Tuesday, December 22, 2020

Euroseas Ltd. (ESEA)
Another Fixture Beats Expectations on Rate and Term

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.

Another fixture at a higher than expected rate. The Synergy Antwerp, a 2008-built intermediate container ship (4,253 teu) secured a 32-35 month extension at $18k/day. Not only is the rate $3k/day higher than expected, the long-term extension starts on January 1st, three months earlier than expected. The new fixture complements other fixtures announced earlier this month, namely the 12-14 month extension on the EM Astoria at $18.7k/day (~$4.5k/day higher than expected), and the 12-13 month time charter on the Evridiki G at $15.5k/day (~$1.5k/day higher than expected).


No impact on 2020 EBITDA estimate of $12.4 million based on TCE rates of $9.2K/day.  Net TCE revenue is mostly locked in with only the Oakland on an indexed rate …

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.