’s looking like? Where those vessels are trading in which region currently?

Well, the Supermaxes are now trading at around $11,000 a day. One of our Supermax is actually trading at $14,000 a day for a period of three to five months in the Atlantic area with the delivery in the Far East and the other one is just completing a three – profits has made around $12,000 a day. So, I made a mistake, the average is higher, it should be around $13,000. To be honest, we are done over the next trips will be, because we are still quite early in the first voyage – in the voyage of the first ship that I mentioned and the other gets us about a month to 40 days to complete discharge. So right now, it appears that we will continue to have an average of around $11,000, $12,000 on the Supermaxes.

Okay, good. And so, what are you guys looking at to do with the Supers moving into I guess, next year? Are you guys looking to fix them on more longer-term cover or are you happy with operating them on the spot market or on just voyage charters?

Well, so far the – what we have done historically in the Supermax is, somewhere in between of what we mentioned. We don’t usually do short-term trades anymore. So whatever we do has a duration of about 40, 50 days. That is, almost two months. In the particular voyage we have – coming is will be as much as five months in one of our Supermax right now. So, I think, we will continue this kind of hybrid chartering strategy for the Supermaxes, let’s say three to six months if we can find short-term periods or something like that. So, no very short-term, no longer term, until we see an expected recovery in the Supermax rates as well.

Great. And so, at what level would you look to cover these guys for multi-year charters? What are you comfortable in rate-wise?

Are you defining to the Supermaxes?

Yes, on the Supers.

Well, again, I don’t really want to put a number, because, we have seen some credit figures in the past for the Supermaxes. But I think I would be comfortable if I could look in at let’s say around $14,000, $15,000 plus a day the Supers for a longer period of time. But that’s my rough estimate right now.

Thank you. That’s great. And on the Capesize front, it was like asset values for the older ships, ten plus years have come down slightly. Have you seen the same thing?

Well, we have not put anywhere ships for sale and we only have two older ships and we are not in the market to purchase any of these older ships. So, I don’t know, I think it’s a matter of big, bid and ask spread for the older tonnage to be honest. They are mostly momentum-driven. I think that the older ships something which is, let’s say between 12 and 15 years old, may as well have very positive returns potentially in the next two to three years. So it all depends on what time – at what point of the curve a potential purchaser we are looking at the particular acquisition. So, that’s what we see so far.

Okay, well. That just kind of lead into my next question is, I know you guys favor the more modern five years, around five year old second-hand tonnage. But if the pricing, and let’s say, ten or eleven year vessel becomes more attractive. Would you look to operate something that old or purchase that old?

For additional purchases, no. Generally, the – we are very happy with the two older ships that we have and they have been operating excellently and are very efficient ships. Actually our oldest ship is our most efficient one believe it or not. So, we are totally happy with the ones that we have already. But as far as new purchases are concerned, we would be looking at something more than – something in the region of 4 to 7 years.

Okay. All right. Okay, that’s pretty much all I have. Thank you guys.

Thank you, James. Thank you.

Thank you very much. Our next question comes from the line of Paul Frats from Noble. Please go ahead.

Hi, good morning, Stamatis.

Good morning, Paul, hi.

Hi. If I could just follow-on with, you talked about one, the M&A potential, that you are looking 4euro to 7 euro a tonnage. Can you speak to the quality of opportunities out there? As far as, it seems like with assets values also moving up, the timing, the window might be closing and if you could just comment on sort of what you are seeing out there as far as the bid outspread in the second-hand market, that’d be great?

Yes, well, I agree with you that the window is closing and I think that the window of – relatively well priced opportunities is going to close within the next three to six months. However Seanergy is a company that we have been one of the very few Capesize buyers in the last couple of years. We have been offered with a number of opportunities for a lot of service including banks. So, assuming that we would have the capacity to proceed with other deals the company has access to quality tonnage that may not be available in the general market. I am not saying that, we can do things that are let’s say 20% or 30% below the market. But in a event that we can, we can complete deals that can have discount to the current market levels, as well as higher quality ships.

Yes, great. And then, when you look at the older capes that you have, can you talk – can you just highlight the drydock timing there as far as when those two are going to go through drydocking?

Yes, well, the 2001 deal is going to be drydocked in 2020. So we still have a lot of time ahead of us and one that this 2004 is going to be drydocked in 2019. They both qualified for the voter ballot requirements for the U.S. So that they can call the U.S. – in the second through 2022. So we don’t have any imminent issues from these two ships and we expect them to generate some very good results in the next couple of years.

Yes, and then, it looks like there wasn’t any drydocking activity in the third quarter. It doesn’t look like there is going to be any in fourth quarter. Can you highlight the timing of any drydocks in 2018?

Yes, we don’t expect to have any drydocks in 2017, for the remaining of the year. For the whole of 2018, and for 2019 only one ship.

Okay. And, when you look at your debt amortization schedule, I calculate, there has been a lot of recent activity, but I calculate that your debt amortization is about $15 million for 2018. Is that accurate at this point in time?

Well, to be honest, we are in the process of – let’s say, amending certain long transactions and proceeding with some additional financings that we cannot generally disclose. As it stands today, I think that the overall debt amortization for 2018 is going to be around $20 million, but we are working to improve that significantly not only to this amortization, but also the interest expense of the company. That’s all I can say right now.

Yes, thank you for that color. And that’s in the context of that, I think you re-filed your ATM program in October and I was just wondering if you could timeline any near-term plans to execute on that?

Well, specifically, in F-1 that we filed – I cannot really comment on any operating plans. But what I can say as a company is, in the last year or so, that we have accessed the capital markets, we have performed a very significant accretion for every new dollar that we raised for the company. To be absolutely exact, we have managed to produce about a 107% accretion. So, almost double the $45 that’s got into the company in the last year or so. So, if we are to do any future capital raise, it will certainly be for a very good reason and it will also lead to a very significant accretion on this.

Yes, appreciate that. And, Stamatis, you had highlighted the bookings for the fourth quarter. I have a – 63% of cape spread, almost $16,000 a day. Do you have any visibility into the first quarter of 2018 yet? Do you have similar figures for first quarter 2018 yet?

Yes. Well, basically, it’s a continuation of existing ones. So, 50%, 63% like I said, they have been fixed for Q4 and about 20% in Q1 which is a continuation of Q4 ones that are longer voyages. However, we are in the process of working at the same rate. We are also working this week on a few more additional fixtures that will be at levels in excess of $17,000 to $18,000 a day and this will for sure, get into the better part of the Q1, because there will be three month voyages that will carry forward in, let’s say until mid of February. That’s all I can say about it right now, because we are in the process of negotiating with various charters for these fixtures.

Yes, and could you highlight where the current index rate is on a load ship space?

Well, the load ship, right now is turning at around $20,000, $21,000 a day, So, the load ship, as of today, the index is at, let’s say $21,000 somewhat mistaken, the closing half an hour ago. I think quarter-to-date, the load ship must be around $18,500 to $19,000 something like that.

Okay, great. And, just to highlight, it sounds like while you might lock in super rates about 10% higher, it seems, not to put words in your mouth, but it seems like you have a lot more upside potential on the Cape side and that you wouldn’t be locking in 10% higher from where the current indexes are or could you just comment on sort of your strategy on the Cape size as far as locking in clearly chartering activities picked up a lot as you highlighted.

Yes. We are a lower cost operator and we have a very low acquisition cost. So, generally, our breakeven is quite lower as compared to a number of our peers, which means that we don’t have any immediate need to fix a period of our - a portion of our fleet. However, as 2018, as we get into 2018, and we think that the period rates will improve further, we will certainly fix some additional tonnage on the Cape sizes for longer periods, let’s say, two to three years. So, as a long-term strategy, we want to have about 50% of our tonnage fixed in period charters on 50% to be to remain in the spot market. And what is also very important to show is that, the average of a time charter of a period range for one year that Clarksons reported a few weeks ago was around $14,500, when we have fixed our one of our 16,200 which is much higher than the average. So, whatever we do, it’s certainly going to be very important for a several years and it will more certainly produce a very, very good return.

And that was also fixed back in June too, right so.

Yes.

And just, net picky income statement question. It looked like in the last quarter – last year, G&A picked up, should we expect a similar pick up this year looking at the fourth quarter or can you just comment sort of on the near-term G&A expense line?

Yes. Although the pickup with last year was basically a non-cash element. So the majority of what is around about $200,000 of G&A per quarter is a non-cash item and it’s associated with fiscal concerned plan. So there is certainly going to be a slight pickup, but on the cash basis and on a non-cash basis, I would say, there might be an increase which we don’t know yet. But what is important for us is the cash flow perspective and where the overall G&As will remain at levels that we believe are very low for the markets. So, on a cash flow basis, on a cash basis, I would say that our G&A is as a forward-looking statement would be around $1000 to $1100 per day something like that, on a cash basis.

Great. I really appreciate your time and thanks a lot.

Thank you, Paul, any time.

Thank you very much. Mr. Tsantanis, there are no further questions. So, I’ll hand the call back to you for closing comments. Thank you.

Okay, Judy. Thank you very much and thanks everyone for joining our call today. Thank you.

Ladies and gentlemen, that does conclude our conference for today. Thank you all for your participation. You may now disconnect your lines.