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SALT (BUY, TP 9.5) 1Q18 Review: Indirect Dividend Yield Of 5.3%

|Includes: Scorpio Bulkers Inc (SALT)

Summary

Net earnings spot-on our forecast, but below consensus.

Indirect yield of 5.3%.

The cyclical dry bulk shipping expansion set to continue.

Short Comment: 1Q18 Review

  • EBITDA of $18.3m slightly below our $19.4m forecast and consensus at $20.8m
  • Realized TCE/d in the quarter of $10,726 was in-line with consensus but above GR at $10,352
  • Offset by both opex and G&A 8% above ours and consensus forecast
  • Reported net profit of -$5.8m in-line with our -$5.9m forecast but below consensus at -$2.5m
  • DPS of 0.02 as expected. Additionally, $8.6m share buy-back leads to an indirect annualized dividend yield of 5.3%
  • Insignificant changes to our estimate forecast
  • BUY reiterated with TP $9.5 (up from $9.1)

This is a short extract of the full 7-page report published exclusively on GersemiResearch.com

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.