Pangaea Logistics (PANL) – Forward Cover and Expanded Fleet Drive Numbers Higher

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Wednesday, February 23, 2022

Pangaea Logistics (PANL)
Forward Cover and Expanded Fleet Drive Numbers Higher

Pangaea Logistics Solutions Ltd and its subsidiaries provide seaborne drybulk transportation services. It transports drybulk cargos including grains, coal, iron, ore, pig, iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The firm’s services include cargo loading, cargo discharge, vessel chartering, voyage planning and technical vessel management. The company derives all of its revenues from contracts of affreightment, voyage charters and time charters. Its strategy depends on focusing on increasing strategic contracts of affreightment, expanding capacity and flexibility by increasing its owned fleet and increasing backhaul focus and fleet efficiency.

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

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

    Increasing 2021 EBITDA estimate to $102.7 million based on TCE rates of $24.9k/day from $95.6 million based on TCE rates of $24.3k/day. Looking at the finish to last year, the prospects look very good due to strong 4Q2021 forward cover. As of December 8th, close to 4,000 shipping days (~85%) were booked at an average TCE rate of $32.5k/day.

    PANL well positioned this year after positive developments last year.  Moving 2022 EBITDA estimate to $85.6 million from $66.8 million and TCE rate estimate to $23.2k/day from $22.2k/day. Strong 2021 results make comps tough, but this year should be a good year. There are many reasons that PANL remains well positioned, including a consistent commercial strategy that adds value in different market …



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. 

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