Report
Nicolay Dyvik
EUR 933.17 For Business Accounts Only

Dry bulk shipping (DNB Markets) - A replay in the making

Golden Ocean is trading at exactly the same low share price as in Q1 last year and at the same NAV discount (due to the Vale dam incident in Q1 2019, and this Q1 due to the coronavirus sending Capesize rates below opex levels). Last year, rates below opex lasted three months, while we are now at 45 days, hence we believe it is time to BUY. That said, we are not as optimistic about 2020–2021 as we were last year.
Underlyings
Eagle Bulk Shipping

Eagle Bulk Shipping is a holding company. Through its subsidiaries, the company is engaged in the ocean transportation of dry bulk cargoes through the ownership, charter and operation of dry bulk vessels. The company owns a fleet of Supramax/Ultramax dry bulk vessels. Supramax/Ultramax dry bulk vessels are equipped with cargo-handling cranes and grabs. The company provides transportation solutions to a group of customers, including miners, producers, traders, and end users. Typical cargoes the company transports include both bulk cargoes, such as coal, grain, and iron ore, and minor bulk cargoes such as fertilizer, steel products, petcoke, cement, and forest products.

Genco Shipping & Trading Ltd.

Golden Ocean Group Ltd

S Norden A/S

Dampskibsselskabet Norden is a holding company. Co., through its subsidiaries, is an internationally operating shipping group. Co. operates a fleet of 238 vessels. In dry cargo, Co. operates in Panamax and Handymax, in addition to growing activities in Handysize and Post-Panamax vessel types as well as activities in Capesize. In tankers, Co. activities comprise Handysize, MR and LR1 product tankers. Co.'s product tankers are commercially operated under the 50%-owned Norient Product Pool. Co.'s core fleet consists of owned vessels and vessels on long-term charter with purchase option, the core fleet is supplemented by vessels chartered on a short-term basis or for single voyages.

Safe Bulkers Inc.

Safe Bulkers is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for consumers of marine drybulk transportation services. As of Feb. 9, 2018, Co. had a fleet of 39 drybulk vessels, with an aggregate carrying capacity of 3,513,800 dwt and an average age of 7.6 years. Co. deploys its vessels on both period time charters and spot time charters. The vessels on period time charters provide Co. with relatively stable cash flow and utilization rates, while the vessels in the spot market allow Co. to maintain its flexibility in low charter market conditions.

Star Bulk Carriers Corp.

Star Bulk Carriers is an international company providing worldwide transportation solutions in the drybulk sector through its vessels-owning subsidiaries for a range of customers of major and minor bulk cargoes including iron ore, coal, grain, cement, fertilizer, along worldwide shipping routes. As of Dec 31 2016, Co. owned and operated a fleet of 73 vessels consisting primarily of Newcastlemax, Capesize as well as Kamsarmax, Ultramax and Supramax vessels with a carrying capacity between 52,055 dwt and 209,537 dwt. Co.'s vessels transport a range of major and minor bulk commodities, including ores, coal, grains and fertilizers, along worldwide shipping routes.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Nicolay Dyvik

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