Globus Maritime Reports Results for the Second Quarter & Six Months Ended June 30, 2010 and Declares Interim Dividend.
Athens, Greece - September 9, 2010. Globus Maritime Limited ("Globus" or the
“Company") (AIM: GLBS), a company with subsidiaries that own and operate Supramax,
Panamax, and Kamsarmax dry bulk vessels, today reports its unaudited consolidated
interim operating and financial results for the three months (“Q2-10”) and six months (“H1-
10”) period ended June 30, 2010, and declares an interim cash dividend of GB 7.3 pence
(US 11.29 cents) per share.
First Half 2010 Highlights versus First Half 2009
Globus had 5 vessels at the end of June 2010 versus 7 vessels at the end of June 2009. Taking into consideration the reduction in the size of the fleet and the prevailing market conditions:
• Gross Revenues were $11.6 million (H1-09: $26.5 million);
• Net Revenues were $10.8 million (H1-09: $24.5 million);
• Operating Expenses were $2.6 million (H1-09: $5.7 million);
• EBITDA reached $5.9 million with zero impairment charge versus -$2.7 million due to the impairment charge of $18.8 million in H1-09;
• Cash flow from operations reached $5.9 million versus $16.9 million in H1-09;
• Net Income was $1.0 million versus a Net Loss of $11.6 million in H1-09;
• Average Time Charter Equivalent (“TCE”) rate of $20,060 per vessel per day with an average 2.97 vessels operating, versus an average TCE of $19,484 per vessel per day with an average of 7 vessels operating during H1-09;
• Fleet utilization of 98.3% (H1-09: 98.7%). Second Quarter 2010 Highlights versus Second Quarter 2009:
• Gross Revenues reached $5.8 million (Q2-09: $14.8 million);
• Net Revenue were $5.4 million (Q2-09: $13.8 million);
• Operating Expenses were $1.3 million (Q2-09: $2.9 million);
• EBITDA of $2.9 million with zero impairment charge versus -$9.8 million due to the impairment charge of $18.8 million in Q2-09;
• Cash flow from operations of $3.2 million versus $9.2 million in Q2-09;
• Net Income of $0.6 million versus a Net Loss of $14.1 million in Q2-09;
• Average TCE rate of $20,724 per vessel per day with an average 2.9 vessels operating, versus an average TCE of $22,065 per vessel per day with an average of 7 vessels operating during Q2-09;
• Fleet utilization of 100% (Q2-09: 98.9%).
Dividend Declaration
In implementation of the Company’s dividend policy, the Directors declare an interim cash dividend of GB 7.3 pence per share (US 11.29 cents per share), amounting to $0.8 million in total, for the six months ended June 30, 2010.
This interim dividend will be payable on or about September 24, 2010 to all shareholders on record on September 17, 2010.
Reverse Stock Split
Following the 1-for-4 reverse stock split which took effect on July 29, 2010, the issued share capital as of the date of this release is 7,240,852 shares of $0.004 each.
Fleet Development
In February 2010, the mid-1990s-built Handymax vessels “Sea Globe” and “Coral Globe” were delivered to their new owners, two unaffiliated third parties, generating net cash proceeds of $33.0 million in total.
In March 2010 the Company agreed to purchase en-bloc, from an unaffiliated third party, two dry bulk sistership geared and grab-fitted Supramax vessels for $32.85 million each. The vessels, named “Sky Globe” (built in November 2009) and “Star Globe” (built in May 2010), were delivered to Globus in May 2010.
In June 2010 the Company agreed to purchase from an unaffiliated third party the dry bulk Kamsarmax vessel “Jin Star” (built in January 2010) for $41.1 million, with an attached bareboat charter agreement at the gross daily rate of $14,250. The vessel was delivered to Globus on June 29, 2010.
On the date of this release, the Company’s subsidiaries own five modern dry bulk carriers, consisting of three Supramaxes, one Panamax, and one Kamsarmax. On June 30, 2010 the fleet had an aggregate carrying capacity of 319,913 DWT and a weighted average age of approximately 3.4 years, which is a 72% reduction from the weighted average age of 12.1 years at June 30, 2009.
Fleet Deployment
The Panamax “Tiara Globe” is currently on a time charter with Transgrain Shipping that began in February 2010 and is scheduled to expire in a minimum of 24 months - maximum of 26 months from such date, at the gross rate of $20,000 per day.
The Supramax “Star Globe” is currently on a time charter with Transgrain Shipping that began in May 2010 and is scheduled to expire in a minimum of 11 months - maximum of 13 months from such date, at the gross rate of $22,000 per day.
The Supramax “Sky Globe” is currently trading in the spot market.
The Supramax “River Globe” is currently on a time charter with Eastern Bulk Carriers A/S that is scheduled to expire in September 2010 (maximum November 2010) at the gross rate of $25,000 per day.
The Kamsarmax vessel “Jin Star” is on a bareboat charter with Eastern Media International and Far Eastern Silo & Shipping for a period of five years (which can be extended for one year at the charterer’s option, and thereafter extended one additional year at the Company’s option), at the gross rate of $14,250 per day.
As of the day of this press release, we have secured under fixed employment 73% of our fleet days for the remaining of 2010 and 51% for 2011.
Management Commentary
George Karageorgiou, Chief Executive Officer of Globus Maritime Limited, said:
“Taking into consideration both the reduced size of our fleet during the reporting period and the prevailing market conditions, we are happy to report healthy results for the three month and six month periods ended June 30, 2010.
“During the first six months of 2010 we continued with our fleet renewal and expansion strategy enhancing the foundation of long term growth for our company. We sold two “older Handymaxes” and acquired three “newer and larger” vessels, expanding the operational versatility of our fleet with the addition of a Kamsarmax vessel. We now have a modern fleet of five dry bulk carriers comprised of three Supramaxes, one Panamax and one Kamsarmax with an weighted average age of just 3.4 years, which is a 72% reduction from the weighted average age of 12.1 years at June 30, 2009.
“As of today, we have secured under fixed employment 73% of our fleet days for 2010 and 51% for 2011.
“We are also pleased to reinstate the dividend, and have declared an interim dividend of GB 7.3 pence per share, consistent with our dividend policy.
We are currently evaluating strategies that can enhance shareholder value for the long term. In July 2010, we consolidated our shares through a 4-for-1 reverse split, in preparation of a possible listing on a U.S. Stock Exchange. As announced, we believe that listing Globus on U.S. Exchange may result in our shares trading at a more favorable price relative to their net asset value than has recently been the case. In addition, we also believe that through a U.S. listing our Company would be in a better position to raise funds for its future development.
“We remain committed to pursue further accretive expansion opportunities, while safeguarding the strength of our balance sheet maximizing shareholder value. With a modern fleet, a strong balance sheet, a clear strategy and experienced management team we believe that Globus is strategically positioned to take advantage of the positive long term fundamentals of dry bulk shipping.”
Elias Deftereos, Chief Financial Officer, added:
“Our results for the reporting period reflect the smaller size of our fleet and the continued volatility of market conditions. Taking into consideration the reduced size of the fleet we report a net income of $1.0 million during the period compared to a net loss of $11.6 million in the corresponding period in 2009.
“Our Company is in a strong financial condition. As of today, total bank debt outstanding is $102.2 million while our restricted and unrestricted cash balances are $27.1 million. Our net debt to net book capitalization (net debt plus equity) stands at 40%, a moderate figure for our industry, enabling us to pursue further fleet growth opportunities.”
Detailed report at: www.globusmaritime.gr
About Globus Maritime Limited
Globus is a global provider of seaborne transportation services for dry bulk cargoes, including among others iron ire, coal, grain, cement and fertilizers, along worldwide shipping routes. Globus’ subsidiaries own and operate three Supramax, one Panamax, and one Kamsarmax vessels, with a weighted average age of 3.4 years as at June 30, 2010, and a total carrying capacity of 319,913 DWT.
Globus is listed on the AIM market of the London Stock Exchange under ticker GLBS. Jefferies International Limited is acting as nominated adviser and broker to the Company.
Globus Maritime Limited