Movers and SHAKERS
Euroseas Ltd. (ESEA)
High Visibility and Favorable Risk/Reward Profile
Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Looking at 2021 forward cover of 89% of available days booked at TCE rates of $15.2k/day. Our 2021 EBITDA is $40.6 million based on TCE rates of $16.7k/day and visibility is very high. The recent Hydra charter at $20.0k/day for at least 23 months increased the forward cover and about 89% of 2021 available days of 5,000 are booked at average rates of $15.2k/day. Contracted EBITDA approximates $32.8 million and we are estimating that the open days are filled at an average TCE rate slightly above $20.0k/day.
Looking at 2022 forward cover of 55% of available days booked at TCE rates of $19.6k/day. Due to recent charters signed for longer terms, visibility into next year is the highest in more than a decade. While the forward is not as high as 2021, the average rate is about 25% higher and contracted EBITDA approximates $28.8 million. Similar to 2021, we are estimating that the open 2,278 days are filled ...
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.