Category: Transportation

Thursday, February 27, 2020

Orion Group Holdings (ORN)

Better than expected 4Q2019 Results and Positive 2020 EBITDA Guidance

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.

4Q2019 gross profit of $19.1 million and EBITDA of $11.0 million beat our estimates of $15.2 million and $8.2 million, respectively. Gross margin of 9.6% was in line and EBITDA margin of 5.5% was ~400 basis points higher. Main driver was Marine profitability and Concrete has plenty of room to improve. Positive 2020 EBITDA guidance in the low-mid $40 million range is slightly above our $41.1 million estimate.

YE2019 backlog moderated to $572 million, as expected, but still up 30% over YE2018 and industry fundamentals remain positive. YTD awards total $87 million ($47 million in industrial and $40 million in concrete), and…

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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
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 27, 2020

Orion Group Holdings (ORN)

Better than expected 4Q2019 Results and Positive 2020 EBITDA Guidance

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.

4Q2019 gross profit of $19.1 million and EBITDA of $11.0 million beat our estimates of $15.2 million and $8.2 million, respectively. Gross margin of 9.6% was in line and EBITDA margin of 5.5% was ~400 basis points higher. Main driver was Marine profitability and Concrete has plenty of room to improve. Positive 2020 EBITDA guidance in the low-mid $40 million range is slightly above our $41.1 million estimate.

YE2019 backlog moderated to $572 million, as expected, but still up 30% over YE2018 and industry fundamentals remain positive. YTD awards total $87 million ($47 million in industrial and $40 million in concrete), and…

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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
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 26, 2020

Genco Shipping & Trading Limited (GNK)

Solid Quarter and Expanding Fleet Renewal Program

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 4Q2019 EBITDA of $28.4 million is below our estimate of $31.5 million, mainly due to lower than expected TCE rates of $12.6k/day. Management call today at 8:30am EST to discuss outlook. Call number is 334-777-6978 and code is 7774363.

Fine-tuning 2020 EBITDA estimate to $108.2 million based on dry bulk market weakness and smaller fleet. Forward cover of 79% of 1Q2020 days booked at $10.9k/day tempers current weakness. Cape cover looks very good at 78% of 1Q2020 days booked at $17.1k/day but EBITDA likely to be weaker in 2Q2020. Scrubbers on Capes and…

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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, February 26, 2020

Genco Shipping & Trading Limited (GNK)

Solid Quarter and Expanding Fleet Renewal Program

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 4Q2019 EBITDA of $28.4 million is below our estimate of $31.5 million, mainly due to lower than expected TCE rates of $12.6k/day. Management call today at 8:30am EST to discuss outlook. Call number is 334-777-6978 and code is 7774363.

Fine-tuning 2020 EBITDA estimate to $108.2 million based on dry bulk market weakness and smaller fleet. Forward cover of 79% of 1Q2020 days booked at $10.9k/day tempers current weakness. Cape cover looks very good at 78% of 1Q2020 days booked at $17.1k/day but EBITDA likely to be weaker in 2Q2020. Scrubbers on Capes and…

Get the full report on Channelchek desktop.

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 25, 2020

Euroseas Ltd. (ESEA)

Challenging Market, But 2H2020 Recovery 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 4Q2019 EBITDA, excluding dry dock expenses, was $2.7 million, or about $0.6 million below expectations.  4Q2019 gross TCE revenue of $13.2 million increased due to 307 higher ownership days and a $532 increase in TCE rates to $9,086/day.

Adjusting 2020 EBITDA estimate to reflect current container market fundamentals. Recent acquisitions will have a full impact on 2020 operating results and we are forecasting 2020 EBITDA of $15.3 million based on 6,695 operating days and TCE rates of $9.691/day versus our previous estimate 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. 

Tuesday, February 25, 2020

Euroseas Ltd. (ESEA)

Challenging Market, But 2H2020 Recovery 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 4Q2019 EBITDA, excluding dry dock expenses, was $2.7 million, or about $0.6 million below expectations.  4Q2019 gross TCE revenue of $13.2 million increased due to 307 higher ownership days and a $532 increase in TCE rates to $9,086/day.

Adjusting 2020 EBITDA estimate to reflect current container market fundamentals. Recent acquisitions will have a full impact on 2020 operating results and we are forecasting 2020 EBITDA of $15.3 million based on 6,695 operating days and TCE rates of $9.691/day versus our previous estimate of…

Get the full report on Channelchek desktop.

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. 

IMO2020: Major Shift in Fuel Regulations

At the beginning of 2019, IMO2020 required shipping companies to comply with new regulations designed to improve air emissions by lowering the sulfur emitted in flue gases. Panelists will detail their views on the low sulfur requirement and its impact on shipping. Some companies have shifted to compliant low sulfur fuel while others are investing in equipment to remove sulfur. Attendees will come to understand how decisions are made, how what is best for one company may not suit another, and what is coming down the road.

• Gary Vogel, CEO Eagle Bulk Shipping, Inc.
• Jeffrey D. Pribor, CFO, Treasurer, International Seaways, Inc.
• Eddie Valentis (Pyxis Tankers) CEO
• Tasos Aslidis, CFO (EuroDry and Euroseas)
• Mads Petersen, Managing Director, Nordic Bulk Carriers
• Stamatios Tsantanis, CEO Seanergy Maritime Holdings
• Poe Fratt (Moderator) – Senior Transportation & Logistics Analyst at Noble Capital Markets

Thursday, February 20, 2020

Great Lakes Dredge & Dock (GLDD)

Profitability Remains High and 2020 Outlook Robust

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.

Strong execution and higher profitability more than offset lower revenues. While total revenue of $164.3 million was lower than expected by ~$25 million, gross profit of $34.6 million was in line with our estimate, and gross margin improved to 21%, which was above our estimate of 19.0%.

No change to 2020 EBITDA estimate. We’ll further fine-tune our 2020 estimate of $140.3 million, up from 2019 EBITDA of $135.6 million, and introduce a…

Get the full report on Channelchek desktop.

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. 

IMO2020: Major Shift in Fuel Regulations

At the beginning of 2019, IMO2020 required shipping companies to comply with new regulations designed to improve air emissions by lowering the sulfur emitted in flue gases. Panelists will detail their views on the low sulfur requirement and its impact on shipping. Some companies have shifted to compliant low sulfur fuel while others are investing in equipment to remove sulfur. Attendees will come to understand how decisions are made, how what is best for one company may not suit another, and what is coming down the road.

• Gary Vogel, CEO Eagle Bulk Shipping, Inc.
• Jeffrey D. Pribor, CFO, Treasurer, International Seaways, Inc.
• Eddie Valentis (Pyxis Tankers) CEO
• Tasos Aslidis, CFO (EuroDry and Euroseas)
• Mads Petersen, Managing Director, Nordic Bulk Carriers
• Stamatios Tsantanis, CEO Seanergy Maritime Holdings
• Poe Fratt (Moderator) – Senior Transportation & Logistics Analyst at Noble Capital Markets

Thursday, February 20, 2020

Great Lakes Dredge & Dock (GLDD)

Profitability Remains High and 2020 Outlook Robust

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.

Strong execution and higher profitability more than offset lower revenues. While total revenue of $164.3 million was lower than expected by ~$25 million, gross profit of $34.6 million was in line with our estimate, and gross margin improved to 21%, which was above our estimate of 19.0%.

No change to 2020 EBITDA estimate. We’ll further fine-tune our 2020 estimate of $140.3 million, up from 2019 EBITDA of $135.6 million, and introduce a…

Get the full report on Channelchek desktop.

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, February 14, 2020

EuroDry Ltd. (EDRY)

Solid Quarter and Well Positioned for Expected 2H2020 Recovery

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.

Another solid quarter as pure dry bulk play.  Adjusted 4Q2019 EBITDA of $3.8 million was above our estimate of $2.8 million mainly due to higher than expected TCE rates and and lower opex.

Lowering 2020 estimates.  Due to dry bulk market weakness, we are moving adjusted 2020 EBITDA estimate lower to $11.5 million based on TCE rates of $11,671/day down from $13.4 million based on TCE rates of $12,622/day. Given the current dry bulk market environment, we are forecasting that TCE rates weaken slightly in 1H2019 from 4Q2019 levels. There was limited change in the contract status, but one longer term contract will move from a fixed rate to indexed rate in 1Q2020 and…

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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. 

Friday, February 14, 2020

Seanergy (SHIP)

Focus on Weak Cape Market and Upcoming Refinancing

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.

4Q2019 operating results were higher than our recently revised estimates. EBITDA of $11.9 million, TCE rates of $22.9k/day and EPS of $0.08 were above expectations.

Dry bulk market weakness impacts 2020 estimate. The early part of the year has been weaker than expected and our new EBITDA estimate is $27.2 million based on TCE rates of $15.3k, down from our previous estimate 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. 

Friday, February 14, 2020

EuroDry Ltd. (EDRY)

Solid Quarter and Well Positioned for Expected 2H2020 Recovery

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.

Another solid quarter as pure dry bulk play.  Adjusted 4Q2019 EBITDA of $3.8 million was above our estimate of $2.8 million mainly due to higher than expected TCE rates and and lower opex.

Lowering 2020 estimates.  Due to dry bulk market weakness, we are moving adjusted 2020 EBITDA estimate lower to $11.5 million based on TCE rates of $11,671/day down from $13.4 million based on TCE rates of $12,622/day. Given the current dry bulk market environment, we are forecasting that TCE rates weaken slightly in 1H2019 from 4Q2019 levels. There was limited change in the contract status, but one longer term contract will move from a fixed rate to indexed rate in 1Q2020 and…

Get the full report on Channelchek desktop.

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.