Thursday, November 18, 2021
Grindrod Shipping (GRIN)
A Solid 3Q2021 Beat and Higher than Expected Initial Dividend
Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE.
Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
3Q2021 Adjusted EBITDA of $69.0 million exceeded our $65.8 million estimate. Positive variances in opex and charter hire costs more than offset negative variances in G&A expenses and TCE revenue, namely in Supra/Ultras. TCE rates were $29.9k/day for Supra/Ultras and $25.9k/day for Handys. Please note that the EBITDA numbers are pre-IFRS adjustments. Variable dividend policy kicked in and declared 3Q2021 cash dividend of $0.72/share was above our dividend estimate of $0.59/share, which included buybacks of $0.07/share. Dividend estimates are $0.68/share in 4Q2021 and $2.03/share in FY2022.
Management call today at 8am EST. Number is 877-553-9962 and code is Grindrod. We expect color on: 1) the dry bulk market; 2) tone of forward cover versus 3Q2021, ie lower days booked; 3) rates on short-term charter hires; 4) changes in the cargo book; 5) opex and G&A expenses 6) new disclosure on each purchase option on charter-ins; and 7) stance on buybacks given the current stock price …
This Company Sponsored 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.
