Movers and SHAKERS
Grindrod Shipping (GRIN)
Strong 1H2021 Results and Impressive 3Q2021 Forward Cover
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.
1H2021 Results Above Expectations. Reported adjusted 1H2021 EBITDA of $62.5 million was a sharp improvement over 1H2020 EBITDA of $29.8 million on strong dry bulk TCE rate performance. Adjusting for IFRS 16 adoption, we calculate that adjusted EBITDA was $55.2 million in 1H2021, or more than double adjusted EBITDA of $22.1 million in 1H2020. Handy TCE rates were $15.3k/day and Supra/Ultra TCE rates were $17.6k/day, and there was an upward bias evident over first half, with 2Q2021 TCE rates up ~50% versus 1Q2021. Quarterly reporting begins in 3Q2021.
Call with management today at 8am EST. Number is 877-553-9962 and code is Grindrod. Consistent with recent comments, we believe that management will offer a positive view on the rest of the year, discuss growth initiatives and highlight the decision to initiate a quarterly dividend. The targeted payout is 30% of adjusted net income, or a base dividend of $0.03/share plus a combo of added cash ...
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.