Category: Transportation

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).

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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 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…








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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. 

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
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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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, 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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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 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. 

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. 

Wednesday, May 20, 2020

EuroDry Ltd. (EDRY)

Fine-tuning 2020 EBITDA Estimate. Challenges Ahead, But Outlook Positive.

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

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

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

Adjusted 1Q2020 EBITDA of $0.8 million was weaker than expected due to lower TCE rates of $7,885/day. 1Q2020 TCE revenue of $4.9 million was below expectations by $1.6million, as TCE rates tied to indices were lower than expected and more than offset higher shipping days.


Fine-tuning 2020 estimate.  Following the management call, we are moving adjusted 2020 EBITDA estimate lower to $5.7 million based on TCE rates of $8,684/day, down from $6.3 million based on TCE rates of $8,909/day. Given the current weakness in the dry bulk market environment and COVID-19 uncertainty, we are forecasting that weak TCE rates linger into next quarter before recovering in late 3Q2020. There were limited changes in the contract status update, 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. 

Wednesday, May 20, 2020

EuroDry Ltd. (EDRY)

Fine-tuning 2020 EBITDA Estimate. Challenges Ahead, But Outlook Positive.

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

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

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

Adjusted 1Q2020 EBITDA of $0.8 million was weaker than expected due to lower TCE rates of $7,885/day. 1Q2020 TCE revenue of $4.9 million was below expectations by $1.6million, as TCE rates tied to indices were lower than expected and more than offset higher shipping days.


Fine-tuning 2020 estimate.  Following the management call, we are moving adjusted 2020 EBITDA estimate lower to $5.7 million based on TCE rates of $8,684/day, down from $6.3 million based on TCE rates of $8,909/day. Given the current weakness in the dry bulk market environment and COVID-19 uncertainty, we are forecasting that weak TCE rates linger into next quarter before recovering in late 3Q2020. There were limited changes in the contract status update, with…









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. 

Tuesday, May 19, 2020

EuroDry Ltd. (EDRY)

Challenging Quarter and Near-term Outlook Remains Uncertain

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

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

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

Adjusted 1Q2020 EBITDA of $0.8 million was weaker than expected due to lower TCE rates of $7,885/day. Call with management today at 10:00 am EST to discuss 1Q2020 results. The number is (877) 553-9962 and code is Eurodry.


Lowering 2020 estimate.  Due to dry bulk market weakness, we are moving adjusted 2020 EBITDA estimate lower to $6.3 million based on TCE rates of $8,909/day, down from $11.5 million based on TCE rates of $11,671/day. Given the current weakness in the dry bulk market environment and COVID-19 uncertainty, we are forecasting that TCE rates remain weak this quarter before recovering in 2H2020. There were limited changes in the contract status update, with…









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.