Wednesday, May 18, 2022
Grindrod Shipping (GRIN)
Grindrod sells vessel, exercises option to acquire another
Grindrod Shipping operates a fleet of owned and long-term and short-term chartered-in drybulk vessels predominantly in the handysize and supramax/ultramax segments. The drybulk business, which operates under the brand “Island View Shipping” (“IVS”), includes a Core Fleet of 31 vessels consisting of 15 handysize drybulk carriers and 16 supramax/ultramax drybulk carriers. The Company also owns one medium range product tanker on bareboat charter. The Company is based in Singapore, with offices in London, Durban, Tokyo, Cape Town and Rotterdam. Grindrod Shipping is listed on NASDAQ under the ticker “GRIN” and on the JSE under the ticker “GSH”.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Grindrod Shipping announced the sale of the medium range product tanker, Matuku, for $30 million. The tanker was the last of its medium range tankers as the company completes a shift to dry shipping. Grindrod will exercise a purchase option under her existing lease financing at a cost of $25.4 million netting $4.6 million in cash.
Simultaneously, Grindrod is exercising an option to purchase the IVS Pinehurst for $18 million. The Pinehurst is currently being in-chartered. We believe the company will be able to finance the purchase of Pinehurst without seeking external financing given its cash on hand ($100 million at yearend) and expected proceeds from the Matuku sale. Finally, Grindrod agreed to extend the long-term charter of the IVS Crimson Creek for a period of 11-13 months at a net charter-in rate of $26,276 per 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.