Category: Transportation

Wednesday, July 8, 2020

Seanergy Maritime (SHIP)

Acquisition Expands Cape Fleet and Operating Leverage.

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.

• Acquisition expands Cape fleet by 10%. A definitive agreement was signed with an unaffiliated third party to acquire a 2005-built Cape vessel for $11.4 million. The vessel was built was Mitsui Engineering & Shipbuilding in Japan and has 177.5k DWT of capacity. The acquisition expands the Cape fleet to 11, or by 10%, and other opportunities are under review.
• Positive impact. Increasing 2020 EBITDA estimate by ~$1.6 million to $22.1 million. The acquired Cape will be renamed the Goodship and delivery is slated near the end of July. Given the rebound in Cape TCE rates, the acquisition appears well timed and it should be …
  
  

  
  

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This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

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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, July 6, 2020

Seanergy Maritime (SHIP)

Financing Agreement Creates More Refinancing Clarity

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.

• Letter of financing commitment secured. A commitment letter for a five-year financing with an existing lender has been secured to refinancing maturing debt. While details on pricing and amortization are limited at this point, the maturity date is expected to be July 2025. The goal of the new financing is securing longer term financing at a reasonable cost and lowering annual debt amortization. The new financing should also enhance financing flexibility.
  
• June 30th maturity pushed out to July 31st. Secured debt of $30.1 million on the Geniuship and Gloriuship was due on June 30th. In order to finalize the terms and facilitate the closing of the new financing, the maturity date was …
  
  

  
  

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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, June 30, 2020

Seanergy Maritime (SHIP)

Reverse Stock Split Effective. Adjusting Estimates and Price Target.

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.

• Another reverse stock split is set for today, June 30th. While the deadline to cure the NASDAQ listing deficiency notice is not until late-September 2020, a 1 for 16 reverse stock split became effective today, June 30th, to meet listing requirements. As a result, the number of shares outstanding will drop to 30.0 million from 480.0 million. Based on yesterday’s closing price, the adjusted stock price is $2.52/share.
• We Maintain our Outperform rating. Our new adjusted price target is $8.00/share. While the dry bulk market is recovering following severe weakness, dilution from recent equity offerings is significant and financial leverage remains high. Despite these challenges, we believe that dry bulk market recovery is likely to extend into….
  
  

  
  

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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, June 29, 2020

Seanergy (SHIP)

1Q2020 Numbers In Line. Positioned for 2H2020 Recovery

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.

• 1Q2020 operating results largely in line with recently revised estimates. Reported EBITDA was $1.0 million, TCE rates were $8.5k/day and the net loss was $0.31/share. TCE revenue of $7.6 million was about $0.4 million below expectations due to a $500/day shortfall in TCE rates of $8.5k/day versus our estimate of $8.9k/day. TCE rates were about $3,912/day above the Baltic Cape Index (BCI) average of $4,569/day in 1Q2020 due to the opportunistic fixing of a rate on one Cape and premiums on charters over the BCI index.
• Equity issuance improved financial position. Refinancing activity will be high this year and news on capital allocation expected shortly. Close to $50 million of equity was issued this quarter in response to dry bulk market weakness and ahead of bank debt refinancings. Pro forma for….
  
  

  
  

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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, June 23, 2020

Eagle Bulk Shipping (EGLE)

Expect 2H2020 Dry Bulk Market Recovery. Adjusting 2020 EBITDA Estimate.

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.

Dry bulk market volatility impacts 1H2020, but 2H2020 recovery appears likely. The year started off weaker than expected and operating results will be muted when 2Q2020 numbers are reported around August 5th. While the dry bulk market has staged a strong recovery and the Baltic Dry Index (BDI) was up 68% last week alone and is now ~25% above last year, the BDI averaged 592 in 1Q2020 and is likely to average ~750 in 2Q2020, down ~25% from 2Q2019.

Updating 2020 EBITDA estimate to reflect current dry bulk market conditions. To reflect the expected rebound from 1H2020 weakness, we are increasing our EBITDA estimate to $65.5 million based on TCE rates of $10.1k, up from our previous estimate of $60.0 million based on…..









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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, June 18, 2020

Seanergy (SHIP)

Weak 1H2020 Leads to 2H2020 Recovery

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.

• Dry bulk market volatility impacts 1H2020 estimate, but 2H2020 recovery appears likely. The year started off weaker than expected and operating results will be lower than expected when 1Q2020 numbers are reported next week. Cape TCE rates are recovering and approaching the $20.0k range, but we are lowering our EBITDA estimate to $18.7 million based on TCE rates of $13.0k, down from our previous estimate of $27.2 million based on $15.3k/day, to reflect the 1H2020 weakness.
• Equity issuance improves financial position with refinancings on the horizon. Close to $50 million of equity has been issued this quarter in response to dry bulk market weakness and ahead of refinancings. Bank debt of…
  
  

  
  

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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, June 10, 2020

Great Lakes Dredge & Dock (GLDD)

New Build Program Approved and Fleet Renewal On Horizon.

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.

Fleet renewal on the horizon. New build one moves forward and option for new build two creates optionality. Final investment decision (FID) to build a 6,500 cubic yard (CY) hopper dredge was reached and a contract has been signed with Conrad Shipyard in Louisiana. The total cost of new build one approximates $97 million and delivery is expected in 1Q2023. There is a one-year option for new build two for $92.7 million so the total new build program could approach $190 million with delivery of new build two in late 2023. Full details of the new build program should be available once the 2Q2020 10-Q is filed in early August.


Strong credit profile makes new build program manageable and debt refinancing likely.  The decline in net debt into the sub-$120 million range in 1Q2020 strengthened the credit profile and should allow for funding of the new build(s), plus refinancing of $325 million of existing debt once…








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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, June 10, 2020

Great Lakes Dredge & Dock (GLDD)

New Build Program Approved and Fleet Renewal On Horizon.

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.

Fleet renewal on the horizon. New build one moves forward and option for new build two creates optionality. Final investment decision (FID) to build a 6,500 cubic yard (CY) hopper dredge was reached and a contract has been signed with Conrad Shipyard in Louisiana. The total cost of new build one approximates $97 million and delivery is expected in 1Q2023. There is a one-year option for new build two for $92.7 million so the total new build program could approach $190 million with delivery of new build two in late 2023. Full details of the new build program should be available once the 2Q2020 10-Q is filed in early August.


Strong credit profile makes new build program manageable and debt refinancing likely.  The decline in net debt into the sub-$120 million range in 1Q2020 strengthened the credit profile and should allow for funding of the new build(s), plus refinancing of $325 million of existing debt once…








Click to get the full report.

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, June 9, 2020

Orion Group Holdings (ORN)

Elective Move to Bolster Liquidity. Positive Outlook Intact.

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.

Elective move to boost current revolver of $50 million by $20 million is positive. The move was elective and it adds to previous liquidity of $25.6 million. Free cash flow was strong in 1Q2020, but cash management is important in the current environment, and capex and other spending, including the development of an ERP system, has been deferred. Monetizing idle/non-core assets, including real estate, is also probable over the next year.

New award in Houston is a positive sign. The $30 million of concrete work on a multi-use tower structure is under way and will continue into 2H2021. Combined with a large Marine award, we are encouraged that…









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*Analyst
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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, June 9, 2020

Orion Group Holdings (ORN)

Elective Move to Bolster Liquidity. Positive Outlook Intact.

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.

Elective move to boost current revolver of $50 million by $20 million is positive. The move was elective and it adds to previous liquidity of $25.6 million. Free cash flow was strong in 1Q2020, but cash management is important in the current environment, and capex and other spending, including the development of an ERP system, has been deferred. Monetizing idle/non-core assets, including real estate, is also probable over the next year.

New award in Houston is a positive sign. The $30 million of concrete work on a multi-use tower structure is under way and will continue into 2H2021. Combined with a large Marine award, we are encouraged that…









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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
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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, June 4, 2020

Pyxis Tankers Inc. (PXS)

Solid Quarter, But High 2H2020 Uncertainty

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.

Solid quarter, but 1Q2020 EBITDA slightly below expectations. Adjusted 1Q2020 EBITDA of $1.2 million was slightly below our estimate of $1.4 million due to a combination of lower TCE revenue ($0.1 million) and higher opex ($0.1 million).


Fine-tuning 2020 EBITDA estimate. We are moving our 2020 EBITDA estimate to $6.2 million (from $6.9 million), based on TCE rates of $13,064/day (down from $13,532/day) and 1,596 operating days, to reflect 1Q2020 operating results, the Malou fixture, and…









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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, June 4, 2020

Pyxis Tankers Inc. (PXS)

Solid Quarter, But High 2H2020 Uncertainty

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.

Solid quarter, but 1Q2020 EBITDA slightly below expectations. Adjusted 1Q2020 EBITDA of $1.2 million was slightly below our estimate of $1.4 million due to a combination of lower TCE revenue ($0.1 million) and higher opex ($0.1 million).


Fine-tuning 2020 EBITDA estimate. We are moving our 2020 EBITDA estimate to $6.2 million (from $6.9 million), based on TCE rates of $13,064/day (down from $13,532/day) and 1,596 operating days, to reflect 1Q2020 operating results, the Malou fixture, and…









Click to get the full report.

This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst
certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Thursday, May 28, 2020

Euroseas Ltd. (ESEA)

Strong Quarter, But Challenges Ahead

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

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

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

Adjusted 1Q2020 EBITDA, excluding dry dock expenses, of $4.1 million was above expectations by $1.2 million. The positive impact from two recent acquisitions, higher TCE rates and lower opex more than offset higher-than-expected downtime. 1Q2020 gross TCE revenue of $15.5 million increased from $13.2 million in 4Q2019 due to a $529 increase in TCE rates to $9,615/day from $9,086/day, which more than offset 21 higher off hire days.

Adjusting 2020 EBITDA estimate. Weaker container market fundamentals and scrapping activity more than offset positive 1Q2020 variance. The recent acquisitions will have a full impact on 2020 operating results and we are forecasting 2020 EBITDA of $12.1 million based on 6,070 operating days, down from our previous estimate of $15.3 million and TCE rates of $9,373/day from a previous estimate of $9,691/day. Operating days are expected to drop to 6,070 with…









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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*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.