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Thursday October 24, 2019
Scorpio Bulkers (SALT)
Making A Good Move With Special Dividend
Scorpio Bulkers Inc is a shipping company based in Monaco. It owns and operates a fleet of modern mid to large-size dry bulk carriers which provide marine transportation for major bulks, which include iron ore, coal and grain and minor bulks which include bauxite, fertilizers and steel products internationally. In terms of its dead weight tonnage, its vessels are classified as Capesize, Kamsarmax and Ultramax, by the order of highest to lowest capacity, with Kamsarmax accounting for the highest revenue.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to full report for price target, fundamental analysis and rating.
- 3Q2019 results in line with expectations. Slight non-cash gain recognized on STNG investment Adjusted EBITDA of $26.1 million was in line with our estimate of $26.3 million. TCE rate averages were $13,149/day for Kamsarmaxes and $11,824/day for Ultramaxes.
- Lowering 2019 EBITDA estimate to $91.1 million to reflect 4Q2019 contract cover and
timing of scrubber installations. TCE rates moved higher to $11,391/day (from
$11,237/day) and solid 4Q2019 contract cover, but...
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 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.