Movers and SHAKERS
Euroseas Ltd. (ESEA)
Insurance Claim Boosts 2Q2020 Results. Container Rates Soft, But Signs of Improvement Emerging
Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
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Insurance claim pushed adjusted 2Q2020 EBITDA of $4.7 million above expectations. Excluding dry dock expenses, EBITDA of $4.7 million was $1.7 million ahead of our estimate. Reported adjusted EBITDA was $4.4 million, which excluded unamortized, below-market time charters acquired of $0.3 million and included derivative adjustments of $0.5 million. We also added back drydock expenses of $0.4 million to adjusted EBITDA. The insurance recovery of $2.7 million from a fire on the Oinousses had a positive impact on the quarterly results.
Adjusting 2020 EBITDA estimate. Positive 2Q2020 variance more than offset soft container market fundamentals and scrapping activity. To reflect the positive 2Q2020 variance and current container market fundamentals, we are forecasting 2020 EBITDA of $13.1 million based on TCE rates of $9,220/day and operating days of 5,941, up from our previous estimate of ...
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.