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Thursday, May 28, 2020
Euroseas Ltd. (ESEA)
Strong Quarter, But Challenges Ahead
Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Adjusted 1Q2020 EBITDA, excluding dry dock expenses, of $4.1 million was above expectations by $1.2 million. The positive impact from two recent acquisitions, higher TCE rates and lower opex more than offset higher-than-expected downtime. 1Q2020 gross TCE revenue of $15.5 million increased from $13.2 million in 4Q2019 due to a $529 increase in TCE rates to $9,615/day from $9,086/day, which more than offset 21 higher off hire days.
Adjusting 2020 EBITDA estimate. Weaker container market fundamentals and scrapping activity more than offset positive 1Q2020 variance. The recent acquisitions will have a full impact on 2020 operating results and we are forecasting 2020 EBITDA of $12.1 million based on 6,070 operating days, down from our previous estimate of $15.3 million and TCE rates of $9,373/day from a previous estimate of $9,691/day. Operating days are expected to drop to 6,070 with…
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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
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