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 ended March 31, 2021.
Financial Highlights
- In Q1 2021, Total revenues
increased by about 126% compared to Q1 2020.
- The Adjusted EBITDA for Q1
2021 increased by 2.97 million or 1.8 times compared to Q1
2020.
- As of March 31, 2021 and
December 31, 2020, our cash and bank balances and bank deposits
(including restricted cash) were $53.1 and $21.1 million,
respectively, an increase of 152%.
- The Total comprehensive
loss for Q1 2021 decreased by about 92% compared to Q1
2020.
- As of March 31, 2021, the
total outstanding borrowings under our Loan agreements decreased to
$31 million compared to $40 million as of March 31, 2020, gross of
unamortized debt discount, a decrease of about 23%.
|
Three months ended March 31, |
|
(Expressed in thousands of U.S dollars except for daily rates and
per share data) |
2021 |
|
2020 |
|
Total revenues |
5,167 |
|
2,290 |
|
Total comprehensive loss |
(766 |
) |
(9,002 |
) |
Adjusted EBITDA (1) |
1,306 |
|
(1,664 |
) |
Basic loss per share (2) |
(0.11 |
) |
(154,85 |
) |
Daily Time charter equivalent
rate (“TCE”) (3) |
9,857 |
|
2,173 |
|
Average operating expenses per
vessel per day |
5,698 |
|
4,521 |
|
Average number of vessels |
6.0 |
|
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 Adjusted EBITDA to total
comprehensive loss and net cash used in 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 three-month period ended March 31, 2021 was
7,209,657 compared to 58,132 shares for the three-month period
ended March 31, 2020. |
(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
seven dry bulk carriers, consisting of four Supramax, one Panamax
and two Kamsarmax.
Vessel |
YearBuilt |
Yard |
Type |
Month/YearDelivered |
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. |
Galaxy Globe |
2015 |
Hudong-Zhonghua |
Kamsarmax |
October 2020 |
81,167 |
Marshall Is. |
Diamond Globe |
2018 |
Jiangsu New YangziShipbuilding Co. |
Kamsarmax |
June 2021 |
82,027 |
Marshall Is. |
Weighted Average Age: 10.1 Years as of June 18, 2021 |
|
463,765 |
|
Current Fleet Deployment
All our vessels are currently operating on
short-term time charters (“on spot”).
Management Commentary
“We are pleased to report our First Quarter
Results of 2021. During this time, we started to see a gradual
improvement in the dry bulk shipping market. The strengthening of
the market was notable particularly after the middle of the quarter
and as we moved into March it was solidified with the upward trend
continuing in the weeks following the end of the first quarter.
“We believe the market looks healthy today with
the foreseeable future looking bright. The signals and information
we receive regarding the supply and demand balance illustrate a
positive picture for the industry well into 2023; past that point
we will have to monitor the newbuilding market and the potential
supply to be added in the market in order to reassess. At present
we are seeing spot and period rates at multi year highs, and we
believe that the availability of our vessels and expiration of
legacy charters will allow us to benefit throughout the year.
“The Company is expanding the fleet with larger
assets and at the same time we are taking steps to further
strengthen our balance sheet. We seek out short/midterm employment
with top quality charterers. We have been able to refinance our
debt in May, a move that will provide significant cost savings
going forward. The Company is positioned well for the future with
very low leverage and ability to produce significant cash flows if
the market remains healthy.
“Our main challenge so far this year has been
and continues to be the implications of COVID-19 and how necessary
was to adjust our operations and procedures not only for the
vessels but also for the Company, in order to operate efficiently
under the pandemic. We remain vigilant of the situation and in
constant care of all our people, especially our crew on board,
always doing our best to support, protect and help them under these
stringent circumstances.”
Management Discussion and Analysis of the Results of
Operations
First Quarter of the Year 2021 compared
to the First Quarter of the Year 2020
Total comprehensive loss for the first quarter
of the year 2021 amounted to $0.8 million or $0.11 basic and
diluted loss per share based on 7,209,657 weighted average number
of shares, compared to total comprehensive loss of $9 million for
the same period last year or $154.85 basic and diluted loss per
share based on 58,132 weighted average number of shares.
The following table corresponds to the breakdown
of the factors that led to the increase in total comprehensive loss
during the first quarter of 2021 compared to the first quarter of
2020 (expressed in $000’s):
1st
Quarter of 2021 vs 1st
Quarter of 2020
Net loss and total comprehensive loss for the
1st Quarter of
2020 |
(9,002 |
) |
Increase in voyage
revenues |
2,877 |
|
Decrease in Voyage
expenses |
1,317 |
|
Increase in Vessels operating
expenses |
(1,020 |
) |
Increase in Depreciation |
(78 |
) |
Increase in Depreciation of
dry-docking costs |
(1 |
) |
Increase in Total
administrative expenses |
(224 |
) |
Decrease in Impairment
loss |
4,615 |
|
Decrease in Other expenses,
net |
20 |
|
Decrease in Interest
income |
(10 |
) |
Decrease in Interest expense
and finance costs |
219 |
|
Decrease in Loss on derivative
financial instruments |
494 |
|
Increase in Foreign exchange
gains, net |
27 |
|
Net loss and total
comprehensive loss for the 1st
Quarter of 2021 |
(766 |
) |
Voyage revenuesDuring the
three-month period ended March 31, 2021, and 2020, our Voyage
revenues reached $5.2 million and $2.3 million, respectively. The
126% increase in Voyage revenues was mainly attributed to the
decrease in the average time charter rates achieved by our vessels
during the first quarter of 2021 compared to the same period in
2020. Furthermore, the Company operated a fleet of 6 vessels during
the 1st quarter of 2021 compared to 5 vessels for the same period
in 2020. Daily Time Charter Equivalent rate (TCE) for the first
quarter of 2021 was $9,857 per vessel per day against $2,173 per
vessel per day during the same period in 2020 corresponding to an
increase of 354%, which is attributed to the better conditions
throughout the bulk market for the first quarter of 2021 compared
with the low rates in the first quarter of 2020, which was mainly
attributed to the outbreak of COVID-19 pandemic.
Voyage expensesVoyage expenses
reached $0.1 million during the first quarter of 2021 compared to
$1.4 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 quarter of 2021
and 2020 are analyzed as follows:
In $000’s |
2021 |
2020 |
Commissions |
72 |
32 |
Bunkers expenses |
- |
1,280 |
Other voyage expenses |
6 |
83 |
Total |
78 |
1,395 |
Vessel operating expensesVessel
operating expenses, which include crew costs, provisions, deck and
engine stores, lubricating oils, insurance, maintenance, and
repairs, reached $3.1 million during the three-month period ended
March 31, 2021, compared to $2.1 million during the same period
last year. This is partly attributed to the fact that the fleet of
the Company has increased to six vessels during the first quarter
of 2021 compared to five vessels for the same period in 2020. The
breakdown of our operating expenses for the three-month period
ended March 31, 2021 and 2020 was as follows:
|
2021 |
|
2020 |
|
Crew expenses |
52 |
% |
58 |
% |
Repairs and spares |
24 |
% |
17 |
% |
Insurance |
7 |
% |
7 |
% |
Stores |
11 |
% |
11 |
% |
Lubricants |
3 |
% |
4 |
% |
Other |
3 |
% |
3 |
% |
Average daily operating expenses during the
three-month periods ended March 31, 2021 and 2020 were $5,698 per
vessel per day and $4,521 per vessel per day respectively,
corresponding to an increase of 26%. The increased daily operating
expenses during the first quarter of 2021 is mainly attributed to
an extraordinary damage incurred to our vessel, Sky Globe.
DepreciationDepreciation charge
during the three-month period ended March 31, 2021, reached $0.7
million compared to $0.6 million during the same period in 2020.
This is mainly attributed to the increase of the fleet from 5
vessels during the three-month period ended March 31, 2020 to 6
vessels for the same period in 2021. Nonetheless, this increase has
been counterbalanced due to the impairment loss of $4.6 million,
recognized in the 1st quarter of 2020, which reduced the carrying
amount of the fleet.
Impairment lossDuring the 1st
quarter of 2020, the Company concluded that the recoverable amounts
of its vessels were lower than their respective carrying amounts
and recognized an impairment loss of $4.6 million. No impairment
was recorded during the 1st quarter of 2021.
Interest expense and finance
costsInterest expense and finance costs reached $0.9
million during the first quarter of 2021 compared to $1.1 million
in 2020. Interest expense and finance costs for the first quarters
of 2021 and 2020 are analyzed as follows:
In $000’s |
2021 |
2020 |
Interest payable on long-term
borrowings |
810 |
1,059 |
Bank charges |
22 |
5 |
Operating lease liability
interest |
10 |
12 |
Amortization of debt
discount |
77 |
70 |
Other finance expenses |
11 |
3 |
Total |
930 |
1,149 |
As of March 31, 2021, and 2020 we and our
vessel-owning subsidiaries had outstanding borrowings under our
Loan agreements of an aggregate of $31 and $40 million,
respectively, gross of unamortized debt discount. The decrease in
interest payable is mainly attributed to the decrease of the
weighted interest rate from 10.33% during the three-month period
ended March 31, 2020 to 8.76% for the same period in 2021, which is
mainly attributed to the decrease of the Libor rate by
approximately 1.7%.
Loss on derivative financial
instrumentsFor the period ended March 31, 2020 the loss on
the derivative financial instruments is mainly attributed to the
valuation of the “Convertible Note”. Further to the conversion
clause included into the Convertible Note for the period ended
March 31, 2020 a total amount of approximately $1.2 million,
principal and accrued interest, was converted to share capital with
the conversion price of $100 per share and a total number of 11,677
new shares issued in name of the holder of the Convertible Note.
These conversions resulted to a loss of approximately $0.3 million
recognized in the consolidated statement of comprehensive loss. For
the period ended March 31, 2021 the Company had no derivative
financial instruments.
Liquidity and capital
resourcesAs of March 31, 2021 and December 31, 2020, our
cash and bank balances and bank deposits (including restricted
cash) were $53.1 and $21.1 million, respectively.
Net cash generated from operating
activities for the three-month period ended March 31, 2021
was $0.4 million compared to net cash used in operating activities
of $2 million during the respective period in 2020. The increase in
our cash generated from operating activities was mainly attributed
to the increase in our Voyage revenues from $2.3 million during the
three-month period ended March 31, 2020 to $5.2 million during the
three-month period under consideration.
Net cash generated from/(used in)
financing activities during the three-month period ended
March 31, 2021 and 2020 were as follows:
|
Three months ended March 31, |
|
In $000’s |
2021 |
|
2020 |
|
|
(Unaudited) |
Proceeds from issuance of
share capital |
42,999 |
|
- |
|
Proceeds from issuance of
warrants |
15 |
|
- |
|
Transaction costs on issue of
new common shares |
(272 |
) |
- |
|
Repayment of long-term
debt |
(1,493 |
) |
- |
|
Prepayment of long-term
debt |
(4,477 |
) |
- |
|
Decrease in restricted
cash |
360 |
|
363 |
|
Repayment of lease
liability |
(80 |
) |
- |
|
Interest paid |
(813 |
) |
(469 |
) |
Net cash generated
from/(used in) financing activities |
36,239 |
|
(106 |
) |
As of March 31, 2021 and 2020, we and our
vessel-owning subsidiaries had outstanding borrowings under our
Loan agreements of an aggregate of $31 and $40 million,
respectively, gross of unamortized debt discount.
Recent Developments
Issuance of the Series B preferred
shares
On March 2, 2021, we issued an additional 10,000
of our Series B Preferred Shares to Goldenmare Limited in return
for $130,000. The $130,000 was paid by reducing, on a
dollar-for-dollar basis, the amount payable as compensation by the
Company to Goldenmare Limited pursuant to a consultancy
agreement.
The issuance of the Series B preferred shares to
Goldenmare Limited was approved by an independent committee of the
Board of Directors of the Company, which received a fairness
opinion from an independent financial advisor.
Each Series B preferred share entitles the
holder thereof to 25,000 votes per share on all matters submitted
to a vote of the shareholders of the Company, provided however,
that no holder of Series B preferred shares may exercise voting
rights pursuant to Series B preferred shares that would result in
the aggregate voting power of any beneficial owner of such shares
and its affiliates (whether pursuant to ownership of Series B
preferred shares, common shares or otherwise) to exceed 49.99% of
the total number of votes eligible to be cast on any matter
submitted to a vote of shareholders of the Company. To the fullest
extent permitted by law, the holders of Series B preferred shares
shall have no special voting or consent rights and shall vote
together as one class with the holders of the common shares on all
matters put before the shareholders. The Series B preferred shares
are not convertible into common shares or any other security. They
are not redeemable and have no dividend rights. Upon any
liquidation, dissolution or winding up of the Company, the Series B
preferred shares are entitled to receive a payment with priority
over the common shareholders equal to the par value of $0.001 per
share. The Series B preferred shareholder has no other rights to
distributions upon any liquidation, dissolution or winding up of
the Company. All issued and outstanding Series B preferred shares
must be held of record by one holder, and the Series B preferred
shares shall not be transferred without the prior approval of our
Board of Directors. Finally, in the event the Company (i) declares
any dividend on its common shares, payable in common shares, (ii)
subdivides the outstanding common shares or (iii) combines the
outstanding common shares into a smaller number of shares, there
shall be a proportional adjustment to the number of outstanding
Series B preferred shares.
As of March 31, 2021, Goldenmare Limited owned
10,300 of the Company’s Series B preferred shares.
Public Offerings
On January 13, 2021, the remaining pre-funded
warrants from the December 2020 Pre-Funded Warrants were exercised
and 130,000 common shares, par value $0.004 per share were
issued.
On January 27, 2021, the Company entered into a
securities purchase agreement with certain unaffiliated
institutional investors to issue (a) 2,155,000 common shares, par
value $0.004 per share, (b) pre-funded warrants to purchase 445,000
common shares, par value $0.004 per share and (c) warrants (the
“January 2021 Warrants”) to purchase 1,950,000 common shares, par
value $0.004 per share, at an exercise price of $6.25 per share.
Total proceeds amounted to $15,108, before issuance expenses of
approximately $122. The pre-funded warrants were all exercised
subsequently. No January 2021 Warrants have been exercised as of
the date hereof.
The January 2021 Warrants are exercisable for a
period of five and one-half years commencing on the date of
issuance. The warrants will be exercisable, at the option of each
holder, in whole or in part by delivering to the Company a duly
executed exercise notice with payment in full in immediately
available funds for the number of common shares purchased upon such
exercise. If a registration statement registering the issuance of
the common shares underlying the warrants under the Securities Act
is not effective, the holder may, in its sole discretion, elect to
exercise the warrant through a cashless exercise, in which case the
holder would receive upon such exercise the net number of common
shares determined according to the formula set forth in the
warrant. If the Company does not issue the shares in a timely
fashion, the warrant contains certain liquidated damages
provisions.
On February 12, 2021, the Company entered into a
securities purchase agreement with certain unaffiliated
institutional investors to issue (a) 3,850,000 common shares par
value $0.004 per share, (b) pre-funded warrants to purchase 950,000
common shares, par value $0.004 par value, and (c) warrants (the
“February 2021 Warrants”) to purchase 4,800,000 common shares, par
value $0.004 per share, at an exercise price of $6.25 per share.
Total proceeds amounted to $27,891, before issuance expenses of
approximately $150. The pre-funded warrants were all exercised
subsequently. No February 2021 Warrants have been exercised as of
the date hereof.
The February 2021 Warrants are exercisable for a
period of five and one-half years commencing on the date of
issuance. The warrants will be exercisable, at the option of each
holder, in whole or in part by delivering to the Company a duly
executed exercise notice with payment in full in immediately
available funds for the number of common shares purchased upon such
exercise. If a registration statement registering the issuance of
the common shares underlying the warrants under the Securities Act
is not effective, the holder may, in its sole discretion, elect to
exercise the warrant through a cashless exercise, in which case the
holder would receive upon such exercise the net number of common
shares determined according to the formula set forth in the
warrant. If the Company does not issue the shares in a timely
fashion, the warrant contains certain liquidated damages
provisions.
Acquisition of new vessel
On February 18, 2021, the Company entered into a
memorandum of agreement with an unrelated third party, for the
acquisition of the m/v “Nord Venus”, a 2011-built Kamsarmax dry
bulk carrier, for a purchase price of $16.5 million, if delivered
up to May 31, 2021 or $16.2 if delivered between June 1, 2021 and
August 15, 2021. The m/v “Nord Venus” was built at the Universal
Shipbuilding Corporation in Japan and has a carrying capacity of
80,655 dwt. The agreement is subject to customary closing
conditions.
On June 9, 2021, the Company took delivery of
the m/v “Diamond Globe”, a 2018-built Kamsarmax dry bulk carrier,
through its subsidiary, Argo Maritime Limited, for a purchase price
of $27 million financed with available cash. The m/v “Diamond
Globe” was built at Jiangsu New Yangzi Shipbuilding Co., Ltd and
has a carrying capacity of 82,027 dwt. Following this acquisition,
the fleet of Globus comprises of seven dry bulk carriers with a
total carrying capacity of 463,765 dwt.
Debt financing
In March 2021, the Company prepaid $6.0 million
of the Entrust loan facility, which represented all amounts that
would otherwise come due during calendar year 2021. As a result,
after this pre-payment we had an aggregate debt outstanding of $31
million, gross of unamortized debt costs, from the Entrust Loan
Facility.
In May 2021, the Company reached an agreement
with a financial institution for a loan facility of $34.25 million
bearing interest at LIBOR plus a margin of 3.75% per annum. The
proceeds of this financing were used to repay the outstanding
balance of EnTrust Loan Facility.
Impact of COVID-19 on the Company’s
Business
The spread of the COVID-19 virus, which was
declared a pandemic by the World Health Organization in 2020 and
caused substantial disruptions in the global economy and the
shipping industry, as well as significant volatility in the
financial markets, the severity and duration of which remains
uncertain.
The measures taken by governments worldwide in
response to the outbreak, which included numerous factory closures,
self-quarantining, and restrictions on travel, as well as potential
labor shortages resulting from the outbreak, had slowed down
production of goods worldwide and decreased the amount of goods
exported and imported worldwide. Some experts fear that the
economic consequences of the coronavirus could cause a recession
that outlives the pandemic.
Besides reducing demand for cargo, coronavirus
may functionally limit the amount of cargo that the Company and its
competitors are able to move because countries worldwide have
imposed quarantine checks on arriving vessels, which have caused
delays in loading and delivery of cargoes. It is possible that
charterers may try to invoke force majeure clauses as a
result.
Crewing and Crew management
operations.
Due to COVID-19 there are restrictions on
travelling on many jurisdictions. We may face problems in the
embarkation and disembarkation our crew members. Many airports
around the world as well as many countries impose heavy travel
restrictions such as quarantine periods for incoming and outgoing
travelers. By extent it is increasingly hard, if not restrictive,
for our crews to be relieved by new crew members. We continue to
monitor the situation with respect and utmost care for our
seafarers, always communicating with the relevant authorities in
order to assist them as much as we can in these unprecedented
times.
Disruption in operations in case crew
members get infected.
In case one of our crew members is found to be
infected by COVID-19 this may lead to delays in cargo operations.
It may also need to a detention and quarantine of the ship for an
unspecified amount of time. Relevant authorities may require us to
perform disinfection and fumigation operations if a crew member
gets infected by COVID-19. Crew members may be quarantined if a
member is found to be infected. The above may lead to increased
costs and lower utilization of our fleet.
Dry docking and Repairs.
Repair yards and dry docks in the far east,
usually selected for the scheduled maintenance of our vessels, may
be affected by the closures and travel restrictions in their
countries. Shipyard staff and third-party experts as well as spare
parts may be harder to procure and provide making the maintenance
process potentially lengthier, costlier or unfeasible. Spare parts
and supplies may be harder to produce and deliver to a shipyard
where they would be utilized for a scheduled maintenance. In
addition to the above, and always relating to COVID-19 travel
restrictions, it will be tough for our in-house technical teams to
travel to the shipyards in order to monitor the maintenance
process, so they may have to be postponed or 3rd party monitoring
technical crews will be hired. Finally, classification society
surveyor attendance may be restricted thus not only affecting the
time spent within a repair facility but also causing scheduled
survey work to be postponed as far as this is permissible.
Effect on the following technical
department activities yet not limited to:
- Logistics and supply of spares and
expert services may incur increased costs and disruption in Planned
Maintenance and consequently lead to increased
failures/incidents.
-
Office Personnel attendance is disrupted or impossible, which can
have as a result inadequate supervision and lead to increased
incidents in third party inspection and reduced maintenance
quality.
-
Long-Term planned maintenance (dry docking) unsupervised by company
personnel, that can result to lower quality and increased
costs.
-
Delays in class surveys, which can lead to postponements.
The above ultimately are translated to possible
increased costs and reduced maintenance quality which in the long
term shall spiral to cost increases again as the aftermath shall
have to be dealt with. However, there are presently insufficient
statistics to reach to prediction model as regards to the actual
increase in costs due to the above disruptions.
The Company has evaluated the impact of current
economic situation on the recoverability of the carrying amount of
its vessels. During the first quarter of 2020, the Company
concluded that events and circumstances triggered the existence of
potential impairment of its vessels. These indicators included
volatility in the charter market as well as the potential impact
the current marketplace may have on the future operations. As a
result, the Company performed an impairment assessment of the
Company’s vessels by comparing the discounted projected net
operating cash flows for each vessel to its carrying values. For
the first quarter of 2020, the Company concluded that the
recoverable amounts of the vessels were lower than their carrying
amounts and an impairment loss of $4.6 million was recorded (see
also Note 5). For the first quarter of 2021 the Company reevaluated
the carrying amount of its vessels and concluded that no further
impairment of its vessels should be recorded or previously
recognized impairment should be reversed.
Selected Consolidated Financial &
Operating Data
|
Three months ended March 31, |
|
Consolidated Statements of Comprehensive Loss
Data |
2021 |
|
2020 |
|
(In thousands of U.S. Dollars) |
(unaudited) |
|
|
|
Voyage revenues |
5,167 |
|
2,290 |
|
Total Revenues |
5,167 |
|
2,290 |
|
|
|
|
Voyage expenses |
(78 |
) |
(1,395 |
) |
Vessel operating expenses |
(3,077 |
) |
(2,057 |
) |
Depreciation |
(711 |
) |
(633 |
) |
Depreciation of dry-docking costs |
(492 |
) |
(491 |
) |
Administrative expenses |
(556 |
) |
(394 |
) |
Administrative expenses payable to related parties |
(154 |
) |
(92 |
) |
Share-based payments |
(10 |
) |
(10 |
) |
Impairment loss |
- |
|
(4,615 |
) |
Other income/(expenses), net |
14 |
|
(6 |
) |
Operating loss |
103 |
|
(7,403 |
) |
Interest income |
1 |
|
11 |
|
Interest expense and finance costs |
(930 |
) |
(1,149 |
) |
Loss on derivative financial instruments |
- |
|
(494 |
) |
Foreign exchange gains, net |
60 |
|
33 |
|
Total finance costs, net |
(869 |
) |
(1,599 |
) |
Total comprehensive loss for the period |
(766 |
) |
(9,002 |
) |
|
|
|
Basic & diluted loss per share for the period (1) |
(0.11 |
) |
(154.85 |
) |
Adjusted EBITDA (2) |
1,306 |
|
(1,664 |
) |
(1) Shares and per share data give effect to the
1‐for‐100 reverse stock split, that became effective on October 21,
2020. The weighted average number of shares for the three-month
period ended March 31, 2021, was 7,209,657 compared to 58,132
shares for the three-month period ended March 31, 2020.
(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
operating activities for the periods
presented:
|
Three months ended March 31, |
|
(Expressed in thousands of U.S. dollars) |
2021 |
|
2020 |
|
|
(Unaudited) |
|
|
|
Total comprehensive loss
for the period |
(766 |
) |
(9,002 |
) |
Interest and finance costs,
net |
929 |
|
1,138 |
|
Foreign exchange gains, net |
(60 |
) |
(33 |
) |
Depreciation |
711 |
|
633 |
|
Depreciation of dry-docking
costs |
492 |
|
491 |
|
Impairment Loss |
- |
|
4,615 |
|
Loss on derivative financial
instruments |
- |
|
494 |
|
Adjusted
EBITDA |
1,306 |
|
(1,664 |
) |
Share-based payments |
10 |
|
10 |
|
Payment of deferred dry-docking
costs |
(731 |
) |
- |
|
Net (increase)/decrease in
operating assets |
625 |
|
(75 |
) |
Net decrease in operating
liabilities |
(733 |
) |
(254 |
) |
Provision for staff retirement
indemnities |
1 |
|
1 |
|
Foreign exchange gains/(losses)
net, not attributed to cash and cash equivalents |
(2 |
) |
6 |
|
Net cash generated from/
(used in) operating activities |
436 |
|
(1,976 |
) |
|
|
|
Three months ended March 31, |
|
(Expressed in thousands of U.S. dollars) |
2021 |
|
2020 |
|
|
(Unaudited) |
Statement of cash flow
data: |
|
Net cash generated from/ (used
in) operating activities |
436 |
|
(1,976 |
) |
Net cash (used in)/generated
from investing activities |
(4,326 |
) |
11 |
|
Net cash provided by/ (used
in) financing activities |
36,239 |
|
(106 |
) |
|
As of March 31, |
As of December 31, |
(Expressed in thousands of U.S. Dollars) |
2021 |
2020 |
|
(Unaudited) |
Consolidated condensed statement of financial
position: |
|
|
Vessels, net |
62,209 |
62,350 |
Advance for vessel purchase |
4,320 |
- |
Other non-current assets |
1,780 |
1,810 |
Total non-current assets |
68,309 |
64,160 |
Cash and bank balances and bank deposits (including restricted
cash) |
51,842 |
19,853 |
Other current assets |
1,803 |
2,428 |
Total current assets |
53,645 |
22,281 |
Total assets |
121,954 |
86,441 |
Total equity |
84,210 |
42,094 |
Total debt net of unamortized debt discount |
30,658 |
36,552 |
Other liabilities |
7,086 |
7,795 |
Total liabilities |
37,744 |
44,347 |
Total equity and liabilities |
121,954 |
86,441 |
|
|
|
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, 2020 |
12 |
195,102 |
|
(153,020 |
) |
42,094 |
|
Total comprehensive loss for the period |
- |
- |
|
(766 |
) |
(766 |
) |
Issuance of common shares |
24 |
42,975 |
|
- |
|
42,999 |
|
Issuance of new common shares due to exercise of Warrants |
6 |
9 |
|
- |
|
15 |
|
Issuance of Class B preferred shares |
- |
130 |
|
- |
|
130 |
|
Transaction costs on issue of new common shares |
- |
(272 |
) |
- |
|
(272 |
) |
Share-based payments |
- |
10 |
|
- |
|
10 |
|
As at March 31, 2021 |
42 |
237,954 |
|
(153,786 |
) |
84,210 |
|
|
Three months ended March 31, |
|
|
2021 |
|
2020 |
|
|
|
|
Ownership days (1) |
540 |
|
455 |
|
Available days (2) |
516 |
|
412 |
|
Operating days (3) |
512 |
|
408 |
|
Fleet utilization (4) |
99.2 |
% |
99.1 |
% |
Average number of vessels (5) |
6.0 |
|
5.0 |
|
Daily time charter equivalent (“TCE”) rate (6) |
9,857 |
|
2,173 |
|
Daily operating expenses (7) |
5,698 |
|
4,521 |
|
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 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. |
Voyage Revenues to Daily Time Charter
Equivalent (“TCE”) Reconciliation
|
Three months ended March 31, |
|
2021 |
2020 |
|
(Unaudited) |
|
|
|
Voyage revenues |
5,167 |
2,290 |
Less: Voyage expenses |
78 |
1,395 |
Net revenues |
5,089 |
895 |
Available days |
516 |
412 |
Daily TCE rate (1) |
9,857 |
2,173 |
(1) Subject to rounding.
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 six 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 463,765 Dwt and a weighted average age of 10.1 years as
of June 18, 2021.
Safe Harbor Statement
This 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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