Fri, Jan. 30, 2:58 PM
- The Baltic Dry Index falls another 3.8% and is now trading at its lowest levels since the 1980s, even as traded volumes of many commodities are reaching record levels.
- The dry-bulk market has been sunk by a perfect storm as new ships ordered after the financial crisis have hit the seas just as Chinese economic growth has slowed and commodity prices have turned lower.
- Earnings for a capesize vessel typically used to transport coal and iron ore have fallen to $6,707/day today, down ~50% Y/Y and hardly enough to cover daily operating expenses of $6K-$10K.
- As one analyst says, some of the share prices are starting to reflect almost a state of bankruptcy: Shares of Scorpio Bulkers (NYSE:SALT), for one, have plunged 85% in the past year, and Star Bulk Carriers (NASDAQ:SBLK) has shed 67% in the same period.
- Related tickers: FREE, EGLE, SB, DRYS, NM, SHIP, ESEA, PRGN, DCIX, GSL, NMM, DSX, DAC, KEX, ULTR, BALT, SINO.
Nov. 12, 2014, 5:21 PM
Aug. 18, 2014, 12:58 PM
- Ultrapetrol's (ULTR -1.2%) price target is lowered to $4.50 from $5 at Stifel, noting Q2's EBITDA contribution from the River segment was $14M below its expectations due to high water levels resulting in delays for 22% of cargo in the quarter and also lower than expected contribution from barge sales as ULTR shifted more of its construction capacity to the owned fleet.
- The firm believes Southern Cross' increased stake in ULTR to 85% from 67% could precipitate a buyout of the remaining 15% of public equity, closing the gap between current valuation and the sum of the parts (Briefing.com).
Aug. 14, 2014, 5:31 PM
Jul. 14, 2014, 2:40 PM
Jul. 14, 2014, 12:47 PM
May. 14, 2014, 5:24 PM
Mar. 20, 2014, 11:13 AM
- Drybulk shipping rates are up big during past five weeks and rose again overnight.
- The Baltic Dry Index rose 3.2% overnight and has surged 49% since Feb. 12; the BDI has gained in 24 of the last 26 sessions, led by a 211% rise in capesize rates.
- Capesize rates climbed 6.9% (or $1,664/day) overnight to $25,659/day, while panamax rates rose $4/day to $9,019/day and supramax rates added 0.4% ($48/day) to $12,598/day.
- Related drybulk equities include DRYS, GNK, PRGN, DSX, FREE, ULTR, EGLE, NM, NMM, SBLK, KEX, SB, SINO, BALT, SHIP, DCIX.
Mar. 12, 2014, 5:48 PM| 2 Comments
Jan. 23, 2014, 9:41 AM
- Shipping rates fell again overnight, and the Baltic Dry Index is now -44% YTD.
- Overnight, capesize shipping rates declined 19.6% (or -$1,4620 to $11,128/day), panamax rates slipped 4% (or -$219) to $11,710/day, while supramax rates fell 1.8% (or -$94) to $11,721/day.
- YTD, capesize rates -71.5%, panamax rates -20%, supramax rates -23%.
- On watch: DRYS, GNK, PRGN, DSX, FREE, ULTR, EGLE, NM, NMM, SBLK, KEX, SB, SINO, BALT, ESEA, DCIX, TEU, DAC, SHIP, SSW, GSL.
Jan. 15, 2014, 10:35 AM
- Shippers are on the move after dry bulk shipping rates finally show their first gain of the year.
- The Baltic Dry Index shows a four-point increase due to gains in capesize rates, which rose $280 to $13,168/day, while panamax rates fell $54 to $12,534 and supramax rates fell $65 to $12,364/day.
- Before today's gains, the BDI had plunged 40% YTD in its worst start of the year in 30 years.
- FREE +7.4%, EGLE +7.3%, GNK +5.5%, SB +4.3%, DRYS +4.1%, NM +3.4%, SBLK +2.8%, SHIP +2.5%, ESEA +2.3%, PRGN +2.1%, DCIX +2%, GSL +1.9%, NMM +1.3%, DSX +1.3%, DAC +1.1%, KEX +0.8%, ULTR +0.3%, BALT -1%, SINO -0.8%.
Nov. 13, 2013, 5:51 PM
Oct. 9, 2013, 3:56 PM
- Ultrapetrol (ULTR +4.9%) is initiated with a Buy rating and $5 price target at Stifel Nicolaus, which calls the Bahamas-based industrial shipper a "little company with big potential."
- With record soy production driving river revenue and the contribution of additional vessels and higher day rates from the offshore oil field services segment, Stifel believes ULTR is likely to see EBITDA nearly triple from 2012 levels; the firm also thinks demand will continue to grow for river barges and offshore supply vessels in South America.
- Given its view of ULTR's strong balance sheet, the firm believes the company is well positioned to fund growth and see earnings and cash flows expand further.
Sep. 30, 2013, 9:12 AM
- Wells Fargo becomes the latest firm to call a near-term top in the Capesize-fueled dry bulk rally. (See Deutsche)
- "After rising ~290% since 8/19 to $42,211/day, Capesize spot rates have declined ~10% to $38,023/day since Wednesday," analyst Michael Webber notes, adding that "despite the modest pull back ... rates remain ~235% above their Q2 average [and] 35% above Q4 forward agreements, which are off ~11% since Wednesday, while 2014/2015 FFAs are ~50-60% below spot rates."
- Diana Shipping (DSX), Eagle Bulk Shipping (EGLE), and Genco Shipping (GNK) are all maintained at Underperform.
- Other names in the sector: FREE, SINO, DRYS, BALT, PRGN, ULTR, NM, SB, SFL, NMM, SBLK
- ETF - SEA
Sep. 25, 2013, 10:44 AM
- Dry bulk shipping rates are rising again: Overnight, capesize rates rose 5.2% (or $2,206/day) to $42,211/day, panamax rates rose 8.9% (or $1,144) to $13,989/day, and supramax rates rose 2.6% to $10,579/day.
- Since Aug. 12, capesize rates are up 300%, largely driven by higher iron ore shipments to China out of Brazil and Australia, while panamax rates are up 87%, largely driven by coal activity and anticipation of a good amount of shipments from a bountiful U.S. harvest (Briefing.com).
- EGLE +6.2%, FREE +5.6%, SINO +5.1%, VLCCF +4.5%, DRYS +4.2%, BALT +4%, PRGN +3.4%, DSX +1.6%, ULTR +1.2%, NM +1%, SB +0.9%, SFL +0.7%, NMM +0.5%, KEX +0.3%, DCIX +0.3%, SBLK +0.3%, GNK +0.2%.
- However, Seanergy (SHIP) -15.3% after reporting earnings this morning and reigniting concerns about its ability to stay in business.
- ETF: SEA.
Aug. 14, 2013, 3:28 AM
ULTR vs. ETF Alternatives
Ultrapetrol Bahamas Ltd, is a shipping transportation company serving the marine transportation needs of clients in the geographic markets for containers, grain soybean, forest products, minerals, crude oil, petroleum, and refined petroleum products.
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