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Seanergy urges support for board nominees amid proxy contest

Published 10/08/2024, 08:40 PM
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ATHENS - Seanergy Maritime (NASDAQ:SHIP) Holdings Corp. (NASDAQ:SHIP), a Capesize shipping company, has reached out to shareholders to secure votes for its director nominees in the face of opposing proposals from an entity led by Economou. The company's Chairman and CEO Stamatis Tsantanis emphasized the strategic growth and financial improvements achieved over the past four years, urging shareholders to vote in favor of the company's nominees at the upcoming 2024 Annual Meeting of Shareholders.

Under the leadership of the current board, Seanergy has expanded its fleet to 19 Capesize vessels and has seen a substantial increase in net revenue and net income in the first half of 2024, with figures reported at $81.4 million and $24.3 million, respectively. The company has also reduced its debt, streamlined its capital structure, and returned capital to shareholders through a series of repurchases and dividends totaling over $77.6 million since 2021.

Tsantanis highlighted the board's unanimous recommendation to vote for the company's director nominees, Mr. Dimitrios Anagnostopoulos and Mr. Ioannis Kartsonas, and against proposals made by Economou. The directors' expertise in shipping, finance, and capital allocation is considered vital for Seanergy's continued growth and shareholder value creation.

The company's recent update to its dividend policy aims to return approximately 50% of its net operating cash flow to shareholders, reflecting its commitment to shareholder returns. Tsantanis personally reinforced his belief in the company's direction by investing approximately $1.2 million in Seanergy shares and stock options since 2023.

While the press release included forward-looking statements, it should be noted that actual results could vary based on various risks and uncertainties. Shareholders are encouraged to vote using the WHITE proxy card by 11:59 PM ET on November 3, 2024, and to discard any materials received from Economou.

This news article is based on a press release statement from Seanergy Maritime Holdings Corp.

In other recent news, Seanergy Maritime reported a record-breaking net income of approximately $10 million for Q1 2024, with net revenues reaching $38.3 million. The company declared a special dividend and plans to expand its fleet with the acquisition of two Japanese Capesize vessels. United Maritime Corp also announced its 2024 Annual Meeting of Shareholders, although the meeting's agenda details remain undisclosed. B.Riley maintains a Buy rating on Seanergy Maritime shares, while Noble Capital maintains an Outperform rating but has adjusted its 2024 EBITDA and EPS forecasts for the company due to revised operational expectations. Amid these developments, Seanergy Maritime is preparing for its upcoming 2024 Annual Meeting, urging shareholders to vote for its director nominees against the proposals of George Economou, a competitor who has acquired a stake in the company. Seanergy Maritime also anticipates the delivery of an additional Capesize vessel in the fourth quarter of 2025, which is expected to provide a revenue boost. These are the recent developments that have been shaping the companies' performance and outlook.

InvestingPro Insights

Seanergy Maritime Holdings Corp.'s (NASDAQ:SHIP) recent financial performance and strategic initiatives align with several key metrics and insights from InvestingPro. The company's impressive revenue growth of 33.48% over the last twelve months as of Q2 2024 supports CEO Stamatis Tsantanis's claims of strategic growth. This is further reinforced by the strong quarterly revenue growth of 52.26% in Q2 2024.

InvestingPro Tips highlight that Seanergy is trading at a low earnings multiple, with a P/E ratio of 7.86. This could be attractive to value investors, especially considering the company's profitability over the last twelve months and analysts' expectations of continued profitability this year.

The company's commitment to shareholder returns, as mentioned in the article, is reflected in InvestingPro Data showing a significant dividend yield of 8.35%. This aligns with the company's updated dividend policy aiming to return approximately 50% of its net operating cash flow to shareholders.

InvestingPro Tips also point out Seanergy's impressive gross profit margins, which is corroborated by the data showing a gross profit margin of 65.11% for the last twelve months as of Q2 2024. This strong profitability supports the company's ability to fund its growth initiatives and shareholder returns.

It's worth noting that Seanergy has shown strong returns over various time frames, with a particularly impressive 111.48% price total return over the past year. This performance underscores the company's recent success and may bolster shareholder confidence in the current management's strategy.

For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Seanergy Maritime Holdings Corp., providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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