Wednesday, June 09, 2021

Euroseas Ltd. (ESEA)
Likely Positive Upcoming Fixtures Boost Price Target

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.

Higher container rates positive for upcoming charters. Charters on four feeders and one intermediate expire before yearend 2021 and the renewal prospects remain strong. We estimate that the feeders (Spetses/Diamantis/Corfu/Evridiki) will secure longer term work at charter rates in the $20.0k-$25.0k/day range. At the same time, charter rates for the Oakland, an intermediate, appear to have moved up into the more than $40.0k/day range.


Increasing 2021 EBITDA estimate to $44.1 million based on TCE rates of $17.4k/day, up from $40.6 million based on TCE rates of $16.7k/day.  Forward cover and about 89% of 2021 available days of 5,000 are booked at average rates of $15.2k/day and Contracted EBITDA is ~$32.8 million. We are estimating that the open days are filled at an average TCE rate slightly above $20.0k/day …

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.