Tag: EuroDry

EuroDry (EDRY) – Our Estimates Reflect a Strong Finish to 2024; Rating Remains Outperform

Posted on by cpereira@noblefcm.com


Monday, August 12, 2024

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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

Second quarter financial results. Eurodry Ltd. reported an adjusted second-quarter net loss to controlling shareholders of $447.4 thousand or ($0.17) per share compared to an adjusted net loss of $1.3 million or ($0.48) per share during the prior year period. Adjusted EBITDA increased to $5.0 million compared to $2.5 million during the prior year period. While financial results improved on a year-over-year basis due to higher revenue, driven by an increased average time charter equivalent rate, voyage and drydocking expenses were above our estimates.

Updating estimates. We forecast 2024 EBITDA of $20.7 million and a net loss of ($0.65) per share. The third quarter will be a heavy quarter for drydocking and our revisions are driven primarily by higher drydocking expenses and fewer voyage days. We anticipate the company to post a net loss in the third quarter but finish the year with a strong fourth quarter due, in part, to lighter drydocking activity.


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*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. 

EuroDry (EDRY) – Updating Estimates; Rating Remains an Outperform

Posted on by cpereira@noblefcm.com


Monday, July 29, 2024

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

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

Eurodry operates a competitive fleet. EuroDry Ltd. owns and operates dry bulk carriers that transport major bulks, including iron ore, coal, grains, and minor bulks such as bauxite, phosphate, and fertilizer. Eurodry’s fleet is comprised of 13 dry bulk carriers, including five Panamax, five Ultramax, two Kamsarmax, and one Supramax dry bulk carriers all of which are in operation. The total cargo carrying capacity of the company’s 13 dry bulk carriers is 918,502 deadweight tonnes (dwt). The average age of the fleet is 13.5 years. The orderbook in the sector is nearing a 20-year low and demand growth for drybulk vessels appears strong through at least the remainder of 2024. Some uncertainty exists beyond 2024, particularly with respect to bulk commodity demand in China.

Updating estimates. We have lowered our 2024 EBITDA and EPS estimates to $23.8 million and $1.54, respectively, from $28.1 million and $2.05. The revisions reflect fewer available days in the second and third quarters due to drydocking, along with modestly lower time charter equivalent rates.


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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. 

EuroDry (EDRY) – First quarter results hurt by drydocking and vessel damage

Posted on by cpereira@noblefcm.com


Wednesday, May 22, 2024

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

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

Voyage days were down due to drydocking and damage. Two vessels were drydocked, removing the ships from 52 days of service. A damaged boiler on one of the vessels took the ship offline 18 days longer than expected. Decreased utilization meant lower-than-expected revenues.

Drydocking also led to higher costs. Costs rose due to increased drydocking. Fortunately, the boiler repairs will be covered by insurance (not lost days however). Financing costs declined with debt repayment and are poised to drop lower as debt repayments decrease.


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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. 

EuroDry (EDRY) – Strong results on the heels of fleet expansion and shipping rate improvement

Posted on by cpereira@noblefcm.com


Tuesday, February 20, 2024

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

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

Revenues improve with the addition of vessels and higher shipping rates. EuroDry took possession of three ships during the quarter and put them into service, resulting in additional operating days. The average shipping rate of $14.570 rose 20% quarter over quarter. EuroDry continues to be the most sensitive to rate changes of all the shipping companies we follow. 

Expenses went up with more ships, but costs per operating day were flat. Vessel operating and depreciation costs rose with an increase in voyage days. Vessel operating costs per voyage day were $5,421 in the most recent quarter versus $5,343 in the previous quarter and $5,366 in the same period last year. Financing costs rose with the issuance of $32.5 million to finance the acquisition of vessels. 


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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. 

EuroDry (EDRY) – Outlook for EuroDry Improving – Price Target Raised

Posted on by cpereira@noblefcm.com


Wednesday, January 24, 2024

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

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

Rising shipping rates. Shipping rates have risen in recent months. EuroDry management reports a 2024 BPI rate of $14,225 due, in part, to conflict in the Red Sea. Although the overall impact on shipping rates is modest, we would remind investors that EuroDry is more sensitive to shipping rates than any of the shipping companies we follow. 

Longer-term shipping rate outlook remains positive. Recent rate weakness has largely been attributed to decreased demand for steel by China. EuroDry believes the Far East and Africa will provide future growth. Increased demand for ships comes at the same time as ship availability is reduced. Growing port congestion and environmentally mandated slower ship speeds combine to add days to shipping routes, reducing the availability of ships. 


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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. 

EuroDry (EDRY) – September-quarter results

Posted on by cpereira@noblefcm.com


Thursday, November 09, 2023

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

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

Shipping rates weren’t as bad as expected. The average TCE rate for the 2023-3Q was $12,126 down 37% but better than our forecast. Operating costs declined relative to last year with the sale of an older vessel. Costs will rise in future quarters with the addition of three ships. Financing costs rose due to higher interest rates. The company will add $30 million in debt as part of the ship acquisition, financing and additional $18 million from cash on hand. With shipping rates above expectations and operating costs below expectations, EBITDA and earnings surpassed our estimates.

What’s did we learn this quarter: EuroDry repurchased approximately 52,000 shares during the quarter at an an average price of $14.43. Several ships were rechartered at favorable rates, most notably the Alexadros P ($24,500 for the December quarter versus $9,450 in the September quarter). Management believes its recent partnership arrangement establishes the company as an investment partner amongst private investors. The implication is that future such arrangements are likely. Management estimates a net asset value of $51.47, significantly above the current stock price of approximately $15 per share. The company will continue replacing older vessels with new vessels. It would like to see the market improve over the next few years before selling older vessels.


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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. 

EuroDry (EDRY) – EuroDry doubles down on shipping recovery

Posted on by cpereira@noblefcm.com


Wednesday, September 13, 2023

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

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

EuroDry announced the acquisition of three ships for $65 million. The three Ultramax ships are smaller than the fleet average but newer having been built in 2014-15. The ships are expected to be delivered in Oct-Nov and are yet to be commissioned. We have assumed the ships will be commissioned at a TCE rate of $12,000/day beginning in the 2024-1Q. This assumes an improvement in drybulk shipping rates in the next three months. Our models estimate that the three ships will add $4 million to EBITDA in 2024 implying a cost of 16 times EBITDA.

Of course this is not just about 2024 results. Chairman and CEO Aristides Pittas used the opportunity of the acquisition to reiterate his belief that market fundamentals will improve in the next two to three years due to a low orderbook. We agree with Mr. Pittas’s assessment but note that the prolonged war in Ukraine (lower grain trade) and a slower-than-expected economic rebound in China (steel and ore trade) could mean improvements are not seen in 2024.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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. 

EuroDry (EDRY) – Shipping rates fall, a vessel is detained, operating costs rise

Posted on by cpereira@noblefcm.com


Wednesday, August 09, 2023

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

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

Results continue to slide in response to falling shipping rates and a ship detention. Average TCE rates, which showed signs of improving in April, fell in May and June to an average quarterly rate of $12,179/day versus $23,490/day. Eurodry reported that one of its ships was detained for 35 days (out of service 48 days) due to alleged pollution violations resulting in the cancellation of a high-priced charter.

Operating costs rose. Total operating costs ($12.7m versus $10.2m) rose sharply. Higher voyage expenses are related to the ship detention. Management described the rise in vessel operating expenses relative to last year as due to “inflationary increases” although that explanation does not adequately explain the quarter-over-quarter increase ($12.7m versus $11.8m) in costs.


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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. 

EuroDry (EDRY) – Shipping rates bottoming out and that’s good news for EuroDry

Posted on by cpereira@noblefcm.com


Tuesday, May 16, 2023

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.

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

EuroDry reported weak 2023-1Q results due to lower shipping rates, largely as expected. The EuroDry fleet ran near full capacity but did so at much lower rates. The average TCE rate for the quarter was $10,674 down 57% versus last year and below our expectations. EuroDry typically only books out less than half of the days beyond the upcoming quarter making it more sensitive to spot shipping rates than most shipping companies. 

Operating costs were generally in line except for voyage expenses. Operating costs for the quarter rose relative to the same period last year and the previous quarter. The increase can largely be attributed to a rise in voyage expenses. Management indicated the increase was due to “expenses incurred by one of our vessels while employed under a voyage charter.” This is in contrast to the previous year when the company recognized “a gain on bunkers” of $1.0 million. The company has traditionally booked a gain in the voyage expense line.


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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. 

EuroDry (EDRY) – Sensitivity to shipping rates is hurting results & could get worse

Posted on by cpereira@noblefcm.com


Tuesday, February 14, 2023

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

Lower shipping rates hurting results. Eurodry reported 2022-4Q revenues, net, of $15.1 million versus $22.3 million and below our projection of $19.9 million. Average TCE rates for the quarter were $16,689 versus $29,157 and our $18,982 estimate. Lower shipping rates led to a a 54% decline in adj. ebitda and a 78% decrease in adjusted net income. The sharp declines demonstrate Eurodry’s extreme sensitivity to shipping rates.

Shipping rate sensitivity will only increase in upcoming months. Fleet rate coverage drops off dramatically after the 2023-1Q. In fact, all 11 ships will be exposed to spot or indexed prices. This, combined with a further drop in shipping rates in February, could result in a difficult upcoming quarter for the company. Management estimates it would need rates above $12,700 to be cash flow breakeven while noting current prices in the $6,000-$7,000 range.


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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. 

EuroDry (EDRY) – Lower results reflect declining shipping rates, Price Target lowered.

Posted on by cpereira@noblefcm.com


Monday, November 14, 2022

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

EuroDry reported 2022-3Q revenues, EBITDA and net income below comparable periods and our estimates. Net revenues of $15.8 million were below that of the same period last year ($19.5 million), the 2022-2Q ($21.0 million) and our estimate ($19.5 million). Results reflect a decline in TCE rates to $20,637 and a reduction in voyage days due to 92 scheduled off days. Adjusted ebitda was $9.5 million as the $4-5 million revenue shortfall versus previous periods and our estimate carried down to the ebitda line. Adjusted net income was $5.7 million, or $1.93 per share, well below our $9.5 million or $3.27 per share estimate.

The company’s sensitivity to shipping rates is apparent as it locks in rates at lower prices. EuroDry has locked in 53% of 2022-4Q shipping days but virtually no days beyond 2022. Shipping contracts agreed in recent months have largely been below $15,000 reflecting a 35-50% drop in pricing since the second quarter. Management remains confident shipping rates will eventually improve as global economic conditions improve but near-term comps will be tough. As such, this quarter’s decision to schedule off days for repairs and ship improvements while rates are low seems logical.


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*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. 

EuroDry (EDRY) – Model Fine Tuned To Reflect Lower Shipping Rates

Posted on by cpereira@noblefcm.com


Friday, October 21, 2022

EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

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

We are lowering our assumed TCE shipping rate for non-fixed vessels. We are lowering third-quarter TCE rates to $20,000/day from $23,000/day to reflect weaker shipping rates in the quarter. The impact on EuroDry cash flow and earnings is somewhat muted relative to other shipping companies given fixed rates for the bulk of its fleet. Nevertheless, we are adjusting downward our estimates to reflect the impact on ships tied to market prices.

Revenues, EBITDA and EPS estimate all come down slightly. Our new third quarter and 2022 revenues estimates are $25.4 million and $96.3 million, down from $26.1 million and $98.4 million. Our new third quarter and 2022 EBITDA estimates are $13.1 million and $55.5 million, down from $13.7 million and $57.1 million. Our new third quarter and 2022 EPS estimates are $3.27 and $14.88, down from $3.48 and $15.44.


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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.