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Tuesday, March 17, 2020
Grindrod Shipping (GRIN)
Weaker Operating Results, But 2H2020 Recovery Expected
Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE. Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Reported adjusted EBITDA of $39.7 million was a sharp improvement over the 2018 number of -$0.1 million. Adjusting for IFRS 16 adoption, we calculate that adjusted EBITDA was $24.2 million in 2019, which was below expectations due to dry bulk market weakness late in the year.
Adjusting estimates to reflect 2019 operating results and current dry bulk market weakness. Our 2020 EBITDA estimate drops to ~$40 million from $59 million. Starting with 1Q2020, operating results will be reported quarterly. While the dry bulk market is currently weak due to seasonality and havoc wreaked by the spread of the coronavirus, we believe that supply growth is muted and...
This Company Sponsored 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.