United Maritime Returns to Profitability During the Second Quarter
United Maritime Corporation, announced yesterday its financial results for the second quarter and six months ended June 30, 2024. The Company also declared a quarterly dividend of $0.075 per common share for the second quarter of 2024.
For the quarter ended June 30, 2024, the Company generated Net Revenues of $12.4 million compared to $10.0 million in the second quarter of 2023. Net Income and Adjusted Net Income for the quarter were $0.7 million and $0.9 million, respectively, compared to Net Loss of $3.0 million and Adjusted Net Loss of $2.1 million in the second quarter of 2023. Adjusted EBITDA1 for the quarter was $6.3 million, compared to $2.0 million for the same period of 2023. The Time Charter Equivalent rate (“TCE rate”)3 of the fleet for the second quarter of 2024 was $17,143 per day.
For the six-month period ended June 30, 2024, the Company generated Net Revenues of $23.0 million, compared to $12.8 million in the same period of 2023. Net Loss and Adjusted Net Loss for the period were $0.7 million and $0.2 million, respectively, compared to Net Loss of $7.9 million and Adjusted Net Loss of $5.7 million in the respective period of 2023. Adjusted EBITDA for the first half of 2024 was $10.0 million, compared to $0.6 million for the same period of 2023. The TCE rate of the fleet for the first six months of 2024 was $16,187 per day.
Cash and cash-equivalents and restricted cash as of June 30, 2024, stood at $7.7 million. Shareholders’ equity at the end of the second quarter was $64.2 million, while long-term debt, finance lease liabilities and other financial liabilities, net of deferred finance costs stood at $90.3 million as of June 30, 2024. The book value of our fleet as of June 30, 2024, stood at $147.8 million, including two chartered-in Panamax vessels and a Kamsarmax vessel held for sale.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“We are delighted to announce United’s return to profitability in the second quarter, driven by continued positive momentum in the dry bulk market. Our fleet was strategically positioned to capitalize on this trend through a blend of fixed and index-linked charters. We remain highly optimistic about the long-term prospects of the market and United’s ability to deliver high returns on capital.
“Given the strong dry bulk market conditions, we are pleased to declare our seventh consecutive quarterly dividend of $0.075, yielding approximately 13% annually. Having paid over $1.50 in dividends since our listing two years ago demonstrates our unwavering commitment to consistent shareholder rewards, a core element of our business strategy.
“Commercially, we expect our daily time charter equivalent to be around $17,500 for the third quarter, based on current FFA values. This reflects four of our vessels operating under fixed-rate employment through FFA fixings or time charter trips. Specifically, one of our Capesize vessels, the Goodship, completed its scheduled dry-docking and had energy-saving devices installed, leading to the renewal of its index-linked time charter at a higher daily rate. We successfully executed an extensive capex program, including the dry-docking of three Capesize vessels and one Kamsarmax vessel. Additionally, the M/V Gloriuship has been fixed on a round voyage of 70 to 80 days at a gross daily rate of $22,500. We are pleased with the secured cash flows for the second half of the year, supporting a healthy dividend.
“Fleet-wise, post-quarter, we delivered the 2010-built Chinese Kamsarmax, M/V Oasea, to her new owners, completing this profitable sale. This vessel will be replaced by a 2016-built Japanese Kamsarmax, renamed “Nisea”, acquired through a bareboat-in structure earlier this year, with delivery expected by the end of October 2024. Our fully delivered fleet will remain at eight vessels, while we continue to explore acquisition candidates with high return potential.
“In line with our diversified investment strategy, we have decided to invest in the offshore sector through a minority stake in a newbuilding Energy Construction Vessel. This project, in partnership with experienced Norwegian counterparts, is expected to complete in 2027. The vessel will serve both the oil and gas and renewable energy sectors, addressing the shortage of such vessels amidst growing demand. Additionally, United has partnered to charter-in an Aframax tanker for up to nine months, operated by a prominent tanker pool operator. This move reflects our commitment to deploying capital across different shipping sectors to deliver optimal outcomes for our shareholders, and we are optimistic about our recent investments.
“Our outlook for the dry bulk market remains positive, with the orderbook at historically low levels due to strict environmental regulations and resulting fleet renewal needs. We see the commitment of major miners to large projects providing a stable long-term demand backdrop. This year, strong volume growth in iron ore, coal, bauxite, and grains, coupled with the ton-mile effect of increasing long-haul cargoes, amplifies market strength. We expect this trend to continue, positioning United advantageously to benefit.”
Source: United Maritime
