Category: Transportation

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. 

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…

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…

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. 

Thursday, January 30, 2020

Genco Shipping & Trading Limited (GNK)

Scrubbers Done, Quarterly Dividend Tempers Weakness

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.

Scrubber program completed and all 17 Cape scrubbers ready now. Last installation done in mid-January. Capes are capturing value from IMO2020 changes and cape volatility adds upside optionality to bar bell strategy.

Dry bulk market weakness accelerating into 1Q2020. The Baltic Capesize Index (BCI) average of 822 so far in 1Q2020 is down 71% from 2,837 in 4Q2019, and the Baltic Supramax Index (BSI) average of 578 so far in 1Q2020 is down 40% from 956 in 4Q2019. While IMO2020 adjustments to the indices are partially to blame, the dry bulk market has clearly been weaker than expected 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. 

Thursday, January 30, 2020

Genco Shipping & Trading Limited (GNK)

Scrubbers Done, Quarterly Dividend Tempers Weakness

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.

Scrubber program completed and all 17 Cape scrubbers ready now. Last installation done in mid-January. Capes are capturing value from IMO2020 changes and cape volatility adds upside optionality to bar bell strategy.

Dry bulk market weakness accelerating into 1Q2020. The Baltic Capesize Index (BCI) average of 822 so far in 1Q2020 is down 71% from 2,837 in 4Q2019, and the Baltic Supramax Index (BSI) average of 578 so far in 1Q2020 is down 40% from 956 in 4Q2019. While IMO2020 adjustments to the indices are partially to blame, the dry bulk market has clearly been weaker than expected 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, January 28, 2020

Scorpio Bulkers (SALT)

Weakness Takes A Toll, But Rebound Expected

Scorpio Bulkers Inc is a shipping company based in Monaco. It owns and operates a fleet of modern mid to large-size dry bulk carriers which provide marine transportation for major bulks, which include iron ore, coal and grain and minor bulks which include bauxite, fertilizers and steel products internationally. In terms of its dead weight tonnage, its vessels are classified as Capesize, Kamsarmax and Ultramax, by the order of highest to lowest capacity, with Kamsarmax accounting for the highest revenue.

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 $20.0 million well below expectations. The main reasons for the negative variance were lower TCE rates, higher opex/G&A expenses and higher downtime for scrubber installations. Non-cash items include gain in STNG investment of $47 million and asset write down of $25 million.

Dry bulk market weakness accelerating into 1Q2020. The Baltic Panamax Index (BPI) average of 814 so far in 1Q2020 is down 52% from 1,461 in 4Q2019, and the Baltic Supramax Index (BSI) average of 542 so far in 1Q2020 is down 43% from 956 in 4Q2019. While IMO2020 adjustments to the indices have been partially to blame, the dry bulk market has clearly been weaker than expected 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, January 28, 2020

Scorpio Bulkers (SALT)

Weakness Takes A Toll, But Rebound Expected

Scorpio Bulkers Inc is a shipping company based in Monaco. It owns and operates a fleet of modern mid to large-size dry bulk carriers which provide marine transportation for major bulks, which include iron ore, coal and grain and minor bulks which include bauxite, fertilizers and steel products internationally. In terms of its dead weight tonnage, its vessels are classified as Capesize, Kamsarmax and Ultramax, by the order of highest to lowest capacity, with Kamsarmax accounting for the highest revenue.

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 $20.0 million well below expectations. The main reasons for the negative variance were lower TCE rates, higher opex/G&A expenses and higher downtime for scrubber installations. Non-cash items include gain in STNG investment of $47 million and asset write down of $25 million.

Dry bulk market weakness accelerating into 1Q2020. The Baltic Panamax Index (BPI) average of 814 so far in 1Q2020 is down 52% from 1,461 in 4Q2019, and the Baltic Supramax Index (BSI) average of 542 so far in 1Q2020 is down 43% from 956 in 4Q2019. While IMO2020 adjustments to the indices have been partially to blame, the dry bulk market has clearly been weaker than expected 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, January 22, 2020

Orion Group Holdings (ORN)

New Awards of $18 million Push YTD Awards to $40 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.

Added concrete awards of $18 million helps 2020 visibility. Total concrete awards total $40 million so far in January. Three structural construction in Houston totaling $18 million were awarded. Combined with earlier awards totaling $22 million, about $40 million of work has been awarded so far this year. The work helps near-term visibility in Construction since it begins this quarter with completion in 4Q2020.

Potential good news coming in Marine. Low bidder on Port Mansfield work, but depends on USACE since bid was 27% above estimate. On January 14th, bids on dredging of the Port Mansfield, Texas channel (W912HY19B0015) were opened and ORN’s total bid of $15.96 million was the low bid. The bid is ~27% above the USACE estimate so not yet certain whether or…

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, January 22, 2020

Orion Group Holdings (ORN)

New Awards of $18 million Push YTD Awards to $40 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.

Added concrete awards of $18 million helps 2020 visibility. Total concrete awards total $40 million so far in January. Three structural construction in Houston totaling $18 million were awarded. Combined with earlier awards totaling $22 million, about $40 million of work has been awarded so far this year. The work helps near-term visibility in Construction since it begins this quarter with completion in 4Q2020.

Potential good news coming in Marine. Low bidder on Port Mansfield work, but depends on USACE since bid was 27% above estimate. On January 14th, bids on dredging of the Port Mansfield, Texas channel (W912HY19B0015) were opened and ORN’s total bid of $15.96 million was the low bid. The bid is ~27% above the USACE estimate so not yet certain whether or…

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.