Monday, March 01, 2021

Grindrod Shipping (GRIN)
2H2020 Results Below Expectations But Transitioning to More Positive Outlook

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.

Despite improved dry bulk market outlook, 2H2020 results lagged. Reported 2H2020 EBITDA of $18.5 million dropped from 2H2019 EBITDA of $25.1 million even though the dry bulk market fundamentals started to improve in late 1H2020. Adjusting for IFRS 16 adoption, we calculate that adjusted EBITDA was $12.8 million in 2H2020, which was below expectations.


Fine tuning 2021 EBITDA estimate.  Dry bulk market thesis intact. Given the firmer state of the dry bulk market, we are fine-tuning our 2021 EBITDA to $52.6 million from $52.0 million. There is limited visibility into this year, but the year is off to a good start. Supramax rates averaged ~$10.8k/day in 2H2020 and are currently above $20.0k/day, which is counter to normal seasonality. While we …

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.