Thursday, August 05, 2021
Grindrod Shipping (GRIN)
Webcast With CEO Reinforces Positive Stance
Grindrod Shipping, originated in South Africa with roots dating back to 1910. The company is based in Singapore, with offices around the world including, London, Durban, Cape Town, Tokyo and Rotterdam. Its primary listing is on Nasdaq and secondary listing on the JSE.
Grindrod Shipping owns and operates a diversified fleet of owned, long-term chartered and joint-venture dry-bulk and liquid-bulk vessels across the globe.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Capital Link sponsored web cast reinforced our positive stance on GRIN and the dry bulk market. In yesterday’s presentation, CEO Martyn Wade stated again that dry market fundamentals are staying better than expected and shippers remain focused on “just in case” instead of “just in time”. Supply/demand fundamentals remain favorable and TCE rate performance was solid in 1H2021. 2H2021 is off to a good start and the dry bulk market remains firm. Demand has rebounded on the back of global stimulus packages and solid secular minor bulk trends.
IVS Bulk joint venture interest of 31.1% acquisition for $46.3 million was very attractive move. The move effectively expands the fleet by ~3.7 vessels and eliminates the last jv interest. Pricing based on May 13th appraisal and April 30th financials, and interim improvement captured by GRIN. Combo of IVS Bulk cash, a new credit line of $23 million to redeem IVS Bulk preferred and GRIN cash after …
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.
