-- Gross Revenues of US$15.0 million versus US$28.3 million, a decrease
of 47%;
-- Net Revenues of US$14.4 million versus US$26.3 million, a decrease of
45%;
-- Operating Expenses of US$2.5 million versus US$3.3 million, a decrease
of 24%;
-- EBITDA of US$6.5 million versus US$21.8 million, a decrease of 70%;
EBITDA adjusted for a non-cash vessel impairment charge of US$3.5 million,
a loss on sale of a vessel of US$0.9 million, and an unrealized loss on the
fair value of the interest rate swaps of US$0.3 million come to US$11.1
million;
-- Cash flow from operations of US$10.4 million versus US$21.5 million, a
decrease of 52%;
-- Net Income of US$2.7 million versus US$14.8 million, a decrease of
82%; Excluding the non-cash vessel impairment charge of US$3.5 million and
the loss on the fair value of the interest rate swaps of US$0.3 million Net
Income would be US$6.5 million;
-- Average Time Charter Equivalent (TCE) rate of US$24,496 per vessel per
day with an average 6.7 vessels operated, versus an average TCE of
US$35,705 per vessel per day with an average of 8.0 vessels;
-- Fleet utilization of 98.3% versus 100%.
Nine Months ended September 30, 2009 Financial Highlights versus Nine
Months ended September 30, 2008:
-- Gross Revenues of US$41.5 million versus US$81.1 million, a decrease
of 49%;
-- Net Revenues of US$38.9 million versus US$76.7 million, a decrease of
49%;
-- Operating Expenses of US$8.2 million versus US$9.7 million, a decrease
of 15.5%;
-- EBITDA of US$3.7 million versus US$64.0 million, a decrease of 94%;
EBITDA adjusted for non-cash vessel impairment charges of US$22.3 million,
a loss on sale of a vessel of US$0.9 million, and an unrealized gain on the
fair value of the interest rate swaps of US$0.05 million come to US$26.9
million;
-- Cash flow from operations of US$27.6 million versus US$62.6 million, a
decrease of 56%;
-- Net loss of US$8.9 million versus Net Income of US$43.3 million, a
decrease of 121%; Excluding the non-cash vessel impairment charges of
US$22.3 million and the gain on the fair value of the interest rate swaps
of US$0.05 million Net Income would be US$13.4 million;
-- Average Time Charter Equivalent (TCE) rate of US$21,083 per vessel per
day with an average 6.9 vessels operated, versus an average TCE rate of
US$35,890 per vessel per day with an average 8 vessels;
-- Fleet utilization of 98.5% versus 99.3%.
George Karageorgiou, CEO of Globus, commented: "Q3-09 was another quarter
of profitable operating results with charter rates higher than the ones we
earned in the first half of the year. While economic indicators for the
world economy allude that the worst is behind us, and even though actual
deliveries of new-building vessels year-to-date were lower than
anticipated, we remain concerned about the effect of the large orderbook of
vessels scheduled to be delivered within 2010. In the last ten months of
2009, we have sold three vessels built in the mid-1990s and received a
total of US$51.6 million in cash, before commissions and other costs
related to the sales. With the available bank facilities and the cash on
our balance sheet, we are waiting for the appropriate time to acquire
younger assets that will generate value for our shareholders."
Elias Deftereos, CFO of Globus, commented: "From the US$51.6 million in
cash received from the sale of vessels, we repaid US$47.8 million of bank
debt, a portion of which we can redraw. Our reduced debt repayment schedule
for 2010 includes four quarterly payments of US$ 877,500 to Deutsche
Schiffsbank and two semi-annual payments of US$3.6 million to Credit
Suisse. We are in a strong financial condition today as total cash is
US$58.0 million while total bank debt outstanding is US$71.4 million."
Fleet Development
Continuing the fleet renewal program that began with the sale of the vessel
"Ocean Globe" in November 2008, the Company has sold three more vessels
year to date, namely the panamax "Island Globe" and the handymax vessels
"Gulf Globe" and "Lake Globe," all sold to unaffiliated third parties:
-- In April 2009, the Company agreed to sell the "Island Globe" for a
contracted gross price of US$19.1 million in cash before commissions and
other costs related to the sale. The vessel was delivered to her new owners
on September 2, 2009. As a result, on September 30, 2009 Globus' fleet
consisted of a total of six dry bulk carriers, including five Handymaxes
and one Panamax, with a weighted average age of approximately 11.7 years
and a total carrying capacity of 299,250 DWT.
-- In June 2009, the Company agreed to sell the "Gulf Globe" for a gross
price of US$16.0 million in cash. The vessel was delivered to her new
owners on October 22, 2009.
-- In October 2009, Globus agreed to sell the "Lake Globe" for a gross of
US$16.5 million in cash. Taking depreciation and amortization into account
the Company incurred a non-cash impairment charge of US$3.5 million in Q3-
09. The vessel was delivered to her new owners on November 12, 2009.
On the date of this release therefore, Globus' fleet comprises a total of
four bulk carriers, consisting of three Handymaxes and one Panamax, with a
weighted average age of approximately 10.4 years and a total carrying
capacity of 212,789 DWT.
Fleet Deployment
During Q3-09, two vessels in Globus' fleet were trading under time charters
with reputable charterers, while the remaining five vessels traded on the
spot market. The fleet earned an average TCE of US$24,496 per vessel per
day
Since December 2007, the panamax "Tiara Globe" has been employed under a
time charter to Korea Lines Corp at the gross rate of US$66,000 per day.
This T/C expires next month.
The panamax "Island Globe" was employed under a time charter to DS Norden
at the gross rate of US$30,000 per day from July 2007 until September 2009,
when she was sold.
On August 14, 2009, the Company chartered the M/V "Sea Globe" to COSCO at
the gross rate of US$14,000 per day. The T/C commenced in early September
2009 and is for a period between (minimum) nine and (maximum) thirteen
months.
Financing Activities & Cash Management
Following the delivery of the "Island Globe" to her buyers in September
2009, Globus repaid US$18.5 million to the Credit Suisse revolving
facility.
On September 30, 2009, total debt to Credit Suisse was US$51.5 million
while another US$38.5 million remained undrawn. On September 30, 2009,
total debt to Deutsche Schiffsbank (DSB) was US$57.2 million. Total cash at
September 30, 2009 was US$60.6 million.
Following the delivery of the "Gulf Globe" in October 2009, the Company
repaid US$15.3 million to DSB. Following the delivery of the "Lake Globe"
to her buyers in November 2009, Globus repaid a further US$14.0 million to
DSB. The current debt outstanding to this bank is US$27.9 million.
In October 2009, the Company paid early to Credit Suisse the semi-annual
instalment of US$7.9 million originally due at the end of November 2009,
thus reducing the current debt outstanding to this bank to US$43.6 million.
Capital Expenditures
During the period under review, the Company incurred additional capital
expenditures due to the special survey of the "Coral Globe" which spent a
total of 37 days in dry-dock. The cost of this scheduled repair was within
budget and was funded with cash from operations.
The following tables represent our fleet as on the date of this release:
Table 1: Fleet Profile
Year Month/Yr
Vessel Built Yard Type Delivered DWT FLAG
----- --------------- --------- -------- -------- -----------
Coral Globe 1994 Hyundai Handymax 11/2006 43,189 Bahamas
----- --------------- --------- -------- -------- -----------
Sea Globe 1995 Hyundai Handymax 9/2006 43,171 Bahamas
----- --------------- --------- -------- -------- -----------
River Globe 2007 Yangzhou Dayang Handymax 12/2007 53,500 Marshall Is
----- --------------- --------- -------- -------- -----------
Tiara Globe 1998 Hudong Zhonghua Panamax 12/2007 72,929 Marshall Is
----- --------------- --------- -------- -------- -----------
W. Average Years at
Age 10.4 31/10/09 212,789
----- --------------- --------- -------- -------- -----------
Table 2: Time Charter Profile
Charter Charter
Expiration Expiration
Date Date (Actual Gross Daily
Vessel Charterer (Earliest) or Latest)(1) rate (US$)
------------------- ------------ ------------ ------------
Coral Globe Currently on Spot
------------------- ------------ ------------ ------------
Sea Globe COSCO 5/2010 9/2010 14,000
------------------- ------------ ------------ ------------
River Globe Currently on Spot
------------------- ------------ ------------ ------------
Tiara Globe Korea Line Corp 12/2009 12/2009 66,000
------------------- ------------ ------------ ------------
Notes:
(1) The latest charter expiration date represents the last day on which
the charterer may redeliver the vessel upon the termination of the charter
assuming that all options for additional hire periods under the charter are
exercised, including taking into account expected off-hire days because of
scheduled dry-dockings.
SELECTED FINANCIAL INFORMATION (Unaudited)
For the Three Months For the Nine Months
Ended Ended
------------------------ ------------------------
(in thousands of US
dollars) 30/09/2009 30/09/08 30/09/09 30/09/08
(unaudited) (unaudited) (unaudited) (unaudited)
Income Statement Data:
Gross Revenue 14,958 28,261 41,498 81,129
Voyage expenses (incl.
commissions) (530) (1,982) (2,600) (4,396)
----------- ----------- ----------- -----------
Net Revenue 14,428 26,279 38,898 76,733
Vessels operating
expenses (2,530) (3,279) (8,208) (9,673)
Administrative expenses (747) (1,134) (3,737) (3,519)
Other (expenses)/income (16) (30) (36) 410
Depreciation (2,550) (4,387) (9,539) (13,339)
Amortization of
dry-docking costs (505) (453) (1,341) (1,150)
Impairment loss (3,499) - (22,325) -
Loss on sale of vessel (896) - (896) -
----------- ----------- ----------- -----------
Operating profit/(loss)
before finance costs 3,685 16,996 (7,184) 49,462
Interest expense (770) (1,862) (2,361) (6,034)
Interest income 280 216 768 482
(Loss)/gain on
derivative fin.
instruments (261) - 48 -
Foreign exchange losses (204) (599) (170) (596)
----------- ----------- ----------- -----------
Profit/(loss) for the
period 2,730 14,751 (8,899) 43,314
----------- ----------- ----------- -----------
Finance costs net of
derivative fin.
instruments 694 2,245 1,763 6,148
Depreciation 2,550 4,387 9,539 13,339
Amortization of
dry-docking costs 505 453 1,341 1,150
----------- ----------- ----------- -----------
EBITDA 6,479 21,836 3,744 63,951
Loss on sale of vessel 896 - 896 -
Impairment loss 3,499 - 22,325 -
Loss/(gain) on
derivative fin.
instruments 261 - (48) -
----------- ----------- ----------- -----------
Adj EBITDA 11,135 21,836 26,917 63,951
Share based payment 10 156 1,552 565
Provision 5 6 12 (6)
Increase in working
capital (791) (537) (884) (1,918)
----------- ----------- ----------- -----------
Net cash flow from
operating activities 10,359 21,461 27,597 62,592
Net cash flow
from/(used in)
investing activities 18,564 211 29,021 (2,248)
Net cash flow used in
financing activities (20,821) (13,804) (47,514) (31,458)
----------- ----------- ----------- -----------
Net increase in cash
and cash equivalents 8,102 7,868 9,104 28,886
----------- ----------- ----------- -----------
FLEET OPERATING DATA (unaudited) (unaudited) (unaudited) (unaudited)
Fleet Data:
Average number of
vessels(1) 6.7 8.0 6.9 8.0
Number of vessels at
end of period 6 8 6 8
Weighted average age of
fleet (in years)(2) 11.7 11.5 11.7 11.5
Ownership days(3) 615 736 1,882 2,192
Available days(4) 589 736 1,845 2,138
Operating days(5) 579 736 1,818 2,123
Fleet utilization(6) 98.3% 100% 98.5% 99.3%
Average Daily Results:
Vessel operating
expenses (U.S.
dollars)(7) 4,114 4,455 4,361 4,413
Time charter equivalent
(TCE) rate (U.S.
dollars)(8) 24,496 35,705 21,083 35,890
Notes:
(1) Average number of vessels is the number of vessels that constituted the
fleet for the relevant period, as measured by the sum of the number of days
each vessel was a part of the fleet during the period divided by the number
of calendar days in the period.
(2) The Company calculates the average age of the fleet by aggregating the
individual age of each vessel in the fleet at the period-end weighted by
each vessel's deadweight tonnage in proportion to the deadweight tonnage of
the whole fleet at the period-end. Average age as shown at 30/9/07 does not
include the two vessels delivered to the Company in December 2007.
(3) Ownership days are the aggregate number of days in a period during
which each vessel in the fleet has been owned. Ownership days are an
indicator of the size of the fleet over a period and affect both the amount
of revenues and the amount of expenses that the Company records during a
period.
(4) Available days are the number of ownership days less the aggregate
number of days that the vessels are off-hire due to scheduled repairs or
repairs under guarantee, vessel upgrades or special surveys and the
aggregate amount of time spent positioning the vessels. The shipping
industry uses available days to measure the number of days in a period
during which vessels should be capable of generating revenues.
(5) Operating days are the number of available days in a period less the
aggregate number of days that the vessels are off-hire due to any reason,
including unforeseen circumstances. The shipping industry uses operating
days to measure the aggregate number of days in a period during which
vessels actually generate revenues.
(6) Fleet utilisation is measured by dividing the number of operating days
during a period by the number of available days during the same period. The
shipping industry uses fleet utilisation to measure a company's efficiency
in finding suitable employment for its vessels and minimising the amount of
days that its vessels are off-hire for reasons other than scheduled repairs
or repairs under guarantee, vessel upgrades, special surveys or vessel
positioning.
(7) Average daily vessel operating expenses, which include crew wages and
related costs, the cost of insurance, expenses relating to repairs and
maintenance, the costs of spares and consumable stores, tonnage taxes and
other miscellaneous expenses, are calculated by dividing vessel operating
expenses by ownership days for the relevant period.
(8) TCE rates are defined as time and voyage charter revenues less voyage
expenses during a period divided by the number of available days during the
period, which is consistent with industry standards. Voyage expenses
include port charges, bunker (fuel oil and diesel oil) expenses, canal
charges and commissions. TCE rate is a standard shipping industry
performance measure used primarily to compare daily earnings generated by
vessels on time charters with daily earnings generated by vessels on voyage
charters, because charter hire rates for vessels on voyage charters are
generally not expressed in per day amounts while charter hire rates for
vessels on time charters are generally expressed in such amounts.
For further information please contact: Globus Maritime Limited +30 210 960 8300 George Karageorgiou, CEO info@globusmaritime.gr Jefferies International Limited +44 20 7029 8000 Anne Dovigen Schuyler Evans Capital Link - London +44 20 3206 1322 Annie Evangeli globus@capitallink.com Capital Link - New York +1 212 661 7566 Ramnique Grewal globus@capitallink.comNotes to Editors About Globus Maritime Limited Globus is a global provider of seaborne transportation services for dry bulk cargoes, including among others iron ore, coal, grain, cement, and fertilizers, along worldwide shipping routes. Globus owns and operates one Panamax and three Handymax vessels with a weighted average age of approximately 10.4 years (as at October 31, 2009) and a total carrying capacity of 212,789 DWT. Globus is listed on the AIM of the London Stock Exchange under ticker GLBS. Jefferies International Limited is acting as nominated adviser and broker to the Company.
Contact Information: For further information please contact: Globus Maritime Limited George Karageorgiou CEO +30 210 960 8300 info@globusmaritime.gr Jefferies International Limited Anne Dovigen Schuyler Evans +44 20 7029 8000 Capital Link - London Annie Evangeli +44 20 3206 1322 globus@capitallink.com Capital Link - New York Ramnique Grewal +1 212 661 7566 globus@capitallink.com