Monday, August 10, 2020
Eagle Bulk Shipping (EGLE)
A Tough Quarter But Better Times Ahead
Eagle Bulk Shipping Inc. is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Adjusted 2Q2020 EBITDA was lower than expected due to lower-than-expected TCE rates that more than offset positive variances in opex and G&A expenses. The dry bulk market abruptly recovered in June, but reported 2Q2020 EBITDA of $1.8 million was lower than expected due to lower TCE rates that more than offset lower opex and G&A expenses.
Adjusting 2020 estimates to reflect 2Q2020 shortfall, 3Q2020 forward cover and firmer 2H2020 dry bulk market. While the dry bulk market moved up strongly over the past two months and 3Q2020 forward cover of 66% of available days booked at $9,220/day is positive, we are lowering estimated 2020 EBITDA to …
Click to get the full report.
This 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.