Category: Transportation

Research – Genco Shipping (GNK) – Adjusting Estimates for Updated Scrubber Program Progress

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Monday, October 28, 2019

Genco Shipping & Trading Limited (GNK)

Adjusting Estimates for Updated Scrubber Program Progress

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 full report for price target, fundamental analysis and rating.

  • Scrubber program update includes added downtime.  Updated data on the scrubber program was released after the market closed on Friday. 11 scrubber installations on Capes completed to date and six more to go, but downtime was 104 days higher than expected, or 601 days in 3Q2019.
  • Lowering 2019 EBITDA estimate to $78.0 million from $79.2 million to reflect higher
    downtime, but 1H2019 weakness clearly     …


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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 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. 

Research – Scorpio Bulkers (SALT) – Making A Good Move With Special Dividend

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Thursday October 24, 2019

Scorpio Bulkers (SALT)

Making A Good Move With Special Dividend

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 full report for price target, fundamental analysis and rating.

  • 3Q2019 results in line with expectations. Slight non-cash gain recognized on STNG
    investment       Adjusted EBITDA of $26.1 million was in line with our estimate of $26.3 million.
    TCE rate averages were $13,149/day for Kamsarmaxes and $11,824/day for Ultramaxes.

  • Lowering 2019 EBITDA estimate to $91.1 million to reflect 4Q2019 contract cover and
    timing of scrubber installations.     TCE rates moved higher to $11,391/day (from
    $11,237/day) and solid 4Q2019 contract cover, but…


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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 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. 

Research – Genco Shipping (GNK) – 2H2019 Recovery Intact Despite Recent Weakness

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Wednesday, October 23, 2019

Genco Shipping & Trading Limited (GNK)

2H2019 Recovery Intact Despite Recent 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 full report for price target, fundamental analysis and rating.

  • Dry bulk market recovered in 3Q2019 after weak 1H2019. 4Q2019 is off to a slow start, but dry bulk market fundamentals look good.  Despite the continued overhang of global trade tensions and sluggish global economic growth, higher iron ore shipments and other factors, like scrubber installations in advance of IOM2020 and low supply growth, remain positive for the dry bulk market outlook.
  • 2Q2019 weakness in rear view mirror.  Modest 2019 EBITDA estimate change to $79.2 million based on 2019 TCE rate estimate of $11,387/day. Shipyard activity peaks in 3Q2019, but EBITDA should be way up sequentially. In late July, almost 65% of available days were covered at $11,640/day, or well above the 2Q2019 average of $7,412/day….


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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 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. 

Research – Seanergy (SHIP) – Positive Impact from Dry Bulk Market Firmness

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Thursday October 17, 2019

Seanergy (SHIP)

Positive Impact from Dry Bulk Market Firmness

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 full report for price target, fundamental analysis and rating.

  • Dry Bulk market firmer in 2H2019 despite continued trade overhang. A rebound in iron ore shipments out of Brazil and the start of dry-docking activity tied to the installation of scrubbers in advance of the upcoming IMO2020 regulations have been positive, especially in the Cape market.
  • Increasing EBITDA estimates to $26.3 million in 2019 (from $19.9 million) and $50.2 million in 2020 (from $39.6 million) due to a positive forward cover update. Latest investor presentation shows 73% of available 3Q2019 days booked at an average rate 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 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. 

Research – Scorpio Bulkers (SALT) – Dry Bulk Market Firmer, But Fine-Tuning 2H2019 Estimates

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Wednesday October 16, 2019

Scorpio Bulkers (SALT)

Dry Bulk Market Firmer, But Fine-Tuning 2H2019 Estimates

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 full report for price target, fundamental analysis and rating.

  • Dry Bulk market firmer despite continued trade overhang.   A rebound in iron ore shipments out of Brazil and the start of dry-docking activity tied to the installation of scrubbers in advance of the upcoming IMO2020 regulations have been positive.
  • Lowering 2019 EBITDA estimate to $97.3 million based on TCE rates of $11,237/day, but maintaining 2020 EBITDA estimate of $145.0 million based on TCE rates of $13,821/day. Kamsarmax TCE rate estimate dropped to $12,314/day (down ~$800/day), but Ultramax TCE rates stay at…



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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 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. 

Research – Eagle Bulk Shipping (EGLE) – Scrubber Program Change Impacts Estimates, But Outlook Remains Solid

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Monday October 7, 2019

Eagle Bulk Shipping (EGLE)

Scrubber Program Change Impacts Estimates, But Outlook Remains Solid

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 full report for price target, fundamental analysis and rating.

  • Acquisition timing and scrubber program updates impact estimates.  Lowering 2019 EBITDA estimate to $66.6 million from $69.3 million. Higher off-hire days for scrubbers and updated timing on pending acquisitions more than offset higher TCE rates of $10,949/day, up from $10,913/day. No change to 2020 EBITDA estimate of $110.6 million and TCE rates of $12,501/day.
  • Acquisition update.  Six Ultramaxes to be acquired for ~$122 million. Three delivered and rest by yearend 2019, including one in October. Pro forma fleet expands by…



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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 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. 

Research – Great Lakes Dredge & Dock (GLDD) – Total 3Q2019 Awards of $319 million Above Expectations.

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Wednesday, October 2, 2019

Great Lakes Dredge & Dock (GLDD)

Total 3Q2019 Awards of $319 million Above Expectations.

Great Lakes Dredge & Dock is a marine and environmental infrastructure contractor, and the largest dredging company in the United States. Headquartered in suburban Chicago, the company provides port expansion and maintenance, coastal restoration, river dredging and environmental restoration for public and private entities worldwide. In June 2019, the Environmental & industrial (E&I) business was sold for $17.5 million in cash and the company is now pure play on the dredging market.

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

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

  • New awards of $178 million announced.  Moves total 3Q2019 awards to $319 million. As highlighted in recent notes, GLDD has been low bidder on numerous projects that we track. Yesterday, GLDD confirmed the likely awards of $135 million and announced $53 million of awards on other off-the-radar projects that exceeded our expectations. Please see comments and Figure 1 on page 2 for more details.
  • 2H2019 Backlog rebound remains likely even though 2019 win rate in the 25% range has been below average.  There were misses on…



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

*Analyst
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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – Orion Group Holdings (ORN) – Two Marine Awards Help 2020 Outlook

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Thursday October 3, 2019

Orion Group Holdings (ORN)

Two Marine Awards Help 2020 Outlook

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 full report for price target, fundamental analysis and rating.

  • Marine awards of $14 million add to record backlog.  Two dredging jobs on the Gulf Intracoastal Waterway (GIWW) in Texas were awarded; one for $6.6 million and another for $7.8 million. The work, which should be completed in 2H2020, helps marine backlog visibility into 2020.
  • The outlook looks very good due to record backlog and added awards on the horizon. About $1.3 billion of bids remain outstanding so additional awards are likely. A large proposed…



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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 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. 

Research – Great Lakes Dredge & Dock (GLDD) – Two New Jobs – 3Q2019 Awards Likely Above $265 million

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Wednesday, October 2, 2019

Great Lakes Dredge & Dock (GLDD)

Two New Jobs – 3Q2019 Awards Likely Above $265 million

Great Lakes Dredge & Dock is a marine and environmental infrastructure contractor, and the largest dredging company in the United States. Headquartered in suburban Chicago, the company provides port expansion and maintenance, coastal restoration, river dredging and environmental restoration for public and private entities worldwide. In June 2019, the Environmental & industrial (E&I) business was sold for $17.5 million in cash and the company is now pure play on the dredging market.

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

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

  • Two new awards add $44 million. Combined with other awards announced earlier in September, total 3Q2019 awards now likely to exceed $265 million. Last Friday, a $11.7 million contract for maintenance dredging in Chesapeake City, Maryland was awarded. Late Monday, a $32.5 million contract for beach re-nourishment in Cape May, New Jersey was awarded. Both awards were officially announced via the Department of Defense web site.
  • 2H2019 Backlog rebound remains likely even though win rate has been below average in 2019.  There were misses on three large projects in Savannah, Norfolk and Charleston, but low bids are pending on…



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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 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. 

Research – Euroseas (ESEA) – One Good Contract But Rest of the Fleet Not Following…Yet.

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Tuesday, October 1, 2019

Euroseas (ESEA)

One Good Contract But Rest of the Fleet Not Following…Yet.

Euroseas (ESEA) operates a fleet of 15 container ships (14 feeders and one intermediate) in the container shipping markets following the closing of a four feeder container vessel acquisition in early August 2019. Euroseas’ 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. Euroseas employs the fleet on mainly on spot and time period charters.

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

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

  • Attractive contract announced.  Akinada Bridge, the only intermediate container vessel, has received a 10-13 month charter at $16.5k beginning in mid-4Q2019. Once a ballast water treatment system (BWTS) is installed during a dry dock, the charter rate will move up to $16.5k from $8.5k. The $2.5 million cost of the BWTS/dry dock will be funded by a loan from the major shareholder.
  • Feeder fleet mixed.  Similar to earlier this year when almost every containership rolled onto new contracts at lower rates, two feeders recently rolled to lower rates, including the…



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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 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. 

Research – Great Lakes Dredge & Dock (GLDD) – Backlog Rebound

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Friday September 27, 2019

Great Lakes Dredge & Dock (GLDD)

3Q2019 Awards Could Exceed $220 million

Great Lakes Dredge & Dock is a marine and environmental infrastructure contractor, and the largest dredging company in the United States. Headquartered in suburban Chicago, the company provides port expansion and maintenance, coastal restoration, river dredging and environmental restoration for public and private entities worldwide. In June 2019, the Environmental & industrial (E&I) business was sold for $17.5 million in cash and the company is now pure play on the dredging market.

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

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

  • Three new awards for $82 million out shortly. Combined with $141 million of other awards, total 3Q2019 awards likely to exceed $220 million. A Mississippi Senator announced that $56.6 million of MsCIP work was awarded recently, a $8.7 million Florida beach project was awarded on Tuesday, and a $16 million dredging project was awarded on September 13th.
  • 2H2019 Backlog rebound remains likely even though GLDD was not the low bidder on three large projects in Savannah, Norfolk and Charleston.  Low bids are pending on other projects and bids on several larger projects should be…



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

*Analyst
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NOTE: investment decisions should not be based upon the content of
this research summary.  Proper due diligence is required before
making any investment decision. 

Research – EuroDry (EDRY) – Moving Estimates Higher

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Thursday September 26, 2019

EuroDry (EDRY)

Moving Estimates Higher to Reflect Dry Bulk Market Improvement

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 full report for price target, fundamental analysis and rating.

  • Dry Bulk market has improved despite continued trade overhang. Despite the continued overhang of global trade tensions and sluggish global economic growth, the dry bulk market has been stronger than expected.
  • Adjusting our 2019 EBITDA estimate to current dry bulk market environment.   We are increasing our adjusted 2019 EBITDA estimate to $10.8 million from $10.4 million, mainly due to an increase in…



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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 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. 

Research – Scorpio Bulkers (SALT) – Will Dry Bulk Market Remain Firm?

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Tuesday, September 24, 2019

Scorpio Bulkers (SALT)

Asset Sales Enhance Liquidity. Will Dry Bulk Market Remain Firm?

Scorpio Bulkers (SALT) owns/operates a fleet of 56 dry bulk vessels, including 37 Ultramax and 19 Kamsarmax dry bulk vessels. The Ultramax and Kamsarmax sectors are the upper end of the range for the Handymax sector, and the sector is characterized by onboard cranes to allow the loading/unloading of cargo. SALT moves both major and minor bulk around the world. SALT actively markets and manages the fleet internally (both commercial and technical) and also charters in dry bulk vessels to expand operating leverage.

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

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

  • Asset sales and recent financings boost liquidity and enhance financial flexibility.  Agreement reached to sell two Ultramaxes for $37.9 million in early 4Q2019. Liquidity should improve by $16.0 million after debt repayment.
  • Dry Bulk market improving despite continued trade overhang.   Despite the continued overhang of global trade tensions and sluggish global economic growth, the dry bulk market has been stronger than expected in 3Q2019…



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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 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.