Tuesday, December 01, 2020

Euroseas Ltd. (ESEA)
Higher Rates on New Fixtures Boost EBITDA Estimates

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.

Two new fixtures at higher than expected rates. The EM Astoria was extended for 12-14 months at $18.7k/day from December 15th, ~$4.5k/day higher than expected and well above the current rate of $8.5k/day. The Evridiki G starts a new 12-13 month time charter this week at $15.5k/day, ~$1.5k/day higher than expected and well above the current rate of $8.25k/day. The Aegean Express starts a new 15-16 month time charter at $11.5k/day on December 27th, in line with expectations and well above the current rate of $5.9k/day.

Adjusting 2020 EBITDA estimate to reflect the new fixtures.  To reflect the new fixtures, we are increasing 2020 EBITDA of $12.4 million based on TCE rates of $9.2K/day, up from our previous estimate of $12.1 million based on TCE rates of $9.1k/day. Net TCE revenue is mostly locked in with only the Oakland on an indexed rate ...

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.