Wednesday, March 10, 2021
Pangaea Logistics Solutions Ltd. (PANL)
Well-timed Acquisitions Expand Fleet At Opportune Time
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.
4Q2020/FY2020 Results should preview solid 2021 outlook. Results will be out after market closes on Monday, March 15th and management will host a call on Tuesday, March 16th at 8:00am EST. Number is 888-895-3561 and code is 5197869. We are looking for EBITDA of $12.0 million based on TCE rates of $12.8k/day and shipping days of 4,600. The TCE rate outperformance estimate is in the $2.5k/day range.
Acquisitions increase market exposure and expands fleet to 21. A 2013-built Panamax (tbn Bulk Promise) will be acquired for $18.3 million with delivery expected by July 2021. The acquisition complements the acquisition of a 2013-built Ultramax (tbn Courageous) for $16.5 million announced last month. Combined with the delivery of ice class Post-Panamax newbuilds over the rest of the year, the fleet …
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.