Monday, July 24, 2023
Eagle Bulk Shipping Inc. (“Eagle”) 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.
Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Estimates adjusted downward to reflect shipping weakness. We are lowering our assumed shipping rates in response to shipping rate declines and company guidance. Although EGLE had locked in 65% of its available shipping days at a rate near $16,000/day, the rate it received for the other shipping days was closer to $10,000/day. As a result, the average TCE day rate for the fleet of 52.8 vessels was closer to $14,000/day.
Lower shipping rates and thus revenues are partially offset by lower vessel operating costs. Operating expense is running between $6,300-$6,600 per shipping day, a decline from the first quarter. The lower costs lessen the impact of lower revenues in our models.
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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.