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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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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Tuesday, March 12, 2019

Euroseas Ltd. (ESEA)

Attractive pure play container company.

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. 

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

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

• Second quarter after EDRY spin-off
  down sequentially due to weaker container market. Excluding drydock expenses, adjusted EBITDA was $1.6 million
  below our estimate of $1.8 million and below 3Q2018 adjusted EBITDA of $1.9
  million, mainly due to lower time equivalent (TCE) rates. Versus our estimate,
  lower TCE rates (-$416/day) and higher management fees (+$80/day) more than
  offset lower opex costs (-$300/day) and G&A expenses ($150/day).
• Adjusting 2019 EBITDA estimate to
  reflect lower rates/downtime. Slight market improvement expected this year. To incorporate 4Q2018 results and the new contract fixtures,
  our new 2019 EBITDA estimate is $8.7 million (from $9.6 million). While rates
  early in the year have been expected to be lower, we expec… 

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Monday, March 11, 2019

Great Lakes Dredge & Dock (GLDD)

Investor meetings confirm positive outlook.

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.

• Investor Meetings Confirm Positive Outlook. Late last week, we hosted investor meeting with GLDD’s senior management team, CEO Lasse Petterson and CFO Mark Marinko. The meetings were well received and investor interest remains high. 
• Listed below were the topics that were covered over several meetings. Update on Environmental & Infrastructure
  (E&I) limited. Recent Award Should Help Sales Pr…
  

  
  
  
  
  

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Thursday, March 07, 2019

Eagle Bulk Shipping Inc. (EGLE)

Focusing on strategic execution and positive long-term outlook.

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… 4Q2018 EBITDA of $23.5 million was below our estimate,
  but well above 3Q2018 EBITDA of $20.2 million. The negative variance to our
  estimate was driven by slightly lower TCE rates and higher opex, which more
  than offset more available days due to higher chartered in capacity.
• …but adjusting
  estimates to reflect current market outlook and higher downtime associated with
  the expanded scrubber program. We are lowering our 2019 EBITDA estimate to $83.6
  million from $91.9 million even though rate outpe…
  

  
  

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Wednesday, March 06, 2019

Genco Shipping & Trading Limited (GNK)

4Q2018 results above expectations and positioned for rough weather ahead.

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. 

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

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

• 4Q2018 EBITDA ahead
  of expectations. 4Q2018 EBITDA of $42.4 million was ahead of
  expectations due to higher TCE rates. Adjusted 4Q2018 EPS of $0.39 was the
  fifth profitable quarter in the last six years.
• Adjusting
  estimates to reflect 1Q2019 forward cover, market volatility and
  updated dry dock schedule. To include forward booking data, asset sales and
  updated dry dock info, movi…
  

  
  
  

  
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Tuesday, February 26, 2019

Great Lakes Dredge & Dock (GLDD)

Positive Development at E&I Could Bolster Sales Process.

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.

RATING: OUTPERFORM

• Recent $35 million award could
  help sale of under performing Environmental & Infrastructure (E&I)
  business. E&I was recently reclasssified as discontinued operation at yearend 2018 and a
  sale is likely in mid-2019. Late last week, E&I was awarded a $35 million project for levee work in Sacramento, CA, which should have a positive impact on E&I backlog and the sales process. 
• Bidding activity remains
  high and 2018 awards moved yearend 2018 dredging backlog to $707 million, up $196 million from yearend 2017 backlog of $511 million and almost double yearend 2016 backlog of $369 mill…
  
  
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Thursday, February 21, 2019

Great Lakes Dredge & Dock (GLDD)

Another robust quarter. Selling under performing business.

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.

RATING: OUTPERFORM

• Another quarter of strong execution. The dredging business finished the year with another robust quarter. Solid execution and restructuring benefits combined to drive strong dredging operating results. Adjusted dredging EBITDA of $33 million was well ahead of expectations in the $23 million range.Under performing Environmental & Infrastructure (E&I)
  business reclasssified as discontinued operation and sale is likely in
  mid-2019.
• Improved execution and dredging market
  strength reinforces positive outlook. 2019 EBITDA estimate of $120.1 million reflects robust dredging market outlook, full year from Ellis Island hopper bar…
  
  
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Tuesday, February 12, 2019

Scorpio Bulkers (SALT)

Global Growth and Trade Concerns Dampen Near-term Rate Outlook.

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.

RATING: OUTPERFORM

• Adjusting
  EBITDA estimates to reflect 1Q2019 contract cover, time charters, recent dry bulk market weakness and scrubber installations. Lowering adjusted 2019 EBITDA estimate to $110.3 million (from $143.4 million) and TCE rates to $11,938/day (from $13,823/day), which represents a modest improvement over adjusted 2018 EBITDA of $107.3 million and TCE rates of $11,844/day.
• NobleCon
  XV Transportation Panel offered positive long-term outlook for dry bulk
  industry. Our conference panel of five seasoned executives from three dry bulk and two tanker companies reinfo…
  
  
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NOTE: investment decisions should not be based upon the content of
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Friday, February 8, 2019

Pangaea Logistics Solutions (PANL)

NobleCon XV presentation highlights strong competitive position.

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. 

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

RATING: OUTPERFORM

• NobleCon XV presentation highlights
  strong competitive position. CFO Gianni Del Signore presented at our conference and he highlighted the the three pillars of the long-standing and consistent operating strategy. PANL remains focused on: 1) executing a unique business model generates solid revenue outperformance versus dry bulk market indices; 2) maintaining a unique asset base and opportunistic growth strategy with well-timed acquisitions; and 3) utilizing a cargo centric approach capitalizes on strong customer relationships and tempers exposure to shipping market cycles. The business model has generated consistent results over several dry bulk cycles and no surprises are expected when FY2018 operating results are reported in early March.
• Transportation Panel at NobleCon XV offered
  positive views of the dry bulk market. Our conference panel of five seasoned executives from three dry bulk and two tanker companies reinforc…
  
  
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NOTE: investment decisions should not be based upon the content of
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Monday, February 04, 2019

Genco Shipping & Trading Limited (GNK)

NobleCon XV Presentation Highlights Near-term Volatility and Long-term Opportunity.

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

Listen to the Analyst

RATING: OUTPERFORM

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