Movers and SHAKERS
Eagle Bulk Shipping (EGLE)
Another Ultramax Acquisition Adds to Fleet Renewal
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 the full report for the price target, fundamental analysis, and rating.
Fleet renewal continues with another Ultramax acquisition. The fleet renewal program, which began in April 2016, continues. Another SDARI-64 Ultramax (to be renamed Stockholm Eagle), which was built in 2016 at Chengxi Shipyard and is outfitted with scrubbers, will be acquired for $17.65 million. The acquisition adds to two Ultramax acquisitions slated to close in 1Q2021. We believe that these moves represent a shift to growth after selling a total of five older Supramaxes with an average age of 18 years since mid-2020. The impact is positive from the perspectives of age profile and fuel consumption. Pro forma for the pending transactions, the fleet will total 48 vessels with an average age of ~8.8 years.
Fine tuning 2021 EBITDA estimate to reflect new transaction. No change to 2020 EBITDA estimate of $55.4 million based on TCE rates of $9.9k/day. The new transaction has a slight positive impact and our new 2021 EBITDA estimate is $77.2 million (up from $75.6 million). Forward cover is light into next year, but TCE rates have moved higher after firmer market fundamentals kicked in late 2Q2020 ...
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.