SHIP-US (BUY, TP 2.9) 3Q17 Review: Weak Quarter, But Investment Case Intact. TP Upgraded

Nov. 08, 2017 4:59 PM ETSHIP
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Long/Short Equity, shipping, Value

Contributor Since 2013

*UPDATE* Gersemi Research has been acquired by the Cleaves group 


Gersemi Research is an independent investment and equity research platform with primary focus on shipping and oil services. We have a proven track-record of significantly and consistently outperforming consensus and generating returns above the SP500 over many years


Mr. Joakim Hannisdahl, our Head of Research, has several years of experience as a Shipping Analyst on equities at Nordea Markets and Fearnley Securities. He holds a Master of Commerce (extension) with specializations both in Financial Econometrics and Funds Management (UNSW), in addition to a Bachelor of Social Sciences with specializations in both Economics and International Relations (NTNU). He is currently investing private funds, among other engagements.


Please visit http://gersemiresearch.com to gain direct and real-time access to our research.

Full report available for free at http://gersemiresearch.com/2017/11/08/ship-us-buy-tp-2-9-3q17-review/

Highlights:

  • TCE at USD 9.2k/d vs our forecast of 13.5k/d (100% utilization basis).
  • Opex at USD 5.2k/d (+13% q/q) vs our forecast of USD 4.6k/d.
  • Above weakness somewhat mitigated by G&A at USD 1.3m vs our USD 1.6m forecast.
  • EPS adj. -0.13 vs our forecast of +0.02, after adjusting for a USD 11.4m one-off related to debt repayment
  • TP upgraded to USD 2.9/sh (from 2.7)

Disclosure: I am/we are long SHIP.

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