ATHENS - Seanergy Maritime (NASDAQ:SHIP) Holdings Corp. (NASDAQ:SHIP), a Capesize ship-owner, has initiated the distribution of proxy materials to its shareholders for the upcoming 2024 Annual Meeting, which is set for November 4, 2024. Shareholders on record as of the close of business on September 19, 2024, are eligible to vote.
The company's Board of Directors is urging shareholders to vote for its director nominees and against the proposals of George Economou, a shipowner and competitor who has acquired a stake in Seanergy. Economou has launched a proxy fight seeking control over the company's Board by proposing to replace two current directors with his own nominees and demanding the resignation of the remaining board members.
The Board has unanimously recommended voting on the WHITE proxy card for Seanergy's nominees, highlighting the company's evolution into a leading Capesize operator with a growth-oriented strategy. They assert that Economou's track record of shareholder value destruction at other publicly listed companies would be detrimental to Seanergy's continued success and shareholder returns.
The company has launched a website, www.VoteSeanergy.com, to provide additional information about its value creation strategy and Economou's history. The Board has emphasized that Economou's nominees lack the necessary qualifications and have been involved in facilitating his previous value-destructive activities.
Seanergy's Board asserts that the company is well-positioned to continue delivering strong shareholder returns, pointing to a recent policy to return approximately 50% of net operating cash flow after debt repayments and reserves. The Board's recommendations are part of an effort to protect the interests of all Seanergy shareholders against what they view as a self-interested takeover attempt by Economou.
This news is based on a press release statement from Seanergy Maritime Holdings Corp.
In other recent news, Seanergy Maritime has reported a record-breaking net income of approximately $10 million for Q1 2024, with net revenues soaring to $38.3 million, more than double the figures from the previous year. Additionally, the company has declared a special dividend and is expanding its fleet with the acquisition of two Japanese Capesize vessels. Amidst these developments, B.Riley maintains a Buy rating on Seanergy Maritime shares with no target change, citing the current market dynamics in the shipping industry and the company's operational leverage. Noble Capital, on the other hand, has maintained an Outperform rating but adjusted its 2024 EBITDA and EPS forecasts for the company due to revised operational expectations. The firm has also revised its Time Charter Equivalent (TCE) rate expectations for the latter part of the year. These are recent developments that have been shaping the company's performance and outlook. However, it's worth noting that the company has faced criticism from Sphinx Investment Corp regarding governance actions. Lastly, Seanergy Maritime is anticipating the delivery of an additional Capesize vessel in the fourth quarter of 2025, which is predicted to provide a revenue boost for the company.
InvestingPro Insights
As Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) prepares for its upcoming Annual Meeting and faces a proxy fight, recent financial data from InvestingPro sheds light on the company's performance and potential.
Seanergy's strong financial position is evident in its impressive gross profit margin of 65.11% for the last twelve months as of Q2 2024. This aligns with one of the InvestingPro Tips, which highlights the company's "impressive gross profit margins." Such robust profitability could bolster the Board's argument for maintaining their current strategy.
The company's commitment to shareholder returns, as mentioned in their policy to distribute approximately 50% of net operating cash flow, is reflected in its significant dividend yield of 8.28%. This high yield supports another InvestingPro Tip that Seanergy "pays a significant dividend to shareholders," potentially making the stock attractive to income-focused investors.
Furthermore, Seanergy's recent performance has been noteworthy, with a striking 129.86% price total return over the past year. This exceptional return aligns with the InvestingPro Tip indicating a "high return over the last year," which may strengthen the current Board's position in the proxy fight.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Seanergy Maritime Holdings Corp., providing a deeper understanding of the company's financial health and market position.
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