United Maritime: Upgrading To Buy On Vastly Improved Charter Rates And Generous Dividend

Summary

• Over the past twelve months, United Maritime has sold all of the tanker vessels acquired in July 2022 at an aggregate gain of $48 million.
• The company has shifted its focus back to the larger dry bulk vessel classes. Currently, the fleet consists of eight dry bulk carriers with an average age of 14.5 years.
• The recent rally in dry bulk charter rates should benefit United Maritime's Q4 results quite meaningfully thus providing support for the company's generous quarterly cash dividend of $0.075 per share.
• While shares are currently changing hands at an approximately 60% discount to net asset value, investors should be wary of the ongoing warrant overhang.
• With the vastly improved chartering environment supporting the continuation of the company's substantial quarterly cash dividend, I am upgrading USEA's shares from "Hold" to "Buy".

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of USEA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.