Monday, March 01, 2021

Grindrod Shipping (GRIN)
2H2020 Results Below Expectations But Transitioning to More Positive Outlook

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.

Despite improved dry bulk market outlook, 2H2020 results lagged. Reported 2H2020 EBITDA of $18.5 million dropped from 2H2019 EBITDA of $25.1 million even though the dry bulk market fundamentals started to improve in late 1H2020. Adjusting for IFRS 16 adoption, we calculate that adjusted EBITDA was $12.8 million in 2H2020, which was below expectations.


Fine tuning 2021 EBITDA estimate.  Dry bulk market thesis intact. Given the firmer state of the dry bulk market, we are fine-tuning our 2021 EBITDA to $52.6 million from $52.0 million. There is limited visibility into this year, but the year is off to a good start. Supramax rates averaged ~$10.8k/day in 2H2020 and are currently above $20.0k/day, which is counter to normal seasonality. While we …

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, March 01, 2021

Genco Shipping & Trading Limited (GNK)
A Solid Finish to 2020 and Good Start to 2021

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.

Adjusted 4Q2020 EBITDA of $29.7 million in line with expectations. Strong finish to year with $5 million higher EBITDA and TCE rate move to $13.2k/day. The improvement that started in late 2Q2020 extended into 4Q2020 and operating results benefitted from the recovery in the dry bulk market. TCE rates more than doubled $13.2k/day from $6.7k/day in 2Q2020 and more than offset higher opex and G&A expenses. TCE rates extended the across the board rebound even in the midst of lingering uncertainty from COVID-19. The commercial management strategy generated TCE rate outperformance of $811/day, or incremental revenue of ~$15 million, in 2020 and the 4Q2020 TCE rate was the highest posted in two years.


Fine tuning 2021 EBITDA estimate of $133.8 million with higher TCE rate assumptions of $15.5k/day easily offsetting a smaller fleet.  After a drop in 1Q2021, EBITDA should move higher this year as stronger TCE rates of $15.5k/day more than offsets the 3.7k drop in ownership days …

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. 

Friday, February 26, 2021

Euroseas Ltd. (ESEA)
Solid Operating Results – Outlook Remains Favorable

Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.

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

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

Adjusted 4Q2020 EBITDA of $2.2 million in line with expectations with higher TCE rates offsetting higher opex. Reported adjusted EBITDA was $2.1 million. We added back drydock expenses of $0.1 million to calculate adjusted EBITDA of $2.2 million, which was in line with our estimate of $2.2 million with higher TCE rates offsetting higher opex and more idle days.


Fine tuning EBITDA estimate of $27.6 million to reflect solid contract cover with upside potential.  We estimate 67% of 2021 available days are booked at average rates of ~$12.3k/day, up from previous forward cover of 61% booked at an average rates of ~$11.8k/day. Versus our current 2021 EBITDA estimate, marking open charters to market represents upside of more than $3 million, or close to …

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, February 18, 2021

EuroDry Ltd. (EDRY)
Firmer Dry Bulk Market Drives Up Price Target

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands and trades on the NASDAQ Capital Market under the ticker EDRY. EDRY is the product of a spin-off of the dry bulk fleet by Euroseas (ESEA) completed in May 2018. For every five ESEA shares, ESEA shareholders received one EDRY share. There are currently ~2.2 million EDRY shares outstanding. EuroDry operates in the dry bulk shipping markets. EuroDry’s operations are managed by Eurobulk Ltd., an affiliated ship management company, and Eurobulk FE (Far East) Ltd, which are responsible for the day-to-day commercial and technical management and operation of the fleet. EuroDry employs the fleet on spot and period charters and through pool arrangements.

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

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

Adjusted 4Q2020 EBITDA better than expected due to higher TCE rates. 4Q2020 EBITDA of $2.3 million (adjusted for dry dock expenses) was slightly higher than expected due to indexed TCE rates. Relative to our estimates, TCE revenue was $1.0 million higher, TCE rates were ~$1,551/day higher, and shipping days of 623 were 8 higher. Higher TCE revenue and lower opex more than offset higher G&A expenses and management fees.


Moving 2021 EBITDA estimate to $16.5 million from $8.8 million to reflect indexed rate exposure and recent dry bulk market developments.  The prospects look good for the dry bulk market, and we are increasing our 2021 EBITDA estimate to $16.5 million based on TCE rates of $14.4k/day, which is well above our previous EBITDA estimate of $8.8 million based on TCE rates of $10.1k/day. Most of the fleet …

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, February 17, 2021

Pyxis Tankers Inc. (PXS)
Strong Price Performance Shifts Risk/Reward Profile

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.

Lowering rating to Market Perform from Outperform. Risk/reward profile has shifted after strong stock price performance. The stock has moved up 126% over the past two trading days, including 93% yesterday on well-above-average trading volume (~17x the 2021 average), and is now up 257% in 2021. While we view PXS as a small cap play in the refined product tanker market that should benefit from attractive intermediate term fundamentals, the near-term outlook appears challenging. As result, we believe that the current risk/reward profile is not attractive and are lowering our rating to Market Perform.


Adjusting 2020 EBITDA estimate and introducing 2021 EBITDA estimate.  Our 2020 EBITDA estimate moves to $3.7 million (from $4.0 million) based on TCE rates of $11,637/day due to softer rates. To reflect recent charters and a 2H2021 rebound, we are introducing a 2021 EBITDA estimate of $4.5 million. Our estimate is based on available days of 1,611 (+43) and TCE rates of $11,777/day. Forward cover …

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. 

Friday, February 12, 2021

Eagle Bulk Shipping (EGLE)
Fleet Renewal Program Twists Toward Growth

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.

Fleet renewal program takes a twist. Three 2011-built Supramaxes will be acquired for ~$30 million. This move represents a shift to growth after the sales of five older Supramaxes (average age of 18 years) since mid-2020. There is a neutral impact on the age profile and fuel consumption. The pro forma fleet will total 52 vessels with an average age below nine years.


Thesis intact.  While the past two years were negatively impacted by extreme factors, the supply/demand fundamentals appear favorable and the year has started on a better-than-expected note. The order book and supply growth remain historically low due to rate volatility, regulatory uncertainty and declining capital availability, while demand should rebound on the back of global stimulus packages and …

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, February 02, 2021

Seanergy Maritime (SHIP)
New Time Charters Should Lower Volatility

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.

Two Capes shifted to time charters. Likely to dampen quarterly volatility. The Fellowship and Geniuship are moving onto time charters with larger shippers at the beginning of 2Q2021. While the time charters are indexed, the move should dampen earnings volatility that previously caused by the timing of voyages. The shift is also positive since the charters offer the opportunity to lock in rates at some point and lower working capital. There is no change to our current EBITDA estimates of $15.1 million in 2020 and $33.5 million in 2021, but only two Capes remain on voyage charters, which should dampen some of the earnings volatility that was driven by the timing of voyage charters.


Dry bulk market thesis intact.  While the past two years were negatively impacted by extreme factors, the dry bulk supply/demand fundamentals appear favorable and the year has started on a better-than-expected note. The order book and supply growth remain historically low due to rate volatility, regulatory uncertainty and declining capital availability, while demand should rebound on the back of …

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, February 01, 2021

Grindrod Shipping (GRIN)
Year Off to Positive Start

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.

Dry bulk market thesis intact. While the past two years were negatively impacted by extreme factors, the supply/demand fundamentals appear favorable and the year has started on a better-than-expected note. The order book and supply growth remain historically low due to rate volatility, regulatory uncertainty and declining capital availability, while demand should rebound on the back of global stimulus packages and solid secular trends. Supramax rates averaged ~$10.8k/day in 4Q2020 and are close to $12.6k/day, which is counter to normal seasonality. While we expect some 1H2021 seasonality, the strong start to the year is positive.


Fine-tuning 2020 EBITDA estimate and introducing 2021 EBITDA estimate.  Given the firmer state of the dry bulk market, we are fine-tuning our 2020 EBITDA to $45.9 million from $46.0 million. There is limited visibility into this year, but the year is off to a good start and we are introducing a 2021 EBITDA estimate of $52.0 million, up ~13% over our 2020 estimate …

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, February 01, 2021

Euroseas Ltd. (ESEA)
Container Market Strength Drives Price Target Higher

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 off to good start. Favorable market thesis intact. While the past two years were negatively impacted by extreme factors, the container supply/demand fundamentals appear favorable, more charters with longer terms have been signed at higher TCE rates and the year has started on a better-than-expected note.


Additional days likely to be booked at higher market rates over next two-to-three quarters.  Two intermediates and six feeders should roll to new fixtures this year. The Oakland is indexed at Contex 4250 minus 10% and is currently earning more than $20k/day, up from the 4Q2020 average of $13.2k/day. The Synergy Busan should see a higher rate after it stops working at $8.1k/day in February 2021 …

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. 

Friday, January 29, 2021

Eagle Bulk Shipping (EGLE)
Adding Another Ultramax

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.

Another Utlramax extends fleet renewal program. A 2017-built SDARI-64 will be acquired for ~$19.1 million (cash of $15.0 million and an equity warrant of $4.1 million) in 2Q2021. The warrant will be exchanged into 212,315 unregistered shares at closing. The acquisition adds to the three SDARI-64 Ultramaxes, built in 2015-6 at Chengxi Shipyard and outfitted with scrubbers, already lined up to to add to the fleet in 1Q2021. The impact on the age profile and fuel consumption are positive, and the pro forma fleet will total 49 vessels with an average age of ~8.8 years.


Slight positive impact on 2021 EBITDA.  Assuming the acquisition closes in the middle of 2Q2021, there should be a positive impact and our new EBITDA estimate moves to $78.6 million, up $1.4 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, January 26, 2021

Pyxis Tankers Inc. (PXS)
NobleCon 17 Presentation Reinforces Positive LT Outlook

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.

NobleCon17 Presentation reinforces positive long-term outlook. CEO and majority owner Eddie Valentis (Eddie) made a solid case for PXS in a presentation last week, and highlighted the favorable refined product tanker market trends. Go to Channelchek: https://channelchek.vercel.app/news-channel/NobleCon17_Rebroadcast for replay info.


Thesis intact.  While the past two years were negatively impacted by extreme factors and the year is off to a sluggish start, the supply/demand fundamentals appear favorable. The order book and supply growth remain historically low due to rate volatility, regulatory uncertainty and declining capital availability, while demand should rebound on the back of unprecedented global stimulus and solid …

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, January 26, 2021

EuroDry Ltd. (EDRY)
NobleCon 17 Presentations Highlight Favorable Outlook

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands and trades on the NASDAQ Capital Market under the ticker EDRY. EDRY is the product of a spin-off of the dry bulk fleet by Euroseas (ESEA) completed in May 2018. For every five ESEA shares, ESEA shareholders received one EDRY share. There are currently ~2.2 million EDRY shares outstanding. EuroDry operates in the dry bulk shipping markets. EuroDry’s operations are managed by Eurobulk Ltd., an affiliated ship management company, and Eurobulk FE (Far East) Ltd, which are responsible for the day-to-day commercial and technical management and operation of the fleet. EuroDry employs the fleet on spot and period charters and through pool arrangements.

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

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

NobleCon17 presentations highlight firmer dry bulk market and high operating leverage. CFO Dr. Tasos Aslidis offered a solid case for EDRY in a presentation last week, and the positive dry bulk market trends were highlighted on the industry panel. Go to Channelchek: https://channelchek.vercel.app/news-channel/NobleCon17_Rebroadcast for replay info.


Thesis intact.  While the past two years were negatively impacted by extreme factors, the supply/demand fundamentals appear favorable and the year has started on a better-than-expected note. The order book and supply growth remain historically low due to rate volatility, regulatory uncertainty and declining capital availability, while demand should rebound on the back of global stimulus packages and …

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, January 25, 2021

Seanergy Maritime (SHIP)
NobleCon 17 Presentation Highlights Solid Start 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.

NobleCon17 presentations highlight firmer dry bulk market and high Cape market exposure. CEO Stamatis Tsantanis offered a solid case for SHIP in a presentation last week, and he highlighted the positive trends in the dry bulk market, especially for Capes, on the industry panel. Go to Channelchek: https://channelchek.vercel.app/news-channel/NobleCon17_Rebroadcast for replay info.


Thesis intact.  While the past two years were negatively impacted by extreme factors, the dry bulk supply/demand fundamentals appear favorable and the year has started on a better than expected note. The order book and supply growth remain historically low due to rate volatility, regulatory uncertainty and declining capital availability, while demand should rebound on the back of unprecedented …

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.