United Maritime Reports Mixed Q2 Results, Expands Fleet

United Maritime Corporation Reports Q2 and First Half Financial Results for 2024

United Maritime Corporation (ticker: UMC) has published its financial results for the second quarter and first half of the year, concluding on June 30, 2024. The company reported a net income of $0.7 million for Q2, with net revenues totaling $12.4 million, and an average time charter equivalent rate for the fleet standing at $17,143.

Despite encountering a net loss of $0.8 million in the first six months due to hedging activities in Q1, United Maritime has declared a dividend of 7.5 cents per share for Q2. The company is committed to expanding its fleet, inclusive of the acquisition of the Nisea and the delivery of the Oasea, while also pursuing additional acquisitions within the drybulk sector. Investments have also been made in an energy construction vessel, and the company has entered into a time charter for an Aframax crude tanker, marking its strategic entry into the offshore sector.

Key Highlights:

• Q2 net income reached $0.7 million with net revenues of $12.4 million.
• A dividend of 7.5 cents per share was declared for Q2.
• The company recorded a net loss of $0.8 million in the first half of the year due to Q1 hedging activities.
• United Maritime expanded its fleet by acquiring the Nisea and delivering the Oasea.
• The company is making inroads into the offshore sector with a new investment in an energy construction vessel.

Company Outlook:
United Maritime anticipates future growth and profitability, aiming to reward investors through dividends and share buybacks. The company expects stable global steel production and an uptick in the export of West African bauxite and Canadian iron ore. As of June 30, 2024, United Maritime’s cash position was $7.7 million, with outstanding debt amounting to $91.7 million.

Bearish and Bullish Highlights:

• Bearish: The company experienced a net loss of $0.8 million in the year’s first half due to hedging activities.
• Bullish: Net revenues grew by 24% in Q2 compared to the previous year, supported by a robust drybulk market.

Strategic Developments:
Stavros Gyftakis discussed the company’s strategic move into the offshore sector in response to increasing demand and limited ship supply in the oil and gas industry and renewable projects. United Maritime holds a 22% to 25% stake in the new energy construction vessel, totaling around $100 million in cost. Financing for this vessel is secured from a Taiwanese lender previously engaged by the company.

The company has also completed the dry docking of four vessels, a step anticipated to enhance cash flow in the latter half of the year.

Financial Performance Overview:
United Maritime’s second-quarter performance shows considerable improvement from 2023, with net revenues achieving $12.4 million and adjusted EBITDA rising to $6.3 million. Despite a net loss of $0.8 million for the first half, the overall financial health is improving. The cash position reflects significant capital expenditures related to fleet maintenance and expansion.

Outstanding debt currently stands at $91.7 million, representing a loan-to-value ratio of approximately 50%. Recent financing agreements aim to strengthen liquidity and promote future profitability.

Conclusion:
United Maritime Corporation is navigating some financial challenges but displays a promising growth trajectory, supported by increased revenues and strategic investments. The company’s commitment to rewarding shareholders through dividends and share buybacks, alongside judicious debt management, positions it favorably in the evolving maritime landscape.

The management remains optimistic about the future, emphasizing their diversified approach to investments aimed at maximizing returns and maintaining shareholder value.