Friday, November 05, 2021
Eagle Bulk Shipping (EGLE)
Strongest Quarter Ever and High 4Q021 Forward Cover
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.
Strong quarter ever. Adjusted EBITDA was $91.0 million was driven by TCE rates of $29.1k/day. Results would have been even higher absent realized FFA/bunker swap hedging losses of $15.4 million. Opex also increased due to acquisition activity. The dry bulk market has pulled back this quarter, but 4Q2021 forward cover is high and management comments should remain positive on today’s 8:00am EST call. Number is 833-282-4411 and code is 7077196.
Limited changes to EBITDA estimates. Despite recent weakness, forward cover of 75% of available days booked at $32.4k/day supports our 4Q2021 EBITDA estimate of $108.4 million based on TCE rates of $30.6k/day and our 2021 EBITDA estimate of $293.6 million based on TCE rates of $24.3/day. With visibility into next year limited and typical seasonality likely to return, our 2022 EBITDA is $304.0 …
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.
