This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Excel Maritime Stock Slides

In the year-ago equivalent period, Excel posted net income of $81.8 million on revenue of $102.6 million.

The company said that 56% of its fleet was locked into long-term charters for 2011 -- an important data point since it expresses just how much a dry bulk freight line is exposed to the spot market, which has declined sharply since the end of 2010.

Excel management will likely strive to pull more of its ships from the spot market and fix them into long-term charter contracts, according to analyst Omar Nokta, of Dahlman Rose, in a note to clients Tuesday morning.

Most of Excel's fleet is made up of Panamax-size ships, according to some analyst estimates. The glut hasn't damaged rates for those vessels quite as much as Capesize ships, the largest dry-bulk freighters in the world. Also, of Excel's seven Capesize vessels, all but one are fixed under long-term contracts, earning between $25,000 and $48,000 a day. None of those ships will see their charter contracts expire this year.

Excel just took delivery of a new Capesize ship in January, but had a charter agreement covering its services already in place. The daily rate is $28,000 a day, Excel said, well above the going spot-market fee. According to the Baltic Exchange, a London-based ship broker that tracks rates, Capesize vessels continued to weaken, fetching about $4,500 a day on average on the spot market as of Monday, down nearly 30% from a week ago. On Tuesday, the figure inched up to about $4,600.

The going rate for a Panamax vessel was about $14,600 a day, according to the Baltic Exchange. That's down about 8% from a week ago.

In his research note, Dahlman Rose analyst Nokta worried that weak shipping rates might put Excel's loan convenants in danger. He noted that Excel has made moves to sell ships and pay down its debt -- leverage the company had taken on in 2008 to acquire a fleet of ships.

Nokta maintained his hold rating on the stock "due to uncertainties that lie ahead for dry bulk and Excel."
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
EXM $0.00 0.00%
DSX $2.20 -12.00%
DRYS $0.10 -5.57%
AAPL $94.99 -0.02%
FB $99.54 -0.21%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs