Thursday, May 13, 2021
Pangaea Logistics Solutions Ltd. (PANL)
Trifecta: Solid Results, Expanding Fleet and Higher Float
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.
1Q2021 TCE Rates Above Expectations and 2Q2021 Off to Good Start. 1Q2020 EBITDA of $11.8 million was above expectations by $1.9 million mainly due to higher-than-expected TCE rates of $16.5k/day and higher shipping days of 4,668. Due to a rapidly rising rate market, the unique and consistent business model delivered modest TCE rate outperformance of $254, or well below more than $4.4k/day in 4Q2020.
Revising 2021 EBITDA estimate to $63.4 million based on TCE rates of $21.0k/day from $53.5 million based on TCE rates of $15.8k/day and total shipping days of 19,260. Looking at the rest of the year, we believe that the prospects look very good for the dry bulk market. The fleet renewal program should also have a positive impact and forward cover is 64% of estimated 2Q2021 shipping days booked at …
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.
