Category: Transportation

Research – EuroDry (EDRY) Solid Quarter and Balanced Contracting Tempers Volatility

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Monday, November 18, 2019

EuroDry Ltd. (EDRY)

Solid Quarter and Balanced Contracting Tempers Volatility

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 full report for price target, fundamental analysis and rating.

  • Another solid quarter as pure dry bulk play.  Adjusted EBITDA of $2.9 million was above our estimate of $2.6 million mainly due to higher than expected TCE rates of $12,088/day and lower opex, which more than offset lower shipping days.
  • Adjusting our 2019 EBITDA estimate to $10.9 million to reflect positive quarter and current dry bulk market environment.    Given the current dry bulk market environment, we
    are orecasting that TCE rates weaken slightly in 4Q2019. But 3Q2019 was higher than expected so…


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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 – Pangaea Logistics Solutions (PANL) – Unique Business Model Delivers Solid Results

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Monday, November 11, 2019

Pangaea Logistics Solutions Ltd. (PANL)

Unique Business Model Delivers Solid Results

Pangaea Logistics Solutions Ltd and its subsidiaries provide seaborne drybulk transportation services. It transports drybulk cargos including grains, coal, iron, ore, pig, iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The firm’s services include cargo loading, cargo discharge, vessel chartering, voyage planning and technical vessel management. The company derives all of its revenues from contracts of affreightment, voyage charters and time charters. Its strategy depends on focusing on increasing strategic contracts of affreightment, expanding capacity and flexibility by increasing its owned fleet and increasing backhaul focus and fleet efficiency.

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

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

  • Lower-than-expected 3Q2019 numbers but consistent business model delivered solid results amid market volatility.  While short of our estimate, 3Q2019 EBITDA of $17.7 million was higher than 2Q2019 EBITDA of $11.3 million and TCE rates of $15,915/day were the highest in several years and well above $14,360/day in 3Q2018.
  • To reflect the 3Q2019 variance, we updated our 2019 EBITDA estimate  to $50.5 million based on shipping days of…


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This Company Sponored 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) – Stock Price Weakness Spells Opportunity

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Friday November 8, 2019

Eagle Bulk Shipping (EGLE)

Stock Price Weakness Spells Opportunity

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.

  • TCE rate underperformance surprise and quarter light of expectations. Adjusted 3Q2019 EBITDA of $13.1 million was below our $18.1 million estimate due to lower TCE revenue and lower TCE rates.

  • Shortfall and scrubber program update pushes 2019 EBITDA estimate down to $58.4 million from $66.6 million.  Higher off-hire days for scrubbers and lower TCE rate estimates of $10,666/day, down from…


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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) – 3Q2019 Shortfall Masks Improving Operating Results

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Thursday November 7, 2019

Seanergy (SHIP)

3Q2019 Shortfall Masks Improving Operating Results

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.

  • 3Q2019 results below expectations.  3Q2019 EBITDA of $9.8 million was below expectations due to higher downtime due to the scrubber program and other drydocking activity. In addition, TCE rates of $20,143/day were ~$4,000/day below our estimate in part due to an accounting change. SHIP switched to load-to-discharge accounting whereby revenues are not recorded for Capes in transit at the quarter cut-off date.

  • Adjusting EBITDA estimates to $24.8 million in 2019 (from $26.3 million) and $51.3 million in 2020 (from $50.2 million) to reflect 3Q2019 shortfall but 4Q2019 forward cover update. 80% of available 4Q2019 operating days are booked at an average rate of $25.8k/day. We lowered our 2019 Cape TCE rate estimate to $14.8k/day (from $15.3k/day) 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 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) – Improving Financials and Asset Sales Trigger Special and Regular Dividends

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Thrusday, November 7, 2019

Genco Shipping & Trading Limited (GNK)

Improving Financials and Asset Sales Trigger Special and Regular Dividends

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.

  • Adjusted 3Q2019 EBITDA of $22.7 million and TCE rate of $11,687/day in line with expectations. Despite high shipyard activity, operating results improved and 1H2019
    weakness is clearly in rear view miror. More color expected on today’s call at 8:30 am EST. Number is 800-479-1004 and code is 3702137.

  • Increasing 2019 EBITDA estimate to $79.3 million. 4Q2019 EBITDA of $33.7 million and TCE rates of $13,500/day look reasonable given forward cover with 64% of available days booked at $14,041/day. Lowering 2020 EBITDA estimate to $150.7 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).

*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 – Orion Group Holdings (ORN) – On the Right Track. Moving Up Estimates.

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Friday November 1, 2019

Orion Group Holdings (ORN)

On the Right Track. Moving Up Estimates.

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.

  • Transition continues with another solid quarter. 3Q2019 revenue of $200 million and adjusted EBITDA of $14.3 million were ahead of expectations of $175.0 million and $12.0 million, respectively. Both the Marine and Construction businesses were profitable. Stronger Marine EBITDA of $12.7 million (margin of 11.9%) was the primary driver, but Construction EBITDA of $1.6 million (margin of 1.7%) shifted into positive territory.

  • Backlog dropped to $631 million in 3Q2019 from $661 million in 2Q2019, but remains near record level.   With about $169 million of recent awards, backlog fell back to $631 million from a record level of $661 million in 2Q2019. Higher Construction awards of $134 million pushed backlog to a record level of $226 million, while…


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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 – ORION Group Holdings – Transition Continues with Another Solid Quarter.

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Thursday October 31, 2019

Orion Group Holdings (ORN)

Transition Continues with Another Solid Quarter.

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.

  • Transition continues with a solid quarter.  3Q2019 Backlog of $631 million was below 2Q2019 backlog of $661 million. Construction awards were higher at $134 million pushing backlog to a record level of $226 million, while

  • Backlog dropped but still near record level.  About $1.3 billion of bids remain outstanding so additional awards, including 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 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) – 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

Posted on by Admin

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.