Thursday, May 27, 2021

Euroseas Ltd. (ESEA)
Longer Charters at Higher Rates Drive Upgrade to Outperform

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.

Adjusted 1Q2021 EBITDA of $5.7 million in line with expectations with higher TCE rates offsetting higher opex. Reported adjusted EBITDA was $5.6 million. TCE revenue of $14.7 million increased from $12.5 million in 4Q2020 due to a $1,637 move up in TCE rates to $12,134/day from $10,497/day, higher shipping days of 1,219 versus 1,190 in 4Q2020 and lower idle days of 41 versus 138 in 4Q2020.


Fine-tuning 2021 EBITDA estimate to reflect to reflect 1Q2021 results and updated forward cover.  We are moving 2021 EBITDA to $40.6 million based on TCE rates of $16.7k/day from $37.5 million based on TCE rates of $16.2k/day. Visibility is very high with 89% of available 2021 days booked at $15.2k/day due to longer charters signed at higher TCE rates …

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.