Movers and SHAKERS
Monday, May 11, 2020
Eagle Bulk Shipping (EGLE)
Solid Quarter, But Weakness Ahead Before 2H2020 Recovery
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.
Adjusted 1Q2020 EBITDA of $18.8 million was higher than expected due to high 1Q2020 forward cover and hedging gains. Solid forward cover of 85% of 1Q2020 available days booked at $10,300/day helped offset the dry bulk market weakness, and hedging gains of $7.9 million helped push EBITDA above our estimate of $13.9 million. In addition, lower G&A expenses partially offset lower TCE revenue and higher opex.
Adjusting 2020 estimates to reflect 1Q2020 operating results, lower forward cover and weaker dry bulk market fundamentals. 2Q2020 is off to a slow start and forward cover is lower at 67% of available 2Q2020 days booked at $8,110/day. We are lowering estimated 2020 EBITDA to $60.0 million from $80.0 million, as softer market fundamentals have extended into the quarter 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.