Monday, November 16, 2020
Pangaea Logistics Solutions Ltd. (PANL)
Surprising Reaction to 3Q2020 Results
Pangaea Logistics Solutions Ltd and its subsidiaries provide seaborne drybulk transportation services. It transports drybulk cargos including grains, coal, iron, ore, pig, iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The firm’s services include cargo loading, cargo discharge, vessel chartering, voyage planning and technical vessel management. The company derives all of its revenues from contracts of affreightment, voyage charters and time charters. Its strategy depends on focusing on increasing strategic contracts of affreightment, expanding capacity and flexibility by increasing its owned fleet and increasing backhaul focus and fleet efficiency.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Continuing to bounce back from challenging start to year with firmer 3Q2020 operating results. Unique and consistent business model delivered very high TCE rate outperformance, and the 3Q2020 environment for the dry bulk market improved. The unique business model once again delivered positive operating results, and adjusted 3Q2020 EBITDA improved to $15.1 million from $10.7 million in 2Q2020. While below expectations and last year, TCE rate outperformance remained solidly positive at $3,030/day, up from $2,187/day in 3Q2019.
Adjusting 2020 EBITDA estimate to reflect 3Q2020 operating results and current dry bulk market conditions. We were too optimistic on 3Q2020 operating results and are moving our EBITDA estimate down to $40.6 million, from our previous estimate of $45.1 million. Our estimate is based on higher TCE rates of $11,920/day (down from $12,260/day), which more than offset lower shipping days of 17,510 (down …
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.