Category: Transportation

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…

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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. 

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…

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. 

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…

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. 

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. 

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…

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. 

Wednesday, February 12, 2020

Seanergy (SHIP)

Scrubber Program Complete. Adjusting Estimates for Dry Bulk Market Weakness.

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.

IMO 2020 compliance plan implemented. Scrubbers were installed on five Capes, with the last one on December 19, 2019. The $12 million cost of the scrubber program was largely funded by charterers. Additional scrubber installations will be dependent upon customer support and funding.

4Q2019 operating results will be out before the market opens tomorrow (February 13th). There will be an earnings call at 11am EST and the call number is 877-553-9962 with a code of Seanergy. In advance of the call, we are fine-tuning our estimates. Our 4Q2019 estimates are EBITDA of $11.6 million based on TCE rates of $22.7k/day 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. 

Wednesday, February 12, 2020

Seanergy (SHIP)

Scrubber Program Complete. Adjusting Estimates for Dry Bulk Market Weakness.

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.

IMO 2020 compliance plan implemented. Scrubbers were installed on five Capes, with the last one on December 19, 2019. The $12 million cost of the scrubber program was largely funded by charterers. Additional scrubber installations will be dependent upon customer support and funding.

4Q2019 operating results will be out before the market opens tomorrow (February 13th). There will be an earnings call at 11am EST and the call number is 877-553-9962 with a code of Seanergy. In advance of the call, we are fine-tuning our estimates. Our 4Q2019 estimates are EBITDA of $11.6 million based on TCE rates of $22.7k/day 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 11, 2020

Grindrod Shipping (GRIN)

Acquisition of IVS Bulk JV Interest Set to Close

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.

Acquisition of IVS Bulk minority interest should close shortly. The $44.1 million acquisition will consolidate the joint venture and enhance the dry bulk fleet profile. Secured debt of $127 million refinances existing JV debt and a GRIN sub will borrow ~$36 million to complete the acquisition.

Sale of small tanker also announced for $9 million. The sale increases liquidity by ~$4.5 million and enhances the fleet profile. Adjusting estimates to reflect the acquisition, asset sale and dry bulk market weakness. Our new 2020 EBITDA estimate drops to $59 million from $65 million. We expect to 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. 

Tuesday, February 11, 2020

Grindrod Shipping (GRIN)

Acquisition of IVS Bulk JV Interest Set to Close

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.

Acquisition of IVS Bulk minority interest should close shortly. The $44.1 million acquisition will consolidate the joint venture and enhance the dry bulk fleet profile. Secured debt of $127 million refinances existing JV debt and a GRIN sub will borrow ~$36 million to complete the acquisition.

Sale of small tanker also announced for $9 million. The sale increases liquidity by ~$4.5 million and enhances the fleet profile. Adjusting estimates to reflect the acquisition, asset sale and dry bulk market weakness. Our new 2020 EBITDA estimate drops to $59 million from $65 million. We expect to 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. 

Wednesday, February 5, 2020

Orion Group Holdings (ORN)

Significant Industrial Award Pushes YTD Awards to $87 million

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.

$47 million award is first sign of emerging industrial strategy. The multi-discipline work for the Port of New Orleans on the Nashville Terminal in New Orleans is the first industrial award. Work includes demolishing a warehouse, repairing/upgrading existing wharf infrastructure, and modifying/installing rails for four container cranes. Work is longer term, slated to begin this quarter and run six quarters through 3Q2021.

Combined with prior concrete awards of $40 million, YTD awards total $87 million. The longer term industrial award complements the six shorter concrete jobs previously awarded that begin this quarter 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.