Globus Maritime Limited (“Globus,” the “Company,” “we,” or “our”)
(NASDAQ: GLBS), a dry bulk shipping company, today reported its
unaudited consolidated operating and financial results for the
six-month period ended June 30, 2019.
Financial Highlights
|
Three months ended |
|
Six months ended |
|
|
|
|
June 30, |
|
June 30, |
|
(Expressed in thousands of U.S dollars except for daily rates and
per share data) |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Total revenues |
3,399 |
|
4,194 |
|
6,942 |
|
8,132 |
|
Adjusted EBITDA (1) |
110 |
|
894 |
|
485 |
|
1,282 |
|
Total comprehensive loss |
(3,001 |
) |
(938 |
) |
(3,473 |
) |
(2,473 |
) |
Basic loss per share (2) |
(0.74 |
) |
(0.29 |
) |
(0.95 |
) |
(0.77 |
) |
Daily Time charter equivalent rate (TCE) (3) |
5,985 |
|
9,353 |
|
6,358 |
|
8,689 |
|
Average operating expenses per vessel per day |
4,898 |
|
5,928 |
|
4,767 |
|
5,837 |
|
Average number of vessels |
5.0 |
|
5.0 |
|
5.0 |
|
5.0 |
|
(1) |
|
Adjusted
EBITDA is a measure not in accordance with generally accepted
accounting principles (“GAAP”). See a later section of this press
release for a reconciliation of EBITDA to total comprehensive loss
and net cash (used in)/ generated from operating activities, which
are the most directly comparable financial measures calculated and
presented in accordance with the GAAP measures. |
(2) |
|
The weighted average number of shares for the six-month period
ended June 30, 2019 was 3,642,256 compared to 3,196,161 shares for
the six-month period ended June 30, 2018. The weighted average
number of shares for the three-month period ended June 30, 2019 was
4,070,153 compared to 3,202,574 shares for the three-month period
ended June 30, 2018. |
(3) |
|
Daily Time charter equivalent rate (TCE) is a measure not in
accordance with generally accepted accounting principles (“GAAP”).
See a later section of this press release for a reconciliation of
Daily TCE to Voyage revenues. |
Current Fleet ProfileAs of the date of this
press release, Globus’ subsidiaries own and operate five dry bulk
carriers, consisting of four Supramax and one Panamax.
Vessel |
Year Built |
Yard |
Type |
Month/Year Delivered |
DWT |
Flag |
Moon Globe |
2005 |
Hudong-Zhonghua |
Panamax |
June 2011 |
74,432 |
|
Marshall Is. |
Sun Globe |
2007 |
Tsuneishi Cebu |
Supramax |
Sept 2011 |
58,790 |
|
Malta |
River Globe |
2007 |
Yangzhou Dayang |
Supramax |
Dec 2007 |
53,627 |
|
Marshall Is. |
Sky Globe |
2009 |
Taizhou Kouan |
Supramax |
May 2010 |
56,855 |
|
Marshall Is. |
Star Globe |
2010 |
Taizhou Kouan |
Supramax |
May 2010 |
56,867 |
|
Marshall Is. |
Weighted Average Age: 11.3 Years as of June 30, 2019 |
|
300,571 |
|
|
Current Fleet Deployment
All our vessels are currently operating on short
term time charters (“on spot”).
Management Commentary “During
the second quarter of the year the market was under severe pressure
mainly due to the ongoing concerns in the trade war and the ongoing
iron ore supply disruptions. The pressure was increased further by
the seasonal weakness in the quarter. Yet, the Company
managed by sheer effort to keep operational costs down without
sacrificing the efficient operations and high utilization of the
fleet.
“As the second quarter was ending the market
started rising and reached high and healthy levels in the third
quarter where we are currently in. We are elated that charter rates
occasionally reached multiyear highs. We expect the market to stay
healthy for the remainder of 2019 and strengthen even further as we
move closer and into 2020, mainly because of ship supply
disruptions caused by the new IMO 2020 regulation. Whilst, as
stated above we expect the market to continue improving, we do
anticipate volatility as it moves to higher levels. However, at
this time, we are delighted to seize the moment and enjoy charter
rates double and triple the rates in the previous quarter.
“At present shipping companies are faced with
the option to install scrubbers or consume a ‘cleaner’ grade of oil
which contains lower sulfur contents. In our view Scrubber
installation for our vessel segment and size is not an option, this
machinery is costly to install and operate, and the uncertainties
around it are many. The majority of Panamax and Supramax vessels
will not be scrubber fitted in the immediate future, the option
left, to consume the cleaner grade of fuel will potentially lead to
lower fleet speed and by extent higher charter rates due to an
increased fleet utilization.”
“The Company while committed to a reasonable and
disciplined cost structure will continue to strive for high
commercial and technical utilization and maintain its focus on
shareholder value.”
Management Discussion and Analysis of the
Results of Operations
Recent Developments
New Convertible Note
On March 13, 2019, the Company signed a
securities purchase agreement with a private investor and on March
13, 2019 issued, for gross proceeds of $5 million, a senior
convertible note (the “Convertible Note”) that is convertible into
shares of the Company’s common stock, par value $0.004 per share.
If not converted or redeemed beforehand pursuant to the terms of
the Convertible Note, the Convertible Note matures upon the
anniversary of its issue. We have used part of the proceeds from
the Convertible Note for general corporate purposes and working
capital including repayment of debt. The Convertible Note was
issued in a transaction exempt from registration under the
Securities Act.
Further to the conversion clause included into
the Convertible Note, during July and September 2019, a total
amount of approximately $428 thousand, principal and accrued
interest, was converted to share capital with the conversion price
of $2.25 per share and a total number of 190,403 new shares issued
in the name of the holder of the Convertible Note. The Convertible
Note provides that the “Floor Price” (as defined in the Note),
which is currently $2.25, may be reduced to not less than $1.00 by
mutual agreement of the Company and the holder of the Note.
The Convertible Note provides for interest to
accrue at 10% annually, which interest shall be paid on the first
anniversary of the Convertible Note’s issuance unless the
Convertible Note is converted or redeemed pursuant to its terms
beforehand. The interest may be paid in common shares of the
Company, if certain conditions described within the Convertible
Note are met.
As per the conversion clause included in the
Note, the Company has recognized it as a hybrid agreement which
includes an embedded derivative. This embedded derivative was
separated to the derivative component and the non-derivative host.
The derivative component is shown separately from the
non-derivative host at fair value. The changes in the fair value of
the derivative financial instrument are recognized in the
consolidated statement of comprehensive loss. For the period ended
June 30, 2019, the Company recognized a gain on this derivative
financial instrument amounting to $1.4 million, which was
classified under “Gain on derivative financial instruments” in the
consolidated statement of comprehensive loss.
Upon any future stock dividend, stock split,
reverse stock split or similar transaction, the Floor Price will
not be adjusted, and the Floor Price following such transaction
will be equal to the Floor Price immediately prior to such
transaction.
The terms of the Note provide that the Note may
be required at the option of the holder to be redeemed by the
Company in cash, in whole or in part, at any time following any
consecutive period of ten trading days during each of which the
volume-weighted average price of the Company's common shares is
less than the Floor Price.
Conversion of Debt and Issuance of
Shares
On May 2, 2019, Globus announced that, in
accordance with the terms and provisions of the revolving credit
facility, dated November 21, 2018, between the Company and Firment
Shipping Inc., an entity deemed as an affiliated party through
common control, the Company has elected to convert the aggregate
outstanding principal balance and accrued interest of $3,170,136
into 1,132,191 shares of common stock of the Company.
Loan Refinancing
In June 2019, Globus through its wholly owned
subsidiaries, Devocean Maritime Ltd., Domina Maritime Ltd., Dulac
Maritime S.A., Artful Shipholding S.A. and Longevity Maritime
Limited, vessel owning companies of m/v River Globe, m/v Sky Globe,
m/v Star Globe, m/v Moon Globe and m/v Sun Globe, respectively,
entered a new term loan facility for up to $37 million with EnTrust
Global’s Blue Ocean Fund for the purpose of refinancing the
existing indebtedness secured on the ships and for general
corporate purposes. Globus subsidiaries, namely Devocean Maritime
Ltd., Domina Maritime Ltd., Dulac Maritime S.A., Artful Shipholding
S.A. and Longevity Maritime Limited, are identified as the
borrowers under the loan facility which is guaranteed by Globus,
and which contains a standard security package including mortgages
on all of our ships, pledges of bank accounts, charter assignments,
shares pledges respecting each borrower, and a general assignment
over each ship’s earnings, insurances and any requisition
compensation in relation to that ship. This loan facility will be
referred as EnTrust loan facility. On June 24, 2019, the Company
drew down $37 million and fully prepaid the existing loan
facilities with Hamburg Commercial Bank AG (formerly known as HSH
Nordbank AG) and Macquarie Bank International Limited.
The EnTrust loan facility bears interest at
LIBOR plus a margin of 8.5% (or 10.5% default interest), and is
repayable by five consecutive quarterly installments commencing on
December 31, 2019 each in the amount of the earnings of the ships
after deducing interest on the EnTrust loan facility, operating
expenses and reserves for drydocking, then by six consecutive
quarterly installments commencing on March 31, 2021 each in the
amount of $1,492,622, and by a final installment on June 30, 2022
in the amount of $1,492,622 together with the remaining principal
amount as a balloon payment.
The Company must maintain a credit balance of
not less than $250,000 for each mortgaged ship. Globus must
maintain, on a consolidated basis, at the end of each calendar
quarter, liquid funds in an amount, in aggregate, of not less than
5% of the consolidated financial indebtedness of the group. Each
borrower must maintain in its earnings account during the cash
sweep period an amount equal to the product of (a) the lower of:
(i) $1,000; and (ii) the difference between the daily time charter
equivalent rate of the ship owned by that borrower, and the
break-even expenses of that ship for that cash sweep period; and
(b) the actual number of days lapsed during that cash sweep period
for that borrower. Each borrower is prohibited from declaring or
paying dividends, or from repaying the EnTrust loan facility, until
December 25, 2020. The EnTrust loan facility contains standard loan
covenants, including loan to value covenants.
Results of Operations
Second quarter of the year 2019 compared
to the second quarter of the year 2018
Total comprehensive loss for the second quarter
of the year 2019 amounted to $3 million or $0.74 basic and diluted
loss per share based on 4,070,153 weighted average number of
shares, compared to total comprehensive loss of $0.9 million for
the same period last year or $0.29 basic and diluted loss per share
based on 3,202,574 weighted average number of shares.
The following table corresponds to the breakdown
of the factors that led to the decrease in total comprehensive loss
during the second quarter of 2019 compared to the second quarter of
2018 (expressed in $000’s):
2nd Quarter of 2019 vs 2nd Quarter of
2018
|
Net loss for the 2nd quarter of 2018 |
(938 |
) |
|
|
Decrease in voyage revenues |
(795 |
) |
|
|
Increase in Voyage expenses |
(484 |
) |
|
|
Decrease in Vessels operating expenses |
468 |
|
|
|
Increase in Depreciation |
(62 |
) |
|
|
Increase in Depreciation of dry docking costs |
(175 |
) |
|
|
Increase in Total administrative expenses |
(11 |
) |
|
|
Increase in Other income, net |
40 |
|
|
|
Increase in Interest income |
9 |
|
|
|
Increase in Interest expense and finance costs |
(1,032 |
) |
|
|
Increase in Gain on derivative financial instruments |
148 |
|
|
|
Decrease in Foreign exchange losses |
(169 |
) |
|
|
Net loss for the 2nd quarter of 2019 |
(3,001 |
) |
|
Voyage revenuesDuring the
three-month period ended June 30, 2019 and 2018, our Voyage
revenues reached $3.4 million and $4.2 million respectively. The
19% decrease in Voyage revenues was mainly attributed to the
decrease in the average time charter rates achieved by our vessels
during the second quarter of 2019 compared to the same period in
2018. Daily Time Charter Equivalent rate (TCE) for the second
quarter of 2019 was $5,985 per vessel per day against $9,353 per
vessel per day during the same period in 2018 corresponding to a
decrease of 36%.
Voyage expenses Voyage expenses
reached $0.7 million during the second quarter of 2019 compared to
$0.2 during the same period in 2018. Voyage expenses include
commissions on revenues, port and other voyage expenses and bunker
expenses. Bunker expenses mainly refer to the cost of bunkers
consumed during periods that our vessels are travelling seeking
employment. Voyage expenses for the second quarter of 2019 and 2018
are analyzed as follows:
|
In $000’s |
2019 |
2018 |
|
|
Commissions |
47 |
71 |
|
|
Bunkers expenses |
552 |
45 |
|
|
Other voyage expenses |
76 |
75 |
|
|
Total |
675 |
191 |
|
Vessel operating expensesVessel
operating expenses, which include crew costs, provisions, deck and
engine stores, lubricating oils, insurance, maintenance, and
repairs, decreased by $0.5 million or 19% to $2.2 million during
the three-month period ended June 30, 2019 compared to $2.7 million
during the same period in 2018. The breakdown of our operating
expenses for the quarters ended June 30, 2019 and 2018 was as
follows:
|
|
2019 |
|
2018 |
|
|
|
Crew expenses |
54 |
% |
44 |
% |
|
|
Repairs and spares |
21 |
% |
35 |
% |
|
|
Insurance |
5 |
% |
4 |
% |
|
|
Stores |
11 |
% |
8 |
% |
|
|
Lubricants |
5 |
% |
5 |
% |
|
|
Other |
4 |
% |
4 |
% |
|
Average daily operating expenses during the
three month periods ended June 30, 2019 and 2018 were $4,898 per
vessel per day and $5,928 per vessel per day respectively,
corresponding to a decrease of 17%, a return to a more normal rate,
as last year was unusually high.
Depreciation of dry docking
costsDepreciation charge of dry docking costs during the
second quarter of 2019 reached $0.5 million compared to $0.3
million during the same period in 2018. This is due to the
increased cost of dry dockings that 3 of our vessels underwent
during 2018 and subsequently resulted to a higher depreciation
charge in the second quarter of 2019.
Interest expense and finance
costsInterest expense and finance costs reached $1.6
million for the second quarter of 2018 compared to $0.5 million for
the same period of 2018. Interest expense and finance costs for the
second quarter of 2019 and 2018 are analyzed as follows:
|
In $000’s |
2019 |
2018 |
|
|
Interest payable on long-term borrowings |
722 |
508 |
|
|
Bank charges |
6 |
7 |
|
|
Operating lease liability interest |
26 |
- |
|
|
Amortization of debt discount |
221 |
18 |
|
|
Other finance expenses |
592 |
2 |
|
|
Total |
1,567 |
535 |
|
This increase is mainly due to the refinance of
the outstanding debt which is discussed further in a previous
section of this Press Release.
First half of the year 2019 compared to
the first half of the year 2018
Total comprehensive loss for the first half of
the year 2019 amounted to $3.5 million or $0.95 basic and diluted
loss per share based on 3,642,256 weighted average number of
shares, compared to total comprehensive loss of $2.5 million for
the same period last year or $0.77 basic and diluted loss per share
based on 3,196,161 weighted average number of
shares.
The following table corresponds to the breakdown
of the factors that led to the decrease in total comprehensive loss
during the first half of 2019 compared to the first half of 2018
(expressed in $000’s):
1st half of 2019 vs 1st half of
2018
|
Net loss for the 1st half of 2018 |
(2,473 |
) |
|
|
Decrease in voyage revenues |
(1,190 |
) |
|
|
Increase in Voyage expenses |
(577 |
) |
|
|
Decrease in Vessels operating expenses |
968 |
|
|
|
Increase in Depreciation |
(67 |
) |
|
|
Increase in Depreciation of dry docking costs |
(416 |
) |
|
|
Increase in Total administrative expenses |
(72 |
) |
|
|
Increase in Other income, net |
74 |
|
|
|
Increase in Interest income |
9 |
|
|
|
Increase in Interest expense and finance costs |
(1,251 |
) |
|
|
Increase in Gain on derivative financial instruments |
1,572 |
|
|
|
Decrease in Foreign exchange gains |
(50 |
) |
|
|
Net loss for the 1st half of 2019 |
(3,473 |
) |
|
Voyage revenuesDuring the
six-month period ended June 30, 2019 and 2018, our Voyage revenues
reached $6.9 million and $8.1 million respectively. The 15%
decrease in Voyage revenues was mainly attributed to the decrease
in the average time charter rates achieved by our vessels during
the first half of 2019 compared to the same period in 2018. Daily
Time Charter Equivalent rate (TCE) for the first half of 2019 was
$6,358 per vessel per day against $8,689 per vessel per day during
the same period in 2018 corresponding to a decrease of 27%.
Voyage expenses Voyage expenses
reached $1.2 million during the first half of 2019 compared to $0.6
million during the same period last year. Voyage expenses include
commissions on revenues, port and other voyage expenses and bunker
expenses. Bunker expenses mainly refer to the cost of bunkers
consumed during periods that our vessels are travelling seeking
employment. Voyage expenses for the first half of 2019 and 2018 are
analyzed as follows:
|
In $000’s |
2019 |
2018 |
|
|
Commissions |
93 |
130 |
|
|
Bunkers expenses |
965 |
322 |
|
|
Other voyage expenses |
129 |
158 |
|
|
Total |
1,187 |
610 |
|
Vessel operating expensesVessel
operating expenses, which include crew costs, provisions, deck and
engine stores, lubricating oils, insurance, maintenance, and
repairs, reached $4.3 million during the first half of 2019
compared to $5.3 million during the first half of 2018. The
breakdown of our operating expenses for the six-month period ended
June 30, 2019 and 2018 was as follows:
|
|
2019 |
|
2018 |
|
|
|
Crew expenses |
55 |
% |
46 |
% |
|
|
Repairs and spares |
19 |
% |
30 |
% |
|
|
Insurance |
7 |
% |
5 |
% |
|
|
Stores |
10 |
% |
11 |
% |
|
|
Lubricants |
5 |
% |
5 |
% |
|
|
Other |
4 |
% |
3 |
% |
|
Average daily operating expenses during the
six-month periods ended June 30, 2019 and 2018 were $4,767 per
vessel per day and $5,837 per vessel per day respectively,
corresponding to a decrease of 18%, a return to a more normal rate,
as last year was unusually high.
Depreciation of dry docking
costsDepreciation charge of dry docking costs during the
first half of 2019 reached $0.9 million compared to $0.5 million
during the same period in 2018. This is due to the increased cost
of dry dockings that 3 of our vessels underwent during 2018 and
subsequently resulted to a higher depreciation charge in the first
half of 2019.
Interest expense and finance
costsInterest expense and finance costs reached $2.3
million during the first half of 2019 compared to $1 million in
2018. Interest expense and finance costs for the first half of 2019
and 2018 are analyzed as follows:
|
In $000’s |
2019 |
2018 |
|
|
Interest payable on long-term borrowings |
1,343 |
971 |
|
|
Bank charges |
14 |
15 |
|
|
Operating lease liability interest |
26 |
- |
|
|
Amortization of debt discount |
250 |
38 |
|
|
Other finance expenses |
645 |
3 |
|
|
Total |
2,278 |
1,027 |
|
This increase is mainly due to the refinance of
the outstanding debt which is discussed further in a previous
section of this document. Other finance expenses for the first half
2019 include approximately $0.6 million that was the loan
prepayment fee and expenses related to the prepayment of Macquarie
Loan Agreement.
Gain on derivative financial
instrumentsThe gain on the derivative financial
instruments is mainly attributed to the valuation of the
“Convertible Note”. As per the conversion clause included in this
agreement, the Company has recognized it as a hybrid instrument
which includes an embedded derivative. This embedded derivative was
separated to the derivative component and the non-derivative host.
The derivative component is shown separately from the
non-derivative host at fair value. The changes in the fair value of
the derivative financial instrument are recognized in the
consolidated statement of comprehensive loss. As of June 30, 2019
the Company recognized a gain on this derivative financial
instrument amounting to $1.4 million.
Liquidity and capital
resourcesAs of June 30, 2019 and 2018, our cash and bank
balances and bank deposits (including restricted cash) were $4.9
and $1.6 million respectively.
Net cash used in operating activities
for the three month period ended June 30, 2019 was $0.7
million compared to net cash generated from operating activities of
$1.1 million during the respective period in 2018. The decrease in
our cash from operations was mainly attributed to the decrease in
our adjusted EBITDA from $0.9 million during the second quarter of
2018 to approximately $0.1 million during the three month period
under consideration.
Net cash used in operating activities
for the six-month period ended June 30, 2019 was $1.8
million compared to net cash generated from operating activities of
$1.2 million during the respective period in 2018. The decrease in
our cash from operations was mainly attributed to the decrease in
our adjusted EBITDA from $1.3 million during the first half of 2018
to $0.5 million during the six month period under
consideration.
Net cash generated from/(used in)
financing activities during the three-month and six-month
period ended June 30, 2019 and 2018 were as follows:
|
Three months ended June 30, |
|
Six months ended June 30, |
|
In $000’s |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Proceeds from loans |
37,800 |
|
- |
|
43,700 |
|
- |
|
Proceeds from issuance of share capital |
- |
|
- |
|
- |
|
600 |
|
Prepayment of long term debt |
(33,833 |
) |
(1,550 |
) |
(33,833 |
) |
(2,244 |
) |
Repayment of long term debt |
(694 |
) |
- |
|
(1,830 |
) |
- |
|
Restricted cash |
(659 |
) |
(140 |
) |
(809 |
) |
210 |
|
Payment of financing costs |
(880 |
) |
- |
|
(880 |
) |
- |
|
Repayment of lease liability |
(30 |
) |
- |
|
(30 |
) |
- |
|
Interest paid |
(1,253 |
) |
(392 |
) |
(1,833 |
) |
(920 |
) |
Net cash generated from/(used in) financing
activities |
451 |
|
(2,082 |
) |
4,485 |
|
(2,354 |
) |
|
|
|
|
|
|
|
|
|
As of June 30, 2019 and 2018 we and our
vessel-owning subsidiaries had outstanding borrowings under our
Loan agreements of an aggregate of $37.7 million and of $39.4
million respectively gross of unamortized debt discount.
|
SELECTED
CONSOLIDATED FINANCIAL & OPERATING DATA |
|
|
Three months ended |
|
|
Six months ended |
|
|
June 30, |
|
|
June 30, |
|
|
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
(in thousands of U.S. dollars, except per share data) |
(unaudited) |
|
(unaudited) |
Consolidated statement of comprehensive loss
data: |
|
|
|
|
|
|
|
|
|
Voyage revenues |
3,399 |
|
4,194 |
|
|
6,942 |
|
8,132 |
|
Total Revenues |
3,399 |
|
4,194 |
|
|
6,942 |
|
8,132 |
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
(675 |
) |
(191 |
) |
|
(1,187 |
) |
(610 |
) |
Vessel operating expenses |
(2,229 |
) |
(2,697 |
) |
|
(4,314 |
) |
(5,282 |
) |
Depreciation |
(1,209 |
) |
(1,147 |
) |
|
(2,348 |
) |
(2,281 |
) |
Depreciation of dry docking costs |
(456 |
) |
(281 |
) |
|
(910 |
) |
(494 |
) |
Administrative expenses |
(364 |
) |
(279 |
) |
|
(827 |
) |
(676 |
) |
Administrative expenses payable to related parties |
(60 |
) |
(132 |
) |
|
(188 |
) |
(267 |
) |
Share-based payments |
(10 |
) |
(10 |
) |
|
(20 |
) |
(20 |
) |
Other income, net |
49 |
|
9 |
|
|
79 |
|
5 |
|
Operating loss before financing activities |
(1,555 |
) |
(534 |
) |
|
(2,773 |
) |
(1,493 |
) |
Interest income |
9 |
|
- |
|
|
9 |
|
- |
|
Interest expense and finance costs |
(1,566 |
) |
(535 |
) |
|
(2,278 |
) |
(1,027 |
) |
Gain on derivative financial instruments |
148 |
|
- |
|
|
1,572 |
|
- |
|
Foreign exchange (losses)/gains, net |
(37 |
) |
131 |
|
|
(3 |
) |
47 |
|
Total finance costs, net |
(1,446 |
) |
(404 |
) |
|
(700 |
) |
(980 |
) |
Total comprehensive loss for the period |
(3,001 |
) |
(938 |
) |
|
(3,473 |
) |
(2,473 |
) |
|
|
|
|
|
|
|
|
|
|
Basic & diluted loss per share for the period (1) |
(0.74 |
) |
(0.29 |
) |
|
(0.95 |
) |
(0.77 |
) |
Adjusted EBITDA (2) |
110 |
|
894 |
|
|
485 |
|
1,282 |
|
(1) The weighted average number of shares for
the six-month period ended June 30, 2019 was 3,642,256 compared to
3,196,161 shares for the six-month period ended June 30, 2018. The
weighted average number of shares for the three-month period ended
June 30, 2019 was 4,070,153 compared to 3,202,574 shares for the
three-month period ended June 30, 2018.
(2) Adjusted EBITDA represents net earnings
before interest and finance costs net, gains or losses from the
change in fair value of derivative financial instruments, foreign
exchange gains or losses, income taxes, depreciation, depreciation
of dry-docking costs, amortization of fair value of time charter
acquired, impairment and gains or losses on sale of vessels.
Adjusted EBITDA does not represent and should not be considered as
an alternative to total comprehensive income/(loss) or cash
generated from operations, as determined by IFRS, and our
calculation of Adjusted EBITDA may not be comparable to that
reported by other companies. Adjusted EBITDA is not a recognized
measurement under IFRS.
Adjusted EBITDA is included herein because it is
a basis upon which we assess our financial performance and because
we believe that it presents useful information to investors
regarding a company’s ability to service and/or incur indebtedness,
and it is frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in our
industry.
Adjusted EBITDA has limitations as an analytical
tool, and you should not consider it in isolation, or as a
substitute for analysis of our results as reported under IFRS. Some
of these limitations are:
- Adjusted EBITDA does not reflect our cash expenditures or
future requirements for capital expenditures or contractual
commitments;
- Adjusted EBITDA does not reflect the interest expense or the
cash requirements necessary to service interest or principal
payments on our debt;
- Adjusted EBITDA does not reflect changes in or cash
requirements for our working capital needs; and
- Other companies in our industry may calculate Adjusted EBITDA
differently than we do, limiting its usefulness as a comparative
measure.
Because of these limitations, Adjusted EBITDA
should not be considered a measure of discretionary cash available
to us to invest in the growth of our business.
The following table sets forth a
reconciliation of Adjusted EBITDA to total comprehensive (loss) and
net cash (used in)/ generated from operating activities for the
periods presented:
|
Three months ended |
|
|
Six months ended |
|
|
June 30, |
|
|
June 30, |
|
(Expressed in thousands of U.S. dollars) |
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the period |
(3,001 |
) |
(938 |
) |
|
(3,473 |
) |
(2,473 |
) |
Interest and finance costs, net |
1,566 |
|
535 |
|
|
2,278 |
|
1,027 |
|
Interest income |
(9 |
) |
- |
|
|
(9 |
) |
- |
|
Gain on derivative financial instruments |
(80 |
) |
- |
|
|
(1,572 |
) |
- |
|
Foreign exchange losses/(gains) net, |
37 |
|
(131 |
) |
|
3 |
|
(47 |
) |
Depreciation |
1,209 |
|
1,147 |
|
|
2,348 |
|
2,281 |
|
Depreciation of dry docking costs |
456 |
|
281 |
|
|
910 |
|
494 |
|
Adjusted EBITDA |
110 |
|
894 |
|
|
485 |
|
1,282 |
|
Share-based payments |
10 |
|
10 |
|
|
20 |
|
30 |
|
Payment of deferred dry docking costs |
(128 |
) |
(170 |
) |
|
(481 |
) |
(290 |
) |
Net decrease/(increase) in operating assets |
234 |
|
207 |
|
|
(901 |
) |
(612 |
) |
Net (decrease)/increase in operating liabilities |
(854 |
) |
180 |
|
|
(873 |
) |
831 |
|
Provision for staff retirement indemnities |
(64 |
) |
1 |
|
|
(63 |
) |
2 |
|
Foreign exchange (losses)/gains net, not attributed to cash &
cash equivalents |
(3 |
) |
7 |
|
|
(5 |
) |
(14 |
) |
Net cash (used in)/generated from operating
activities |
(695 |
) |
1,129 |
|
|
(1,818 |
) |
1,229 |
|
|
Three months ended |
|
|
Six months ended |
|
|
June 30, |
|
|
June 30, |
|
(Expressed in thousands of U.S. dollars) |
2019 |
|
2018 |
|
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
|
Statement of cash flow data: |
|
|
|
|
|
|
|
|
|
Net cash (used in)/generated from operating activities |
(695 |
) |
1,129 |
|
|
(1,818 |
) |
1,229 |
|
Net cash used in investing activities |
(4 |
) |
(16 |
) |
|
(4 |
) |
(43 |
) |
Net cash generated from/(used in) financing activities |
451 |
|
(2,082 |
) |
|
4,485 |
|
(2,354 |
) |
|
As of June 30, |
As of December 31, |
(Expressed in thousands of U.S. Dollars) |
2019 |
2018 |
|
(Unaudited) |
|
Consolidated condensed statement of financial
position: |
|
|
Vessels, net |
80,565 |
83,750 |
Other non-current assets |
1,990 |
130 |
Total non-current assets |
82,555 |
83,880 |
Cash and bank balances and bank deposits |
2,709 |
46 |
Other current assets |
3,208 |
2,748 |
Total current assets |
5,917 |
2,794 |
Total assets |
88,472 |
86,674 |
Total equity |
40,733 |
41,050 |
Total debt net of unamortized debt discount |
37,681 |
36,868 |
Other liabilities |
10,058 |
8,756 |
Total
liabilities |
47,739 |
45,624 |
Total equity and liabilities |
88,472 |
86,674 |
Consolidated statement of changes in equity: |
|
|
|
|
(Expressed in thousands of U.S. Dollars) |
Issued share |
Share |
(Accumulated |
Total |
|
Capital |
Premium |
Deficit) |
Equity |
As at December 31, 2018 |
13 |
140,334 |
(99,297 |
) |
41,050 |
|
Loss for the period |
- |
- |
(3,473 |
) |
(3,473 |
) |
Issuance of common stock due to conversion of loan |
4 |
3,132 |
- |
|
3,136 |
|
Share-based payments |
- |
20 |
- |
|
20 |
|
As at June
30,
2019 |
17 |
143,486 |
(102,770 |
) |
40,733 |
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
Ownership days (1) |
455 |
|
455 |
|
905 |
|
905 |
|
Available days (2) |
455 |
|
428 |
|
905 |
|
866 |
|
Operating days (3) |
438 |
|
417 |
|
887 |
|
847 |
|
Fleet utilization (4) |
96.4 |
% |
97.6 |
% |
98 |
% |
97.8 |
% |
Average number of vessels (5) |
5.0 |
|
5.0 |
|
5.0 |
|
5.0 |
|
Daily time charter equivalent (TCE) rate (6) |
5,985 |
|
9,353 |
|
6,358 |
|
8,689 |
|
Daily operating expenses (7) |
4,898 |
|
5,928 |
|
4,767 |
|
5,837 |
|
Notes: |
|
|
|
(1) |
|
Ownership days are the aggregate
number of days in a period during which each vessel in our fleet
has been owned by us. |
(2) |
|
Available days are the number of
ownership days less the aggregate number of days that our vessels
are off-hire due to scheduled repairs or repairs under guarantee,
vessel upgrades or special surveys. |
(3) |
|
Operating days are the number of
available days less the aggregate number of days that the vessels
are off-hire due to any reason, including unforeseen circumstances
but excluding days during which vessels are seeking
employment. |
(4) |
|
We calculate fleet utilization by
dividing the number of operating days during a period by the number
of available days during the period. |
(5) |
|
Average number of vessels is
measured by the sum of the number of days each vessel was part of
our fleet during a relevant period divided by the number of
calendar days in such period. |
(6) |
|
TCE rates are our voyage revenues
less net revenues from our bareboat charters less voyage expenses
during a period divided by the number of our available days during
the period excluding bareboat charter days, which is consistent
with industry standards. TCE is a measure not in accordance with
GAAP. |
(7) |
|
We calculate daily vessel
operating expenses by dividing vessel operating expenses by
ownership days for the relevant time period excluding bareboat
charter days. |
|
|
|
Voyage Revenues to Daily Time Charter
Equivalent (“TCE”) Reconciliation
|
Three months ended June 30, |
Six months ended June 30, |
|
2019 |
2018 |
2019 |
2018 |
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Voyage revenues |
3,399 |
4,194 |
6,942 |
8,132 |
Less: Voyage expenses |
675 |
191 |
1,187 |
610 |
Net revenues |
2,724 |
4,003 |
5,755 |
7,522 |
Available days net of bareboat charter days |
455 |
428 |
905 |
866 |
Daily TCE rate (1) |
5,985 |
9,353 |
6,358 |
8,689 |
|
|
|
|
|
(1) Subject to rounding. |
|
|
|
|
|
|
|
|
|
About Globus Maritime
LimitedGlobus is an integrated dry bulk shipping company
that provides marine transportation services worldwide and
presently owns, operates and manages a fleet of five dry bulk
vessels that transport iron ore, coal, grain, steel products,
cement, alumina and other dry bulk cargoes internationally. Globus’
subsidiaries own and operate five vessels with a total carrying
capacity of 300,571 Dwt and a weighted average age of 11.3 years as
of June 30, 2019.
Safe Harbor StatementThis
communication contains “forward-looking statements” as defined
under U.S. federal securities laws. Forward-looking statements
provide the Company’s current expectations or forecasts of future
events. Forward-looking statements include statements about the
Company’s expectations, beliefs, plans, objectives, intentions,
assumptions and other statements that are not historical facts or
that are not present facts or conditions. Words or phrases such as
“anticipate,” “believe,” “continue,” “estimate,” “expect,”
“intend,” “may,” “ongoing,” “plan,” “potential,” “predict,”
“project,” “will” or similar words or phrases, or the negatives of
those words or phrases, may identify forward-looking statements,
but the absence of these words does not necessarily mean that a
statement is not forward-looking. Forward-looking statements are
subject to known and unknown risks and uncertainties and are based
on potentially inaccurate assumptions that could cause actual
results to differ materially from those expected or implied by the
forward-looking statements. The Company’s actual results could
differ materially from those anticipated in forward-looking
statements for many reasons specifically as described in the
Company’s filings with the Securities and Exchange Commission.
Accordingly, you should not unduly rely on these forward-looking
statements, which speak only as of the date of this communication.
Globus undertakes no obligation to publicly revise any
forward-looking statement to reflect circumstances or events after
the date of this communication or to reflect the occurrence of
unanticipated events. You should, however, review the factors and
risks Globus describes in the reports it will file from time to
time with the Securities and Exchange Commission after the date of
this communication.
For further information please
contact: |
|
|
Globus Maritime Limited |
+30 210 960 8300 |
Athanasios Feidakis, CEO |
a.g.feidakis@globusmaritime.gr |
|
|
Capital Link – New York |
+1 212 661 7566 |
Nicolas Bornozis |
globus@capitallink.com |
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