Tuesday, October 12, 2021

Orion Group Holdings (ORN)
Unexpected CFO Change, But Smooth Transition Expected

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

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

CFO leaving for new opportunity. After the market closed, we learned that CFO Robert Tabb will leave near the end of October to join a private renewable energy company. There were no disagreements on financial reporting or other areas. Robert played a major role in turning ORN around and leaves on solid ground, as evidenced by the improved financial position and successful asset sales. We enjoyed working with Robert and are sorry to see him leave.


Smooth CFO transition underway.  We caught up yesterday with CEO Mark Stauffer who highlighted that the current financial team is deep and a VP of Financed has recently joined the team. Also, Robert will participate on the quarterly call prior to leaving for his new post. We expect no changes to the current strategic direction and look forward to working with financial team until a new CFO is hired …

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. 

Friday, October 08, 2021

Eagle Bulk Shipping (EGLE)
Exit of Second Largest Shareholder Creates Opportunity

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.

No surprise that second largest shareholder sold. Bad news, good news, who knows? Strong stock price performance likely triggered added selling by the second largest shareholder. Even though the stock has been under pressure, the sale of the remaining 1.1 million share position at $48.50/share on October 5th is a positive event due to reduced overhang, higher public float and higher trading liquidity.


Positive management call discussed global refinancing, variable dividend and buy backs.  Catalyst for new capital allocation strategy was the global refinancing of all debt with a new five-year term $300 million loan and a $100 million revolver. The refinancing sets the stage for variable dividend policy equal to at least of 30% of the previous quarter’s net income to start. The first dividend based …

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, October 06, 2021

Eagle Bulk Shipping (EGLE)
Capital Allocation Shifts to Dividends

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.

Management call highlighted global refinancing, variable dividend and buy back program. Catalyst for new capital allocation strategy was the global refinancing. Refinancing of high cost 8.25% bonds and all other debt with a new five-year term $300 million loan and a $100 million revolver saves $8 million/year and sets the stage for new variable dividend policy.


New variable dividend starting this quarter.  Due to higher cash flow and declining financial leverage, a dividend policy will be instituted based on a simple and straightforward percent of net income. Quarterly dividend will equal a minimum of 30% of the previous quarter’s net income with a floor of $0.10/share. First dividend will be based on 3Q2021 results and paid in November. We estimate …

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. 

Tuesday, October 05, 2021

Eagle Bulk Shipping (EGLE)
Starting Dividends and Buybacks

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.

Call with management today at 8:30am EST to discuss debt refinancing and capital allocation strategy. The call number is 844-282-4411 and code is 3666878.


Global refinancing closed sooner than expected.  The Eagle Bulk Shipco 8.25% bonds due in November 2022 and all other debt will be refinanced with a new five-year term loan of $300 million and a revolver of $100 million. The interest rate spread of 210-280 basis points depending on leverage and sustainability measures and annual interest savings approximate $8 million. The new debt is secured by …

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. 

Monday, October 04, 2021

Great Lakes Dredge & Dock (GLDD)
Move to Houston Triggers CFO Change

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

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

New CFO arrives. Scott Kornblau has joined as SVP and CFO. He was previously SVP and CFO of Diamond Offshore Drilling and has more than 20 years of industry and financial experience. He will report directly to CEO Lasse Petterson and serve on the executive team. His responsibilities include strategic planning and financial reporting, in addition to investor relations. There should no change in the current strategic direction or financial strategy.


CFO change driven by relocation of HQ to Houston from Chicago.  Former CFO Mark Marinko left the company a short time ago to pursue opportunities in Chicago. We are not aware of any disagreements on financial reporting or other areas, including the planned entry into the offshore wind market. Mark played a major role in turning GLDD around and leaves the company on solid ground, as evidenced by the …

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. 

Eagle Bulk Shipping Inc. Announces Dividend Policy, Share Repurchase Program and a USD 400 million Refinancing

 

STAMFORD, Conn., 
Oct. 04, 2021 (GLOBE NEWSWIRE) — 
Eagle Bulk Shipping Inc. (NASDAQ: EGLE) (“Eagle Bulk”, “Eagle” or the “Company”), one of the world’s largest owner-operators within the Supramax / Ultramax drybulk segment, announced today that the Company has instituted a dividend policy and a 
USD 50 million share repurchase program in conjunction with the closing of a 
USD 400 million comprehensive refinancing (the “Refinancing”).  

Under the dividend policy, the Board of Directors intends to authorize the payment of quarterly cash dividends equal to a minimum of 30% of net income, but not less than 
$0.10 per share. The first dividend is scheduled to be based on the Company’s Q3 2021 financial results, with payment in November.   Purchases under the share repurchase program will be at the Company’s discretion. The Refinancing, which closed on 
October 1, 2021, has significantly improved the Company’s capital structure and increased financial flexibility, resulting in a reduction of approximately 
USD 8 million in annual interest expense, as well as an extension of the nearest bank debt maturity to the end of 2026.
  
Eagle’s CEO,  Gary Vogel, commented, “Today’s announcement is the culmination of a five-year transformation of Eagle that has resulted in a substantially larger and more efficient fleet, as well as a stronger balance sheet. As we plan to take delivery of the 29^th vessel acquired during this period, which was purchased in May, we are pleased to be in the position to start returning capital to shareholders. Based on our positive market outlook, which is supported by historically strong supply-side fundamentals, we believe the dividend policy authorized by Eagle’s Board of Directors will enable the Company to return significant cash to our shareholders, while providing the flexibility to continue to de-lever and pursue accretive growth opportunities.”

The new 
USD 400 million senior secured credit facility (the “Facility”) is comprised of a 
USD 300 million term loan and a 
USD 100 million revolving credit facility which will both be secured by 49 vessels. The Facility bears an interest rate of LIBOR plus a margin of between 2.10% and 2.80%, depending on leverage and meeting certain sustainability-linked criteria, including alignment of fleetwide carbon intensity with a decarbonization trajectory consistent with IMO targets.

Proceeds from the Facility were used to repay all amounts outstanding under three existing facilities: Eagle Bulk Holdco LLC Revolving Credit Facility (due in 
December 2021), 
Eagle Bulk Shipco LLC Senior Secured Bonds (due in 
November 2022), and Eagle Bulk Ultraco LLC Credit Facility (due in 
January 2024). Following the Refinancing, 
USD 50 million remains available under the new revolving credit facility and four of the Company’s vessels are outside of the Facility’s collateral package and are unencumbered.

Crédit 
Agricole Corporate & Investment Bank, Danish Ship Finance A/S, 
DNB Markets Inc., 
Nordea Bank Abp, Filial I Norge, and Skandinaviska Enskilda Banken AB (PUBL) acted as Lenders, Mandated Lead Arrangers, and Bookrunners.  Deutsche Bank AG and ING Bank N.V., 
London Branch, acted as Lenders.  Credit Agricole is also Structurer, Facility Agent, and Sustainability Coordinator.

Members of the Company’s senior management team will host a teleconference and webcast at 
8:30 a.m. ET on 
October 5, 2021 to discuss the Refinancing and the Company’s new capital allocation strategy.

To participate in the teleconference, investors and analysts are invited to call +1 844-282-4411 in the 
U.S., or +1 512-900-2336 outside of the 
U.S., and reference participant code 3666878. A simultaneous webcast of the call, including a slide presentation for interested investors and others, may be accessed by visiting www.eagleships.com.

A replay will be available following the call from 
11:30 a.m. ET on 
October 5, 2021 until 
11:59 p.m. ET on 
October 19, 2021. To access the replay, call +1 855-859-2056 in the 
U.S., or +1 404-537-3406 outside of the 
U.S., and reference passcode 3666878.

About Eagle Bulk Shipping Inc.

Eagle Bulk Shipping Inc. (“Eagle” or the “Company”) is a 
U.S. based fully integrated shipowner-operator providing global transportation solutions to a diverse group of customers including miners, producers, traders, and end users. Headquartered in 
Stamford, Connecticut, with offices in 
Singapore and 
Copenhagen, Denmark, Eagle focuses exclusively on the versatile mid-size drybulk vessel segment and owns one of the largest fleets of Supramax/Ultramax vessels in the world. The Company performs all management services in-house (including: strategic, commercial, operational, technical, and administrative) and employs an active management approach to fleet trading with the objective of optimizing revenue performance and maximizing earnings on a risk-managed basis. For further information, please visit our website: www.eagleships.com.

Disclaimer: Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements reflect current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. These statements may include words such as “believe,” “estimate,” “project,” “intend,” “expect,” “plan,” “anticipate,” and similar expressions in connection with any discussion of the timing or nature of future operating or financial performance or other events.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, examination of historical operating trends, data contained in our records and other data available from third parties. Although 
Eagle Bulk Shipping Inc. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, 
Eagle Bulk Shipping Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, changes as a result of COVID-19, including the availability and effectiveness of vaccines on a widespread basis and the impact of any mutations of the virus, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in vessel operating expenses, including drydocking and insurance costs, or actions taken by regulatory authorities, ability of our counterparties to perform their obligations under sales agreements, charter contracts, and other agreements on a timely basis, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by 
Eagle Bulk Shipping Inc. with the 
SEC.

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.

Eagle Bulk Shipping Inc. Announces Dividend Policy, Share Repurchase Program and a USD 400 million Refinancing

 

STAMFORD, Conn., 
Oct. 04, 2021 (GLOBE NEWSWIRE) — 
Eagle Bulk Shipping Inc. (NASDAQ: EGLE) (“Eagle Bulk”, “Eagle” or the “Company”), one of the world’s largest owner-operators within the Supramax / Ultramax drybulk segment, announced today that the Company has instituted a dividend policy and a 
USD 50 million share repurchase program in conjunction with the closing of a 
USD 400 million comprehensive refinancing (the “Refinancing”).  

Under the dividend policy, the Board of Directors intends to authorize the payment of quarterly cash dividends equal to a minimum of 30% of net income, but not less than 
$0.10 per share. The first dividend is scheduled to be based on the Company’s Q3 2021 financial results, with payment in November.   Purchases under the share repurchase program will be at the Company’s discretion. The Refinancing, which closed on 
October 1, 2021, has significantly improved the Company’s capital structure and increased financial flexibility, resulting in a reduction of approximately 
USD 8 million in annual interest expense, as well as an extension of the nearest bank debt maturity to the end of 2026.
  
Eagle’s CEO,  Gary Vogel, commented, “Today’s announcement is the culmination of a five-year transformation of Eagle that has resulted in a substantially larger and more efficient fleet, as well as a stronger balance sheet. As we plan to take delivery of the 29^th vessel acquired during this period, which was purchased in May, we are pleased to be in the position to start returning capital to shareholders. Based on our positive market outlook, which is supported by historically strong supply-side fundamentals, we believe the dividend policy authorized by Eagle’s Board of Directors will enable the Company to return significant cash to our shareholders, while providing the flexibility to continue to de-lever and pursue accretive growth opportunities.”

The new 
USD 400 million senior secured credit facility (the “Facility”) is comprised of a 
USD 300 million term loan and a 
USD 100 million revolving credit facility which will both be secured by 49 vessels. The Facility bears an interest rate of LIBOR plus a margin of between 2.10% and 2.80%, depending on leverage and meeting certain sustainability-linked criteria, including alignment of fleetwide carbon intensity with a decarbonization trajectory consistent with IMO targets.

Proceeds from the Facility were used to repay all amounts outstanding under three existing facilities: Eagle Bulk Holdco LLC Revolving Credit Facility (due in 
December 2021), 
Eagle Bulk Shipco LLC Senior Secured Bonds (due in 
November 2022), and Eagle Bulk Ultraco LLC Credit Facility (due in 
January 2024). Following the Refinancing, 
USD 50 million remains available under the new revolving credit facility and four of the Company’s vessels are outside of the Facility’s collateral package and are unencumbered.

Crédit 
Agricole Corporate & Investment Bank, Danish Ship Finance A/S, 
DNB Markets Inc., 
Nordea Bank Abp, Filial I Norge, and Skandinaviska Enskilda Banken AB (PUBL) acted as Lenders, Mandated Lead Arrangers, and Bookrunners.  Deutsche Bank AG and ING Bank N.V., 
London Branch, acted as Lenders.  Credit Agricole is also Structurer, Facility Agent, and Sustainability Coordinator.

Members of the Company’s senior management team will host a teleconference and webcast at 
8:30 a.m. ET on 
October 5, 2021 to discuss the Refinancing and the Company’s new capital allocation strategy.

To participate in the teleconference, investors and analysts are invited to call +1 844-282-4411 in the 
U.S., or +1 512-900-2336 outside of the 
U.S., and reference participant code 3666878. A simultaneous webcast of the call, including a slide presentation for interested investors and others, may be accessed by visiting www.eagleships.com.

A replay will be available following the call from 
11:30 a.m. ET on 
October 5, 2021 until 
11:59 p.m. ET on 
October 19, 2021. To access the replay, call +1 855-859-2056 in the 
U.S., or +1 404-537-3406 outside of the 
U.S., and reference passcode 3666878.

About Eagle Bulk Shipping Inc.

Eagle Bulk Shipping Inc. (“Eagle” or the “Company”) is a 
U.S. based fully integrated shipowner-operator providing global transportation solutions to a diverse group of customers including miners, producers, traders, and end users. Headquartered in 
Stamford, Connecticut, with offices in 
Singapore and 
Copenhagen, Denmark, Eagle focuses exclusively on the versatile mid-size drybulk vessel segment and owns one of the largest fleets of Supramax/Ultramax vessels in the world. The Company performs all management services in-house (including: strategic, commercial, operational, technical, and administrative) and employs an active management approach to fleet trading with the objective of optimizing revenue performance and maximizing earnings on a risk-managed basis. For further information, please visit our website: www.eagleships.com.

Disclaimer: Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements reflect current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. These statements may include words such as “believe,” “estimate,” “project,” “intend,” “expect,” “plan,” “anticipate,” and similar expressions in connection with any discussion of the timing or nature of future operating or financial performance or other events.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, examination of historical operating trends, data contained in our records and other data available from third parties. Although 
Eagle Bulk Shipping Inc. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, 
Eagle Bulk Shipping Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, changes as a result of COVID-19, including the availability and effectiveness of vaccines on a widespread basis and the impact of any mutations of the virus, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in vessel operating expenses, including drydocking and insurance costs, or actions taken by regulatory authorities, ability of our counterparties to perform their obligations under sales agreements, charter contracts, and other agreements on a timely basis, potential liability from future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by 
Eagle Bulk Shipping Inc. with the 
SEC.

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.

Monday, October 04, 2021

Seanergy Maritime (SHIP)
Higher Cape Rates Implies Strong Finish to Year

Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. Seanergy Maritime Holdings Corp. is the only pure-play Capesize shipping company listed in the US capital markets. Seanergy provides marine dry bulk transportation services through a modern fleet of 10 Capesize vessels, with total capacity of approximately 1,748,581 dwt and an average fleet age of about 9.8 years. The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and class A warrants under “SHIPW”.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

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

Staying positive on Cape market. Cape TCE rates have moved higher due to firm demand based on infrastructure projects and global stimulus programs plus port congestion and coal shortages. At the same time, the order book remains muted, and the January 1, 2023 implementation of new carbon emission regulations (EEXI) could trigger slow steaming that effectively lowers supply. Volatility likely to continue and seasonality should be expected, but Cape TCE rates have been higher than expected.


Increasing 2021 EBITDA estimate to $90.5 million from $75.2 million based on TCE rates of $26.9k/day, up from $23.9k/day mainly due to higher 4Q2021 outlook.  Limited change to our 3Q2021E EBITDA of $31.0 million and TCE rates of $31.0k/day. We had been factoring in typical seasonality, but the quarter has started strongly. 4Q2021 visibility has improved with forward cover of >50% with eight Capes …

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. 

Monday, October 04, 2021

Great Lakes Dredge & Dock (GLDD)
Move to Houston Triggers CFO Change

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The company only’s operating segments is Dredging. Dredging involves the enhancement or preservation of navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand or rock. Its projects portfolio includes Coastal Restoration, Coastal Protection, Port expansion, and others.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

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

New CFO arrives. Scott Kornblau has joined as SVP and CFO. He was previously SVP and CFO of Diamond Offshore Drilling and has more than 20 years of industry and financial experience. He will report directly to CEO Lasse Petterson and serve on the executive team. His responsibilities include strategic planning and financial reporting, in addition to investor relations. There should no change in the current strategic direction or financial strategy.


CFO change driven by relocation of HQ to Houston from Chicago.  Former CFO Mark Marinko left the company a short time ago to pursue opportunities in Chicago. We are not aware of any disagreements on financial reporting or other areas, including the planned entry into the offshore wind market. Mark played a major role in turning GLDD around and leaves the company on solid ground, as evidenced by the …

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, October 04, 2021

Eagle Bulk Shipping (EGLE)
Strong Operating Results More than Offset FFA Adjustments

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.

Hedging program update. Added FFA losses expected in 3Q2021 operating results. Based on September 30th levels, we expect 3Q2021 FFA hedge losses of ~$10 million, including net realized losses of <$1 million and unrealized losses of ~$10 million. Adjusted EBITDA of ~$99 million should be well above 2Q2021, or the fifth straight quarter of higher operating results. We believe that the FFA hedging program dampens TCE rate volatility and creates added optionality since operating control is retained.


Moving up EBITDA estimates.  2021 EBITDA to $304 million based on TCE rates of $22.3k/day to reflect elevated TCE rates. Forward cover of ~75% of 3Q2021 days booked at TCE rates of $28.3k/day was impressive, but TCE rates have moved up into the $35k/day range. 2022 EBITDA also moves higher to $311 million based on TCE rates of $23.9k/day. FYI, forward cover and EBITDA estimates include estimated …

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. 

Tuesday, September 28, 2021

Grindrod Shipping (GRIN)
Secondary Offering Improves Public Market Float

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.

Secondary offering enhances trading liquidity.  Grindrod Limited, the former parent, sold 1.84 million shares last week in a secondary offering at $13.50/share pursuant to a F-3 filing dated August 23rd. While the offering was priced at a 14% discount to the previous closing price, the stock rebounded quickly and closed yesterday ~13% above the offering price. We view the offering favorably since the public market float increased to 13.1 million shares, or 68%, and trading liquidity is likely to improve.


No change to current 2021-2 EBITDA estimates and variable dividend policy on horizon.  Our 4Q2021 dividend estimate is $0.61/share, including cash of $0.54/share and buybacks of $0.07/share. As highlighted in recent notes, the variable dividend will consist of a combo of buybacks and cash. As of August 30th, 91,871 shares were bought back at an average $14.87/share so total dividend will include …

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, September 27, 2021

Euroseas (ESEA)
Solid Visibility Drives Price Target Increase

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.

Container market remains firm and upcoming fixtures should be favorable. While the short charter secured on the Oakland intermediate at a rate of at least $195k/day appears extraordinary, the container market remains firm despite a rising order book and Contex rates have moved higher. The recent charters on the Oakland, Jonathan P and Diamantis P are good examples of a strong container market.


No change in 2021 EBITDA estimate of $55.1 million based on TCE rates of $18.9k/day.  The Oakland intermediate should roll to the new TCE rate in late October and our 4Q2021 EBITDA estimate of $25.3 million is based on a TCE rate of $28.5k/day. Forward cover is very higher and only 9% of 4Q2021 available days are open …

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, September 23, 2021

Orion Group Holdings (ORN)
Marine and Concrete Awards Bolster Backlog

Orion Group Holdings, based in Houston, Texas, is a specialty construction company within the Marine and Industrial Construction sectors, with operations focused in the continental United States and Caribbean. Revenue is split roughly 50/50 between a Marine Construction segment that provides marine facility, pipeline and structural construction services and a Commercial Concrete segment that provides turnkey concrete services in the light commercial and structural construction markets.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

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

Work for $61 million awarded, including first Concrete work in Florida.  Marine awards of $35 million include four contracts in Houston, New Orleans and Alaska. Concrete awards of $26 million include six contracts in Houston, Dallas, Austin and Daytona. Small Daytona project is first foray outside of Texas and represents entry into attractive Florida market.


New awards boost backlog and high bidding activity portends added awards.  New awards do not include low bids pending award exceeding $40 million as were highlighted in our September 20th research note, so more good news should be on the horizon. High bidding activity, including bids on several large multi-year projects, such as the NASA causeway in Florida, portends added award announcements …

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.