Friday, February 26, 2021

Euroseas Ltd. (ESEA)
Solid Operating Results – Outlook Remains Favorable

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 4Q2020 EBITDA of $2.2 million in line with expectations with higher TCE rates offsetting higher opex. Reported adjusted EBITDA was $2.1 million. We added back drydock expenses of $0.1 million to calculate adjusted EBITDA of $2.2 million, which was in line with our estimate of $2.2 million with higher TCE rates offsetting higher opex and more idle days.


Fine tuning EBITDA estimate of $27.6 million to reflect solid contract cover with upside potential.  We estimate 67% of 2021 available days are booked at average rates of ~$12.3k/day, up from previous forward cover of 61% booked at an average rates of ~$11.8k/day. Versus our current 2021 EBITDA estimate, marking open charters to market represents upside of more than $3 million, or close to …

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.