Thursday, May 19, 2022
EuroDry (EDRY)
EuroDry reports 2022-1Q results in line with expectations
EuroDry Ltd. was formed on January 8, 2018 under the laws of the Republic of the Marshall Islands to consolidate the drybulk fleet of Euroseas Ltd. into a separate listed public company. EuroDry was spun-off from Euroseas Ltd. on May 30, 2018; it trades on the NASDAQ Capital Market under the ticker EDRY. EuroDry operates in the dry cargo, drybulk shipping market. EuroDry’s operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company and Eurobulk (Far East) Ltd. Inc., which are responsible for the day- to-day commercial and technical management and operations of the vessels. EuroDry employs its vessels on spot and period charters and under pool agreements.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Results were generally in line with expectations. EuroDry reported revenues of $18.3m in the 2022-1Q versus $8.6m last year, slightly below our $19.5m estimate. Utilization rates remain near 100%. TCE rates were $24,636 versus $14,924 last year. Operating income was $10.2m versus $3.1m, in line with our $10.5m estimate. Adjusted EBITDA was $12.7m versus $4.7m and in line with our $12.9m estimate. Similarly, adjusted net income was $9.5m/$3.30, near our $9.8m/$3.40 projections.
Charters extended. New vessels added. EuroDry extended the charters for several of its vessels at favorable rates. The company took ownership of two vessels this year including one in February and one in April. It sold one vessel. The company now has 11 vessels with the rates for most of the vessels fixed for the rest of 2022 and about half fixed for 2023. Spot prices rose sharply last fall before falling in the first quarter of the year. Rates are still attractive relative to historical levels and the outlook is positive due to a lack of new dry bulk ship builds and expanding world economic conditions….
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.
