Category: Transportation

Monday, March 23, 2020

Pyxis Tankers Inc. (PXS)

Solid Quarter and Refined Product Tanker Outlook Promising Once Uncertainty Passes.

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 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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NOTE: investment decisions should not be based upon the content of
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Friday, March 6, 2020

Eagle Bulk Shipping (EGLE)

Challenging Quarter and Current Environment, But 2H2020 Recovery Likely

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.

A tough end to a volatile year. Adjusted 4Q2019 EBITDA was $9.8 million and adjusted 2019 EBITDA was $48.7 million. A settlement of OFAC issue cost $1.1 million. High shipyard activity due to the scrubber installation program and a weaker dry bulk market had a negative impact on operating results.

Adjusting 2020 estimates to reflect operating results and current dry bulk market fundamentals. Forward cover is solid with 85% of 1Q2020 available days booked at $10,300/day, and we expect 2020 EBITDA to increase to $80.0 million versus $48.7 million in 2019 due to higher TCE rates, lower off hire days 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. 

Friday, March 6, 2020

Eagle Bulk Shipping (EGLE)

Challenging Quarter and Current Environment, But 2H2020 Recovery Likely

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.

A tough end to a volatile year. Adjusted 4Q2019 EBITDA was $9.8 million and adjusted 2019 EBITDA was $48.7 million. A settlement of OFAC issue cost $1.1 million. High shipyard activity due to the scrubber installation program and a weaker dry bulk market had a negative impact on operating results.

Adjusting 2020 estimates to reflect operating results and current dry bulk market fundamentals. Forward cover is solid with 85% of 1Q2020 available days booked at $10,300/day, and we expect 2020 EBITDA to increase to $80.0 million versus $48.7 million in 2019 due to higher TCE rates, lower off hire days 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. 

Monday, March 2, 2020

Orion Group Holdings (ORN)

Set Up for Positive Year Drives Higher Price Target

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.

A solid end to a transformational year. 4Q2019 gross profit of $19.1 million and EBITDA of $11.0 million beat our estimates of $15.2 million and $8.2 million, respectively. High backlog, improving execution and ISG restructuring create tailwinds into 2020.

YE2019 backlog moderated to $572 million, as expected, but still up 30% over YE2018 and industry fundamentals remain positive. Backlog is $341 million in Marine and $232 million in…

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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. 

Monday, March 2, 2020

Orion Group Holdings (ORN)

Set Up for Positive Year Drives Higher Price Target

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.

A solid end to a transformational year. 4Q2019 gross profit of $19.1 million and EBITDA of $11.0 million beat our estimates of $15.2 million and $8.2 million, respectively. High backlog, improving execution and ISG restructuring create tailwinds into 2020.

YE2019 backlog moderated to $572 million, as expected, but still up 30% over YE2018 and industry fundamentals remain positive. Backlog is $341 million in Marine and $232 million in…

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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. 

Thursday, February 27, 2020

Orion Group Holdings (ORN)

Better than expected 4Q2019 Results and Positive 2020 EBITDA Guidance

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.

4Q2019 gross profit of $19.1 million and EBITDA of $11.0 million beat our estimates of $15.2 million and $8.2 million, respectively. Gross margin of 9.6% was in line and EBITDA margin of 5.5% was ~400 basis points higher. Main driver was Marine profitability and Concrete has plenty of room to improve. Positive 2020 EBITDA guidance in the low-mid $40 million range is slightly above our $41.1 million estimate.

YE2019 backlog moderated to $572 million, as expected, but still up 30% over YE2018 and industry fundamentals remain positive. YTD awards total $87 million ($47 million in industrial and $40 million in concrete), and…

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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, February 27, 2020

Orion Group Holdings (ORN)

Better than expected 4Q2019 Results and Positive 2020 EBITDA Guidance

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.

4Q2019 gross profit of $19.1 million and EBITDA of $11.0 million beat our estimates of $15.2 million and $8.2 million, respectively. Gross margin of 9.6% was in line and EBITDA margin of 5.5% was ~400 basis points higher. Main driver was Marine profitability and Concrete has plenty of room to improve. Positive 2020 EBITDA guidance in the low-mid $40 million range is slightly above our $41.1 million estimate.

YE2019 backlog moderated to $572 million, as expected, but still up 30% over YE2018 and industry fundamentals remain positive. YTD awards total $87 million ($47 million in industrial and $40 million in concrete), and…

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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. 

Wednesday, February 26, 2020

Genco Shipping & Trading Limited (GNK)

Solid Quarter and Expanding Fleet Renewal Program

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.

Adjusted 4Q2019 EBITDA of $28.4 million is below our estimate of $31.5 million, mainly due to lower than expected TCE rates of $12.6k/day. Management call today at 8:30am EST to discuss outlook. Call number is 334-777-6978 and code is 7774363.

Fine-tuning 2020 EBITDA estimate to $108.2 million based on dry bulk market weakness and smaller fleet. Forward cover of 79% of 1Q2020 days booked at $10.9k/day tempers current weakness. Cape cover looks very good at 78% of 1Q2020 days booked at $17.1k/day but EBITDA likely to be weaker in 2Q2020. Scrubbers on Capes 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. 

Wednesday, February 26, 2020

Genco Shipping & Trading Limited (GNK)

Solid Quarter and Expanding Fleet Renewal Program

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.

Adjusted 4Q2019 EBITDA of $28.4 million is below our estimate of $31.5 million, mainly due to lower than expected TCE rates of $12.6k/day. Management call today at 8:30am EST to discuss outlook. Call number is 334-777-6978 and code is 7774363.

Fine-tuning 2020 EBITDA estimate to $108.2 million based on dry bulk market weakness and smaller fleet. Forward cover of 79% of 1Q2020 days booked at $10.9k/day tempers current weakness. Cape cover looks very good at 78% of 1Q2020 days booked at $17.1k/day but EBITDA likely to be weaker in 2Q2020. Scrubbers on Capes 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. 

Tuesday, February 25, 2020

Euroseas Ltd. (ESEA)

Challenging Market, But 2H2020 Recovery 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 4Q2019 EBITDA, excluding dry dock expenses, was $2.7 million, or about $0.6 million below expectations.  4Q2019 gross TCE revenue of $13.2 million increased due to 307 higher ownership days and a $532 increase in TCE rates to $9,086/day.

Adjusting 2020 EBITDA estimate to reflect current container market fundamentals. Recent acquisitions will have a full impact on 2020 operating results and we are forecasting 2020 EBITDA of $15.3 million based on 6,695 operating days and TCE rates of $9.691/day versus 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. 

Tuesday, February 25, 2020

Euroseas Ltd. (ESEA)

Challenging Market, But 2H2020 Recovery 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 4Q2019 EBITDA, excluding dry dock expenses, was $2.7 million, or about $0.6 million below expectations.  4Q2019 gross TCE revenue of $13.2 million increased due to 307 higher ownership days and a $532 increase in TCE rates to $9,086/day.

Adjusting 2020 EBITDA estimate to reflect current container market fundamentals. Recent acquisitions will have a full impact on 2020 operating results and we are forecasting 2020 EBITDA of $15.3 million based on 6,695 operating days and TCE rates of $9.691/day versus 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. 

IMO2020: Major Shift in Fuel Regulations

At the beginning of 2019, IMO2020 required shipping companies to comply with new regulations designed to improve air emissions by lowering the sulfur emitted in flue gases. Panelists will detail their views on the low sulfur requirement and its impact on shipping. Some companies have shifted to compliant low sulfur fuel while others are investing in equipment to remove sulfur. Attendees will come to understand how decisions are made, how what is best for one company may not suit another, and what is coming down the road.

• Gary Vogel, CEO Eagle Bulk Shipping, Inc.
• Jeffrey D. Pribor, CFO, Treasurer, International Seaways, Inc.
• Eddie Valentis (Pyxis Tankers) CEO
• Tasos Aslidis, CFO (EuroDry and Euroseas)
• Mads Petersen, Managing Director, Nordic Bulk Carriers
• Stamatios Tsantanis, CEO Seanergy Maritime Holdings
• Poe Fratt (Moderator) – Senior Transportation & Logistics Analyst at Noble Capital Markets

Thursday, February 20, 2020

Great Lakes Dredge & Dock (GLDD)

Profitability Remains High and 2020 Outlook Robust

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.

Strong execution and higher profitability more than offset lower revenues. While total revenue of $164.3 million was lower than expected by ~$25 million, gross profit of $34.6 million was in line with our estimate, and gross margin improved to 21%, which was above our estimate of 19.0%.

No change to 2020 EBITDA estimate. We’ll further fine-tune our 2020 estimate of $140.3 million, up from 2019 EBITDA of $135.6 million, and introduce 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 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.