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Friday, March 6, 2020
Eagle Bulk Shipping (EGLE)
Challenging Quarter and Current Environment, But 2H2020 Recovery Likely
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.
A tough end to a volatile year. Adjusted 4Q2019 EBITDA was $9.8 million and adjusted 2019 EBITDA was $48.7 million. A settlement of OFAC issue cost $1.1 million. High shipyard activity due to the scrubber installation program and a weaker dry bulk market had a negative impact on operating results.
Adjusting 2020 estimates to reflect operating results and current dry bulk market fundamentals. Forward cover is solid with 85% of 1Q2020 available days booked at $10,300/day, and we expect 2020 EBITDA to increase to $80.0 million versus $48.7 million in 2019 due to higher TCE rates, lower off hire days and...
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.