Friday, November 12, 2021
Euroseas (ESEA)
Attractive Acquisition and Watching Upcoming Charters
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.
Refer to the full report for the price target, fundamental analysis, and rating.
Intermediate acquisition enhances fleet and adds to forward cover. The acquisition of a 2005-built 6,350 TEU container ship (TBN Marcos V) for $40 million should close in late 4Q2021. A three-year time charter at $42.2k/day, which equates to annual EBITDA of close to $12 million, derisks the acquisition. We expect debt financing of $24.0 million to be announced by yearend.
Results out next week. 3Q2021 Numbers will be out BMO on November 16th and management will host a call at 10am EST. Number is (877) 553-9962 and code is Euroseas. Our 3Q2021 EBITDA estimate is $13.8 million based on TCE rates of $19.1k/day. In addition to container market comments, we will be looking for details on the latest acquisitions and the contract status on the intermediate and four feeders …
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.
