Eagle Bulk Shipping (Buy, TP: USD6.50) - Scrubber upgrade begins
Eagle Bulk is due to retrofit 19 scrubbers to its fleet ahead of the IMO 2020 sulphur cap, while maintaining an option to add 18 more. We have included our valuation of its initial 19 scrubbers, adding USD14.4m to 2020e revenues and USD0.18/share to our NAV. Moreover, we estimate the optional scrubbers could add a similar amount. We reiterate our BUY, but have raised our target price to USD6.5 (USD6.3).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.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.