Thursday, December 17, 2020
Eagle Bulk Shipping (EGLE)
Shifting to Growth?
Eagle Bulk Shipping Inc. is a US-based drybulk owner-operator focused on the Supramax/Ultramax mid-size asset class, which ranges from 50,000 and 65,000 deadweight tons in size; these vessels are equipped with onboard cranes allowing for the self-loading and unloading of cargoes, a feature which distinguishes them from the larger classes of drybulk vessels and provides for greatly enhanced flexibility and versatility- both with respect to cargo diversity and port accessibility. The Company transports a broad range of major and minor bulk cargoes around the world, including coal, grain, ore, pet coke, cement, and fertilizer. Eagle operates out of three offices, Stamford (headquarters), Singapore, and Hamburg, and performs all aspects of vessel management in-house including: commercial, operational, technical, and strategic.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Fleet renewal continues with Ultramax acquisition. The fleet renewal program, which began in April 2016, continues with a ~$16 million acquisition slated to close in 1Q2021. The SDARI-64 Ultramax was built in 2015 at the Chengxi shipyard and is scrubber fitted. We believe that this move might represent a shift to growth after selling four older Supramaxes over 2H2020.
Adjusting 2020 EBITDA estimate to reflect forward cover and firmer dry bulk market. The dry bulk market improved over 2H2020 and the 4Q2020 forward cover of 73% of available days booked at $11,275/day compares favorably to 3Q2020 forward cover of 66% of available days booked at $9,220/day. While there was a dip in November, we are fine-tuning our 2020 EBITDA estimate of $55.4 million based on TCE …
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.
