Financial Highlights of the First Quarter of 2023:
Net Loss of $4.9 million and loss per share (basic & diluted) of $0.64
Adjusted net loss1 of $3.7 million and adjusted loss per share1 of $0.48
Other Highlights and Developments:
Quarterly cash dividend of $0.075 per share for Q1 2023 - resulting in total cash dividends of $1.15 per share or $8.7 million declared since November 2022
Agreements to acquire six vessels of total $126 million, consisting of two Capesize and two Kamsarmax vessels, as well as two Panamax vessels through bareboat charter agreements with purchase options
New financing transaction of $24.5 million
United Maritime Corporation (“United” or the “Company”) announced its financial results for the first quarter ended March 31, 2023 and declared a quarterly dividend of $0.075 per share for the first quarter of 2023.
For the quarter ended March 31, 2023, the Company generated net revenues of $2.8 million and recorded a negative Adjusted EBITDA1 of $1.5 million. Net Loss and Adjusted Net Loss for the quarter were $4.9 million and $3.7 million, respectively. The Time Charter Equivalent rate (“TCE rate”) of the fleet for the first quarter of 2023 was $10,294 per day.
Cash and cash-equivalents as of March 31, 2023 stood at $20.0 million. Shareholders’ equity at the end of the first quarter was $61.9 million, while long-term debt, lease liability and other financial liabilities net of deferred charges stood at $69.5 million as of March 31, 2023. The book value of our fleet as of March 31, 2023, stood at $117.0 million, including a chartered-in Panamax vessel and the advance paid for the acquisition of one Kamsarmax vessel.
Stamatis Tsantanis, the Company’s Chairman & Chief Executive Officer, stated:
“Following the highly profitable sales of three of our tankers by the end of 2022, our average fleet size in Q1 2023 was reduced to less than 3 ships including our remaining tanker vessel which was drydocked for its special survey for most of the first quarter. Our profitable ship disposals affected our quarterly operating results, recording an average daily TCE of $10,294. However, we swiftly executed transactions to re-grow our fleet through the acquisition of six dry bulk vessels for approximately $126 million. We have fully funded the acquisition of these two Capesize and two Kamsarmax vessels and the down payments on the two chartered-in Panamax vessels without diluting our shareholders.
“Within February and March, we took delivery of four dry bulk vessels, two Capesize, one Panamax and one Kamsarmax, with an additional Kamsarmax delivered in April and one more Panamax expected to be delivered in the third quarter of the year. In addition, our tanker has been operational since the beginning of Q2, following the completion of her special survey.
“In the second quarter to date, we have covered 71% of our ownership days at an average TCE of $18,856 per day2 and we estimate our daily net TCE to average at approximately $18,000. This will exceed by 75% the average of the first quarter, over a fleet that will be double in size and operating days.
“Looking forward, on a fully-delivered basis, we will operate a fleet of seven dry bulk vessels and one tanker vessel, with moderate levels of leverage and satisfactory levels of liquidity, allowing us to focus on further growth opportunities as well as shareholder rewards.
“In this context, we are pleased to announce another regular cash dividend distribution for the first quarter, bringing the total cash dividends that have been declared in the last six months to $1.15 per share, which represents a cash yield of about 40% compared to the recent closing price of our stock. The cash dividend amounts of $8.7 million, combined with approximately $6 million in buybacks of common shares completed in 2022, aggregate to shareholder rewards of $14.7 million, or 62% of our market cap as of May 16, 2023, within the past nine months. Considering the favorable fundamentals of the dry bulk market and the solid financial and commercial standing of United, we remain optimistic that the quarterly cash dividend we have paid for the previous two quarters can be sustained or increased during the rest of the year.”
*The M/V Synthesea is expected to be delivered to the Company between July and October 2023. The vessel will be technically and commercially operated by United on the basis of a 12-month bareboat charter-in contract with the owners of the vessel, including a purchase option at the end of the bareboat charter in favour of the Company.
