Friday, March 04, 2022

EuroDry (EDRY)
Time Charter In Line With Expectations

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

New time charter on Molyvos Luck. The newly acquired 2014-built Supra has been time chartered for 11-13 months at a TCE rate of $27.75k/day. The time charter should generate revenue of $8.5-$10.0 million and EBITDA of $5.5-$6.5 million.


Adjusting 2022 EBITDA estimate to $60.7 million based on TCE rates of $26.2k/day.  Forward cover moves up to 29% of 2022 available days booked from 19%. Currently, there is more visibility early in the year, and we estimate that ~59% of 1Q2022 available days of 837 days are booked at average TCE rates of $24.5k/day. Given time charters on the Good Heart into 4Q2022 and the Molyvos Luck into 2Q2023 …

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.