Category: Transportation

Another strong quarter driven by solid execution, especially in Marine business. 1Q2020 gross profit of $19.8 million and EBITDA of $12.2 million easily beat our estimates of $12.0 million and $6.2 million, respectively. Gross margin and EBITDA margin were ~400 basis points higher than expected mainly due to strong Marine execution and higher equipment utilization. Concrete also improved modestly. 1Q2020 backlog rebounded to $610 million from $572 million, with Marine up $22 million to $362 million and Concrete up $16 million to $247 million, a record. Bidding remains active in both segments.

Increasing 2020 EBITDA estimate despite suspended guidance. Minor disruptions seen to date and bidding activity continues in both segments, but suspending guidance is the safe route, one similar to many other companies. There are increasing risks to existing projects, but work goes on and we expect EBITDA will move up more than…

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Another strong quarter driven by solid execution, especially in Marine business. 1Q2020 gross profit of $19.8 million and EBITDA of $12.2 million easily beat our estimates of $12.0 million and $6.2 million, respectively. Gross margin and EBITDA margin were ~400 basis points higher than expected mainly due to strong Marine execution and higher equipment utilization. Concrete also improved modestly. 1Q2020 backlog rebounded to $610 million from $572 million, with Marine up $22 million to $362 million and Concrete up $16 million to $247 million, a record. Bidding remains active in both segments.

Increasing 2020 EBITDA estimate despite suspended guidance. Minor disruptions seen to date and bidding activity continues in both segments, but suspending guidance is the safe route, one similar to many other companies. There are increasing risks to existing projects, but work goes on and we expect EBITDA will move up more than…

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Another strong quarter driven by solid execution. 1Q2020 gross profit of $19.8 million and EBITDA of $12.2 million easily beat our estimates of $12.0 million and $6.2 million, respectively. Gross margin of 11.6% and EBITDA margin of 7.3% were ~400 basis points higher than expected. Main driver was higher Marine profitability due to strong execution and higher equipment utilization. Concrete also improved modestly.

Suspending 2020 EBITDA guidance due to uncertainty caused by COVID-19. Minor disruptions seen to date and bidding activity continues in both segments, but taking the safe route, similar to many other companies. Our revised estimate is…

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Another strong quarter driven by solid execution. 1Q2020 gross profit of $19.8 million and EBITDA of $12.2 million easily beat our estimates of $12.0 million and $6.2 million, respectively. Gross margin of 11.6% and EBITDA margin of 7.3% were ~400 basis points higher than expected. Main driver was higher Marine profitability due to strong execution and higher equipment utilization. Concrete also improved modestly.

Suspending 2020 EBITDA guidance due to uncertainty caused by COVID-19. Minor disruptions seen to date and bidding activity continues in both segments, but taking the safe route, similar to many other companies. Our revised estimate is…

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Floating storage demand is boosting near-term refined product tanker market outlook. Global crude oil and refined product demand has dropped sharply due to measures to curb the Coronavirus and onshore storage capacity is filling up. The net result is higher demand for floating storage. Initially, crude oil tankers were positively impacted, but traders/marketers are looking for refined product tankers for storage of refined products to take advantage of attractive market conditions. As a result, the near-term outlook for MRs has improved markedly and TCE rates are moving higher. While it is difficult to predict when floating storage demand moderates and inventory destocking will ramp up, the long-term fundamentals remain attractive due to a shift in refining capacity in the eastern hemisphere and a limited order book (at the lowest level since 2000).

Maintaining 2020 EBITDA estimate, but positive surprises could materialize. Our 2020 EBITDA estimate remains at $6.9 million based on TCE rates of $13.5k/day and 1,589 operating days. Two one-year options recently expired so now all of the MRs are slated to reprice in 2Q2020; the Malou and Theta over the next month and the Epsilon in late June after a special survey. Operating leverage is high and each $1,000/day increase on the three MRs equates to EBITDA of $0.5 million over 2H2020. Due to Coronavirus related admin disruptions, 1Q2020 operating results could be pushed out into…

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Floating storage demand is boosting near-term refined product tanker market outlook. Global crude oil and refined product demand has dropped sharply due to measures to curb the Coronavirus and onshore storage capacity is filling up. The net result is higher demand for floating storage. Initially, crude oil tankers were positively impacted, but traders/marketers are looking for refined product tankers for storage of refined products to take advantage of attractive market conditions. As a result, the near-term outlook for MRs has improved markedly and TCE rates are moving higher. While it is difficult to predict when floating storage demand moderates and inventory destocking will ramp up, the long-term fundamentals remain attractive due to a shift in refining capacity in the eastern hemisphere and a limited order book (at the lowest level since 2000).

Maintaining 2020 EBITDA estimate, but positive surprises could materialize. Our 2020 EBITDA estimate remains at $6.9 million based on TCE rates of $13.5k/day and 1,589 operating days. Two one-year options recently expired so now all of the MRs are slated to reprice in 2Q2020; the Malou and Theta over the next month and the Epsilon in late June after a special survey. Operating leverage is high and each $1,000/day increase on the three MRs equates to EBITDA of $0.5 million over 2H2020. Due to Coronavirus related admin disruptions, 1Q2020 operating results could be pushed out into…

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No change in dredging market outlook We believe that the widespread disruption caused by the Coronavirus will have a minimal impact since dredging is defined as an essential service, per advisories from the Department of Homeland Security (DHS).

Adjusting year to date awards to $71.6 million. Our previous note included a $14 million job that was awarded at year-end 2019, not this year. More than $100 million of low bids pending award remain outstanding, and the next phase of stimulus seems likely to be…

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No change in dredging market outlook We believe that the widespread disruption caused by the Coronavirus will have a minimal impact since dredging is defined as an essential service, per advisories from the Department of Homeland Security (DHS).

Adjusting year to date awards to $71.6 million. Our previous note included a $14 million job that was awarded at year-end 2019, not this year. More than $100 million of low bids pending award remain outstanding, and the next phase of stimulus seems likely to be…

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Consistent business model delivered solid 4Q2019 results, but adjusting 2020 EBITDA estimate to reflect near-term uncertainty. While China is slowly returning to work and returning to normal, the near-term outlook is uncertain. As a result, our EBITDA estimate moves down to $47.1 million from $54.6 million, based on TCE rates of $13,423 and and 16,760 shipping days.

Fleet renewal intact with new build new program and sale of older assets. Acquisitions are possible if market…

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Consistent business model delivered solid 4Q2019 results, but adjusting 2020 EBITDA estimate to reflect near-term uncertainty. While China is slowly returning to work and returning to normal, the near-term outlook is uncertain. As a result, our EBITDA estimate moves down to $47.1 million from $54.6 million, based on TCE rates of $13,423 and and 16,760 shipping days.

Fleet renewal intact with new build new program and sale of older assets. Acquisitions are possible if market…

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Unique business model delivers solid results. 4Q2019 EBITDA of $13.5 million beat our $12.8 million estimate and was above $12.2 million in 4Q2018. Shipping days of 5,240, TCE rates of $15.2k/day and lower opex were positives.

Call today at 8 am EST to discuss results.  Number is 888-895-3561 and code is 9578734. Look for added details on: 1) Dry bulk market outlook; 2) Charter in activity; 3) Volume and/or pricing changes in cargo book; 4) Progress on the four new builds under way in China; and 5) Capital allocation strategy given apparent shift toward…

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Unique business model delivers solid results. 4Q2019 EBITDA of $13.5 million beat our $12.8 million estimate and was above $12.2 million in 4Q2018. Shipping days of 5,240, TCE rates of $15.2k/day and lower opex were positives.

Call today at 8 am EST to discuss results.  Number is 888-895-3561 and code is 9578734. Look for added details on: 1) Dry bulk market outlook; 2) Charter in activity; 3) Volume and/or pricing changes in cargo book; 4) Progress on the four new builds under way in China; and 5) Capital allocation strategy given apparent shift toward…

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Solid Quarter, but 4Q2019 EBITDA Slightly Below Expectations. Adjusted 4Q2019 EBITDA of $1.9 million was slightly below our estimate of $2.3 million due to a combination of lower TCE revenue ($0.3 million) and higher opex ($0.1 million).

Adjusting 2020 EBITDA estimate. We are fine-tuning our 2020 EBITDA estimate and moving to $6.9 million based on TCE rates of $13,532/day and 1,589 operating days due to the timing of dry dockings on the Epsilon and…

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