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
quarter and nine-month period ended September 30, 2019.
Financial
Highlights |
|
|
|
|
|
Three months ended |
Nine months ended |
|
|
|
September 30, |
September 30, |
|
(Expressed in thousands of U.S dollars except for daily rates and
per share data) |
2019 |
2018 |
2019 |
|
2018 |
|
Total revenues |
4,947 |
4,861 |
11,888 |
|
12,993 |
|
Adjusted EBITDA (1) |
1,639 |
2,254 |
2,124 |
|
3,534 |
|
Total comprehensive income/(loss) |
280 |
254 |
(3,193 |
) |
(2,219 |
) |
Basic earnings/(loss) per share (2) |
0.06 |
0.08 |
(0.82 |
) |
(0.69 |
) |
Daily Time charter equivalent rate (TCE) (3) |
9,863 |
10,317 |
7,539 |
|
9,254 |
|
Average operating expenses per vessel per day |
5,288 |
4,453 |
4,943 |
|
5,370 |
|
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
nine-month period ended September 30, 2019 was 3,905,305 compared
to 3,198,894 shares for the nine-month period ended September 30,
2018. The weighted average number of shares for the three-month
period ended September 30, 2019 was 4,422,825 compared to 3,204,271
shares for the three-month period ended September 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: 11.6 Years as of September 30,
2019 |
|
300,571 |
|
Current Fleet Deployment
All our vessels are currently operating on
short-term time charters (“on spot”).
Management Commentary “During
the third quarter we experienced a short-term spike in the spot
market that allowed us to enjoy higher than normal rates. However,
the spike was short-lived and fluctuation returned full-speed,
spilling over into the fourth quarter. This was mainly due to
the an increase in vessel supply returning online from dry docks
and was further deteriorated by some demand-driven pressure which
put a weight on rates. By the end of the quarter and the beginning
of the fourth quarter there was a strong downward pressure which
thankfully started to reverse later on.
“The doubling and tripling of day rates showed
us however, that there is steam in the market, and these upward
swings can be expected. Of course we are still being affected by
the negative sentiment created by the trade war, as well as the ore
export bans in Indonesia and the coal import quotas in China.
“Coming up into the fourth quarter we have
scheduled maintenance repairs for two of our vessels. We do not
expect any extraordinary items during the repairs, normal
maintenance of hull, cargo holds and machineries will take place.
We expect the repairs to last for about 40 days.
Notwithstanding our constant vigilance on cost our first priority
is to keep our vessels safe.
“The market is expected to be volatile, but we
do expect an upward trend. The huge industry adjustment to IMO 2020
regulation is just around the corner, and we will see the full
effect of this event during the first half of the year. We believe
it will be a net positive for the industry. The margin at the
moment of the low sulfur fuel oils and high sulfur fuel oils is at
about $250. Our company will be using the low sulfur fuel oil
option in order to comply with the new regulations. We believe that
this is a better-suited approach for the type and size of our
vessels than using exhaust gas scrubbers that are expensive to
install and operate.”
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 the third quarter of 2019, a total
amount of approximately $488 thousand, principal and accrued
interest, was converted to share capital with the conversion price
of $2.25 per share and a total number of 216,863 new shares issued
in the name of the holder of the Convertible Note. Furthermore,
during October and November 2019, an additional total amount of
approximately $1,170 thousand, principal and accrued interest, was
converted to share capital with the conversion price of $2.25 per
share and a total number of 519,874 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
September 30, 2019, the Company recognized a gain on this
derivative financial instrument amounting to $2.7 million, which
was classified under “Gain on derivative financial instruments” in
the consolidated statement of comprehensive income/(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 (“Entrust loan facility”) 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 to 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 dry-docking, 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
Third quarter of the year 2019 compared
to the third quarter of the year 2018
Total comprehensive income for the third quarter
of the year 2019 amounted to $280 thousand or $0.06 basic and
diluted earnings per share based on 4,422,825 weighted average
number of shares, compared to total comprehensive income of $254
thousand for the same period last year or $0.08 basic and diluted
earnings per share based on 3,204,271 weighted average number of
shares.
The following table corresponds to the breakdown
of the factors that led to the increase in total comprehensive
income during the third quarter of 2019 compared to the third
quarter of 2018 (expressed in $000’s):
3rd Quarter of 2019 vs 3rd Quarter of 2018 |
|
Net income for the 3rd quarter of 2018 |
254 |
|
|
|
Increase in voyage revenues |
86 |
|
|
|
Increase in Voyage expenses |
(294 |
) |
|
|
Increase in Vessels operating expenses |
(384 |
) |
|
|
Increase in Depreciation |
(63 |
) |
|
|
Increase in Depreciation of dry docking costs |
(133 |
) |
|
|
Decrease in Total administrative expenses |
3 |
|
|
|
Decrease in Other income, net |
(28 |
) |
|
|
Increase in Interest income |
21 |
|
|
|
Increase in Interest expense and finance costs |
(696 |
) |
|
|
Increase in Gain on derivative financial instruments |
1,437 |
|
|
|
Decrease in Foreign exchange losses |
77 |
|
|
|
Net income for the 3rd quarter of 2019 |
280 |
|
|
|
|
|
|
|
Voyage expenses Voyage expenses
reached $0.4 million during the third quarter of 2019 compared to
$0.1 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 third quarter of 2019 and 2018
are analyzed as follows:
|
In $000’s |
2019 |
2018 |
|
|
|
Commissions |
77 |
79 |
|
|
|
Bunkers expenses |
283 |
46 |
|
|
|
Other voyage expenses |
50 |
(9 |
) |
|
|
Total |
410 |
116 |
|
|
|
|
|
|
|
|
The increased time travelling seeking employment
for our vessels during the third quarter of 2019 compared to the
same period in 2018 had a result in increased bunker expenses.
Therefore, the Daily Time Charter Equivalent rate (TCE) for the
third quarter of 2019 decreased to $9,863 per vessel per day
against $10,317 per vessel per day during the same period in 2018
corresponding to a decrease of 4%.
Vessel operating expensesVessel
operating expenses, which include crew costs, provisions, deck and
engine stores, lubricating oils, insurance, maintenance, and
repairs, increased by $0.4 million or 20% to $2.4 million during
the three-month period ended September 30, 2019 compared to $2
million during the same period in 2018. The breakdown of our
operating expenses for the quarters ended September 30, 2019 and
2018 was as follows:
|
|
2019 |
|
2018 |
|
|
|
Crew expenses |
48 |
% |
56 |
% |
|
|
Repairs and spares |
27 |
% |
19 |
% |
|
|
Insurance |
6 |
% |
9 |
% |
|
|
Stores |
9 |
% |
8 |
% |
|
|
Lubricants |
6 |
% |
4 |
% |
|
|
Other |
4 |
% |
4 |
% |
|
|
|
|
|
|
|
|
Average daily operating expenses during the
three-month periods ended September 30, 2019 and 2018 were $5,288
per vessel per day and $4,453 per vessel per day respectively,
corresponding to an increase of 19%,
Depreciation of dry-docking
costsDepreciation charge of dry-docking costs during the
third quarter of 2019 reached $412 thousand compared to $279
thousand 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 third quarter of 2019.
Interest expense and finance
costsInterest expense and finance costs reached $1.2
million for the third quarter of 2019 compared to $0.5 million for
the same period of 2018. Interest expense and finance costs for the
third quarter of 2019 and 2018 are analyzed as follows:
|
In $000’s |
2019 |
2018 |
|
|
Interest payable on long-term borrowings |
1,149 |
512 |
|
|
Bank charges |
7 |
7 |
|
|
Operating lease liability interest |
13 |
- |
|
|
Amortization of debt discount |
65 |
19 |
|
|
Other finance expenses |
15 |
2 |
|
|
Total |
1,249 |
540 |
|
|
|
|
|
|
This increase is mainly due to the refinance of
the outstanding debt which is discussed further in a previous
section of this Press Release.
Gain on derivative financial
instrumentsThe gain on the derivative financial
instruments is mainly attributed to the valuation of the
“Convertible Note”, which is discussed further in a previous
section of this Press Release. 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. For
the three-month period ended September 30, 2019 the Company
recognized a gain on this derivative financial instrument amounting
to $1.5 million.
Nine-month period ended September 30,
2019 compared to the nine-month period ended September 30,
2018
Total comprehensive loss for the nine-month
period ended September 2019 amounted to $3.2 million or $0.82 basic
and diluted loss per share based on 3,905,305 weighted average
number of shares, compared to total comprehensive loss of $2.2
million for the same period last year or $0.69 basic and diluted
loss per share based on 3,198,894 weighted average number of
shares.
The following table corresponds to the breakdown
of the factors that led to the increase in total comprehensive loss
for the nine-month period ended September 30, 2019 compared to the
total comprehensive loss ended September 30, 2018 (expressed in
$000’s):
9 month period of 2019 vs
9 month period of 2018 |
|
|
|
|
|
|
Net loss for the 9 month period
of 2018 |
(2,473 |
) |
|
|
Decrease in voyage revenues |
(1,105 |
) |
|
|
Increase in Voyage expenses |
(872 |
) |
|
|
Decrease in Vessels operating expenses |
584 |
|
|
|
Increase in Depreciation |
(130 |
) |
|
|
Increase in Depreciation of dry-docking costs |
(551 |
) |
|
|
Increase in Total administrative expenses |
(63 |
) |
|
|
Increase in Other income, net |
46 |
|
|
|
Increase in Interest income |
30 |
|
|
|
Increase in Interest expense and finance costs |
(1,948 |
) |
|
|
Increase in Gain on derivative financial instruments |
3,009 |
|
|
|
Increase in Foreign exchange gains |
26 |
|
|
|
Net loss for the 9 month period
of 2019 |
(3,193 |
) |
|
|
|
|
|
|
Voyage revenuesDuring the
nine-month period ended September 30, 2019 and 2018, our Voyage
revenues reached $11.9 million and $13 million respectively. The 8%
decrease in Voyage revenues was mainly attributed to the decrease
in the average time charter rates achieved by our vessels during
the nine-month period ended September 30, 2019 compared to the same
period in 2018. Daily Time Charter Equivalent rate (TCE) for the
nine-month period in 2019 was $7,539 per vessel per day against
$9,254 per vessel per day during the same period in 2018
corresponding to a decrease of 19%.
Voyage expenses Voyage expenses
reached $1.6 million during the nine-month period ended September
30, 2019 compared to $0.7 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 nine
months of 2019 and 2018 are analyzed as follows:
|
In $000’s |
2019 |
2018 |
|
|
Commissions |
170 |
209 |
|
|
Bunkers expenses |
1,247 |
368 |
|
|
Other voyage expenses |
180 |
148 |
|
|
Total |
1,597 |
725 |
|
|
|
|
|
|
Vessel operating expensesVessel
operating expenses, which include crew costs, provisions, deck and
engine stores, lubricating oils, insurance, maintenance, and
repairs, reached $6.7 million during the nine-month period ended
September 30, 2019 compared to $7.3 million during same period in
2018. The breakdown of our operating expenses for the nine-month
period ended September 30, 2019 and 2018 was as follows:
|
|
2019 |
|
2018 |
|
|
|
Crew expenses |
48 |
% |
48 |
% |
|
|
Repairs and spares |
27 |
% |
27 |
% |
|
|
Insurance |
6 |
% |
6 |
% |
|
|
Stores |
9 |
% |
10 |
% |
|
|
Lubricants |
6 |
% |
5 |
% |
|
|
Other |
4 |
% |
4 |
% |
|
|
|
|
|
|
|
|
Average daily operating expenses during the
nine-month periods ended September 30, 2019 and 2018 were $4,943
per vessel per day and $5,370 per vessel per day respectively,
corresponding to a decrease of 8%.
Depreciation of dry-docking
costsDepreciation charge of dry-docking costs during the
nine-month periods ended September 30, 2019 reached $1.3 million
compared to $0.8 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 2019.
Interest expense and finance
costsInterest expense and finance costs reached $3.5
million during the nine-month period ended September 30, 2019
compared to $1.6 million in 2018. Interest expense and finance
costs for the first nine months of 2019 and 2018 are analyzed as
follows:
|
In $000’s |
2019 |
2018 |
|
|
Interest payable on long-term borrowings |
2,492 |
1,483 |
|
|
Bank charges |
21 |
22 |
|
|
Operating lease liability interest |
39 |
- |
|
|
Amortization of debt discount |
314 |
56 |
|
|
Other finance expenses |
648 |
5 |
|
|
Total |
3,514 |
1,566 |
|
|
|
|
|
|
This increase is mainly due to the refinance of
the outstanding debt which is discussed further in a previous
section of this Press Release. Other finance expenses for the
nine-month period ended September 30, 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 September 30,
2019 the Company recognized a gain on this derivative financial
instrument amounting to $2.7 million.
Liquidity and capital
resourcesAs of September 30, 2019 and 2018, our cash and
bank balances and bank deposits (including restricted cash) were
$4.7 and $0.8 million respectively.
Net cash generated from operating
activities for the three month period ended September 30,
2019 and 2018 was $0.9 and $1.3 million, respectively. The
decrease in our cash from operations was mainly attributed to the
decrease in our adjusted EBITDA from $2.3 million during the third
quarter of 2018 to approximately $1.6 million during the
three-month period under consideration.
Net cash used in operating activities
for the nine-month period ended September 30, 2019 was
$0.9 million compared to net cash generated from operating
activities of $2.5 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 $3.5 million during the
nine-month period ended September 30, 2018 to $2.1 million during
the nine-month period under consideration.
Net cash (used in)/generated from
financing activities during the three-month and nine-month
period ended September 30, 2019 and 2018 were as follows:
|
Three months endedSeptember 30, |
|
Nine months endedSeptember 30, |
|
In $000’s |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Proceeds from loans |
- |
|
- |
|
43,700 |
|
- |
|
Proceeds from issuance of share capital |
- |
|
- |
|
- |
|
600 |
|
Prepayment of long term debt |
- |
|
- |
|
(33,833 |
) |
- |
|
Repayment of long term debt |
- |
|
(1,549 |
) |
(1,830 |
) |
(3,793 |
) |
(Increase)/decrease in restricted cash |
(138 |
) |
- |
|
(947 |
) |
210 |
|
Payment of financing costs |
- |
|
- |
|
(880 |
) |
- |
|
Repayment of lease liability |
(40 |
) |
- |
|
(70 |
) |
- |
|
Interest paid |
(1,026 |
) |
(542 |
) |
(2,859 |
) |
(1,462 |
) |
Net cash (used in)/generated from financing
activities |
(1,204 |
) |
(2,091 |
) |
3,281 |
|
(4,445 |
) |
|
|
|
|
|
|
|
|
|
As of September 30, 2019 and 2018 we and our
vessel-owning subsidiaries had outstanding borrowings under our
Loan agreements of an aggregate of $37.4 million and of $37.8
million, respectively, net of unamortized debt discount.
SELECTED CONSOLIDATED FINANCIAL &
OPERATING DATA
|
Three months ended |
|
Nine months ended |
|
|
September 30, |
|
|
|
September 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 |
4,946 |
|
4,861 |
|
11,888 |
|
12,993 |
|
Total
Revenues |
4,946 |
|
4,861 |
|
11,888 |
|
12,993 |
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
(410 |
) |
(116 |
) |
(1,597 |
) |
(725 |
) |
Vessel operating expenses |
(2,433 |
) |
(2,048 |
) |
(6,747 |
) |
(7,331 |
) |
Depreciation |
(1,222 |
) |
(1,159 |
) |
(3,570 |
) |
(3,440 |
) |
Depreciation of dry-docking
costs |
(413 |
) |
(279 |
) |
(1,323 |
) |
(772 |
) |
Administrative expenses |
(359 |
) |
(323 |
) |
(1,186 |
) |
(1,002 |
) |
Administrative expenses
payable to related parties |
(89 |
) |
(131 |
) |
(277 |
) |
(398 |
) |
Share-based payments |
(10 |
) |
(10 |
) |
(30 |
) |
(30 |
) |
Other (expenses)/income,
net |
(6 |
) |
21 |
|
73 |
|
27 |
|
Operating
profit/(loss) before financing activities |
4 |
|
817 |
|
(2,769 |
) |
(678 |
) |
Interest income |
21 |
|
- |
|
30 |
|
- |
|
Interest expense and finance
costs |
(1,236 |
) |
(540 |
) |
(3,514 |
) |
(1,566 |
) |
Gain on derivative financial
instruments |
1,437 |
|
- |
|
3,009 |
|
- |
|
Foreign exchange
gains/(losses), net |
54 |
|
(23 |
) |
51 |
|
25 |
|
Total finance costs,
net |
276 |
|
(563 |
) |
(424 |
) |
(1,541 |
) |
Total comprehensive
income/(loss) for the period |
280 |
|
254 |
|
(3,193 |
) |
(2,219 |
) |
|
|
|
|
|
Basic & diluted (loss)/earnings per share for the period
(1) |
0.06 |
|
0.08 |
|
(0.82 |
) |
(0.69 |
) |
Adjusted EBITDA (2) |
1,639 |
|
2,254 |
|
2,124 |
|
3,534 |
|
|
|
|
|
|
|
|
|
|
(1) The weighted average number of shares for
the nine-month period ended September 30, 2019 was 3,905,305
compared to 3,198,894 shares for the nine-month period ended
September 30, 2018. The weighted average number of shares for the
three-month period ended September 30, 2019 was 4,422,825 compared
to 3,204,271 shares for the three-month period ended September 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
income/(loss) and net cash generated from/(used in) operating
activities for the periods presented:
|
Three months endedSeptember
30, |
|
Nine months ended September
30, |
|
(Expressed in thousands of U.S. dollars) |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Total comprehensive income/(loss) for the
period |
280 |
|
254 |
|
(3,193 |
) |
(2,219 |
) |
Interest and finance costs, net |
1,236 |
|
540 |
|
3,514 |
|
1,566 |
|
Interest income |
(21 |
) |
- |
|
(30 |
) |
- |
|
Gain on derivative financial instruments |
(1,437 |
) |
- |
|
(3,009 |
) |
- |
|
Foreign exchange (gains)/losses net, |
(54 |
) |
23 |
|
(51 |
) |
(25 |
) |
Depreciation |
1,222 |
|
1,159 |
|
3,570 |
|
3,440 |
|
Depreciation of dry-docking costs |
413 |
|
278 |
|
1,323 |
|
772 |
|
Adjusted EBITDA |
1,639 |
|
2,254 |
|
2,124 |
|
3,534 |
|
Share-based payments |
10 |
|
10 |
|
30 |
|
40 |
|
Payment of deferred dry-docking costs |
(369 |
) |
(227 |
) |
(850 |
) |
(517 |
) |
Net decrease/(increase) in operating assets |
186 |
|
(64 |
) |
(715 |
) |
(676 |
) |
Net (decrease)/increase in operating liabilities |
(603 |
) |
(684 |
) |
(1,476 |
) |
147 |
|
Provision for staff retirement indemnities |
1 |
|
2 |
|
(62 |
) |
4 |
|
Foreign exchange gains/(losses) net, not attributed to cash &
cash equivalents |
6 |
|
(9 |
) |
1 |
|
(21 |
) |
Net cash generated from/(used in) operating
activities |
870 |
|
1,282 |
|
(948 |
) |
2,511 |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
September 30, |
|
September 30, |
|
(Expressed in thousands of U.S. dollars) |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
|
Statement of cash flow data: |
|
|
|
|
|
|
|
|
Net cash generated from/(used in) operating activities |
870 |
|
1,282 |
|
(948 |
) |
2,511 |
|
Net cash generated from/(used in) investing activities |
21 |
|
(14 |
) |
17 |
|
(57 |
) |
Net cash (used in)/generated from financing activities |
(1,204 |
) |
(2,091 |
) |
3,281 |
|
(4,445 |
) |
|
|
|
|
|
|
|
|
|
|
As of September 30, |
As of December 31, |
(Expressed in thousands of U.S. Dollars) |
2019 |
2018 |
|
(Unaudited) |
|
Consolidated condensed statement of financial
position: |
|
|
Vessels, net |
78,999 |
83,750 |
Other non-current assets |
1,922 |
130 |
Total non-current assets |
80,921 |
83,880 |
Cash and bank balances and bank deposits |
2,396 |
46 |
Other current assets |
3,160 |
2,748 |
Total current assets |
5,556 |
2,794 |
Total assets |
86,477 |
86,674 |
Total equity |
41,555 |
41,050 |
Total debt net of unamortized debt discount |
37,416 |
36,868 |
Other liabilities |
7,506 |
8,756 |
Total
liabilities |
44,922 |
45,624 |
Total equity and liabilities |
86,477 |
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 |
- |
- |
(3,193 |
) |
(3,193 |
) |
Issuance of common stock due to conversion of loans |
5 |
3,663 |
- |
|
3,668 |
|
Share-based payments |
- |
30 |
- |
|
30 |
|
As at September
30,
2019 |
18 |
144,027 |
(102,490 |
) |
41,555 |
|
|
|
|
|
|
|
|
|
Three months endedSeptember 30, |
|
Nine months endedSeptember 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
Ownership days (1) |
460 |
|
460 |
|
1,365 |
|
1,365 |
|
Available days (2) |
460 |
|
460 |
|
1,365 |
|
1,326 |
|
Operating days (3) |
457 |
|
449 |
|
1,343 |
|
1,296 |
|
Fleet utilization (4) |
99.3 |
% |
97.7 |
% |
98.4 |
% |
97.8 |
% |
Average number of vessels (5) |
5.0 |
|
5.0 |
|
5.0 |
|
5.0 |
|
Daily time charter equivalent (TCE) rate (6) |
9,863 |
|
10,317 |
|
7,539 |
|
9,254 |
|
Daily operating expenses (7) |
5,288 |
|
4,453 |
|
4,943 |
|
5,370 |
|
|
|
|
|
|
|
|
|
|
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 endedSeptember 30, |
Six months endedSeptember 30, |
|
2019 |
2018 |
2019 |
2018 |
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Voyage revenues |
4,947 |
4,861 |
11,888 |
12,993 |
Less: Voyage expenses |
410 |
116 |
1,597 |
725 |
Net
revenues |
4,537 |
4,745 |
10,291 |
12,268 |
Available days net of bareboat
charter days |
460 |
460 |
1,365 |
1,326 |
Daily TCE rate (1) |
9,863 |
10,317 |
7,539 |
9,254 |
|
|
|
|
|
(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 11.6 years as
of September 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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