Wednesday, May 25, 2022

Euroseas (ESEA)
ESEA reported impressive 2022-1Q results reflecting an expanded fleet and higher shipping rates.

Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

2022-1Q results were impressive. ESEA reported Net Revenues of $45.5m (up 217%) versus our $40.5 million estimate. TCE rates were $33,986 versus $12,218 and our estimate of $30,114. While revenues more than doubled, operating costs rose a modest 5.3% versus last year. Operating income rose 515%, adjusted EBITDA rose 455%, adjusted net income rose 793%; all ahead of our expectations.

The company is growing and locking in charter rates. ESEA recently signed newbuild agreements on three ships, agreed to acquire two container vessels, and exercised options for two more constructions. In addition, it has extended a charter and locked in charter rates for two upcoming deliveries, all at favorable rates. The impact of these actions will be to significantly increase and modernize the company’s fleet size, provide attractive returns on the investment, and lock in strong earnings and cash flow for the immediate future. …

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. 

Euroseas Ltd. Reports Results for the Quarter Ended March 31, 2022, Announces Share Repurchase Program and Declares Quarterly Common Stock Dividend

Research, News, and Market Data on Euroseas Ltd

ATHENS, Greece, May 23, 2022 (GLOBE NEWSWIRE) — Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner and operator of container carrier vessels and provider of seaborne transportation for containerized cargoes, announced today its results for the three-month period ended March 31, 2022 and a share repurchase program and declared a common stock dividend.

First Quarter 2022
Financial Highlights:

• Total net revenues of $45.4 million. Net income and net income attributable to common shareholders of $29.9 million or $4.15 and $4.13 earnings per share basic and diluted, respectively. Adjusted net income attributable to common shareholders¹ for the period was $26.8 million or $3.71 and $3.70 per share basic and diluted, respectively.
• Adjusted EBITDA
  ¹ was $31.1 million.

• An average of 16.0 vessels were owned and operated during the first quarter of 2022 earning an average time charter equivalent rate of $33,986 per day. 
• The Board of Directors has approved a share repurchase program for up to a total of $20 million of the Company’s common stock. The Board will review the program after a period of 12 months. Share repurchases will be made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of purchases under the program will be determined by management based upon market conditions and other factors. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time at the Company’s discretion and without notice.
• Declared a quarterly dividend of $0.50 per share for the first quarter of 2022 payable on or about June 16, 2022 to shareholders of record on June 9, 2022. This dividend reinstates the Company’s common stock dividend plan.

Recent developments

• At the beginning of May we agreed to acquire M/V “Rena P” (ex. Seaspan Melbourne) and M/V “Emmanuel P” (ex. Seaspan Manila), both intermediate size container vessels with capacity of 4,250 teu each, built in 2007 and 2005, respectively. The vessels are being acquired for a combined price of $37 million and are expected to be delivered to the Company within May and June 2022, respectively. The Company will also assume the existing charter arrangements of the vessels as noted in the fleet profile below. Both acquisitions will be initially financed with the Company’s own funds.
• In mid-May the Company exercised its option to proceed with the construction of two additional eco design fuel efficient containerships. The vessels will have a carrying capacity of about 2,800 teu each and will be built at Hyundai Mipo Dockyard Co. in South Korea. The two newbuildings are scheduled to be delivered during the fourth quarter of 2024. The total consideration for these two newbuilding contracts is approximately $86 million and will be financed with a combination of debt and equity.

Aristides Pittas,
Chairman and CEO of Euroseas commented: “Despite their recent small correction, the containership feeder charter rates have remained at levels near historical highs resulting in increased profitability for Euroseas. In parallel, expectations of continuing strength of the charter market have allowed us to charter forward the first two newbuildings of our 9-vessel newbuilding program at rates that will allow us to fully recover their construction cost over the 3-year duration of the charters. While the inefficiencies of the transportation system introduced by the COVID pandemic, that effectively reduce supply of ships, remain, uncertainties have been introduced by the on-going Ukraine-Russia conflict and increased levels of inflation that could affect economic growth and, thus, demand for shipping.   We expect the market to remain strong in the near and medium term and are monitoring the above trends which alongside with new regulation on greenhouse gas emissions and expected increased new vessel deliveries will shape our markets.

“Within this environment, we continuously look for investment and other opportunities that will allow us to maximize returns to our shareholders. Our investment strategy is focused either on placing newbuilding orders that also enhance the environmental footprint of our company, or, secondhand vessels with simultaneous charters that bring their cost basis to below historical average levels by the end of the charter, thus, providing us the option for upsized returns.

“Overall, we are determined to remain a significant participant in the feeder containership market and grow the company. Our charter coverage provides earnings visibility well into 2024. Despite that, our stock trades at levels that do not reflect the mere value of our contracted earnings let alone the net asset value of the company, thus, representing one of the most attractive investment opportunities for us. In that spirit, our Board of Directors has authorized a $20 million stock repurchase program which management may use at its discretion. Our Board believes that our increased profitability and earnings visibility should be used to restore our dividend policy which had run continuously from 2005 until 2013 and had been paused during the tough last decade. Our Board decided to use a small part of our contracted earnings which will not alter our growth philosophy to reward our shareholders and declared a common stock dividend of $0.50 per share.

“We are very pleased with these developments and we look forward to continuing to chart a very profitable future for our shareholders and investors.”

Tasos Aslidis, Chief
Financial Officer of Euroseas commented: “The results of the first quarter of 2022 reflect the strong market charter rates our vessels earned compared to the same period of last year. Our net revenues increased to $45.4 million in the first quarter of 2022 compared to $14.3 million during the same period of last year due to the higher number of vessels we operated in the first quarter of 2022 and the higher market rates earned by our vessels. During the first quarter of 2022 we operated 16.0 vessels versus 14.0 vessels during the same period of last year.

“On a per-vessel-per-day basis, our vessels earned a 180.1% higher average charter rate in the first quarter of 2022 as compared to the same period of 2021. Again, on a per-vessel-per-day basis, the sum of vessel operating expenses, management fees and general and administrative expenses increased by 5.3% during the first quarter of 2022 as compared to the same period in 2021 which was attributable mainly to an increase in hull and machinery insurance premiums, the increased crewing costs resulting from difficulties in crew rotation due to COVID-19 related restrictions and the increased lubricants oil costs as a result of the war in Ukraine for our vessels compared to the same period of 2021. We believe that we continue to maintain one of the lowest operating cost structures amongst the public shipping companies which is one of our competitive advantages.

“Adjusted EBITDA during the first quarter of 2022 was $31.1 million compared to $5.6 million achieved for the first quarter of 2021.

“Finally, as of March 31, 2022, our outstanding debt (excluding the unamortized loan fees) is about $112.1 million versus restricted and unrestricted cash of about $54.1 million.”
        

First Quarter 2022 Results:
For the first quarter of 2022, the Company reported total net revenues of $45.4 million representing a 217.1% increase over total net revenues of $14.3 million during the first quarter of 2021. On average, 16.0 vessels were owned and operated during the first quarter of 2022 earning an average time charter equivalent rate of $33,986 per day compared to 14.0 vessels in the same period of 2021 earning on average $12,134 per day. The Company reported a net income and a net income attributable to common shareholders for the period of $29.9 million, as compared to a net income of $3.8 million and a net income attributable to common shareholders of $3.6 million for the first quarter of 2021.

Vessel operating expenses for the first quarter of 2022 amounted to $8.4 million as compared to $6.9 million for the same period of 2021. The increased amount is due to the higher number of vessels owned and operated in the first quarter of 2022 compared to the corresponding period of 2021, partly offset by the increased crewing costs, for our vessels compared to the same period of 2021, resulting from difficulties in crew rotation due to COVID-19 related restrictions, the higher prices in the supply of lubricants and the increase in hull and machinery insurance premiums. Depreciation expense for the first quarter of 2022 amounted to $3.7 million compared to $1.6 million for the same period of 2021 due to the increased number of vessels in the Company’s fleet and the fact that the new vessels acquired in the fourth quarter of 2021 have a higher average daily depreciation charge as a result of their higher acquisition price compared to the remaining vessels. Related party management fees for the first quarter of 2022 increased to $1.2 million from $1.1 million for the same period of 2021 for the same reason. In the first quarter of 2022 two of our vessels completed their intermediate survey in water and one of our vessels completed her special survey with drydock for a total cost of $1.8 million. In the same period of 2021, none of our vessels underwent drydocking and certain expenses were incurred in connection with upcoming drydockings. Finally, during the first quarter of 2022 and 2021, we had other operating expenses of $0.35 million and other operating income of $0.2 million, respectively, relating to settlement of accounts with charterers.

Interest and other financing costs for the first quarter of 2022 amounted to $1.0 million compared to $0.7 million for the same period of 2021. This increase is due to the increased amount of debt and the increase in the weighted average LIBOR rate in the current period compared to the same period of 2021. For the three months ended March 31, 2022 the Company recognized a $2.34 million gain on its interest rate swap contracts, comprising a $0.04 million realized loss and a $2.38 million unrealized gain. For the three months ended March 31, 2021 the Company recognized a $0.48 million loss on its interest rate swap contract, comprising a $0.52 million unrealized loss and a $0.04 million realized gain.

Adjusted EBITDA¹ for the first quarter of 2022 was $31.1 million, compared to $5.6 million achieved for the first quarter of 2021. Please see below for Adjusted EBITDA reconciliation to net income.

Basic and diluted earnings per share for the first quarter of 2022 was $4.15 and $4.13, respectively, calculated on 7,221,941 basic and 7,254,593 diluted weighted average number of shares outstanding compared to basic and diluted earnings per share of $0.53 for the first quarter of 2021, calculated on 6,711,408 basic and 6,749,393 diluted weighted average number of shares outstanding.

Excluding the effect on the income attributable to common shareholders for the quarter of the unrealized gain on derivatives, the amortization of below market time charters acquired and the depreciation charged due to the increased value of the vessel acquired with below market time charter, the adjusted earnings per share for the quarter ended March 31, 2022 would have been $3.71 and $3.70 per share basic and diluted, respectively, compared to adjusted earnings of $0.45 per share basic and diluted for the first quarter of 2021, after excluding unrealized gain on derivatives and loss on sale of a vessel. Usually, security analysts do not include the above items in their published estimates of earnings per share.

Fleet Profile:
The Euroseas Ltd. fleet profile is as follows:

Vessels under construction	Type	Dwt	TEU	To be delivered	Employment	TCE Rate ($/day)
GREGOS (*) (H4201)	Feeder	37,237	2,800	Q1 2023	TC until Mar-26	$48,000
TERATAKI (*) (H4202)	Feeder	37,237	2,800	Q2 2023	TC until Jun-26	$48,000
TENDER SOUL (H4236)	Feeder	37,237	2,800	Q4 2023
LEONIDAS Z (H4237)	Feeder	37,237	2,800	Q1 2024
MONICA (H4248)	Feeder	22,262	1,800	Q1 2024
STEPHANIA K (H4249)	Feeder	22,262	1,800	Q2 2024
PEPI STAR (H4250)	Feeder	22,262	1,800	Q2 2024
DEAR PANEL (H4251)	Feeder	37,237	2,800	Q4 2024
SYMEON P (H4252)	Feeder	37,237	2,800	Q4 2024
Total under construction	9	290,208	22,200

Note: (*)(+) TC denotes time charter. Charter duration indicates the earliest redelivery date; All dates listed are the earliest redelivery dates under each TC unless the contract rate is lower than the current market rate in which cases the latest redelivery date is assumed; vessels with the latest redelivery date shown are marked by (+).

(**) The CONTEX (Container Ship Time Charter Assessment Index) has been published by the Hamburg and Bremen Shipbrokers’ Association (VHBS) since October 2007. The CONTEX is a company-independent index of time charter rates for containerships. It is based on assessments of the current day charter rates of six selected containership types, which are representative of their size categories: Type 1,100 TEU and Type 1,700 TEU with a charter period of one year, and the Types 2,500, 2,700, 3,500 and 4,250 TEU all with a charter period of two years.

(***) Rate is net of commissions (which are typically 5-6.25%)

 

Summary Fleet Data:

 

Euroseas Ltd.
Unaudited Consolidated Condensed Balance Sheets
(All amounts expressed in U.S. Dollars – except number of shares)

	Three Months Ended March 31, 2021	Three Months Ended March 31, 2022
Cash flows from operating activities:
Net income	3,790,077	29,936,294
Adjustments to reconcile net income to net cash provided by operating activities:
Vessel depreciation	1,596,543	3,721,116
Amortization of deferred charges	49,280	83,496
Share-based compensation	28,765	214,559
Loss on sale of vessel	9,417	–
Unrealized gain on derivatives	(527,775)	(2,383,764)
Amortization of fair value of below market time charters acquired	–	(1,218,240)
Changes in operating assets and liabilities	1,422,694	(130,692)
Net cash provided by operating activities	6,369,001	30,222,769
Cash flows from investing activities:
Cash paid for vessels under construction	–	(1,732)
Cash paid for vessels acquisitions and capitalized expenses	–	(281,300)
Cash paid for vessel improvements	(208,457)	(403,928)
Net cash used in investing activities	(208,457)	(686,960)
Cash flows from financing activities:
Redemption of Series B preferred shares	(2,000,000)	–
Proceeds from issuance of common stock, net of commissions paid	743,552	–
Preferred dividends paid	(91,607)	–
Repayment of long-term bank loans	(2,185,460)	(6,885,460)
Repayment of related party loan	(2,500,000)	–
Offering expenses paid	(60,357)	(27,838)
Net cash used in financing activities	(6,093,872)	(6,913,298)
Net increase in cash, cash equivalents, and restricted cash	66,672	22,622,511
Cash, cash equivalents, and restricted cash at beginning of period	6,338,177	31,498,229
Cash, cash equivalents, and restricted cash at end of period	6,404,849	54,120,740
Cash breakdown
Cash and cash equivalents	3,629,150	49,151,500
Restricted cash, current	341,432	169,240
Restricted cash, long term	2,434,267	4,800,000
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	6,404,849	54,120,740

 

Euroseas Ltd.
Reconciliation of Adjusted EBITDA to
Net Income
(All amounts expressed in U.S. Dollars)

 

	Three Months Ended March 31, 2021		Three Months Ended March 31, 2022
Net income	3,790,077		29,936,294
Unrealized gain on derivatives	(527,775	)	(2,383,764	)
Loss on sale of vessel	9,417		–
Amortization of below market time charters acquired	–		(1,218,240	)
Depreciation charged due to increase in vessel value from below market time charter acquired	–		494,808
Adjusted net income	3,271,719		26,829,098
Preferred dividends	(138,269	)	–
Preferred deemed dividend	(86,356	)	–
Adjusted net income attributable to common shareholders	3,047,094		26,829,098
Adjusted earnings per share, basic	0.45		3.71
Weighted average number of shares, basic	6,711,408		7,221,941
Adjusted earnings per share, diluted	0.45		3.70
Weighted average number of shares, diluted	6,749,393		7,254,593

Adjusted net income and Adjusted earnings per share Reconciliation:
Euroseas Ltd. considers Adjusted net income to represent net income before unrealized gain on derivatives, loss on sale of vessel, amortization of below market time charters acquired and depreciation charged due to increase in vessel value from below market time charter acquired. Adjusted net income and Adjusted earnings per share is included herein because we believe it assists our management and investors by increasing the comparability of the Company’s fundamental performance from period to period by excluding the potentially disparate effects between periods of unrealized gain on derivatives, loss on sale of vessel, amortization of below market time charters acquired and depreciation charged due to increase in vessel value from below market time charter acquired, which items may significantly affect results of operations between periods.

Adjusted net income and Adjusted earnings per share do not represent and should not be considered as an alternative to net income or earnings per share, as determined by GAAP. The Company’s definition of Adjusted net income and Adjusted earnings per share may not be the same as that used by other companies in the shipping or other industries.

About Euroseas Ltd.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA.

Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.

The Company has a fleet of 18 vessels, including 10 Feeder containerships and 8 Intermediate containerships. Euroseas 18 containerships have a cargo capacity of 58,871 teu. After the delivery of nine feeder containership newbuildings in 2023 and 2024, Euroseas’ fleet will consist of 27 vessels with a total carrying capacity of 81,071 teu.

Forward Looking Statement
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for containerships, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Visit the Company’s
website www.euroseas.gr

Friday, May 20, 2022

Seanergy Maritime (SHIP)
Fine tuning numbers as we take over coverage

Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. The company owns a modern fleet of 11 dry bulk carriers consisting of 9 Capesizes and 2 Supramaxes with a combined cargo-carrying capacity of approximately 1,682,582 dwt and an average fleet age of 8.1 years. The company was formerly known as Seanergy Maritime Corp. and changed its name to Seanergy Maritime Holdings Corp. in January 2009. The company was founded in 2008 and is headquartered in Athens, Greece with an office in Hong Kong

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

We are making modest adjustments to our models as we take over research coverage of SHIP. We are lowering our TCE rate/day assumption for the 2022-1Q to $19,000 from $19,500 to reflect declines in dry bulk shipping prices at the end of the first quarter. We now project total revenues of $30.3 million and TCE revenues of $28.1 million based on 1500 operating days. We are also factoring in a $1.3 million, nonrecurring, non-cash loss as per company guidance. We  now project adjusted EBITDA for the quarter to be $13.3 million (down from $16.5 million) and adjusted net income to be $4.3 million (down from $6.0 million). The company will report results near the end of May.

Our adjustments to future quarters are less significant, rating is unchanged. We have lowered our TCE rates for the remaining quarters of the year as well. The impact on revenues, cash flow and earnings is fairly muted and does not affect our rating or overall opinion of the company. We continue to rate the shares outperform with a $1.50 per share price target. Our price target equates to a Total Enterprise Value (TEV) multiple of close to 4.0x estimated 2022 EBITDA. While the Cape market remains volatile and financial leverage remains a risk factor, we believe that SHIP is attractive due to high-operating leverage and moves to improve the capital structure. …

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. 

Thursday, May 19, 2022

EuroDry (EDRY)
EuroDry reports 2022-1Q results in line with expectations

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

Results were generally in line with expectations. EuroDry reported revenues of $18.3m in the 2022-1Q versus $8.6m last year, slightly below our $19.5m estimate. Utilization rates remain near 100%. TCE rates were $24,636 versus $14,924 last year. Operating income was $10.2m versus $3.1m, in line with our $10.5m estimate. Adjusted EBITDA was $12.7m versus $4.7m and in line with our $12.9m estimate. Similarly, adjusted net income was $9.5m/$3.30, near our $9.8m/$3.40 projections.

Charters extended. New vessels added. EuroDry extended the charters for several of its vessels at favorable rates. The  company took ownership of two vessels this year including one in February and one in April. It sold one vessel. The company now has 11 vessels with the rates for most of the vessels fixed for the rest of 2022 and about half fixed for 2023. Spot prices rose sharply last fall before falling in the first quarter of the year. Rates are still attractive relative to historical levels and the outlook is positive due to a lack of new dry bulk ship builds and expanding world economic conditions….

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. 

Wednesday, May 18, 2022

Pyxis Tankers (PXS)
Disappointing results following drop in utilization

We currently own a modern fleet of five tankers engaged in seaborne transportation of refined petroleum products and other bulk liquids. We are focused on growing our fleet of medium range product tankers, which provide operational flexibility and enhanced earnings potential due to their “eco” features and modifications. We are positioned to opportunistically expand and maximize our fleet due to competitive cost structure, strong customer relationships and an experienced management team whose interests are aligned with those of its shareholders. For more information, visit: http://www.pyxistankers.com.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

First quarter results were weak. Pyxis reported a 10% decline in Time Charter Equivalent (TCE) revenues in the 2022-1Q versus 2021-1Q due primarily to lower fleet utilization and a jump in voyage-related costs and commissions. TCE revenues of $3.8m were below our estimate of $5.8m. Fleet utilization decreased to 74% from 100% due, in part, to the accidental grounding of a tanker.  Voyage costs ($3.1m versus $1.0m) rose due to increased use of spot employment and higher bunker fuel cost resulting from the drop in utilization.

Lower revenues mean lower cash flow generation. Adjusted EBITDA in the first quarter was ($0.7)m versus $0.8m for the same period last year. We had been expecting EBITDA of $2.1 million. Net income was ($3.4m)/($0.09) per share versus ($2.0m)/($0.07) per share. Our estimate was ($1.9m)/($0.04) per share. Excluding nonrecurring losses from the sale of a vessel and losses from debt extinguishment, net income would have been ($2.9m)/($0.08) per share, still a larger loss than anticipated….

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. 

Wednesday, May 18, 2022

Grindrod Shipping (GRIN)
Grindrod sells vessel, exercises option to acquire another

Grindrod Shipping operates a fleet of owned and long-term and short-term chartered-in drybulk vessels predominantly in the handysize and supramax/ultramax segments. The drybulk business, which operates under the brand “Island View Shipping” (“IVS”), includes a Core Fleet of 31 vessels consisting of 15 handysize drybulk carriers and 16 supramax/ultramax drybulk carriers. The Company also owns one medium range product tanker on bareboat charter. The Company is based in Singapore, with offices in London, Durban, Tokyo, Cape Town and Rotterdam. Grindrod Shipping is listed on NASDAQ under the ticker “GRIN” and on the JSE under the ticker “GSH”.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

Grindrod Shipping announced the sale of the medium range product tanker, Matuku, for $30 million. The tanker was the last of its medium range tankers as the company completes a shift to dry shipping. Grindrod will exercise a purchase option under her existing lease financing at a cost of $25.4 million netting $4.6 million in cash.

Simultaneously, Grindrod is exercising an option to purchase the IVS Pinehurst for $18 million. The Pinehurst is currently being in-chartered. We believe the company will be able to finance the purchase of Pinehurst without seeking external financing given its cash on hand ($100 million at yearend) and expected proceeds from the Matuku sale. Finally, Grindrod agreed to extend the long-term charter of the IVS Crimson Creek for a period of 11-13 months at a net charter-in rate of $26,276 per day. …

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. 

EuroDry Ltd. Sets Date for the Release of First Quarter 2022 Results, Conference Call and Webcast

News and Market Data on EuroDry Ltd.

Athens,
Greece – May 16, 2022 – EuroDry Ltd. (NASDAQ: EDRY, the “Company” or “EuroDry”), an owner and operator of drybulk vessels and provider of seaborne transportation for drybulk cargoes, announced today that it will release its financial results for the first quarter ended March 31, 2022 on Wednesday, May 18, 2022 before market opens in New York. 

On the same day, May 18, 2022 at 10:30 a.m. Eastern Time, the Company’s management will host a conference call and webcast to discuss the results. 

Conference
Call details: 

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669(UK Toll Free Dial In) or +44(0) 2071 928592 (Standard International Dial In). Please quote “EuroDry” to the operator. 

Audio
Webcast- Slides Presentation: 

There will be a live and then archived webcast of the conference call and accompanying slides, available through the Company’s website. To listen to the archived audio file, visit our website http://www.eurodry.gr and click on Company Presentations under our Investor Relations page. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. 

The slide presentation on the first quarter ended March 31, 2022 will also be available in PDF format 10 minutes prior to the conference call and webcast, accessible on the company’s website (www.eurodry.gr) on the webcast page. Participants to the webcast can download the PDF presentation. 

About
EuroDry Ltd. 

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. 

EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements. 

The Company has a fleet of 11 vessels, including 6 Panamax drybulk carriers, 1 Supramax drybulk carrier, 2 Ultramax drybulk carriers and 2 Kamsarmax drybulk carriers. Eurodry’s 11 drybulk carriers have a total cargo capacity of 802,995 dwt.  

Visit our website www.eurodry.gr 

Company Contact	Investor Relations / Financial Media
Tasos Aslidis  Chief Financial Officer  EuroDry Ltd.  11 Canterbury Lane,  Watchung, NJ07069  Tel. (908) 301-9091  E-mail: aha@eurodry.gr	Nicolas Bornozis  Markella Kara   Capital Link, Inc.  230 Park Avenue, Suite 1540  New York, NY10169  Tel. (212) 661-7566  E-mail: eurodry@capitallink.com

Euroseas Ltd. Signs Contract for the Construction of Two Additional Fuel Efficient 2,800 teu Feeder Containerships Increasing its Newbuilding Program to Nine Vessels

Research, News, and Market Data on Euroseas Ltd

ATHENS, Greece, May 16, 2022 (GLOBE NEWSWIRE) — Euroseas Ltd. (NASDAQ:ESEA), an owner and operator of container vessels and provider of seaborne transportation for containerized cargoes, announced today that it has exercised its option to proceed with the construction of two additional eco design fuel efficient containerships. The vessels will have a carrying capacity of about 2,800 teu each and will be built at Hyundai Mipo Dockyard Co. in South Korea. The two newbuildings are scheduled to be delivered during the fourth quarter of 2024. The total consideration for these two newbuilding contracts is approximately $86 million and will be financed with a combination of debt and equity. The vessels are sisterships of four other vessels ordered by Euroseas Ltd. in June 2021 and January 2022; Euroseas Ltd. has also ordered, and previously announced, three 1,800 teu vessels at the same shipyard.

The Company also announced that it intends to upgrade the engines of all of its six 2,800 teu vessels ordered to Tier III type (from Tier II) and have the ships be LNG-ready where possible for a total incremental cost for all vessels of about $11 million. Tier III type engine achieve lower NOx emissions. The three 1,800 teu vessels were ordered with Tier III type engines and are LNG-ready.

Aristides Pittas,
Chairman and CEO of Euroseas commented: “We are pleased to announce the ordering of two additional modern eco-design 2,800 teu vessels in one of the top quality shipbuilders in the world. The current contracts along with the orders we placed previously bring our newbuilding program to nine vessels and solidify our presence in the large feeder containership sector. It further highlights our commitment for an environmentally friendly fleet. With our earnings visibility well into 2025, we believe that investing in modern new vessels makes good use of the cash flow that our existing vessels generate and positions Euroseas to benefit from upcoming market developments, especially, as related to new environmental regulations for the benefit of our shareholders.”

Fleet Profile:
After the acquisition of M/V “Seaspan Melbourne” and M/V “Seaspan Manila”, the Euroseas Ltd. fleet and employment profile will be as follows:

Vessels under construction	Type	Dwt	TEU	To be delivered
H4201	Feeder	37,237	2,800	Q1 2023
H4202	Feeder	37,237	2,800	Q2 2023
H4236	Feeder	37,237	2,800	Q4 2023
H4237	Feeder	37,237	2,800	Q1 2024
H4248	Feeder	22,262	1,800	Q1 2024
H4249	Feeder	22,262	1,800	Q2 2024
H4250	Feeder	22,262	1,800	Q2 2024
H# (to be assigned))	Feeder	37,237	2,800	Q4 2024
H# (to be assigned))	Feeder	37,237	2,800	Q4 2024
Total under construction	9	290,208	22,200

Notes:  
(*)/(+)        TC denotes time charter. Charter duration indicates the earliest redelivery date unless the contract rate is lower than the current market rate in which cases the latest redelivery date is shown and marked by (+).
(**)         CONTEX stands for the Container Ship Time Charter Assessment Index.
(***)         Rate is net of commissions (commissions are typically 5-6.25%).

About Euroseas Ltd.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA.

Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.

After the delivery of its recent acquisition of 2 Intermediate containerships, the Company will have a fleet of 18 vessels comprising of 10 Feeder and 8 Intermediate containerships. Euroseas 18 containerships have a cargo capacity of 58,871 teu. On a fully-delivered basis, the Company’s fleet will increase to 27 containerships with a cargo capacity of about 81,071 teu.

Forward Looking Statement
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company’s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for containerships, competitive factors in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Visit the Company’s website www.euroseas.gr

Thursday, May 12, 2022

Pangaea Logistics (PANL)
Results in line, upcoming quarters look favorable

Pangaea Logistics Solutions Ltd. (NASDAQ: PANL) provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The Company addresses the transportation needs of its customers with a comprehensive set of services and activities, including cargo loading, cargo discharge, vessel chartering, and voyage planning. Learn more at www.pangaeals.com.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

2022-1Q Results reflect strong market conditions. Revenues soared 53% surpassing expectations. TCE rates rose to $26,472 from $16,524. Offsetting the rise in revenues was an increase in operating costs. Adjusted EBITDA was $31.3 million versus $12.1 million and  adjusted net income rose to $15.7 million ($0.35 per share) versus $3.8 million ($0.09 per share). Reported results were in line with expectations.

Future looks good especially for Pangaea Shipping rates remain favorable and are poised to improve. Northern routes remain tight. Pangaea has a dominate position in the ice-breaking fleet industry. TCE rates for the second quarter as currently booked are $29,432 up from the first quarter’s rate of $26,472. In response to favorable pricing and results, the board of directors has increased the annual dividend 50% to $0.30 per share….

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. 

Monday, May 09, 2022

Eagle Bulk Shipping (EGLE)
Quarterly Results In Line With Expectations

Eagle Bulk Shipping Inc. (“Eagle”) 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.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

Eagle Bulk Shipping reported 2022-1Q results generally in line with expectations. Revenues, net were $184.4 million versus $93.4 million for the same period last year and in line with our $182.4 million estimate. Adjusted EBITDA (excluding unrealized derivative value changes) was $85.0 million versus our $88.1 million estimate. Adjusted net income was $64.5 million ($3.97 per diluted share) versus $9.3 million ($0.80) last year and in line with our estimate of $64.3 million ($4.00). The consensus analyst estimate was $3.97.

Charter rates are high. The company achieved a TCE rate of $27,407/day in the quarter, benefitting from a sharp run up in shipping rates last fall. Eagle is well protected against any decline in rates having locked in 83% of available days fixed at an average TCE rate of $29,300. CEO Gary Vogel indicated that “the demand growth for minor bulks remains healthy and continues to outpace demand for the broader drybulk market.” Disruptions caused by the war in Ukraine have resulted in longer voyage distances and higher rates….

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. 

Eagle Bulk Shipping Inc. Publishes 2022 ESG Sustainability Report

Research, News, and Market Data on Eagle Bulk Shipping

STAMFORD, Conn., May 09, 2022 (GLOBE NEWSWIRE) — Eagle Bulk Shipping Inc. (Nasdaq: EGLE) (“Eagle Bulk”, “Eagle”, or the “Company”), one of the world’s largest owner-operators within the midsize drybulk segment, today announced the publication of its third annual Environmental, Social, and Governance (ESG) Sustainability Report.

The report, which has been prepared in accordance with the Marine Transportation Framework established by the Sustainability Accounting Standards Board (SASB), provides an overview of Eagle’s strategic priorities and performance with respect to various environmental, social, and governance-related matters.

Gary Vogel, Eagle Bulk’s CEO, commented, “Eagle Bulk advanced a number of important ESG-related initiatives in 2021, which are detailed in our report. We have embedded these initiatives across our company, as demonstrated by the sustainability-linked targets included in the new credit facility we entered into during the fourth quarter of 2021, which allow the Company to decrease its interest rate margin, subject to meeting fleet energy efficiency targets and making investments in decarbonization initiatives. I’m pleased to report that we have met these targets for 2021 and will benefit from a decrease in our margin starting this June, which will step down to 210 basis points over 3-month LIBOR.   Additionally, we improved our fuel efficiency profile by adding nine modern vessels to our fleet and completed our first ever sustainable biofuel voyage, sailing the M/V Sydney Eagle across the Atlantic and reducing the vessel’s net well-to-wake CO2 emissions by ~90% during the voyage.

From a Social perspective, our top priority has been to ensure the health and safety of our employees, both onshore and onboard our vessels. COVID-19 continued to impact our business in 2021. We have had some colleagues deal with illness personally, while others had to cater to family being impacted at home.

More recently, the tragic events taking place in Ukraine have significantly impacted our Ukrainian seafarers, and we are doing what we can to ensure their safety and well-being by providing assistance with temporary housing, transportation, and other needs.”

Eagle’s ESG Sustainability Report can be accessed on the Company’s website at www.eagleships.com/ESG.

CONTACT

Company Contact:
Frank De Costanzo
Chief Financial Officer
Eagle Bulk Shipping Inc.
Tel. +1 203-276-8100
Email: 
investor@eagleships.com

Media:
Rose and Company
Tel. +1 212-359-2228

Source: Eagle Bulk Shipping Inc.

Friday, May 06, 2022

Genco Shipping (GNK)
Reaping the benefits of a favorable environment

Genco Shipping & Trading Limited, incorporated on September 27, 2004, transports iron ore, coal, grain, steel products and other drybulk cargoes along shipping routes through the ownership and operation of drybulk carrier vessels. The Company is engaged in the ocean transportation of drybulk cargoes around the world through the ownership and operation of drybulk carrier vessels. As of December 31, 2016, its fleet consisted of 61 drybulk carriers, including 13 Capesize, six Panamax, four Ultramax, 21 Supramax, two Handymax and 15 Handysize drybulk carriers, with an aggregate carrying capacity of approximately 4,735,000 deadweight tons (dwt). Of the vessels in its fleet, 15 are on spot market-related time charters, and 27 are on fixed-rate time charter contracts. As of December 31, 2016, additionally, 19 of the vessels in its fleet were operating in vessel pools.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

Revenues benefit from a favorable shipping environment. Revenues rose 55% to $136.2 million, slightly above our forecast of $133.8 million. EBITDA of $58.0 million, up 181%, was slightly below our $60.4 million estimate due to higher operating costs. Net income for the quarter was $41.9 million ($0.97 per share) versus $2.0 million ($0.05) last year, slightly below our estimate of $44.0 million ($1.03). 

Management is making good use of higher cash flow. The company took delivery of two vessels in the quarter, reduced debt by $48.75 million and raised the quarterly dividend 18% to $0.79 per share (14% yield). …

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. 

Thursday, May 05, 2022

Great Lakes Dredge & Dock (GLDD)
Solid 1Q22 Sets the Table for 2022

Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 131-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

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

1Q22 Operating Results. Revenue of $194.4 million exceed our $176 million estimate and consensus $170 million, partly due to the pull forward of certain business. Margin was a little lighter than projections due to dry dockings and weather issues that restricted work. Nonetheless, adjusted EBITDA for the quarter was $29.7 million versus our $32.7 million estimate. EPS for the quarter was $0.17 compared to our estimate of $0.18.

Favorable Environment. The operating environment remains favorable. The Omnibus Appropriations Bill for fiscal year 2022 included funding for the U.S. Army Corps of Engineers totaling $8.3 billion for fiscal year 2022, an increase of $548 million above the fiscal year 2021 level and an increase of $1.6 billion above the President’s original budget request….

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.