Movers and SHAKERS
Euroseas Ltd. (ESEA)
Attractive pure play container company.
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.
- Second quarter after EDRY spin-off down sequentially due to weaker container market. Excluding drydock expenses, adjusted EBITDA was $1.6 million below our estimate of $1.8 million and below 3Q2018 adjusted EBITDA of $1.9 million, mainly due to lower time equivalent (TCE) rates. Versus our estimate, lower TCE rates (-$416/day) and higher management fees (+$80/day) more than offset lower opex costs (-$300/day) and G&A expenses ($150/day).
- Adjusting 2019 EBITDA estimate to reflect lower rates/downtime. Slight market improvement expected this year. To incorporate 4Q2018 results and the new contract fixtures, our new 2019 EBITDA estimate is $8.7 million (from $9.6 million). While rates early in the year have been expected to be lower, we expec...
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