Euroseas Ltd. Announces New Charter for One Of Its Vessels, M/V “EM Hydra”

 

ATHENS, Greece, May 06, 2021 (GLOBE NEWSWIRE) — Euroseas Ltd. (NASDAQ: ESEA, the “Company” or “Euroseas”), an owner and operator of container vessels and provider of seaborne transportation for containerized cargoes, announced today a new time charter contract for its container vessel M/V “EM Hydra”. Specifically:

• M/V “EM Hydra”, a 1,740 TEU vessel built in 2005, entered into a new time charter contract for a period between a minimum of twenty three and a maximum of twenty five months at the option of the charterer, at a gross daily rate of $20,000. The new rate will commence between May 15, 2021 and May 25, 2021 when the vessel will be redelivered from its current charterer.
  

Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce the new charter for our vessel, M/V “EM Hydra”, for a minimum period of twenty three months at a rate about two and a half times the level of her current employment. This fixture follows less than a month after our fixture of M/V “Joanna”, a 1,732 TEU vessel built in 1999, that was fixed for a minimum of eighteen months at a gross daily rate of $16,800 indicating how strongly the market continues to rise. This new charter will secure a minimum of $13.8m of contracted revenues and makes an EBITDA contribution of approximately $9m.”

Fleet Profile:

The Euroseas Ltd. fleet profile is as follows:

Notes:  

(*) TC denotes time charter. All dates listed are the earliest redelivery dates under each time charter 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 container ships. It is based on assessments of the current day charter rates of six selected container ship 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.

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 14 vessels, including 9 Feeder containerships and 5 Intermediate Container carriers. Euroseas 14 containerships have a cargo capacity of 42,281 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 our website www.euroseas.gr

Source: Euroseas Ltd.

Wednesday, May 05, 2021

Great Lakes Dredge & Dock (GLDD)
Unexpected COVID-19 Hit, But Year On Track

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.

1Q2021 Results softer than expected due to higher costs and downtime/delays due to COVID-19. Gross profit of $33.1 million was $3.1 million below our estimate of $36.2 million, and gross margin fell back to 18.6%, mainly due to 23 days of downtime from COVID-19, unexpected downtime and higher direct costs of testing/quarantining personnel. Lost revenue totaled $3.9 million and costs were more than $10 million higher. Adjusting for direct costs of $4.3 million, gross profit would have approximated $37.4 million, or gross margin of 21%, which would have been more consistent with expectations.


Fine tuning 2021 EBITDA estimate.  Slow start, but 2H2021 should recover. Our EBITDA estimate of $146.1 million is slightly lower than our previous estimate of $150.0 million …

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. 

Tuesday, May 04, 2021

Euroseas Ltd. (ESEA)
Favorable Rate Reset on Oakland, But Risk/Reward Balanced

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.

Charter rate reset is positive. Last week, the charter rate on the Oakland, a 2009-built 4,253 TEU intermediate vessel, was reset at ~$38.3k/day, above our estimate of ~$34k/day and well above the current rate of ~$24k. The Oakland is indexed at the Contex 4250 rate of $42.1k/day minus 10%. The reset was the last one prior to the charter expiration in June and we expect either an extension of the current charter or a new charter prior to expiration.


Fine-tuning 2021 EBITDA estimate to reset on the indexed rate.  To reflect the positive impact of the Oakland rate reset, we are moving 2021 EBITDA to $35.4 million based on TCE rates of $15.8k/day from $34.9 million based on TCE rates of $15.7k/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. 

Monday, May 03, 2021

Pyxis Tankers Inc. (PXS)
Acquisition Funded by Recent Offering

Pyxis Tankers Inc is a United States-based international maritime transportation company which focuses on the product tanker sector. It owns a fleet which comprises of double hull product tankers employed under a mix of short- and medium-term time charters and spot charters. The fleet owned by the company includes Pyxis Epsilon, Pyxis Theta, Pyxis Malou, Pyxis Delta, Northsea Alpha, and Northsea Beta. Each of the vessels in the fleet is capable of transporting refined petroleum products, such as naphtha, gasoline, jet fuel, kerosene, diesel, fuel oil, and other liquid bulk items, such as vegetable oils and organic chemicals.

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

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

Buying power pays off with $20 million acquisition of 2013-built MR. A MR (medium range) product tanker will be acquired for $20 million, The 2013-built MR was constructed at Hyundai Mipo shipyard in South Korea. The MR will complement the three MRs in the fleet once it is delivered in 3Q2021. Assuming a TCE rate in the $16k/day range, the MR should generate EBITDA of $3.7 million per year, and it lifts our 2021 EBITDA to $5.5 million from $4.3 million.


Financing moves created financial flexibility.  Also, equity offering materially improved public market float. A term loan of $17 million on the Epsilon and existing cash refinanced existing debt recently and a well-timed equity offering improved financial flexibility to shift to growth. The equity offering, in addition to preferred stock conversions, expanded the public market float to more than …

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, April 22, 2021

Genco Shipping & Trading Limited (GNK)
New 2022 Dividend Estimate and Fleet Renewal Intact

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.

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

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

Variable dividend policy begins in 1Q2022 and scenarios look attractive.  Our quarterly dividend calculation is based on estimated operating cash flow minus debt amortization, capex for drydocks and a reserve based on future quarterly debt amortization and interest expense.


Our FY2022 dividend estimate is $2.25/share is based on our 2022 EBITDA estimate of $171.3 million, which implies a current yield of 16.4%.  Assuming TCE rates of $18.8k/day and TCE revenue of $272 million, operating cash flow should approximate $164 million. Incorporating debt amortization of $24 million, drydock capex of $11 million, and a reserve of $34 million, net cash flow of $95 million …

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, April 20, 2021

Genco Shipping & Trading Limited (GNK)
Second Bite At the Dividend Apple Following New Capital Allocation Strategy

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.

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

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

Call today at 8:30am EST will discuss the new approach to capital allocation that shifts the focus to deleveraging the balance sheet and maximizing dividends. Number is 800-353-6461 and code is 7623966.


Taking a second bite at the dividend apple and implementing variable dividend policy beginning in 1Q2022.  Instead of a fixed quarterly dividend, the dividend will be declared every quarter and fluctuate based on operating results. Cash flow available for dividends will equal operating cash flow minus debt amortization, capex for drydocks and a reserve. The reserve target will be based on 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. 

Thursday, April 15, 2021

Seanergy Maritime (SHIP)
Update Shows Progress Lining Up Acquisition Financing

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.

Refinancing existing loan with larger longer term loan. A commitment for a new term loan of $37.45 million will refinance existing debt of $24.5 million that matures in 4Q2022. The new loan, which matures in December 2024 at the earliest, will be priced at Libor plus 350 basis points, and secured by three Capes (Squireship/Leadership/Lordship).


Lease financing probable for Flagship acquisition.  Discussions on a lease of $20.5 million with attractive terms to fund more than 70% of the Flagship acquisition for $28.4 million are advanced …

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. 

Seanergy Maritime Holdings Corp. Announces Loan Facility of $37.45 Million and Other Financing Updates

 

GLYFADA, Greece, April 14, 2021 (GLOBE NEWSWIRE) — Seanergy Maritime Holdings Corp. (the “Company”) (NASDAQ: SHIP) announced today that the Company received a commitment letter from one of its existing lenders for a $37.45 million facility (the “New Facility”). The proceeds will be used to refinance the $24.45 million existing facility secured by the M/V Squireship and the M/V Leadership (the “Existing Facility”) and will be secured as well by currently unencumbered M/V Lordship.

Pursuant to the commitment letter, the earliest maturity date of the New Facility will be in December 2024 and the interest rate will be 3.5% plus LIBOR per annum. The approval is subject to completion of definitive documentation.

The incremental liquidity of approximately $12 million is expected to be used for the financing of the Company’s recently announced new vessel acquisitions.

Moreover, the Company is in advanced discussions for the financing of one of its previously announced vessel acquisitions, the M/V Flagship, through a $20.5 million leasing arrangement at competitive terms.

Stamatis Tsantanis, the Company’s Chairman and Chief Executive Officer stated:

“We are very pleased to announce the successful conclusion of the financing by one of our long-term lenders for the upsizing and extension of one of our existing facilities. The New Facility in combination with our advanced discussions with other current lenders of Seanergy represent a strong vote of confidence to our Company.

“Regarding general market conditions, the current average of the 5-TC routes of the Capesize index is in excess of $26,000 per day, while the performance of the freight futures (FFA) points to a significantly improved earnings environment for the remainder of 2021.

“We believe Seanergy is well-positioned to benefit substantially from improving market conditions.”

About Seanergy Maritime Holdings Corp.

Seanergy Maritime Holdings Corp. is the only pure-play Capesize ship-owner publicly listed in the US. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. Upon delivery of vessels which the Company has recently agreed to acquire, the Company’s operating fleet will consist of 15 Capesize vessels with an average age of 11.9 years and aggregate cargo carrying capacity of approximately 2,642,463 dwt.

The Company is incorporated in the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP,” its Class A warrants under “SHIPW” and its Class B warrants under “SHIPZ.”

Please visit our company website at: www.seanergymaritime.com. 

Forward-Looking Statements

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. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which 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, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; risks associated with the length and severity of the ongoing novel coronavirus (COVID-19) outbreak, including its effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, 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.

For further information please contact:

Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr

Capital Link, Inc.
Daniela Guerrero
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
E-mail: seanergy@capitallink.com

Tuesday, April 13, 2021

Euroseas Ltd. (ESEA)
Container Market Remains Strong and New Charter Signed

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.

Another charter at a higher-than-expected rate announced. Upcoming charter reset should also be positive. A new charter has been signed on the Joanna for 18-21 months at a rate of $16.8k/day, above the current rate of $8.1k/day. In addition, the Oakland is working on an indexed rate through June 2021 and the last reset will occur late next week. If the rate was reset today, the rate would move to ~$34k/day from the current ~$24k rate.


Increasing 2021 EBITDA estimate to reflect new charter and upcoming reset on the indexed rate.  To reflect the positive impact of the Joanna charter and upside potential from upcoming charters, we are moving 2021 EBITDA to $34.9 million based on TCE rates of $15.7k/day from $31.1 million based on TCE rates of $14.8k/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. 

Eagle Bulk Shipping Inc. to Issue First Quarter 2021 Results and Hold Investor Conference Call

 

STAMFORD, Conn., April 13, 2021 (GLOBE NEWSWIRE) — Eagle Bulk Shipping Inc. (Nasdaq: EGLE) will report its financial results for the first quarter ended March 31, 2021, after the close of stock market trading on May 6, 2021. Members of Eagle Bulk’s senior management team will host a teleconference and webcast at 8:00 a.m. ET on Friday, May 7, 2021 to discuss the results.

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 1772565. A simultaneous webcast of the call, including a slide presentation for interested investors and others, may be accessed by visiting http://www.eagleships.com.

A replay will be available following the call from 11:00 AM ET on May 7, 2021 until 11:00 AM ET on May 17, 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 1772565.

About Eagle Bulk Shipping Inc.

Eagle Bulk Shipping Inc. (“Eagle” or the “Company”) is a US-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, 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.

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

Media Contact
Rose & Company
Tel. +1 212-359-2228

Source: Eagle Bulk Shipping Inc.

 

U.S. Government Spending Provides Investment Opportunity in Maritime Infrastructure

 

Ensuring the Future is Made in America by All of America’s Workers was an executive order signed by the newly sworn-in President on January 25, 2021. While economists may debate if it makes sense to give preference to U.S. firms without consideration as to price or expertise, investors can view Executive
Order 14005 as a starting point when sifting through opportunities under a new administration. Investors may refine their sort for investment possibilities within the category of “Made in the U.S.A.” using the newly proposed American Jobs Plan presented by the White House on March 31. This new proposal is to add $2.25 trillion in spending on infrastructure projects. These two actions, taken together, provide strong insight into where the U.S. Government is likely to prioritize spending and what companies may win the contracts.  

Overlooked
Infrastructure Category

One construction-related service that’s likely to get a boost from ramped-up infrastructure falls under the radar of many. The service is dredging canals, channels, and other waterways. Although dredging may not be as “sexy” as other infrastructure initiatives, such as spending to speed the U.S. on the road to electric vehicles, one only needs to look at the recent incident in the Suez Canal to understand the importance of deep passable waterways.

The March 31 proposal by the White House calls for funding to dredge harbors and rivers of silt, and construct dikes, improve navigable conditions for larger container ships by creating deeper harbors, and wider channels. This would modernize ports and allow for more efficient exports from cities like Houston that could export more oil if it could accommodate larger ships.

What
Businesses Could Benefit

While we often witness highways and bridges being built, electric vehicle charging stations being installed, and know that drinking water in parts of the country needs to be improved, dredging companies are not part of most of our lives, so we may not consider what opportunities the new spending will provide. Even more, many don’t know where to look for ideas and information to help make a well-informed investment decision.

One domestic company that works on many of these marine-based infrastructure projects is Orion Group Holdings, Inc. (NYSE: ORN). Orion is involved in marine construction, including transportation facilities, pipelines, environmental structures, and dredging waterways, channels and ports, among others.

A more broad-based company that is involved in maritime projects and generates most of its revenue in North America is Aegon Corp. (Nasdaq: AEGN). Aegon’s maritime solutions include construction and maintenance and are involved in corrosion protection and maintenance.

Great Lakes Dredge & Dock Corp. (Nasdaq: GLDD) is a pure-play on U.S. dredging – the company’s only operating segment is dredging. Their contracts involve enhancing or preserving navigable waterways, protecting shorelines, and port enhancements.

The three companies above are by no means a comprehensive list. Instead, they demonstrate that within the maritime infrastructure and construction sector, some companies narrowly specialize, and there are also more broad-based diversified businesses. Use Channelchek as one of your resources when dredging up ideas to dig deeper into a corporation’s business lines, revenue sources, and business outlook among U.S. maritime infrastructure companies. 

 

 

Take-Away

The U.S. will be investing in transportation infrastructure projects in a very big way. The contracts, by executive order, are quite likely to go to American companies, many of which already have government contracts from the Army Corp of Engineers and other U.S. agencies. As the U.S. plans to spread trillions of dollars and allocate billions to providing more navigable waterways, investors may want to keep this segment of the infrastructure construction sector on their watchlists.

Suggested Content on Channelchek:

Industries that Could Benefit from the “New American Jobs Plan”	How Much is a Trillion?

Great Lakes Dredge and Dock NobleCon17 Presentation (Video)	Orion Group Holdings NobleCon17 Presentation (Video)

 

Sources:

https://dredgingcontractors.org/

https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/25/executive-order-on-ensuring-the-future-is-made-in-all-of-america-by-all-of-americas-workers/

https://www.maritime-executive.com/article/2008-09-25-americas-deep-blue-highway-igms-publishes-comprehensive-study

https://bisouv.com/uncategorized/3629598/dredging-services-industry-insight-report-2021-2026-covering-prime-factors-and-competitive-outlook-by-key-players/

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Wednesday, March 31, 2021

Grindrod Shipping (GRIN)
Asset Sales Enhance Dry Bulk Exposure – Raising Price Target

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.

Added asset sales improve fleet profile and enhance dry bulk market focus. Agreements to sell two MRs and one small tanker for almost $50 million improves the fleet profile and shifts the focus to the dry bulk market. The Leopard Moon and Leopard Sun, two 2013-built MR refined product tankers, will be sold for $42.8 million. In addition, the Breede, a 2009-built small tanker will be sold for $6.8 million. All sales should be completed in 2Q2021. As a result, the fleet will consist of 15 Handysize, 16, Supramax/Ultramax, and one MR tanker that is bareboat charter-out.


Asset sales reduce financial leverage.  Disciplined capital strategy intact. Proceeds and existing cash will pay off secured debt on the vessels and high cost Sankaty debt of $26 million due in June. The debt maturity profile appears manageable with no added debt maturing in 2021. Capital allocation remains disciplined as evidenced by the decision to shun scrubbers. Buybacks might ramp up once 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. 

Wednesday, March 31, 2021

Pyxis Tankers Inc. (PXS)
Refinancing Done. Shifting to Growth.

Pyxis Tankers Inc is a United States-based international maritime transportation company which focuses on the product tanker sector. It owns a fleet which comprises of double hull product tankers employed under a mix of short- and medium-term time charters and spot charters. The fleet owned by the company includes Pyxis Epsilon, Pyxis Theta, Pyxis Malou, Pyxis Delta, Northsea Alpha, and Northsea Beta. Each of the vessels in the fleet is capable of transporting refined petroleum products, such as naphtha, gasoline, jet fuel, kerosene, diesel, fuel oil, and other liquid bulk items, such as vegetable oils and organic chemicals.

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

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

Refinancing completed with positive impact on interest costs. A term loan of $17 million on the Epsilon from an existing lender and cash of $7.5 million refinanced existing debt. The new loan is priced at Libor plus 335 basis points and quarterly amortization is $0.3 million with a balloon payment of ~$11 million in five years. Borrowing costs should drop by more than 200 basis points and no secured debt matures over the next two years.


Well-timed equity offering materially improved public market float.  A private equity offering generated net proceeds of $23.1 million last month. Combined with preferred stock conversions, the public market float expanded to more than 50% …

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*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.