Monday, August 23, 2021

Grindrod Shipping (GRIN)
Strong Cash Flow and Acquisitions Trigger Variable Dividend

Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE.

Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Adjusting for IFRS 16 adoption, we calculate that adjusted 1H2021 EBITDA was $55.2 million, or more than double adjusted 1H2020 EBITDA of $22.1 million. The 2Q021 earnings call and early August web cast reinforced our positive stance on GRIN and the dry bulk market.


Moving 2021 EBITDA estimate up again to $153.7 million from $125.0 million to reflect 1H2021 results, 3Q2021 forward cover and acquisitions.  Visibility is solid into 3Q2021 with 3,012 days fixed at ~$28.3k/day. Handys have 1,326 days fixed at $25.2k/day, up from $18.1k/day in 2Q2021, and Supra/Ultras have 1,686 days fixed at ~$30.7k/day, up from $21.9k/day in 2Q2021. The forward cover represents …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.