Tuesday, April 13, 2021
Euroseas Ltd. (ESEA)
Container Market Remains Strong and New Charter Signed
Euroseas Ltd. provides ocean-going transportation services worldwide. The company owns and operates containerships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of March 31, 2017, it had a fleet of seven containerships; and six drybulk carriers, including three Panamax drybulk carriers, one Handymax drybulk carrier, one Kamsarmax drybulk carrier, and one Ultramax drybulk carrier. The company was founded in 2005 and is based in Maroussi, Greece.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Another charter at a higher-than-expected rate announced. Upcoming charter reset should also be positive. A new charter has been signed on the Joanna for 18-21 months at a rate of $16.8k/day, above the current rate of $8.1k/day. In addition, the Oakland is working on an indexed rate through June 2021 and the last reset will occur late next week. If the rate was reset today, the rate would move to ~$34k/day from the current ~$24k rate.
Increasing 2021 EBITDA estimate to reflect new charter and upcoming reset on the indexed rate. To reflect the positive impact of the Joanna charter and upside potential from upcoming charters, we are moving 2021 EBITDA to $34.9 million based on TCE rates of $15.7k/day from $31.1 million based on TCE rates of $14.8k/day …
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.
