Globus Maritime Limited (“Globus”, the “Company”, “we”, or “our”)
(NASDAQ: GLBS), a dry bulk shipping company, today reported its
unaudited consolidated financial results for the third quarter and
nine-month period ended September 30, 2023.
- Revenue
- $7.7 million in Q3 2023
- $24.1 million in 9M 2023
- Net income
- $3.5 million net income in Q3 2023
- $4.9 million net income in 9M 2023
- Adjusted EBITDA
- $2.0 million in Q3
2023
- $4.2 million in 9M
2023
- Time Charter
Equivalent
- $9,994 per day in Q3
2023
- $8,979 per day in 9M
2023
Current Fleet ProfileAs of the
date of this press release, Globus’ subsidiaries own and operate
six dry bulk carriers, consisting of one Supramax, one Panamax and
four Kamsarmax.
Vessel |
Year Built |
Yard |
Type |
Month/Year Delivered |
DWT |
Flag |
Moon Globe |
2005 |
Hudong-Zhonghua |
Panamax |
June 2011 |
74,432 |
Marshall Is. |
River Globe |
2007 |
Yangzhou Dayang |
Supramax |
Dec 2007 |
53,627 |
Marshall Is. |
Galaxy Globe |
2015 |
Hudong-Zhonghua |
Kamsarmax |
October 2020 |
81,167 |
Marshall Is. |
Diamond Globe |
2018 |
Jiangsu New Yangzi Shipbuilding Co. |
Kamsarmax |
June 2021 |
82,027 |
Marshall Is. |
Power Globe |
2011 |
Universal Shipbuilding Corporation |
Kamsarmax |
July 2021 |
80,655 |
Marshall Is. |
Orion Globe |
2015 |
Tsuneishi Zosen |
Kamsarmax |
November 2021 |
81,837 |
Marshall Is. |
Weighted Average Age: 10.9 Years as at September 30, 2023 |
|
453,745 |
|
|
|
|
|
Current Fleet DeploymentAll our
vessels are currently operating on short-term time charters (“on
spot”).
Management Commentary
“During the third quarter we saw a weak market
in the first half but significantly stronger in comparison to the
second half. Seasonal factors as well as geopolitical ones played a
role in the movement of the market. We are pleased that today it
stands at a much healthier level, and we hope the upward trend
continues.
As the supply and demand fundamentals remain
constant, we expect the market to improve gradually going forward.
We still prefer to maintain our spot exposure on the hiring of the
fleet and continue to take full advantage of any potential market
upswings; by employing our vessels with short period
TC’s and even longer periods of employment we undertake in
their majority exposure to the spot market through index-linked
rates.
This is an exciting time for the Company as we
are looking forward to the delivery of the first of our new
building vessels in January of 2024. We are confident that the high
quality of these vessels will be appreciated by a healthy market
and that they will enjoy decent employment. The company is always
looking for ways to expand its fleet, especially focusing on modern
or ‘eco’ vessels taking into account current as well as historical
market conditions.
On the financing side we keep seeking deals that
will fit the fleet’s and Company’s profile as well as its plans for
careful expansion; Our priority is to ensure the health of the
Company by maintaining a conservative approach but at the same time
without sacrificing our presence in the market. We are working on
expanding our current relationships with financiers worldwide.
We remain relentless in our focus to maximize
shareholder value without hurting the Company’s long-term ability
to grow.”
Recent Developments
Contract for new building
vessels
On August 18, 2023, the Company signed two
contracts for the construction and purchase of two fuel efficient
bulk carrier of about 64,000 dwt each. The two vessels will be
built at a reputable shipyard in Japan and are scheduled to be
delivered during the second half of 2026. The total consideration
for the construction of both vessels is approximately $75.5
million, which the Company intends to finance with a combination of
debt and equity. In August 2023 the Company paid the 1st instalment
of $7.5 million for both vessels under construction.
Debt financing
In August 2023, the Company reached an agreement
with First Citizens Bank & Trust Company (formerly known as CIT
Bank N.A.) for a deed of accession, amendment and restatement of
the CIT loan facility by the accession of an additional borrower in
order to increase the loan facility from a total of $52.25 million
to $77.25 million, by a top up loan amount of $25 million for the
purpose of financing vessels Diamond Globe and Power Globe and for
general corporate and working capital purposes of all the borrowers
and Globus. The CIT loan facility (including the new top up loan
amount) is now further secured by a first preferred mortgage over
the vessels Diamond Globe and Power Globe. Furthermore, the
applicable margin was amended from 3.35% to 2.70% for the whole CIT
loan facility. On August 10, 2023, the Company drew down $25
million.
The Company, through a wholly owned subsidiary
Daxos Maritime Limited, is currently negotiating a sale and
leaseback financing transaction for a vessel under construction at
Nantong Cosco KHI Ship Engineering Co., Ltd. That we previously
disclosed have agreed to purchase. DAXOS Maritime Ltd would sell
the vessel for a purchase price of $28 million on or about
September 30, 2024 (subject to delays during construction of the
Vessel) to an unaffiliated third party. Daxos Maritime Ltd would
bareboat charter the vessel from the new owner for period of 10
years, with hire payable monthly in advance at (A) a fixed rate of
(i) $3,000 per day for the first 3 years, (ii) $3,200 per day for
the 4th and 5th years, (iii) $3,300 per day for the 6th and 7th
years, and (iv) $3,800 per days for the 8th, 9th and 10th years,
and (B) a floating rate calculated on the amount of the outstanding
lease obligation on the relevant hire payment date of (1) CME SOFR
plus 2.1% per annum for the first 3 years, (2) CME SOFR plus 2.45%
per annum for the next 4th, 5th, 6th and 7th years, and (3) CME
SOFR plus 2.35% per annum for the remaining 8th, 9th and 10th
years. Daxos Maritime Ltd will have the right under the Charter to
purchase the Vessel during the charter period at various purchase
prices, and an obligation to purchase the Vessel at the end of the
Charter Period for a purchase price of $15.81 million. Globus
maritime would guarantee the payments. The transaction is subject
to a number of conditions, including negotiating and agreeing and
approval by all parties of the final documentation for the
transaction.
Sale of vessel
On March 6, 2023, the Company, through a wholly
owned subsidiary, entered into an agreement to sell the 2007-built
Sun Globe for a gross price of $14.1 million (absolute amount),
before commissions, to an unaffiliated third party. The vessel was
delivered to its new owners on June 5, 2023.
On August 11, 2023, the Company, through a
wholly owned subsidiary, entered into an agreement to sell the
2009-built Sky Globe for a gross price of $10.7 million (absolute
amount), before commissions, to an unaffiliated third party. The
vessel was delivered to its new owners on September 7, 2023.
On August 16, 2023, the Company, through a
wholly owned subsidiary, entered into an agreement to sell the
2010-built Star Globe for a gross price of $11.2 million (absolute
amount), before commissions, to an unaffiliated third party. The
vessel was delivered to its new owners on September 13, 2023.
Policy for the Recovery of Erroneously
Awarded Compensation
Clawback Policy. On November 8, 2023, the Board of Directors of
the Company approved the adoption of a Policy for the Recovery of
Erroneously Awarded Incentive Based Compensation (the “Clawback
Policy”), with an effective date of October 2, 2023, in order to
comply with the final clawback rules adopted by the Securities and
Exchange Commission under Section 10D and Rule 10D-1 of the
Securities Exchange Act of 1934, as amended (“Rule 10D-1”), and the
listing standards, as set forth in the Nasdaq Listing Rule 5608
(the “Final Clawback Rules”).
The Clawback Policy provides for the mandatory
recovery of erroneously awarded incentive-based compensation from
current and former executive officers as defined in Rule 10D-1
(“Covered Officers”) of the Company in the event that the Company
is required to prepare an accounting restatement, in accordance
with the Final Clawback Rules. The recovery of such compensation
applies regardless of whether a Covered Officer engaged in
misconduct or otherwise caused or contributed to the requirement of
an accounting restatement. Under the Clawback Policy, the Board of
Directors may recoup from the Covered Officers erroneously awarded
incentive compensation received within a lookback period of the
three completed fiscal years preceding the date on which the
Company is required to prepare an accounting restatement.
Conflicts
The conflict between Russia and Ukraine, which
commenced in February 2022, has disrupted supply chains and caused
instability and significant volatility in the global economy. Much
uncertainty remains regarding the global impact of the conflict in
Ukraine, and it is possible that such instability, uncertainty and
resulting volatility could significantly increase the costs of the
Company and adversely affect its business, including the ability to
secure charters and financing on attractive terms, and as a result,
adversely affect the Company’s business, financial condition,
results of operation and cash flows. Currently there is no direct
effect on the Company’s operations.
Earnings Highlights
|
Three months ended September 30, |
Nine months ended September
30, |
(Expressed in thousands of U.S dollars except for daily rates and
per share data) |
2023 |
2022 |
2023 |
2022 |
Revenue |
7,681 |
15,867 |
24,095 |
53,450 |
Net income |
3,469 |
4,335 |
4,894 |
27,433 |
Adjusted EBITDA (1) |
1,997 |
6,350 |
4,245 |
33,752 |
Basic & diluted earnings
per share (2) |
0.17 |
0.21 |
0.24 |
1.33 |
(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 net income and net cash 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, 2023 and 2022 was 20,582,301.
The weighted average number of shares for the three-month period
ended September 30, 2023 and 2022 was 20,582,301.
Third quarter of the year 2023 compared
to the third quarter of the year 2022
Net income for the third quarter of the year
2023 amounted to $3.5 million or $0.17 basic income per share based
on 20,582,301 weighted average number of shares compared to net
income of $4.3 million or $0.21 basic income per share based on
20,582,301 weighted average number of shares for the same period
last year.
RevenueDuring the three-month
period ended September 30, 2023, and 2022, our Revenues reached
$7.7 million and $15.9 million, respectively. The 52% decrease in
Revenues was mainly attributed to the decrease in the average time
charter rates achieved by our vessels during the third quarter of
2023 compared to the same period in 2022. Daily Time Charter
Equivalent rate (TCE) for the third quarter of 2023 was $9,994 per
vessel per day against $15,865 per vessel per day during the same
period in 2022 corresponding to a decrease of 37%.
First nine months of the year 2023
compared to the first nine months of the year 2022
Net income for the nine-month period ended
September 30, 2023 amounted to $4.9 million or $0.24 basic income
per share based on 20,582,301 weighted average number of shares,
compared to $27.4 million for the same period last year or $1.33
basic income per share based on 20,582,301 weighted average number
of shares.
RevenueDuring the nine-month
period ended September 30, 2023 and 2022, our Revenues reached
$24.1 million and $53.5 million, respectively. The 55% decrease in
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, 2023, compared to the same period in 2022.
Daily Time Charter Equivalent rate (TCE) for the nine-month period
of 2023 was $8,979 per vessel per day against $20,840 per vessel
per day during the same period in 2022, corresponding to a decrease
of 57%, which is attributed to the worse conditions throughout the
bulk market for the first nine months of 2023.
Fleet Summary data
|
Three months ended September 30, |
Nine months ended September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Ownership days (1) |
|
695 |
|
|
828 |
|
|
2,298 |
|
|
2,457 |
|
Available days (2) |
|
695 |
|
|
785 |
|
|
2,225 |
|
|
2,414 |
|
Operating days (3) |
|
674 |
|
|
772 |
|
|
2,181 |
|
|
2,379 |
|
Fleet utilization (4) |
|
97 |
% |
|
98.4 |
% |
|
98 |
% |
|
98.6 |
% |
Average number of vessels (5) |
|
7.6 |
|
|
9.0 |
|
|
8.4 |
|
|
9.0 |
|
Daily time charter equivalent (TCE) rate (6) |
$ |
9,994 |
|
$ |
15,865 |
|
$ |
8,979 |
|
$ |
20,840 |
|
Daily operating expenses (7) |
$ |
5,640 |
|
$ |
5,760 |
|
$ |
5,557 |
|
$ |
5,397 |
|
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 IFRS.(7) We calculate daily vessel
operating expenses by dividing vessel operating expenses by
ownership days for the relevant time period.
Selected Consolidated Financial &
Operating Data
|
Three months endedSeptember
30, |
Nine months endedSeptember
30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(In thousands of U.S. dollars, except per share data) |
(unaudited) |
(unaudited) |
Consolidated Condensed Statements of
Operations: |
|
|
|
|
Revenue |
7,681 |
|
15,867 |
|
24,095 |
|
53,450 |
|
Voyage and Operating vessel
expenses |
(4,563 |
) |
(8,091 |
) |
(16,611 |
) |
(16,130 |
) |
General and administrative
expenses |
(1,111 |
) |
(1,085 |
) |
(3,223 |
) |
(3,226 |
) |
Depreciation and
amortization |
(2,199 |
) |
(2,659 |
) |
(6,966 |
) |
(7,538 |
) |
Reversal of Impairment |
- |
|
- |
|
4,400 |
|
- |
|
Other (expenses)/income &
gain from sale of vessel, net |
3,795 |
|
(341 |
) |
3,860 |
|
(342 |
) |
Interest expense and finance
cost, net |
(433 |
) |
(542 |
) |
(1,442 |
) |
(1,237 |
) |
Gain on derivative financial
instruments, net |
299 |
|
1,186 |
|
781 |
|
2,456 |
|
Net income for the
period |
3,469 |
|
4,335 |
|
4,894 |
|
27,433 |
|
|
|
|
|
|
Basic net income per share for
the period (1) |
0.17 |
|
0.21 |
|
0.24 |
|
1.33 |
|
Adjusted EBITDA (2) |
1,997 |
|
6,350 |
|
4,245 |
|
33,752 |
|
(1) The weighted average number of shares for
the nine-month period ended September 30, 2023 and 2022 was
20,582,301. The weighted average number of shares for the
three-month period ended September 30, 2023 and 2022 was
20,582,301.
(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 net 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 net income and net cash
generated from operating activities for the periods
presented:
|
Three months endedSeptember
30, |
Nine months ended September
30, |
|
(Expressed in thousands of U.S. dollars) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Net income for the
period |
3,469 |
|
4,335 |
|
4,894 |
|
27,433 |
|
Interest expense/income and
finance cost, net |
433 |
|
542 |
|
1,442 |
|
1,237 |
|
Gain on derivative financial
instruments, net |
(299 |
) |
(1,186 |
) |
(781 |
) |
(2,456 |
) |
Depreciation and
amortization |
2,199 |
|
2,659 |
|
6,966 |
|
7,538 |
|
Reversal of Impairment loss |
- |
|
- |
|
(4,400 |
) |
- |
|
Gain from sale of vessel |
(3,805 |
) |
- |
|
(3,876 |
) |
- |
|
Adjusted EBITDA |
1,997 |
|
6,350 |
|
4,245 |
|
33,752 |
|
Payment of deferred dry-docking
costs |
(3,183 |
) |
(1,072 |
) |
(9,570 |
) |
(1,962 |
) |
Net decrease/(increase) in
operating assets |
485 |
|
(102 |
) |
1,473 |
|
(3,384 |
) |
Net (increase)/decrease in
operating liabilities |
(534 |
) |
(1,543 |
) |
(1,616 |
) |
(641 |
) |
Provision for staff retirement
indemnities |
(7 |
) |
27 |
|
19 |
|
22 |
|
Foreign exchange (losses)/gains
net, not attributed to cash & cash equivalents |
4 |
|
43 |
|
(13 |
) |
101 |
|
Net cash (used
in)/generated from operating activities |
(1,238 |
) |
3,703 |
|
(5,462 |
) |
27,888 |
|
|
|
|
|
|
|
|
|
|
|
Three months endedSeptember
30, |
Nine months ended September
30, |
|
(Expressed in thousands of U.S. dollars) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
(Unaudited) |
(Unaudited) |
Statement of cash flow
data: |
|
|
|
Net cash (used in) / generated
from operating activities |
(1,238 |
) |
3,703 |
|
(5,462 |
) |
27,888 |
|
Net cash generated from /
(used in) investing activities |
10,909 |
|
(733 |
) |
21,614 |
|
(22,128 |
) |
Net cash generated from
financing activities |
15,413 |
|
16,087 |
|
9,333 |
|
11,722 |
|
|
|
|
|
|
|
|
|
|
|
As at September 30, |
As at December 31, |
(Expressed in thousands of U.S. Dollars) |
2023 |
2022 |
|
(Unaudited) |
Consolidated Condensed Balance Sheet Data: |
|
|
Vessels and other fixed assets, net |
144,420 |
157,633 |
Cash and cash equivalents (including current restricted cash) |
82,546 |
58,801 |
Other current and non-current assets |
6,930 |
9,024 |
Total assets |
233,896 |
225,458 |
Total equity |
175,592 |
170,698 |
Total debt net of unamortized debt discount |
54,140 |
44,325 |
Other current and non-current liabilities |
4,164 |
10,435 |
Total equity and liabilities |
233,896 |
225,458 |
|
|
|
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 seven dry bulk
vessels that transport iron ore, coal, grain, steel products,
cement, alumina and other dry bulk cargoes internationally. Globus’
subsidiaries own and operate six vessels with a total carrying
capacity of 453,745 Dwt and a weighted average age of 10.9 years as
at September 30, 2023.
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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