Wednesday, July 21, 2021

Pangaea Logistics Solutions Ltd. (PANL)
Fleet Expansion and Firm Market Impact Estimates

Pangaea Logistics Solutions Ltd and its subsidiaries provide seaborne drybulk transportation services. It transports drybulk cargos including grains, coal, iron, ore, pig, iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite and limestone. The firm's services include cargo loading, cargo discharge, vessel chartering, voyage planning and technical vessel management. The company derives all of its revenues from contracts of affreightment, voyage charters and time charters. Its strategy depends on focusing on increasing strategic contracts of affreightment, expanding capacity and flexibility by increasing its owned fleet and increasing backhaul focus and fleet efficiency.

Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Increasing 2021 EBITDA estimate to $68.2 million based on TCE rates of $21.7k/day from $63.4 million based on TCE rates of $21.0k/day and total shipping days of 19,260. The outlook remains firm and we moved our quarterly TCE rate estimates higher by $1k to $22.5k/day in 2Q2021, $25.0k/day in 3Q2021 and $22.5k/day in 4Q2021.

Fleet expansion update.  After selling several older dry bulk vessels over the past two years, 2Q2021 was busy on the fleet expansion front, with the delivery of two Ice-Class Post Panamax new builds and the closing of two acquisitions of a 2013-built Ultramax and a 2013-built Supramax. The acquisition of a 2013-built Panamax closed last week and two other new builds are slated for delivery in ...

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.