Monday, March 08, 2021
Eagle Bulk Shipping (EGLE)
Strong Start Sets Positive Path For New Year
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.
Adjusted 4Q2020 EBITDA of $22.0 million slightly below expectations due to lower TCE rates and higher costs. Impressive 1Q2021 forward cover pushed up EBITDA and TCE rate estimates. 1Q2021 forward cover of 93% of available booked at $15,085/day is very impressive and 2Q2021 FFA rates are in the $18.5k/day range. On Friday, we increased our 2021 estimates to $132.9 million for EBITDA and $14,620/day for TCE rates.
Dry bulk market thesis intact. While the past two years were negatively impacted by extreme factors, supply/demand fundamentals appear favorable and the year has started on a better-than-expected note. The order book and supply growth remain historically low due to rate volatility, regulatory uncertainty and declining capital availability, while demand should rebound on the back of global stimulus …
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.
