Category: Transportation

Wednesday, January 22, 2020

Orion Group Holdings (ORN)

New Awards of $18 million Push YTD Awards to $40 million.

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.

Added concrete awards of $18 million helps 2020 visibility. Total concrete awards total $40 million so far in January. Three structural construction in Houston totaling $18 million were awarded. Combined with earlier awards totaling $22 million, about $40 million of work has been awarded so far this year. The work helps near-term visibility in Construction since it begins this quarter with completion in 4Q2020.

Potential good news coming in Marine. Low bidder on Port Mansfield work, but depends on USACE since bid was 27% above estimate. On January 14th, bids on dredging of the Port Mansfield, Texas channel (W912HY19B0015) were opened and ORN’s total bid of $15.96 million was the low bid. The bid is ~27% above the USACE estimate so not yet certain whether or…

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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. 

Wednesday, January 22, 2020

Orion Group Holdings (ORN)

New Awards of $18 million Push YTD Awards to $40 million.

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.

Added concrete awards of $18 million helps 2020 visibility. Total concrete awards total $40 million so far in January. Three structural construction in Houston totaling $18 million were awarded. Combined with earlier awards totaling $22 million, about $40 million of work has been awarded so far this year. The work helps near-term visibility in Construction since it begins this quarter with completion in 4Q2020.

Potential good news coming in Marine. Low bidder on Port Mansfield work, but depends on USACE since bid was 27% above estimate. On January 14th, bids on dredging of the Port Mansfield, Texas channel (W912HY19B0015) were opened and ORN’s total bid of $15.96 million was the low bid. The bid is ~27% above the USACE estimate so not yet certain whether or…

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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, January 16, 2020

Pyxis Tankers Inc. (PXS)

Delta MR Tanker Sale Closed

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.

Sale of 2006-built MR Tanker has closed. The Pyxis Delta sale was driven by the trade-off between cash flow potential and rising fuel/maintenance cost, including the cost of the upcoming 15-year survey. In addition, debt repayment might have played a role.

No impact to 2019 estimates. Our 2019 EBITDA estimate stays in the $6.2 million range based on TCE rates 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
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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, January 16, 2020

Pyxis Tankers Inc. (PXS)

Delta MR Tanker Sale Closed

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.

Sale of 2006-built MR Tanker has closed. The Pyxis Delta sale was driven by the trade-off between cash flow potential and rising fuel/maintenance cost, including the cost of the upcoming 15-year survey. In addition, debt repayment might have played a role.

No impact to 2019 estimates. Our 2019 EBITDA estimate stays in the $6.2 million range based on TCE rates 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. 

Thursday, January 9, 2020

Grindrod Shipping (GRIN)

Dry Bulker with Tanker Upside – Launching Coverage

Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE.
Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.

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

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

Launching coverage.A high quality asset base, consistent TCE rate outperformance and simplified corporate structure are positives. GRIN has dropped more than 60% since the June 2018 NASDAQ listing and the weak stock price performance creates a compelling risk/reward profile. The current valuation of 5.4x 2020 EBITDA is attractive and our 12-month price target of $11.55/share is based on 6.8x our 2020 EBITDA estimate of $65 million.

Dry bulk fleet profile is attractive due to high modern ECO ownership. Tankers add diversification and upside potential.  Newer, modern assets are more fuel efficient and attractive to…

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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. 

Thursday, January 9, 2020

Grindrod Shipping (GRIN)

Dry Bulker with Tanker Upside – Launching Coverage

Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE.
Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.

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

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

Launching coverage.A high quality asset base, consistent TCE rate outperformance and simplified corporate structure are positives. GRIN has dropped more than 60% since the June 2018 NASDAQ listing and the weak stock price performance creates a compelling risk/reward profile. The current valuation of 5.4x 2020 EBITDA is attractive and our 12-month price target of $11.55/share is based on 6.8x our 2020 EBITDA estimate of $65 million.

Dry bulk fleet profile is attractive due to high modern ECO ownership. Tankers add diversification and upside potential.  Newer, modern assets are more fuel efficient and attractive to…

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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, November 26, 2019

Euroseas Ltd. (ESEA)

3Q2019 Results In Line. Another Acquisition Adds Scale

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 full report for price target, fundamental analysis and rating.

3Q2019 results stabilized in challenging container market.  Adjusted EBITDA, excluding dry dock expenses, of $2.0 million was slightly below our estimate of $2.1 million, mainly due to higher opex, which more than offset higher revenue.

Fine-tuning 2019 EBITDA estimate to reflect quarterly results and acquisitions.  To incorporate quarterly results and acquisition timing, adjusted EBITDA estimate (excluding dry dock expenses) moves to $9.0 million, down from our previous estimate of $9.3 million, 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
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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. 

Thurday, November 21, 2019

Great Lakes Dredge & Dock (GLDD)

Investor Meetings Renew Confidence

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.

• Tone was positive.  Recently, we hosted investor meetings with the CEO and CFO. The meetings touched on every aspect of the dredging market and focused on how restructuring and deleveraging have positioned the company to capitalize on the positive outlook and pursue growth opportunities. We walked away with renewed confidence in the macro/micro outlook.
  
• Favorable dredging outlook over next three years.  Competitive pressures after the
  Panama Canal widening have driven East Coast ports to deepen, and the energy export wave is driving more work along Gulf Coast. Coastal protection 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).

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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, November 18, 2019

EuroDry Ltd. (EDRY)

Solid Quarter and Balanced Contracting Tempers Volatility

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. For every five ESEA shares, ESEA shareholders received one EDRY share. There are currently ~2.2 million EDRY shares outstanding. 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 play.  Adjusted EBITDA of $2.9 million was above our estimate of $2.6 million mainly due to higher than expected TCE rates of $12,088/day and lower opex, which more than offset lower shipping days.
  
• Adjusting our 2019 EBITDA estimate to $10.9 million to reflect positive quarter and current dry bulk market environment.    Given the current dry bulk market environment, we
  are orecasting that TCE rates weaken slightly in 4Q2019. But 3Q2019 was higher than expected so…
  
  

  
  

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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. 

Monday, November 11, 2019

Pangaea Logistics Solutions Ltd. (PANL)

Unique Business Model Delivers Solid Results

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. The company derives all of its revenues from contracts of affreightment, voyage charters and time charters. Its strategy depends on focusing on increasing strategic contracts of affreightment, expanding capacity and flexibility by increasing its owned fleet and increasing backhaul focus and fleet efficiency.

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

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

• Lower-than-expected 3Q2019 numbers but consistent business model delivered solid results amid market volatility.  While short of our estimate, 3Q2019 EBITDA of $17.7 million was higher than 2Q2019 EBITDA of $11.3 million and TCE rates of $15,915/day were the highest in several years and well above $14,360/day in 3Q2018.
  
• To reflect the 3Q2019 variance, we updated our 2019 EBITDA estimate  to $50.5 million based on shipping days of…
  
  

  
  

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This Company Sponored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

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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. 

Friday November 8, 2019

Eagle Bulk Shipping (EGLE)

Stock Price Weakness Spells Opportunity

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 full report for price target, fundamental analysis and rating.

• TCE rate underperformance surprise and quarter light of expectations. Adjusted 3Q2019 EBITDA of $13.1 million was below our $18.1 million estimate due to lower TCE revenue and lower TCE rates.
• Shortfall and scrubber program update pushes 2019 EBITDA estimate down to $58.4 million from $66.6 million.  Higher off-hire days for scrubbers and lower TCE rate estimates of $10,666/day, down from…
  
  

  
  

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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 November 7, 2019

Seanergy (SHIP)

3Q2019 Shortfall Masks Improving Operating Results

Seanergy Maritime Holdings Corp., an international shipping company, provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. Seanergy Maritime Holdings Corp. is the only pure-play Capesize shipping company listed in the US capital markets. Seanergy provides marine dry bulk transportation services through a modern fleet of 10 Capesize vessels, with total capacity of approximately 1,748,581 dwt and an average fleet age of about 9.8 years. The Company is incorporated in the Marshall Islands with executive offices in Athens, Greece and an office in Hong Kong. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP” and class A warrants under “SHIPW”.

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

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

• 3Q2019 results below expectations.  3Q2019 EBITDA of $9.8 million was below expectations due to higher downtime due to the scrubber program and other drydocking activity. In addition, TCE rates of $20,143/day were ~$4,000/day below our estimate in part due to an accounting change. SHIP switched to load-to-discharge accounting whereby revenues are not recorded for Capes in transit at the quarter cut-off date.
• Adjusting EBITDA estimates to $24.8 million in 2019 (from $26.3 million) and $51.3 million in 2020 (from $50.2 million) to reflect 3Q2019 shortfall but 4Q2019 forward cover update. 80% of available 4Q2019 operating days are booked at an average rate of $25.8k/day. We lowered our 2019 Cape TCE rate estimate to $14.8k/day (from $15.3k/day) 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).

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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. 

Thrusday, November 7, 2019

Genco Shipping & Trading Limited (GNK)

Improving Financials and Asset Sales Trigger Special and Regular Dividends

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 full report for price target, fundamental analysis and rating.

• Adjusted 3Q2019 EBITDA of $22.7 million and TCE rate of $11,687/day in line with expectations. Despite high shipyard activity, operating results improved and 1H2019
  weakness is clearly in rear view miror. More color expected on today’s call at 8:30 am EST. Number is 800-479-1004 and code is 3702137.
  
• Increasing 2019 EBITDA estimate to $79.3 million. 4Q2019 EBITDA of $33.7 million and TCE rates of $13,500/day look reasonable given forward cover with 64% of available days booked at $14,041/day. Lowering 2020 EBITDA estimate to $150.7 million based on…
  
  

  
  

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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.