Tuesday, May 28, 2019

EuroDry (EDRY)

Navigating Dry Bulk Market Weakness Well

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.

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 1Q2019 EBITDA of $2.5 million was above our estimate of $2.2 million and modestly below $3.5 million in 4Q2018 due to hedging activity that offset lower TCE rates.
• Increasing 2019 EBITDA estimate to reflect reported operating results, forward contract cover and current dry bulk market conditions. Our adjusted 2019 EBITDA estimate increases to $10.4 million from $10.2 million to incorporate the positive var…

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Friday, May 24, 2019

Pyxis Tankers (PXS)

Slight Improvement, But Still Tough. Looking for 2H2019 Recovery

Pyxis Tankers Inc is a US-based international maritime transportation company which focuses on the product tanker sector. It owns a fleet which comprises of six double hull product tankers, which are employed under a mix of short- and medium-term time charters and spot charters. 

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

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

• A Slight Improvement Over 4Q2018, But Still Another Tough Quarter. Adjusted 1Q2019 EBITDA of $0.5 million was below our
  estimate of $0.7 million. A shortfall in TCE revenue (-$0.1 million) and higher
  opex ($0.2 million) more than offset slightly lower G&A expenses ($0.2 million).
• Adjusting 2019 Estimate to reflect quarterly
  results and expected 2H2019 recovery. Due to weaker operating results, we are lowering our 2019 EBITDA
  estimate to $6.5 mill…

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Tuesday, May 21, 2019

Pangaea Logistics (PANL)

New Dividend Reinforces View of Consistent Business Model

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.   

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

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

• Initiating A Dividend. The dividend of $0.035/share per quarter (paid on June 11th to record holders as of June 3rd) equates to an annual yield of 4.0%. Not only is the yield attractive, the dividend is a very positive signal that highlights the confidence in the consistency of the business model. It also should help broaden the shareholder base.
• Dividend Very Manageable. Cash flow has been consistently positive and there should be no problem sustaining an annual dividend of $5.1 million. Even adding the dividend to the $14 mil…

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Friday, May 17, 2019

Pangaea Logistics (PANL)

Consistent Business Model Shines in Weak Market.

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.  

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

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

• Chalk Up Another Solid Quarter to
  the Consistent Business Model. Pangaea’s business model continues to deliver strong results amid severe market weakness. 1Q2019 EBITDA of $8.6 million was short of our $11.1 million estimate, but PANL generated a premium of $4,869/day to the BPI/BSI market indices, which was well above $2,801/day in 4Q2018.
• Updating 2019 EBITDA estimate. As a result of the 1Q2019 shortfall, our EBITDA estimate moves to $60.9 milli…

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Tuesday, May 14, 2019

Genco Shipping (GNK)

Weathering the Storm From a Position of Strength.

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. 

   

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

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

• 1Q2019 EBITDA below expectations
  due to weak market environment. 1Q2019 EBITDA of $17.0 million was well below our expectations of $22.8 million. The negative variance to our estimate was a combination of lower TCE revenue of $5.8 million and lower opex expenses of $0.6 million, which offset higher G&A expense of $0.6 million.
• Adjusting estimates to reflect 1Q2019 negative
  variance, 2Q2019 forward cover, market volatility and updated dry
  dock data. To include the 1Q2019 shortfall, market volatility, forward booking da… 

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Monday, May 13, 2019

Seanergy Maritime Holding Corp. (SHIP)

Lower to Market Perform Following Significant Equity Offering.

Seanergy Maritime Holdings Corp., an international shipping
company, provides marine dry bulk transportation services through the ownership
and operation of dry bulk vessels. The company owns a modern fleet of 10
Capesize dry bulk vessels with a combined cargo-carrying capacity of
approximately 1,748,581 dwt and an average fleet age of 9.8 years. The company
was formerly known as Seanergy Maritime Corp. and changed its name to Seanergy
Maritime Holdings Corp. in January 2009. 

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

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

• Significant equity offering, but
  number of shares issued could increase materially over the next six months if
  the stock does not recover. The shares issued, including shares issued to Jelco for waived interest, totals 6.02 million shares and includes Class B and C warrants that are unique.
• Class C warrants are uniquely structured to
  protect new shareholders, not existing shareholders. Class C warrants expire in six months, but a cashless exercise feature could trigger issuance of up to 16.5 million addition…

  
  
  

  
  

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Thursday, May 9, 2019

Eagle Bulk Shipping (EGLE)

Another Solid Quarter Navigating the Downturn.

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.

    

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

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

• Another solid quarter of
  outperformance…1Q2019 EBITDA of $15.4 million was above our estimate, but well below 4Q2018 EBITDA of $23.5 million. The positive variance to our estimate of $11.2 million was driven by a $2.4 million gain on hedging, higher TCE rates and available days, which more than offset higher opex and G&A expenses.
• …but adjusting estimates to reflect current
  market outlook and higher downtime associated with the expanded scrubber
  program. While the 1Q2019 variance was positive, we are lowering our 2019 EBITDA estimate to $75.8 million fr… 

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Wednesday, May 1, 2019

Great Lakes Dredge & Dock (GLDD)

Third Strong Quarter in a Row – 2019 Off to a Great Start.

Great Lakes Dredge & Dock Corp is a provider of dredging services in the United States. The Company operates in two operating segments namely Dredging and Environmental, and Infrastructure.

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

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

• Staying on track with another
  quarter of strong execution. For the third quarter in a row, dredging operating results
  were strong. Adjusted dredging EBITDA of $43.8 million soundly beat our
  $26.4 million estimate and was well above 1Q2018 adjusted EBITDA of $16.6
  million. Continued solid project execution and two unexpected events (~$15
  million) had a positive impact. 
• Increasing 2019 EBITDA estimate.
  Improved execution and dredging market strength reinforces positive outlook. Our 2019 EBITDA estimate moves to $126.1 million from
  $120.1 million to reflect the st…
  

  
  
  
  
  

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Tuesday, April 30, 2019

Scorpio Bulkers Inc. (SALT)

Recovery Under Way – Worst Might Be Passing.

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.     

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

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

• 1Q2019 Results
  slightly ahead of recent revisions. Adjusted EBITDA of $17.3 million was in line with our
  estimate of $16.0 million mainly due to higher shipping days, which drove a
  $1.9 million revenue variance and more than offset higher opex (-$0.5 million)
  and cash G&A expenses (-$0.1 million). Please note that 1Q2019 EBITDA
  excludes a non-cash gain of $15.3 million on the Scorpio Tankers (STNG)
  investment. 
• Adjusting estimates to reflect 1Q2019 results, 2Q2019 contract cover, financing activity, timing of scrubber installations and recent dry bulk market weakness.
   Our 2019 EBITDA estimate is $89.8 million (from $86.3
  million) on TCE rates of $10,819/da…
  

  
  
  
  
  

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Friday, April 12, 2019

Scorpio Bulkers Inc. (SALT)

Dry Bulk Market Weakness Impacts Estimates, But Refinancing Activity Boosts Liquidity.

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. 

  

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

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

• Adjusting estimates for 1Q2019
  contract cover, financing activity, timing of scrubber installations
  and recent dry bulk market weakness. Our 2019 EBITDA estimate drops to $86.3 million (from $110.3
  million) and TCE rates to $10,819/day (from $11,938/day). 
• Recent financing activity boosts liquidity again. Over the past three months, two
  Kamsarmaxes were sold, and five Kamsarmaxes and five Ultramaxes were sold and
  leased back. Liquidity should positively be impacted by ~$100.7 million over the
  next six months. Net cash will increase by ~$84.9 million and ~$…
  

  
  
  
  
  

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Friday, March 29, 2019

Pyxis Tankers (PXS)

When Will The Refined Product Tanker Market Recover?

Pyxis Tankers Inc is a US-based international maritime transportation company which focuses on the product tanker sector. It owns a fleet which comprises of six double hull product tankers, which are employed under a mix of short- and medium-term time charters and spot charters. 

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

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

• Another tough
  quarter due to rate weakness. Adjusted 4Q2018 EBITDA of $0.2 million was below $1.0 million
  in 4Q2017 due to weaker MR tanker rates. Record low MR rates early in 4Q2018
  caused a shortfall in TCE revenue (-$0.94 million) and more than offset positive
  variances in opex ($0.15 million) and G&A expenses ($0.30 million). 
• Adjusting 2019
  Estimate to reflect new contracts and 2H2019 recovery. Our 2019 EBITDA estimate moves to $6.9 million (from
  $7.9 mill… 

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Friday, March 22, 2019

Pangaea Logistics (PANL)

Amidst an uncertain industry, Pangaea stands out as unique and different.

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. 

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

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

• Model of consistency.
  Another solid quarter. The unique business model continues to deliver strong
  results. 4Q2018 EBITDA of $12.2 million was ahead of expectations of $10.2
  million due to wider than expected outperformance and higher charter in days.
  While down sequentially from $16.6 million in 3Q2018, 4Q2018 EBITDA was almost
  20% above 4Q2017 EBITDA of $10.7 million. TCE rates of $14,360/day improved
  from $13,835/day in 3Q2018 and were ~15% above $12,505/day in 4Q2017.
• Adjusting 2019
  EBITDA estimate. Our EBITDA estimate moves to $62.7 million in 2019
  (from $63.1 million). Our estimates are based on shipping days of 18,083 in
  2019 (down from 18,803), up from 16,316 in 2018, and EBITDA per shipping day of
  $3,349 in 2019 (down from $3,356), up from $3,343 in 2018. The recently
  ac…
  

  
  
  
  
  

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NOTE: investment decisions should not be based upon the content of
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Thursday, March 21, 2019

Seanergy Maritime Holding Corp. (SHIP)

Weak operating results create good opportunity on pure cape market player.

Seanergy Maritime Holdings Corp., an international shipping
company, provides marine dry bulk transportation services through the ownership
and operation of dry bulk vessels. The company owns a modern fleet of 10
Capesize dry bulk vessels with a combined cargo-carrying capacity of
approximately 1,748,581 dwt and an average fleet age of 9.8 years. The company
was formerly known as Seanergy Maritime Corp. and changed its name to Seanergy
Maritime Holdings Corp. in January 2009. 

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

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

• Weaker than expected 4Q2018 Due to
  Cape Market Weakness. Reported adjusted 4Q2018 EBITDA of $6.3 million was well
  below our estimate mainly due to lower time equivalent (TCE) rates and higher
  than expected opex.
• Adjusting 2019 EBITDA estimate to
  reflect lower TCE rates. Cape market improvement expected later this year. To incorporate the current malaise in the cape market, our
  2019 EBITDA estimate moves down sha…
  

  
  
  
  
  

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