Globus Maritime Reports Financial Results for the Fourth Quarter and Full Year 2011 and Declares Quarterly Dividend of $0.16 per Share
Athens, Greece, February 28, 2012
Globus Maritime Limited ("Globus", the “Company", “we”, or “our”), (NASDAQ: GLBS), a dry bulk shipping company, announced today its unaudited consolidated operating and financial results for the fourth quarter (“Q4-11”) and the year ended December 31, 2011. The Company’s Board of Directors also declared a quarterly cash dividend of $0.16 per share for Q4-11.
Summary of Fourth Quarter 2011 Results versus Fourth Quarter 2010
• Revenue increased by 20% to $10.1 million;
• Net Revenue increased by 19% to $9.5 million;
• Total comprehensive income decreased by 12% to $2.3 million;
• Basic earnings per share of $0.23, calculated on 10,059,497 weighted average number of shares compared to $0.36, calculated on 7,253,265 weighted average number of shares during the same period in 2010;
• An average of 7.0 vessels were owned and operated during Q4-11, earning an average time Charter Equivalent (“TCE”) rate of $14,987 per day, versus an average of 5.0 vessels during the same period in 2010 earning an average TCE rate of $18,209 per day. A calculation of the TCE is provided in a later section of this press release;
• Fleet utilization was 100% versus 98.3%; fleet utilization is further defined in a later section below.
Summary of Full Year 2011 Results versus Full Year 2010
• Revenue increased by 23% to $35.6 million;
• Net Revenue increased by 21% to $32.3 million;
• Adjusted EBITDA increased by 20% to of $20.6 million;
• Total comprehensive income increased by 15% to $6.9 million;
• Basic earnings per share of $0.80 calculated on 8,688,543 weighted average number of shares compared to $0.83 calculated on 7,243,340 weighted average number of shares for the full year 2010;
• An average of 5.8 vessels were owned and operated during 2011 earning an average TCE rate of $15,619 per day, versus an average of 4.0 vessels during 2010 earning an average TCE rate of $18,996 per day;
• Fleet utilization was 98.7% versus 98.8% during 2010.
Dividend Declaration For Q4-11, the Company’s Board of Directors declared a cash dividend of $0.16 per common share, payable on or about March 22, 2012 to shareholders of record on March 14, 2012. The Company has 10,139,605 common shares issued and outstanding as of today.
The Company is continuing the policy of paying a variable quarterly dividend in excess of 50% of the net income of the previous quarter, subject to any reserves the board of directors may from time to time determine are required. The declaration and payment of dividends, if any, will always be subject to the discretion of the board of directors of the Company, and the amount of dividends paid in any period is not indicative of the amount that may be paid in the future. The timing and amount of any dividends declared will depend on, among other things: our earnings, financial condition and anticipated cash requirements and availability, additional acquisitions of vessels, restrictions in our debt arrangements, the provisions of Marshall Islands law affecting the payment of distributions to shareholders, required capital and drydocking expenditures, reserves established by our board of directors, increased or unanticipated expenses, a change in our dividend policy, additional borrowings or future issuances of securities and other factors, many of which will be beyond our control. We can give no assurance that dividends will be paid in the future.
Liquidity and Capital Resources
During the fourth quarter of 2011 we repaid the following principal amounts to our banks:
1) a regular installment of $0.5 million to Deutsche Schiffsbank, and
2) two regular installments totaling $0.8 million to DVB Bank.
On December 31, 2011:
A) our cash and bank balances and bank deposits were $9.3 million;
B) our outstanding bank debt was $111.4 million while an amount up to $10.0 million remained undrawn and available under the Credit Suisse revolving facility;
C) we were in compliance with our loan covenants.
Net cash used in investing activities during 2011 included the $30.3 million paid for the acquisition of the “Sun Globe” and the $31.4 million paid for the “Moon Globe.” In November 2011 Globus paid the dividend for the third quarter 2011, amounting to $1.6 million, to shareholders on record on October 31, 2011.
In June 2011 Globus completed a follow-on offering of 2,750,000 common shares, raising $22 million in gross proceeds which enabled us to fund our fleet expansion program. During 2011 we issued and delivered 7,800 new common shares to two of our non-executive directors as per the terms of their appointments. In December 2011, being the second anniversary (of three) of the 2009 Award under our Long Term Incentive Plan, we issued and delivered 52,989 new common shares to our executive directors and staff. In February 2012 as a bonus for 2011, we issued and delivered 39,128 new common shares to our executive directors. The Company has 10,139,605 common shares with a par value of $0.004 each issued and outstanding as of today. The Company does not hold any shares in treasury.
Fleet Development
On December 31, 2010, Globus’ fleet comprised of five dry bulk carriers, consisting of three Supramaxes, one Panamax, and one Kamsarmax, with a total carrying capacity of 319,664 DWT. In March 2011 the Company purchased from an unaffiliated third party a 2007-built Supramax vessel for $30.3 million. The vessel was delivered in September 2011 and was named “Sun Globe.” In May 2011 the Company purchased from an unaffiliated third party a 2005-built Panamax vessel for $31.4 million. The vessel was delivered in June 2011 and was named “Moon Globe.” On the date of this press release Globus’ subsidiaries own seven dry bulk carriers, consisting of four Supramaxes, two Panamaxes and one Kamsarmax, with a weighted average age of approximately 5.1 years (as at December 31, 2011) and a total carrying capacity of 452,886 DWT.
Current Fleet Deployment
The “Tiara Globe” is on a time charter (“T/C”) with Transgrain Shipping that began in February 2010 and is scheduled to expire in early March 2012, at $20,000 per day gross. The “River Globe” is on a T/C with Allied Maritime that began in May 2011 and is scheduled to expire in early March 2012, at $14,500 per day gross.
The “Star Globe” completed her employment at $15,600 per day gross with Allied Maritime Inc. (“Allied”) in February 2012. As already announced, Allied delivered the vessel in a location outside the redelivery area required under the charter, and did not replenish the quantity of bunkers required under the charter. Furthermore, the vessel was arrested in Panama by a bunker supplier who had not been paid by Allied. To secure the vessel’s release from arrest, the Company had to pay the bunker supplier's invoice in full, plus legal costs, as well as an overdue invoice, plus legal costs, of a second bunker supplier, who had also not been paid by Allied. Following these payments, amounting to $593,537 in total, the arrest of the vessel was lifted on February 22, 2012. The Company is considering its legal options to recover the amounts paid, in addition to all other amounts owed by Allied. The vessel is currently on a short time charter to Pacific Basin that began in February 2012 and is scheduled to expire in a minimum 65 days (maximum 110 days) at $13,000 per day gross.
As of the day of this press release, we have secured under fixed employment 60% of our fleet days for the rest of 2012, and 45% for 2013.
Management Commentary
George Karageorgiou, Chief Executive Officer of Globus, stated:
“Despite a challenging environment, 2011 was an important year for Globus. We successfully completed a follow-on offering in June, raising funds from a new investor base and increasing the liquidity in our stock. This offering allowed us to expand the fleet by 42% in terms of carrying capacity. “The Company maintained profitability throughout every quarter of 2011, which enabled us to reward our shareholders with over $5.1 million in dividends. “A few days ago we issued a statement regarding the situation with the “Star Globe” and her previous charterer, Allied Maritime Inc. We are taking proper action and remain vigilant to safeguard our interests. “Demand for dry bulk commodities remains strong but may not be able to absorb the continued entrance of new tonnage into the market in 2012, despite the significant slippage due to delays, non-deliveries and high scrapping levels. “In this volatile and uncertain environment, we are confident that we are well placed to navigate through the storm, with 60% of the remaining operating days in 2012 and 45% in 2013 already secured under fixed employment. In the current market conditions we will remain opportunistic in terms of fleet deployment until charter rates recover. We take confidence in our competitive advantages which include a modern fleet, tested management, efficient in-house technical and commercial management, a strong balance sheet and sufficient charter cover.”
Elias Deftereos, Chief Financial Officer of Globus, added:
“Our results for the fourth quarter and year 2011 reflect the bigger size of our fleet, as well as the continued softness of charter rates. “Despite the difficult condition in the financial markets, we agreed a new loan with DVB Bank in June 2011, which helped us fund our latest acquisitions. Throughout 2011 we made regular principal payments on our three loan facilities. At the end of December 2011, our Net Debt to Total Capitalization (Net Debt plus Total Equity) stood at 42.2%, a moderate figure for our industry. “Today, our outstanding debt amounts to $111.4 million. Furthermore, unless we re-draw funds under the Credit Suisse revolving facility, our scheduled principal debt repayments for the remainder of 2012 and 2013 are $5.4 and $13.4 million respectively. “I must highlight that, at a time when many of our peers are renegotiating or restructuring their debt facilities, Globus is in compliance with all the loan covenants. As we continue to expand the Company's future earnings power, we remain dedicated to maintaining an appropriate capital structure for the benefit of our shareholders.”
Detailed report: www.globusmaritime.gr
About Globus Maritime Limited
Globus is an integrated dry bulk shipping company that provides marine transportation services worldwide and presently owns, operates and manages a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina and other dry bulk cargoes internationally. Globus’ subsidiaries own and operate seven vessels with a total carrying capacity of 452,886 DWT and a weighted average age of 5.1 years as of December 31, 2011.
Globus Maritime Limited press release