Thursday, November 11, 2021

Pangaea Logistics (PANL)
Very Strong Quarter and Headed for Solid Finish

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.

3Q2021 TCE Rates Above Expectations and 4Q2021 Off to Good Start. 3Q2021 EBITDA of $33.6 million was well above expectations by $8.4 million. Higher TCE revenue, higher TCE rates of $28.8k/day, higher shipping days, lower voyage expenses and lower opex, which more than offset higher charter hire expenses.

Increasing 2021 EBITDA estimate to $95.6 million based on TCE rates of $24.3k/day from $76.0 million based on TCE rates of $22.2k/day.  We believe that the prospects look good based on solid 4Q2021 forward cover, with 2,053 shipping days (~44%) booked at TCE rates of $33.0k/day. In addition, the last two Post Panamax new builds were delivered. While Supramax and Panamax rates were ~$32.0k/day 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.