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Monday October 7, 2019
Eagle Bulk Shipping (EGLE)
Scrubber Program Change Impacts Estimates, But Outlook Remains Solid
Eagle Bulk Shipping Inc. is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to full report for price target, fundamental analysis and rating.
- Acquisition timing and scrubber program updates impact estimates. Lowering 2019 EBITDA estimate to $66.6 million from $69.3 million. Higher off-hire days for scrubbers and updated timing on pending acquisitions more than offset higher TCE rates of $10,949/day, up from $10,913/day. No change to 2020 EBITDA estimate of $110.6 million and TCE rates of $12,501/day.
- Acquisition update. Six Ultramaxes to be acquired for ~$122 million. Three delivered and rest by yearend 2019, including one in October. Pro forma fleet expands by…
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This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
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