Category: Transportation

Friday September 27, 2019

Great Lakes Dredge & Dock (GLDD)

3Q2019 Awards Could Exceed $220 million

Great Lakes Dredge & Dock is a marine and environmental infrastructure contractor, and the largest dredging company in the United States. Headquartered in suburban Chicago, the company provides port expansion and maintenance, coastal restoration, river dredging and environmental restoration for public and private entities worldwide. In June 2019, the Environmental & industrial (E&I) business was sold for $17.5 million in cash and the company is now pure play on the dredging market.

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

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

• Three new awards for $82 million out shortly. Combined with $141 million of other awards, total 3Q2019 awards likely to exceed $220 million. A Mississippi Senator announced that $56.6 million of MsCIP work was awarded recently, a $8.7 million Florida beach project was awarded on Tuesday, and a $16 million dredging project was awarded on September 13th.
• 2H2019 Backlog rebound remains likely even though GLDD was not the low bidder on three large projects in Savannah, Norfolk and Charleston.  Low bids are pending on other projects and bids on several larger projects should be…
  

  
  
  

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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. 

Thursday September 26, 2019

EuroDry (EDRY)

Moving Estimates Higher to Reflect Dry Bulk Market Improvement

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.

• Dry Bulk market has improved despite continued trade overhang. Despite the continued overhang of global trade tensions and sluggish global economic growth, the dry bulk market has been stronger than expected.
• Adjusting our 2019 EBITDA estimate to current dry bulk market environment.   We are increasing our adjusted 2019 EBITDA estimate to $10.8 million from $10.4 million, mainly due to an increase in…
  

  
  
  

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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. 

Tuesday, September 24, 2019

Scorpio Bulkers (SALT)

Asset Sales Enhance Liquidity. Will Dry Bulk Market Remain Firm?

Scorpio Bulkers (SALT) owns/operates a fleet of 56 dry bulk vessels, including 37 Ultramax and 19 Kamsarmax dry bulk vessels. The Ultramax and Kamsarmax sectors are the upper end of the range for the Handymax sector, and the sector is characterized by onboard cranes to allow the loading/unloading of cargo. SALT moves both major and minor bulk around the world. SALT actively markets and manages the fleet internally (both commercial and technical) and also charters in dry bulk vessels to expand operating leverage.

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

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

• Asset sales and recent financings boost liquidity and enhance financial flexibility.  Agreement reached to sell two Ultramaxes for $37.9 million in early 4Q2019. Liquidity should improve by $16.0 million after debt repayment.
• Dry Bulk market improving despite continued trade overhang.   Despite the continued overhang of global trade tensions and sluggish global economic growth, the dry bulk market has been stronger than expected in 3Q2019…
  

  
  
  

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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. 

Thursday September 19, 2019

Orion Group Holdings (ORN)

Added Construction Awards Bolster Robust Outlook

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.

• Three added construction awards are positive.   Two light commercial projects in Houston totaling $22 million will begin in 3Q2019 and run about eight months. Another $7 million structural project in Dallas/Fort Worth will also begin in 3Q2019 and run about 11 months.
• Added awards on the horizon, including a large project in Cayman Islands.  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. 

Eagle Bulk Shipping Inc. Takes Delivery of M/V Sydney Eagle

STAMFORD, Conn., Sept. 16, 2019 (GLOBE NEWSWIRE) — Eagle Bulk Shipping Inc. (NASDAQ: EGLE) (“Eagle Bulk” or the “Company”), one of the world’s largest owner-operators within the Supramax / Ultramax segment, today announced that is has taken delivery of the second of six Ultramax drybulk vessels, it has recently agreed to acquire.

The ship, which has been renamed the M/V Sydney Eagle, is a 2015-built, high specification scrubber-fitted SDARI-64 Ultramax vessel built at Jiangsu New Hantong Ship Heavy Industry Co., Ltd.

Proforma for the four remaining acquisition vessels, which have yet to be delivered, the Company’s fleet will total 50 ships, including 20 Ultramax drybulk vessels acquired over the last 36 months.

About Eagle Bulk Shipping Inc.

Eagle Bulk Shipping Inc. (“Eagle” or the “Company”) is a US-based fully integrated shipowner-operator providing global transportation solutions to a diverse group of customers including miners, producers, traders, and end users. Headquartered in Stamford, Connecticut, with offices in Singapore and Copenhagen, Eagle focuses exclusively on the versatile mid-size drybulk vessel segment and owns one of the largest fleets of Supramax / Ultramax vessels in the world. The Company performs all management services in-house (including: strategic, commercial, operational, technical, and administrative) and employs an active management approach to fleet trading with the objective of optimizing revenue performance and maximizing earnings on a risk-managed basis. For further information, please visit our website: www.eagleships.com.

Company Contact:
Frank De Costanzo
Chief Financial Officer
Eagle Bulk Shipping, Inc.
Tel. +1 203-276-8100

Media Contact:
Rose & Company
Tel. +1 212-359-2228

 

Source: GlobeNewswire (September 16, 2019 – 8:30 AM EDT)

News by QuoteMedia
www.quotemedia.com

Thursday September 12, 2019

Great Lakes Dredge & Dock (GLDD)

Project Awards Should Stem Backlog Decline

Great Lakes Dredge & Dock is a marine and environmental infrastructure contractor, and the largest dredging company in the United States. Headquartered in suburban Chicago, the company provides port expansion and maintenance, coastal restoration, river dredging and environmental restoration for public and private entities worldwide. In June 2019, the Environmental & industrial (E&I) business was sold for $17.5 million in cash and the company is now pure play on the dredging market.

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

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

• Three awards announced for total of $141 million.  Work awarded includes Jacksonville Deepening Contract B Option for $97 million, Baltimore Harbor maintenance for $38 million, and Boston Harbor maintenance for $6 million. In addition to the announced awards, total low bids on other projects equal ~$48 million and most should be announced shortly.
• 2H2019 Backlog rebound remains likely.   While GLDD has not been the low bidder on three very large projects in Savannah, Norfolk and Charleston, we are tracking several other large projects 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
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. 

Eagle Bulk Shipping Inc. Takes Delivery of M/V Dublin Eagle

STAMFORD, Conn.,, Sept. 11, 2019 (GLOBE NEWSWIRE) — Eagle Bulk Shipping Inc. (NASDAQ: EGLE) (“Eagle Bulk” or the “Company”), one of the world’s largest owner-operators within the Supramax / Ultramax segment, today announced that it has taken delivery of the first of six modern Ultramax drybulk vessels the Company has previously agreed to acquire.

The ship, which has been renamed the M/V Dublin Eagle, is a 2015-built, high specification scrubber-fitted SDARI-64 Ultramax vessel built at Jiangsu New Hantong Ship Heavy Industry Co., Ltd.

Proforma for the five remaining acquisition vessels, which have yet to be delivered, the Company’s fleet will total 50 ships, including 20 Ultramax drybulk vessels acquired over the last 36 months.

About Eagle Bulk Shipping Inc.

Eagle Bulk Shipping Inc. (“Eagle” or the “Company”) is a US-based fully integrated shipowner-operator providing global transportation solutions to a diverse group of customers including miners, producers, traders, and end users. Headquartered in Stamford, Connecticut, with offices in Singapore and Copenhagen, Eagle focuses exclusively on the versatile mid-size drybulk vessel segment and owns one of the largest fleets of Supramax/Ultramax vessels in the world. The Company performs all management services in-house (including: strategic, commercial, operational, technical, and administrative) and employs an active management approach to fleet trading with the objective of optimizing revenue performance and maximizing earnings on a risk-managed basis. For further information, please visit our website: www.eagleships.com.

Company Contact:
Frank De Costanzo
Chief Financial Officer
Eagle Bulk Shipping, Inc.
Tel. +1 203-276-8100

Media Contact:
Rose & Company
Tel. +1 212-359-2228

How Can Innovations in Transportation and Logistics Provide Value to Investors?

The transportation and logistics industry covers a broad range of sectors, such as shipping, freight, railroad, and truck transport, so investing in it provides opportunity for a diversified portfolio. Private, public, and governmental investing all help supply the necessary funding for the industry and improve the supply chain. Investment in new and public transportation systems, such as highways, streets, and airports, can provide value to both the investor and the community.

Tuesday, September 10, 2019

Eagle Bulk Shipping (EGLE)

Several Signs of Recovery Ahead

Eagle Bulk Shipping (EGLE) moves both major and minor dry bulk around the world. Adjusting for announced transactions, EGLE operates a fleet of 50 dry bulk vessels and transports bulk commodities, including coal, grain, iron ore, steel, cement, forest products, and other raw and finished materials. The current fleet consists of 16 Ultramax and 29 Supramax class dry bulk vessels, or mid-sized assets. After the latest acquisition of six Ultramaxes and the sale of one Supramax close in 3Q2019, there will be 20 Ultramaxes and 30 Supramaxes in the fleet. Ultramaxes are larger versions of Supramaxes and carry about 63k deadweight tons (DWT) and Supramaxes carry between 50k and 59k dwt.

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

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

• Dry bulk market has firmed in 3Q2019 despite trade tension overhang.  There were clearly near-term challenges to the dry bulk market earlier this year due to trade tensions and slower global economic growth. However, dry bulk indices have improved in the past quarter and are currently near multi-year highs.
• Acquisition update. Fleet expands and age profile improves.   The acquisition of six high-spec. SDARI-64 Ultramaxes in two transactions for ~$122 million is…
  

  
  
  

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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. 

Are Shipping Stocks Shipwrecked
by the U.S. and China Disputes?

When the news broke in August about the 10% tariff on $300 billion of Chinese goods, shipping stocks saw a downturn. Unfortunately, small & microcap stocks took the biggest hit due to their size and structure. Most of these companies are not equipped to take a hit that large. Between the dispute among China and the US, the stock prices across the industry fluctuated. Although this sounds all bad, that is not the case. Not all shipping stocks are the same and many cater to different clients outside of China.

Wednesday, August 21, 2019

Great Lakes Dredge & Dock (GLDD)

Positive Outlook Drives Up Price Target

Great Lakes Dredge & Dock is a marine and environmental infrastructure contractor, and the largest dredging company in the United States. Headquartered in suburban Chicago, the company provides port expansion and maintenance, coastal restoration, river dredging and environmental restoration for public and private entities worldwide. In June 2019, the Environmental & industrial (E&I) business was sold for $17.5 million in cash and the company is now pure play on the dredging market.

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

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

• 2H2019 Backlog rebound remains likely.  Since the start of 3Q2019, total low bids equal ~$91 million and most of the awards should be announced shortly. ~$110 million of low bids not awarded in 2Q2019 includes $93 million of option work in Jacksonville.
• Introducing 2020 EBITDA estimate of $140.5 million, up from $131.2 million in 2019.  The outlook into next year appears positive with continued high bidding activity on port/channel deepening projects 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 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, August 19, 2019

Euroseas (ESEA)

Acquisition and Refinancing Are Positives

Euroseas (ESEA) operates a fleet of 15 container ships (14 feeders and one intermediate) in the container shipping markets following the closing of a four feeder container vessel acquisition in early August 2019. Euroseas’ 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. Euroseas employs the fleet on mainly on spot and time period charters.

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

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

• Quarterly results stabilizing.  RExcluding drydock expenses, adjusted 2Q2019 EBITDA was $1.7 million was below our estimate of $2.1 million, mainly due to slightly lower time equivalent (TCE) rates and higher opex.
• Fine-tuning 2019 EBITDA estimate.   To incorporate lower 2Q2019 results and other events, like the preferred stock redemption and acquisition, our new adjusted EBITDA estimate of $9.3 mill…
  

  
  
  

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*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. 

Friday, August 16, 2019

EuroDry (EDRY)

Another Solid Quarter – Promising 2H2019 Outlook.

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 market play.  Reported 2Q2019 EBITDA was $1.8 million and adjusted EBITDA of $2.7 million excluding drydock expenses was above our estimate of $2.3 million mainly due to higher than expected TCE rates partially offset by slightly higher opex. 2Q2019 TCE revenue of $6.3 million was slightly above expectations by $0.1 million due to higher than expected shipping days of 628.
• Adjusting our 2019 EBITDA estimate to reflect 2Q2019 results and current dry bulk market environment.  We have fine-tuned our forecasts and there is no change in adjusted EBITDA estimate of $10.4 million. Given the rapid…
  

  
  
  

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*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.