Friday, February 18, 2022

Grindrod Shipping (GRIN)
Attractive 2022 EBITDA and Dividend Outlook Intact

Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE.

Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

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

Very strong finish to year. 4Q2021 EBITDA above expectations. 4Q2021 EBITDA of $72.7 million was higher than our estimate of $67.3 million mainly due to robust TCE rates of $30.8k/day for Supras/Ultras and $28.8k/day for Handys, which were higher than our estimates of $30.3k/day for Supras/Ultras and $27.3k/day for Handys.


Positive dividend surprise and cash dividend stayed at $0.72/share even though stock buy backs were higher than expected.  The cash dividend was maintained at $0.72/share despite higher-than-expected stock buy backs. We expected the cash dividend to drop to $0.16/share due to higher stock buy back activity, but were pleasantly surprised that incremental cash was allocated to keep the cash dividend …

This Company Sponsored 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.