Wednesday, February 16, 2022

Euroseas (ESEA)
Solid 4Q2021 Results and Forward Cover Remains High

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

Reported EBITDA of $26.1 million slightly above expectations. Adding back dry dock expenses, we calculate adjusted 4Q2021 EBITDA of $27.3 million on TCE rates of $30.0k/day. Full year adjusted EBITDA was $56.8 million on TCE rates of $19.3k/day.


Forward 2022 cover of 97% at average TCE rates of $30.0k/day creates high visibility.  Recent fixtures pushed 2022 forward cover to 97%, and there are only two remaining opportunities to move TCE rates closer to market rates. At an average TCE rate of $30.6K/day, forward cover represents a solid base and our 2022 EBITDA estimate is $121.6 million, or well above our adjusted 2021 EBITDA of $56.8 …

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.