Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) Q4 2023 Earnings Call Transcript

Assuming that the Capesize market is half of how much we have affected, or even a quarter of that, you still have anywhere between 5% and 10% of the global fleet being affected by the Red Sea. And that, when you’re moving products in such long distances, prolonging the voyage by anywhere 15 to 25 days, that’s a material increase of the ton mile. So, assuming all that remains the same and we don’t see any normalization anytime soon, I believe that the supply deficit will continue to be dominant in the market and we will see a very strong level of rates. Now, if in the summer, the war ends and the Houthis allow passages to continue and there is no congestion nowhere, then we might see some softening in the market. But overall, I think the predictions right now are that the vessel supply will continue to be constrained a lot.

Kristoffer Barth Skeie: I agree and thanks a lot for answering my question. With regards to capital allocation, I mean, obviously, the distribution, the special dividends, it was a very positive surprise going forward into 2024. How do you sort of consider additional buyback compared to potential special dividends? So, how do you weigh those two against each other?

Stamatis Tsantanis: Well, that’s an excellent question. As you have seen, we have done a perfectly balanced approach. We acquired ships, which we believe will contribute very significantly to the cash flow of the company going forward. We also buy back the stock and at the same time, we pay a dividend. So, we’re doing all three that we can in a perfectly balanced way. It’s going to be pretty much the same. I mean, assuming that the rates and the cash flow allows, we will continue to reward the shareholders and of course, doing buybacks as well in the event that allows. But let us all be reminded that buybacks are kind of restricted by the trading rules. I mean, there’s only so many buybacks of shares, so much buyback of shares that we can do. In many cases, we have kind of maximized that and the stock price has been increasing. So, we’re doing the best to comply with all three major balanced allocation of capital.

Kristoffer Barth Skeie: Okay, great. Thanks. Have a nice weekend.

Stamatis Tsantanis: Thank you and you too.

Operator: Thank you. We have no further questions at this time. So, this ends the question-and-answer session and concludes today’s conference call. Thank you all for participating. You may now disconnect your lines. Thank you.