Category: Transportation

Wednesday, August 7, 2019

Seanergy Maritime (SHIP)

Solid Quarter and Strong Start to 2H2019

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.

• EBITDA of $1.7 million ahead of $1.2 million estimate due to higher TCE rates of $9,104/day (+$471), lower opex (-$272) and G&A expenses (-$339). Strong start to 3Q2019 with 62% of available days booked at $23,800/day.
  
• Increasing 2019 EBITDA estimate to $19.9 million (from $17.08 million) and fine-tuning 2020 EBITDA estimate of $39.6 million. We forecast cape TCE rates of…
  
  
  

  
  

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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, August 1, 2019

Great Lakes Dredge & Dock (GLDD)

Fourth Strong Quarter In A Row. Backlog Rebound Ahead.

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.

• The streak of four strong quarters stays intact. 2Q2019 revenue of $184.8 million and EBITDA of $32.0 million were ahead of our estimates of $180.0 million and $27.5 million, respectively. Execution remained solid with gross margins of 20.3% and EBITDA margin of 15.3%. 
  Sale of Environmental & Industrial (E&I) completed for $17.5 million. Now a pure play dredging company.
• Flatter than normal 2H2019 outlook due to equipment downtime. To reflect the positive quarterly variance, our 2019 EBITDA estimate moves to…
  
  
  

  
  

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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. 

Tuesday, July 30, 2019

Eagle Bulk Shipping (EGLE)

Tough Quarter But Set Up for 2H2019 Rebound

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 TEC rate outperformance, but light of expectations. TCE revenue of $38.9 million and TCE rates of $9,732/day were below our estimates of $40.6 million and $10,000/day, respectively. Adjusted 2Q2019 EBITDA of $10.4 million was below our estimate and down sequentially from $15.3 million in 1Q2019. 8AM EST call today (7/30) — number is 844-282-4411 and code is 6173884.
• Adjusting estimates to reflect current dry bulk market outlook, expanded scrubber program and pending acquisition. We are moving our 2019 EBITDA estimate to $70.5 million from $75.8 million. Estimate is based on…
  
  
  

  
  

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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, July 29, 2019

Eurodry (EDRY)

Positive Impact from Preferred Changes and Recent Dry Bulk Market Rebound.

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.

• Recent preferred restructuring improves cost structure. ~$4.3 million of Series B Preferred Shares was redeemed and the dividend rate was lowered by 275 basis points through January 2021. There is a positive impact on the cost structure; the reduced dividend saves $0.54 million, or ~$212/day, and the lower Series B Preferred saves $0.41 million, or ~$163/day.
• EuroDry stands to benefit if dry bulk market rebound extends into next year. To counteract the market weakness and reduce exposure to TCE rate volatility, Panamax forward freight agreements (FFA) were secured and effective coverage is close to…
  
  
  

  
  

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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, July 26, 2019

Eagle Bulk Shipping (EGLE)

Convert Debt Funds Another Acquisition, But Pressures Stock Price.

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.

• Convert debt priced yesterday despite 18% stock price drop after offering was announced. Unsecured convert debt of $100 million due in 2024 was priced with a coupon of 5% and conversion premium of 25%, or $5.61/share. Green shoe is $15 million.
• Convert debt funds another acquisition to extend fleet renewal program. Six Ultramaxes (four built in 2015 and two in 2016) will be acquired for $122 million. There is an option to issue…
  
  
  

  
  

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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. 

(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)

Freight shipments fell 5.3% in June after having fallen 6.0% in May.  June was the seventh month in a row of year-over-year declines.  Transportation is viewed as a leading indicator of the economic activity because it reflects buyer optimism regarding the future.  A study by the Bureau of Transportation Statistics estimates that transportation volumes lead business cycles by approximately four months.  Should investors view the decline in transportation shipments as a sign of upcoming economic weakness or even a recession?

Tuesday, July 23, 2019

Scorpio Bulkers (SALT)

Worst Has Passed and Rebound Underway

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.

• 2Q2019 results slightly below expectations. Scorpio Tankers (STNG) investment performed well and non-cash gain of $53.1 million recognized. Adjusted EBITDA of $16.9 million was below our estimate of $19.7 million mainly due to lower TCE rates, which drove a $3.0 million revenue variance, and higher G&A expenses ($0.6 million), which more than offset lower opex (-$0.5 million) and other expenses (-$0.3 million).
• Increasing 2019 EBTDA estimate to $103.0 million to reflect recent strong dry bulk market rebound. Introducing our 2020 EBITDA estimate of $150.4 million, which is based on …
  
  
  

  
  

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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, July 22, 2019

Seanergy Maritime (SHIP)

Cape Market Moving Sharply Higher, SHIP Should Move Up Too

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.

• Cape market has rebounded strongly over the past quarter and spot rates exceed $30k/day. Despite the overhang of trade tensions and sluggish global economic growth, the dry bulk market has been stronger than expected. The Baltic Capesize Index (BCI) has exploded higher over the past month and is near a multi-year high. At 4,256, the BCI is well above the extraordinary low of 92 on April 4th and ~25% above the current 3Q2019 average.
• Increasing 2019 EBITDA estimate to $17.08 million (from $15.05 million) and introducing 2020 EBITDA estimate of $40.59 million. Given the strong rebound in the cape market, we are forecasting cape TCE rates of…
  
  
  

  
  

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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.