Movers and SHAKERS
Eagle Bulk Shipping (EGLE)
Fleet Renewal Continues and Equity Offering Completed
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 adds another Ultramax acquisition and Supramax sale. The fleet renewal activity recently picked up, and it now includes three Supramax sales, two pending Supramax sales and two pending Ultramax acquisitions in 2H2020. Fleet renewal improves age profile and boosts fuel efficiency, in addition to avoiding special survey/BWTS costs of in the $1.25 million range per vessel.
Fine tuning 2021 EBITDA estimate to reflect new transactions and firmer dry bulk market. We are maintaining our recently fine-tuned 2020 EBITDA estimate of $55.4 million based on TCE rates of $9.9k/day. Since the asset sales partially offset the Ultramax acquisitions, there isn’t much of a change to our 2021 EBITDA estimate of $75.6 million (up from $74.6 million). EBITDA should move up ~35% as ...
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.