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Equity Research Analyst, Maritime sector, Drewry Maritime Financial Research

Ankush Kathuria CFA, FRM

Equity Research Analyst, Maritime sector

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Equity Bottom-Up

<p>1Q19 result for Scorpio Bulkers is reflective of the underlying weakness in the market spurred by iron ore supply disruptions after the Vale dam disaster in late January 2019 and the recent cyclone Veronica in Australia. EBITDA declined by more than 50% to USD 7.7m in 1Q19 from USD 18.3m in 1Q18. Owing to non-cash gain of USD 15m and dividend of USD 0.5m from investment in Scorpio Tankers, 1Q19 closed with a lower loss of USD 3.5m than USD 5.8m in 1Q18. The company’s trading portfolio will have higher exposure (69%) to the Ultramax segment especially after the sale of two Kamsarmaxes. Pricing in risks such as coal import restrictions at Chinese ports, iron ore supply disruptions and swine flu outbreak in China, we have arrived at a fair value of USD 5.50 per share.</p>

1Q19 result for Scorpio Bulkers is reflective of the underlying weakness in the market spurred by iron ore supply disruptions after the Vale dam disaster in late January 2019 and the recent cyclone Veronica in Australia. EBITDA declined by more than 50% to USD 7.7m in 1Q19 from USD 18.3m in 1Q18. Owing to non-cash gain of USD 15m and dividend of USD 0.5m from investment in Scorpio Tankers, 1Q19 closed with a lower loss of USD 3.5m than USD 5.8m in 1Q18. The company’s trading portfolio will have higher exposure (69%) to the Ultramax segment especially after the sale of two Kamsarmaxes. Pricing in risks such as coal import restrictions at Chinese ports, iron ore supply disruptions and swine flu outbreak in China, we have arrived at a fair value of USD 5.50 per share.

Scorpio Bulkers (NYSE:SALT): Moderate Growth Anticipated for Medium Bulkers; Downgrade to Neutral

Eneti

Scorpio Bulkers (NYSE:SALT): Moderate Growth Anticipated for Medium Bulkers; Downgrade to Neutral