Thank you for standing by. Welcome to the Seanergy Maritime Holdings Corp Fourth Quarter 2021 and Full Year Financial Results Presentation. Many of the remarks today contain forward-looking statements based on current expectations. These statements may often be identified with words such as expect, anticipate, believe, or similar indications of future expectations. Although such forward-looking statements are considered to be reasonable, the company cannot assure you that any forward-looking statements will prove to be correct. These forward-looking statements are subject to known and unknown risks and uncertainties and other factors, many of which are beyond the company's ability to control or predict. Please refer to the company's annual report on form 20-F and other filings with the Securities and Exchange Commission, which discussed many of these risks and uncertainties. Should one or more of these risks or uncertainties materialize or should underlying assumptions or estimates proved to be incorrect, actual results may vary materially from those the company expresses today. In light of the uncertainties inherent in any forward-looking statements, listeners are cautioned to not place undue reliance on these statements. The company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information or future events. In the earnings presentation today, the company may reference non-GAAP financial measures such as EBITDA, adjusted EBITDA, adjusted net income and TCE rate. For full reconciliation of the non-GAAP measures to GAAP measures, please see the company's earnings released posted to the new section of their website earlier today. Finally, the financial results presentation to be discussed today is available on the investor relations section of the company's website. I'd now like to hand the conference over to our speaker today, Stamatis Tsantanis. Please go ahead.

Hello, everyone, and welcome to our conference call for the fourth quarter and full year 2021. Today we are presenting a great earnings release with record financial figures and initiation of dividends. I must say, however, that we would prefer this release to have happened during a period of global peace and stability. Seizing the opportunity, I want to express our wish for a quick ceasefire of additional military operations in Ukraine. In the fourth quarter of 2021, Seanergy had another exceptional financial performance, ending with a record year for the company. The main drivers for this record results were our increased fleet capacity and improved capital structure, and of course, a favorable Capesize market. On this note, I'm very pleased to also announce that payment of a quarterly dividend of $0.05 per share, consisting of a regular dividend and a special dividend, as I will describe later. Moreover, we are repurchasing $5 million more of the remaining convertible note, which completes a program of approximately $26.7 million of securities buybacks since Q4 2021. We are, therefore, delivering on our commitment to reward and return capital to our shareholders. As mentioned in my introduction, 2021 has been a record year for Seanergy in terms of operational and financial results. More specifically, in the quarter ended December 31, 2021, we generated net revenue of $56.7 million with the respective full year figure reaching $153.1 million, an increase of 142% versus the full year of 2020. An even more pronounced increase was marked on our adjusted EBITDA with $38.8 million recorded in Q4 and $90.1 million on a full year basis. And that represents 478% higher than the 2020 respective figure. Our fleet achieved a daily Time Charter Equivalent of $36,600 in Q4, with a daily PCE standing at $27,400 for the…

Thank you, Stamatis. Let me first welcome everyone to our fourth quarter and full year earnings call for 2021. We will start by reviewing the main highlights of our financial statements. In the fourth quarter, the continued strength in the dry bulk market resulted in record financial performance for our company. Net vessel revenue was equal to $56.7 million, marking an increase of 166% from the fourth quarter of 2020. As mentioned earlier by Stamatis, our daily time charter equivalent for the quarter was $36,600 increased by 122% when compared to $16,500 for the fourth quarter of 2020. Adjusted EBITDA in the fourth quarter was approximately $39 million, up from $8.3 million in the same quarter of 2020 and net income for the quarter was a record $20.6 million compared to a net loss of $2.3 million in the same quarter last year. During the quarter, we recorded a one-time non-cash loss associated with a buyback of the convertible notes, which amounted to $6.9 million. Adjusted for this item, net income for the quarter was equal to $27.9 million. For the 12 months period that ended December 31, 2021. We recorded a daily time charter equivalent of $27,400 compared to $11,950 in the corresponding period of 2020. Net Revenue was equal to $153.1 million, an increase of 142% from $63.3 million in the last year's corresponding interim period. Adjusted EBITDA for 2021 was $90.1 million up through $15.6 million in 2020. I would like to also point out that the adjustment in the full-year period also includes a 5.1 million non-cash charge for stock based compensation under our G&A expenses. Lastly, net income recorded in the period was equal to $41.3 million as compared to a net loss of 18.4 million in 2020. The year-over-year percentage increase in adjusted EBITDA…

Thank you, Stavros. Once again, I want to express our deep regret for the ongoing war in Ukraine and it’s just our sincere hope for this situation to be resolved soon and with the fewest human casualties as possible. Having said this, the initial assessment of the impact of the sanctions imposed on Russia, they appear to be quite positive. Historically, any disruptions in the established trade patterns usually create significant benefits from a ton mile perspective, which is favoring vessel demand. In this case, for example, millions of tons of coal for the global energy needs will have to be imported from longer distances. This we expect to increase the distance travel of our ships quite substantially. Going back to 2021. It was a remarkable year for the Capesize market as robust demand recovery was combined with a limited fleet growth. During Q4 2021, the Capesize market experienced significant volatility as it reached a peak of $86,000 a day in October, 2021, before closing the year at $19,000 a day. Following this period, the volatility and the typical seasonal market slowdown that took place this February both the spot market and the futures curve are now trending quite higher. As of day, the futures curve for the remaining of 2022 is trading in excess of $33,000 a day on average, and we expect that these levels will be exceeded. We remain very optimistic about the Capesize market prospects as we're seeing the lowest level of lead growth over the past decades, combined with healthy demand globally for iron ore and coal. Beginning with iron ore, seaborne trade total miles expanded by 1.6% in 2021, and are expected to rise at a similar pace in 2022. With a significant rise, noted an extra from Brazil. Volume in Brazil, once again…

Thank you. Your first question today is from the line of Magnus Fyhr from H.C. Wainwright. Please go ahead.

Yes. Good afternoon and congrats to a great quarter. Just some questions on, on the capital allocation. I mean, you institute a new dividend policy and, buying back, some of the converts. How should we think about that going forward with the uncertainties in the market currently?

Hello, Magnus. Good morning. Thank you. So we generally expect to continue our regular dividend as we have announced and depending quarter-on-quarter, depending on the financial results, we expect to increase the special dividend as well. So this is pretty much the capital allocation. As far as other repurchases are concerned then, it all depends on where the stock is trading. I don't know whether we're going to do any additional convertible repurchases, we've already reduced that down to a very small number. So we will just monitor the stock price and may we might do a combination of repurchases and dividends -- specifically dividends or something like that. So it's going to be on a quarter-to-quarter or quarter-by-quarter basis, depending on the rates.

Okay. And just on the chartering, I mean the first quarter has been weak on a seasonal basis. You said that you're seeing strength now. How should we think about seasonality going forward, 2Q versus 1Q? I mean, and the second half of 2022, do you see that playing out differently this year?

Right. So Q1 has been quite weak, but we have managed to over perform that by about more than 40%. If I remember, well. We -- I think we're going to close the quarter in excess of 19,500 a day, where the quarter the day is at 13,000 or 14,000. So we've done a very good work to over perform Q1 index. In respect of Q2, Q3 and Q4 right now the futures say that the rates will be around $30,000 to $33,000. We are taking some cover in the future, either in Q2 or some Q2, Q3, and Q4 as well. We don't want to be greedy and wait to make 50 or 100,000 whatever, so we're fixing some of the base. And we'll – we will continue doing so when we see fixed in the curve in the contracts that we are able to convert from floating to fix.

Okay. Very good. That's it from me. Thank you.

Thank you, Magnus. Have a great day.

Thank you. The next question is from the line of Tate Sullivan from Maxim Group. Please go ahead.

Hi. Good day all, and wow! a lot of developments to go over and great dividend announcement. And so I guess starting with the buybacks subsequent to 4Q, can you talk just about the use of cash versus adding cheaper debt to pay down the convertible notes? I mean 19 plus the five that additional and then warrants so will you will you use mostly cash to do that or replace for debt? Can you go into somewhat other pro forma balance sheet will look like, please?

Hi, Tate, good morning. Thank you for your question. We are generally not planning to – take more debt in order to reduce the convertible or of course pay dividends. So what we're doing now in a respect financings has been in the normal course of business to refinance the assets that were up for refinancing. So any excess costs arising from his finances is financing is quite coincidental. We expect to use cash flow from operations, which appears to be quite strong in order to continue with a dividend payments and neither any buybacks in the future we will use cash flow from operations.

And I think in the impact of this quarter as well, in the fourth quarter, the convertible note buybacks lead to a non-cash expense. Can you give that estimate given this – given the scale of what you're buying back in the first quarter, or is there any?

Right. Now in Q4, yes, we did have an impact, which is a non-cash impact, which we had to take. In Q1, there is strengthening because the accounting rules may change, and whatever we have bought back might not even hit the P&L believe it or not, because there's a new accounting standard, which comes into effect from the 1st of January of 2022. However, there might still be a charge, which we don't know yet we expect to make this assessment. If that happens, it's going to be in the region of $3 million for Q1. But again, it might happen it might not happen depending on how the new rules, new accounting standards are being interpreted. So we cannot really give a guidance yet. On the conservative side, I would say $3 million SKU – non-cash.

Thank you. And I'll turn – last one before I turn it over to some other questions. Have you and it's great with the dividend, I mean, most of the dry bulk public companies now have the dividend, I mean, change from four months ago. Are you targeting a payout ratio going forward, or how are you looking at that?

Well for the time being, unless until the dust settles, to be honest with all this volatility. We expect to have a mix of regular and special dividend the way that we practice so far. So depending on its quarter, the Board will assess, the company's prospects, the cash flows, the financial results, and we will, do as the previous quarter, tells us. When we have a bigger clarity about the future and we're able to fix some more long-term business, then of course, there's going to be a more substantial payout. But so far, we're very comfortable with the way that we have approached this policy. Regular plus special and, it's going to take a few quarters to see how that's going to play out.

Okay, thank you very much. Have a great day.

Thanks Tate. Have a great day.

Thank you. The next question is from the line of Randy Giveans from Jefferies. Please go ahead.

Howdy team Seanergy, how's it going?

Hey, Randy. Hi. Good morning.

Good Morning. Morning. I guess just following up on a few things here. On the chartering side, you have a handful -- these kind of index linked charters that expire between -- looks like April and December of this year, maybe a few into next year. Is the plan to kind of continue those index-linked charters, switch them to spot, do a longer term time charter. We've seen some -- two plus year time charters in the market. So, any appetite for any of those?

Well, first of all, our ships are in great demand. So, all the charter is want to renew the charter that we have in place. So, most likely all of these vessels will be renewed at pretty much the same terms or better. We are negotiating with the charters with the installation of energy saving devices, another investment we do on the ships and we usually achieve a higher index rate, index multiple compared to the previous. So, chances are that we will likely continue on the same commercial strategy. I don't think we will shift back to sport. We like the way we are because it offers the flexibility of employment and converting from floating to fixed, so we like the way it is when we want to. So, it will most likely remain the same and if the opportunity arises, we will fix more and more tonnage for longer periods. If we two, three, four years above $6,000 a day.

Got it. Okay. And then is there a percentage or ratio, is it earnings linked on the kind of floating, kind of, component of the dividend going forward, or how is that assessed?

Not really, we actually do it on the available cash of the company. So, it's a combination of the earnings, the net income as well as the available cash. So, we will not give the formula yet because we don't feel comfortable in giving a formula for the specialty within -- with all this volatility happening. When we have more stability around the world and on the rates, we would like to give a more concrete dividend formula for a special dividend.

Sure. All right. That's it really. And then I guess just last question you touched on briefly there in terms of China extending steel emission targets and other things. Any big impacts you're seeing on the iron ore coal trade in the near-term related to any of these environmental issues?

Well, there are two super major events happening right now that are not necessarily associated with the environmental drives. The first one is the war in Ukraine, where Russia is exporting 50 million tons of coal to Europe with all the sanctions, as you understand 50 million tones or up to 50 million tons will need to be imported from longer distances and we're talking about much bigger distances here, we're talking about Australia, South Africa, Central America, North America. So, Europe needs coal, a lot coal and Russia right now is in sanction. So, up to 50 million tons a year might be diverted from much, much longer distances. The second is the guidance from Vale in Brazil, where it appears that the Brazilian exports need to effectively double up from now until year end in order to meet the target. So, they have been exporting around 500,000 to 600,000 tons a day. And that needs to be 1.002 million in order for them to reach the target. So we expect a massive increase of long-term miles. We're not seeing that yet. But the market has surely picked up from last month. And in our opinion, these two super important events will have a major role on the bigger dry bulk ships.

Got it. Yep. Yep. Good to hear. Hey, that's it for me. Thanks for having me.

Take care. Thanks, Randy.

Thank you. The next question is from the line of J Mintzmyer from Value Investor's Edge. Please go ahead.

Hi. Good afternoon, gentlemen. Congrats on a fantastic breakout quarter for you guys.

Thanks, J. Good morning.

Yes, it's great to be on the call here. As an investor have been following Seanergy for a long time. Lots of great questions. I'm glad to see the call has been well populated. Don't have too much to add. I did want to ask, what's the exact balance of the remaining convertible notes? Exactly how much nominally is still out there for you guys?

Hi, J. It’s Stavros. The remaining balance is $11.6 million.

Copy, $11.6 million and is that owned exclusively by Jelco?

Yes. Indeed. Indeed.

Okay. Now that the stock is trading above 120, is there any potential to repurchase those or is it basically just they're just going to sit out there until Jelco exercises them?

Well, we’re not sure, to be honest about Jelco’s intentions. They might exercise some of that. They might continue making the coupon. So at this level now, it's really less than 5% of our total indebtedness. So it doesn't really make any significant role either on the capital structure or on the balance sheet altogether.

Yes. It's a pretty small number at this point. I know that dividends already been discussed a little bit, but I've been receiving a lot of questions on my end, is the intention that the $0.25 cents or $0.10 a year is kind of a base. Obviously, you can't guarantee it, but that's kind of a base and then each quarter is going to be different?

Yes. This is the base and we expect a little bit up every quarter, depending on the available cost, and earnings of the company.

Certainly makes sense. And then just looking at the share price today, you still trade at a meaningful discount to NAV. It seems like you have an unencumbered Capesize vessel left. Is there any appetite to finance that Capesize and do some repurchases, or do you want to just keep that Capesize unencumbered?

Well, we're just going to remain the way that we are right now. We have this leverage if we want to exercise that at the future stage. We expect to see how the volatility in the market is going to play out, because the stock has had a good run from $0.85 to $1.35. So, you know we are quite content with the way that the stock has run the last few weeks, and we're pretty sure that we will eventually catch up and exceed the NAV target. So we'll see how that goes. But so far, we're not going to make any actions to go. So when you have strings for the Dow Jones and the S&P of 2% or 3% day, it's kind of hard to try to predict how the stock is going to react.

Yes, certainly. That's fair. Well, you guys have been doing a great job. So I'm looking forward to next quarter.

Thank you, J. Very nice talking to you.

Thank you. We have a follow-up from the line of Tate Sullivan of Maxim Group. Please go ahead. - Tate Sullivan: Good. Thank you for taking my follow-up. So with the cost of debt I see in your slide deck for the fiscal year 2021 was 4.8%, but after paying down the convertible notes, after taking account the refinancing, can you give a rough estimate of where that could be for fiscal year 2022? Thanks.

Sure. The weighted average cost of debt at 4.8% in 2021 is a bit skewed, because the prepayment of the most expensive facilities were done towards the fourth quarter. At the same time, I mean, we took out also voyage expenses for ship in the beginning of the 2022. So, in 2022, we expect the weighted average cost of capital be around -- of that to be around 4% or even slightly higher, 375 all-in.

Thank you for that. And then, you also on that slide provided indicative debt ratio going down from 45% to 36%. Is that based on your assumptions on the market value for the vessels in a year? How are you running that?

No, no, no, no, no.

Additional debt paid downs.

No, no, no, no, no. This is debt to total assets on a book value basis. So it's just debt repayment, what you see.

Just the repayments. Okay, great. And just last one for me, Stavros. I mean, very positive market commentary for rates going forward, and then the -- I mean, your presentations indicating the average FFA for 2022 at $28,900 need. But I think I heard you say, I mean, the potential for rates to be back up to 50 to 100. I mean, can you just -- can you put some more context around there and how much you keep floating?

Well, I certainly believe that 2022 has much stronger fundamentals than 2021. Some of them were expected. Then, some of them were unexpected due to the war in Ukraine. So if last year with worse fundamentals will show $85,000 in Q3, then one can assume that you will see stronger rates in 2022. But I don't want to give a figure. Once again, demand/supply fundamentals appear to be super strong, especially for the larger Capesizes, for the larger ships like Capesizes that are now appear to start to break upwards. So it remains to see how that is going to play out in the next three quarters of the year.

Okay. Thank you. And then, with that outlook, just a quick follow up, if I may. I mean, is it still a favorable scenario to continue to evaluate buying additional ships?

Well, I think we have other priorities with a very strong fleet increase last year. We expect to remain at these fleet levels. I mean, we have plenty of liquidity right now to continue rewarding our shareholders and possibly, look to buy one or two ships sometime in 2022. But there's absolutely nothing right on the horizon. I mean, we focus in rewarding our shareholders right now.

Okay, great. Well, thank you for all the detail. Great to hear.

You're very welcome. Thank you.

Understood. Yes.

Thank you. The next question is from the line of Poe Fratt from NOBLE Capital. Please go ahead.

Afternoon. Can you be a little more specific on your second -- or what you blocked up in the second quarter as far as FFAs and then time charters?

Of course. Hi, Poe. Good morning. Stavros, will give you this information.

All right. Hi, Poe.

Hi, Stavros. Good afternoon.

So we have four ships right now which we have converted from floating rates to fixed. Two have been converted at an average of $22,500. Two have been converted on an average of $30,000. And then we have the two ones that are running on fixed rate which are at $31,500 on average. So in total, we have six ships on fixed rates and another it's a TCE of around 28,000 as market stands now.

Okay, great. And Stavros, can you just talk about your forward looking cost structure? You highlighted some of the one-time items, whether it’s pre-delivery costs through taxes or insurance. But how should we be looking at your costs going forward?

Look, I think on basically the G&A and the OpEx front, what you've seen in the fourth quarter is basically a bit higher versus what you should expect going forward. So, on OpEx, I would expect average of OpEx between $6,200 and $6,500 and on the G&A front, I would expect around $8 million to $8.5 million cash and around $12 million to $12.5 million including the non-cash items so the G&A front. Now in terms of debt, you know our amortization was of around $8 million repayments per quarter, which are going down to around $7 million in 2023 when the front loading in most of our facilities will be over. And then our interest expense, it's around $2.5 million per quarter, which is expected to reduce to around $2 million per quarter in 2023 and onwards.

Great. That's helpful. And then, Stamatis, can you just go back -- I hate to beat the dead horse, but can you just talk about your dividend, paying a dividend versus buying stocks back. Most of January, your stock was under a $1. But you didn't buy any stock back. Now we hear your stock up a little bit, but you're -- and you’re paying the cash dividend. Can you just talk about just that trade-off between buying stock back and paying the dividend?

Of course, yes. First of all, we did actually buyback securities and that was the convertible securities. So, Q1 and thus Q1 so far, we will have paid -- we will have repurchased $10 million of convertible securities and that means that we are averting a dilution for our shareholders. So, it's quite significant. For us the priority was to reduce this interest bearing node that not only reduce the cash expense of the company by reducing the interest expense of this $10 million, but also we are averting the dilution arising from the conversion of this convertible securities. So, in my opinion, I think that eliminating this out of the capital structure comes as a first priority. Second priority was dividend, which of course, we have been looking into that for quite some time. We have been discussing about it, if you remember, since August, September last year, and we now pay a substantial dividend, which if you annualize that we're talking about 16%, 17% of a dividend yield. I think that these two elements, I mean eliminating the dilution and the payment of dividends will have help the stock price rise on its own at higher levels. This is our estimate, of course, without any commitment. We think that this was going to affect the stock price positively. It's going to bring in investors that are seeking to get some dividend returns from the market and not only speculators willing to do the quick up and down to the stock price. So having said all that, we will continue to monitor the situation. And if the opportunity arises, comparing buybacks, common stock buybacks and anything else we will consider that other type.

Great. And then just one last one. Stavros, can you just talk about working capital on the fourth quarter, they get to cash, year-end cash of $47 million, working capital seems like it went up a lot in the fourth quarter. Can you talk about how much it might have gone up and then also what's going to happen in 2022, as far as working capital?

Okay. So we expect the change in working capital to be around $30 million. You will see in our balance sheet, I mean with our current -- in the current portion of long-term debt, the upcoming balance, so the balance sheet picture may be a bit different than compared to what you see. But cash continues to be strong. I mean, we close the year with $47 million, we have currently after having repaid the convertibles around $45 million. At the TCE that Stamatis discussed before for the first quarter, we're making money, we're not burning money. So even after the dividend distribution, we expect our cash position to be higher than 2 million per vessel. So we're pretty comfortable with our working capital.

Okay. Great. And then, I don't think your debt exposed just because of the way your charts work. But can you just talk about the spike in fuel spreads or bunker fuels, and how you're potentially managing that, whether you have an exposure to higher bunker fuel?

That's actually one of the great things that we have managed to achieve, when we converted all the ships into period with on an index basis. We don't have the risk of bunkering and we have -- we don't have the risk of bunker fluctuations for the rates, sorry for the price per tonne moving from $500, $600 up to $1,000. So that’s one of the great, great things that have happened to us by switching into these index related employment agreements. So it doesn't really affect it. I think that a lot of ships will be slowing down altogether, which is going to help supply going down. I mean, 10 times a day if you slow down at the $1,000, it's really very significant number and we expect with bunker also. This actually adds up significantly into the market fundamentals for a better -- for a much higher rates.

Great. Thanks for your time.

Thank you, Poe. Have a great day.

Thank you. And there are no further questions at this time. So I hand back to the speakers.

Thank you very much. Thank you for listening in to our call. And we will be providing other updates, corporate updates of the company in the next few weeks. Thank you very much. Have a great day everyone.

Thank you. This does conclude the conference for today. Thank you for participating and you may now disconnect.