United Maritime Corporation, announced its financial results for the period from commencement of its operation on July 6, 2022 to September 30, 2022.
For the period from commencement of its operation to September 30, 2022, the Company generated Net Revenues of $7.9 million, while EBITDA was $2.9 million. Net Income for the period was $1.0 million. The daily Time Charter Equivalent (“TCE rate”) of the fleet was $23,639 for the period.
Cash and cash-equivalents, as of September 30, 2022, were $21.2 million. Shareholders’ equity at the end of the third quarter was $44.3 million. Long-term debt net of deferred charges was at $76.3 million.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are pleased to report United’s first financial results for its initial period of operations. Further to the successful spinoff from Seanergy Maritime and the commencement of trading on Nasdaq in July 2022, we completed the highly accretive acquisition of two Aframax and two LR2 tankers. The timing of the acquisitions was exceptional given the subsequent upsurge of tanker spot rates and accelerating tanker vessel values.
“Regarding United’s financial performance, the initial reporting period ending September 30, 2022, has been transitional given that the majority of our fleet was delivered towards the end of the period with limited contribution in our revenue stream. Nonetheless, we recorded net income of $1.0 million, on TCE revenue of $5.8 million, despite the significant predelivery expenses related to the acquisition of the four tankers. This was attributed to the operation of our single capesize vessel under a profitable time-charter at a gross daily rate of approximately $28,000, well above the respective spot rates, and the strong income stream of the tanker vessels following their delivery.
“In September we agreed to sell the two Aframax tankers, securing a gain of approximately $19 million, or more than 50% over their purchase price, within just a two-month period since the respective acquisitions. The significant profit from the sale of these two vessels is expected to be recorded in our fourth quarter results. This agreement is a testament to our investment strategy, focusing on value opportunities across the main shipping sub-sectors that may be highly rewarding for our shareholders.
“As regards to our commercial strategy, one of the two remaining LR2 product tankers is currently employed in the spot market, while the other is on a fixed rate time charter until March 2023. Given the favorable tanker market conditions and outlook, we expect both vessels to generate significant free cash flow. The time charter of our only capesize vessel runs at a fixed rate until the end of the year, supplementing the robust revenue stream of the tankers. Looking to the next quarter, we have covered 88% of our ownership days at an average TCE of $33,200 per day.
“Furthermore, through two separate stock buyback programs we have repurchased approximately 3.3 million shares in the open market to date, at an average price of $1.81, for a total cash outflow of about $6.0 million. Through these buybacks, we have reduced the number of shares outstanding by approximately 24%. Given what we perceive to be the significant undervaluation of our common stock, we recently announced the initiation of a third $3.0 million buyback program. We have also decided to redeem the 6.5% Series C Preferred Shares issued to Seanergy Maritime in connection with the spin-off. This will increase the net income per share available to common shareholders, while eliminating the risk of potential dilution from outstanding share-linked instruments.
“On the financing front, the Company’s debt consists only of fixed-rate loans, providing protection against the rapid rise in interest rates; additionally, as a result of the increase in the values of the tanker vessels, our gearing is at moderate levels. Our cash reserves are strong, standing in excess of $3.00 per share as of September 30, 2022, or $4.80 per share, pro forma for the net proceeds following the sale of the two Aframax tankers and the redemption of the Series C Preferred Shares.
“Looking forward, our capital deployment strategy will be balanced between pursuing attractive investments in new vessels and rewarding our shareholders.”
