Seanergy Maritime Holdings Corp. (“Seanergy” or the “Company”) (NASDAQ: SHIP), announced today the successful completion of its IMO 2020 compliance plan. As of the date of this release, the Company has retrofitted five Capesize vessels, or 50% of its owned fleet, with scrubbers. The costs of the scrubber program were borne by the vessels’ charterers under long-term time charters which the Company entered into in 2018 and 2019, with the last of these charters commencing on schedule on December 19, 2019.
A. Scrubber Fitted Vessels
All scrubber systems installed are open loop type, U-Type design, built by Hyundai Materials Corporation of S.Korea and have the capacity to comply with the stricter 0.1% sulphur fuel content limit applicable in the Environmentally Controlled Areas (“ECA”). The installations took place at Yiu Lian shipyard in Zhoushan, China.
The costs of the acquisition and installation of the scrubbers, as well as the largest part of the associated off-hires incurred in 2019, were borne by the charterers. The settlement of the relevant costs by the charterers was made either in the form of immediate reimbursement of the expenses incurred or fixed premiums over the daily indexlinked charter hire.
The charterers consist of global commodities traders and utilities companies. The duration of the underlying time charters ranges between three and five years at rates based on the Baltic Capesize Index. In addition to the daily hire, there is a profit-sharing element based on the fuel spread.
The total investment by the charterers in Seanergy’s vessels exceeded $14 million.
B. Non-Scrubber Fitted Vessels
During the second half of 2019, the Company procured sufficient quantity of MGO at competitive pricing in order to cover the needs of the five non-scrubber fitted vessels for the majority of the first quarter of 2020. The proactive procurement of 0.1% sulphur content fuel oil ensured the seamless compliance of the Company’s non-scrubber fitted vessels with the IMO 2020 regulation while providing for a natural hedge against the adverse movements in the price of compliant fuel oils.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“The completion of the scrubber installations and timely delivery of all ships under the respective period charters, as well as the proactive procurement of compliant fuel for our non-scrubber fitted ships, has ensured the successful transition of our Company into the new regulatory environment. Most importantly, we achieved our goals as regards to the technological and environmental quality of our fleet, while enhancing the market value of our vessels with limited outlays from Seanergy and in close cooperation with our strategic partners.”
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is the only pure-play Capesize shipowner publicly listed in the United States.
Seanergy provides marine dry bulk transportation services through a modern fleet of 10 Capesize vessels, with a cargo-carrying capacity of approximately 1,748,581 dwt and an average fleet age of approximately 10.9 years.
The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP”, its Class A warrants under “SHIPW” and its Class B warrants under “SHIPZ”.