Monday, November 06, 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.
Eagle Bulk Shipping 2023-3Q revenues and earnings were in line with recently updated projections. Eagle reported an average TCE rate of $11,482/day down from $14,367/day in the previous quarter. Eagle continues to command a premium to index rates due to its fleet of newer, scrubber-installed ships.
Management indicated it locked in 68% of 2023-4Q shipping days at a favorable rate of $15,655/day. Guidance for costs per day were largely unchanged from the recently reported quarter. The upcoming jump in TCE rates should result in an improvement in cash flow. Management indicated it will likely use free cash flow to pay down debt. The company fixed additional debt with swaps during the quarter and now estimates that 75% of its debt has been fixed at a rate of 5.2%.
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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.