SOURCE: Globus Maritime

Globus Maritime

November 12, 2010 07:00 ET

Globus Maritime Update on the Intended Cancellation of the AIM Listing and Trading Update for the Three and Nine Months Ended September 30, 2010

ATHENS, GREECE--(Marketwire - November 12, 2010) - Globus Maritime Limited ("Globus" or the "Company"), (AIM: GLBS) (LSE: GLBS), a marine transportation company with subsidiaries that own and operate dry bulk vessels, announces this update on the intended cancellation of the AIM Listing and a trading update and unaudited financial highlights for the three months and nine months ended September 30, 2010.

Update on the intended cancellation of the AIM Listing and potential U.S. Listing

As announced on October 22, 2010, the Company intends to apply for the cancellation of the listing of its shares on the Alternative Investment Market ("AIM") on or around November 25, 2010. The Company will proceed with such cancellation only in circumstances where the Company's shares have been, or will shortly be, listed on an appropriate U.S. stock exchange following the Company's redomiciliation into the Marshall Islands. Further to the Company's announcement on October 22, 2010 in relation to the possible US listing, the Company announces that trading in the ordinary shares of the Company on AIM will be suspended on the day preceding the day of cancellation of the AIM listing.

As stated in previous shareholder communications, the board of directors of the Company has noted that the Company's shares have been consistently trading at a significant discount to their net asset value, which is a hindrance to the Company's plans for growth. With a view to maximizing shareholder value, the board of directors of the Company believes that it may be in the interests of the Company and its shareholders as a whole for the Company to seek a listing on a stock exchange in the United States. The Company previously announced that were it to achieve such a listing, it would seek to cancel the listing of its shares from AIM so as to avoid the unnecessary expense of maintaining a dual listing. Although no final decision has been made regarding a U.S. listing, the Company is sufficiently progressed in its preparations for such a listing to announce the earliest intended date for such cancellation from AIM.

To effectuate the delisting of shares from AIM and the listing on a U.S. stock exchange, the Company will instruct its current registrar to transfer the Company's share register to its U.S. counterpart, who will create the necessary accounts. Each record holder will receive a statement after completion of these transfers. Current share certificates will no longer represent shares in the Company following the Company's redomiciliation into the Marshall Islands. Shares of the Company after such time will be recorded exclusively on the books of the transfer agent or registrar for such shares. As a result of the delisting, all public trading activities in the Company's shares will occur under a new ISIN number, which will be issued upon the Company's redomiciliation into the Marshall Islands. The Company will notify shareholders of such number in due course.

The press release does not constitute an offer to sell or a solicitation of an offer to buy the shares described above, nor shall there be any sale of such shares in a state or jurisdiction in which such offer, solicitation or sale will be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Third Quarter 2010 versus Third Quarter 2009

Globus' performance during the third quarter of 2010 as opposed to the third quarter of 2009 is representative of the reduction in the size of the Company's fleet.

--  Time charter revenue of $8.8 million versus $15.0 million;

--  Vessel operating expenses of $1.5 million versus $2.5 million;

--  Cash generated from operations of $5.8 million versus $9.5 million;

--  Total income of $2.3 million versus $2.7 million; and

--  Fleet utilization of 100% versus 98.3%.

Nine Months ended 30 September 2010 versus Nine Months ended 30 September 2009

Globus' performance during the nine month period ending September 30, 2010 as opposed to the nine month period ending September 30, 2009 clearly depicts the reduction in the size of the Company's fleet:

--  Time charter revenue of $20.4 million versus $41.5 million;

--  Vessel operating expenses of $4.1 million versus $8.2 million;

--  Cash generated from operations of $11.7 million versus $26.5 million;

--  Total income of $3.4 million versus Total loss of $8.9 million; and

--  Fleet utilization of 99.1% versus 98.5%.

Fleet Development

In February 2010, the mid-1990's-built Handymax vessels "Sea Globe" and "Coral Globe" were delivered to their new owners, two unaffiliated third parties, generating net cash proceeds of $33.0 million in total.

In March 2010, the Company agreed to purchase from an unaffiliated third party two sistership Supramax vessels for $65.7 million en-bloc. Both vessels were delivered to Globus in May 2010 and were named "Sky Globe" and "Star Globe", respectively.

In June 2010, the Company purchased from an unaffiliated third party the 2010-built Kamsarmax vessel "Jin Star" for $41.1 million, which was delivered to Globus in June 2010.

Globus' fleet comprises of five modern dry bulk carriers, consisting of three Supramaxes, one Panamax and one Kamsarmax, with a weighted average age of approximately 3.7 years as at September 30, 2010, and a total carrying capacity of 319,913 DWT.

Fleet Deployment

The Company's vessels are currently trading as follows:

The "Tiara Globe" is under a time charter with Transgrain Shipping that began in February 2010 for a minimum of 24 to a maximum of 26 months, at the gross rate of $20,000 per day.

The "Star Globe" is under a time charter with Transgrain Shipping that began in May 2010 for a minimum of 11 to a maximum of 13 months, at the gross rate of $22,000 per day.

The "Jin Star" is on a bareboat charter with Eastern Media International Corporation and Far Eastern Silo & Shipping (Panama) S.A. for a period of five years (which can be extended for one year at the charterer's option, and thereafter extended one additional year at the Company's option), at the gross rate of $14,250 per day.

The "River Globe" is trading on the spot market.

The "Sky Globe" is trading on the spot market.

Financing Activities

Outstanding bank debt at December 31, 2009 was $43.6 million to Credit Suisse and $27.0 million to Deutsche Schiffsbank, or $70.6 million in total. In addition, at December 31, 2009, the Company had committed undrawn funds up to $36.4 million under the facility with Credit Suisse.

On February 17, 2010, following the delivery of the vessels "Sea Globe" and "Coral Globe" to their new owners, Globus repaid in full the $27.0 million loan due to Deutsche Schiffsbank.

In April 2010, Globus repaid early to Credit Suisse the regular semi-annual installment of $3.6 million (due in May) and reduced the committed undrawn funds to $35.5 million. In May 2010, the Company drew $35.5 million from Credit Suisse to finance the acquisition of the vessels "Sky Globe" and "Star Globe".

In June 2010, Kelty Marine Ltd., a subsidiary of the Company, agreed a new loan with Deutsche Schiffsbank for $26.7 million, which it drew to finance the acquisition of the vessel "Jin Star". The first quarterly installment of $0.5 million was paid in September 2010, reducing the outstanding balance to $26.2 million.

On September 30, 2010 the Company's cash balances exceeded $26.7 million while the total outstanding debt to the two banks was $101.7 million ($75.5 million to Credit Suisse and $26.2 million to Deutsche Schiffsbank).

The scheduled bank debt repayments to the two banks in the remainder of 2010, 2011, and 2012 are $5.0 million, $11.0 million and $11.0 million respectively.

The issued share capital as at October 31, 2010 is 7,241,865 shares with a nominal value of $0.004 each, with voting rights ("Ordinary Shares"). The Company does not hold any Ordinary Shares in treasury. Therefore the total number of Ordinary Shares in the Company with voting rights is 7,241,865.

The following tables represent information on the Company's fleet as on the date of this release:

Table 1: Fleet Profile

            Year                              Month/Yr
Vessel      Built       Yard          Type    Delivered   DWT      FLAG
            ----- ----------------- --------- --------- ------- -----------
Tiara Globe  1998  Hudong Zhonghua  Panamax    Dec 2007  72,928 Marshall Is
            ----- ----------------- --------- --------- ------- -----------
River Globe  2007  Yangzhou Dayang  Supramax   Dec 2007  53,627 Marshall Is
            ----- ----------------- --------- --------- ------- -----------
Sky Globe    2009  Taizhou Kouan    Supramax   May 2010  56,785 Marshall Is
            ----- ----------------- --------- --------- ------- -----------
Star Globe   2010  Taizhou Kouan    Supramax   May 2010  56,785 Marshall Is
            ----- ----------------- --------- --------- ------- -----------
Jin Star     2010  Jiangsu Eastern  Kamsarmax June 2010  79,788 Panama
            ----- ----------------- --------- --------- ------- -----------
  W. Average
   Age       3.7  Years at 30/09/10                     319,913
            ----- ----------------- --------- --------- ------- -----------


Table 2: Employment Profile
                                            Charter
                                           Expiration               Gross
                                              Date                  Daily
Vessel                Charterer            (Earliest)     Type       rate
            ------------------------------ ---------- ------------ --------
Tiara Globe Transgrain Shipping             Jan 2010  Time charter $ 20,000
            ------------------------------ ---------- ------------ --------
River Globe Spot                              n/a         Spot       n/a
            ------------------------------ ---------- ------------ --------
Sky Globe   Spot                              n/a         Spot       n/a
            ------------------------------ ---------- ------------ --------
Star Globe  Transgrain Shipping            April 2011 Time charter $ 22,000
            ------------------------------ ---------- ------------ --------
Jin Star    Eastern Media International and
            Far Eastern Silo & Shipping     Jan 2015    Bareboat   $ 14,250
            ------------------------------ ---------- ------------ --------


SELECTED FINANCIAL INFORMATION (Unaudited)

The following tables set forth certain selected consolidated financial and operating data for the three-month and nine-month periods ended September 30, 2010 and 2009.

                           Three Months Ended         Nine Months Ended
                        ------------------------  ------------------------
                        30 September 30 September 30 September 30 September
                            2010         2009         2010         2009
                        (unaudited)  (unaudited)  (unaudited)  (unaudited)
                        -----------  -----------  -----------  -----------
Time charter revenue          8,828       14,958       20,446       41,498
Vessel operating
 expenses                    (1,486)      (2,530)      (4,124)      (8,208)
Total Income/(loss) for
 the period                   2,289        2,730        3,379       (8,899)
Cash generated from
 operations                   5,818        9,536       11,688       26,462

FLEET OPERATING DATA
Ownership days(1)               460          615          998        1,882
Available days(2)               460          589          998        1,845
Operating days(3)               460          579          989        1,818
Fleet utilization(4)            100%        98.3%        99.1%        98.5%
Average number of
 vessels(5)                       5         6.68         3.66         6.89
Time charter equivalent
 (TCE) rate (6)              18,234       24,496       19,316       21,083

Adjusted EBITDA
 reconciliation with
 Total income/(loss)
 for the period

Total income/(loss) for
 the period                   2,289        2,730        3,379       (8,899)
Interest expense and
 finance costs, net             583          490        1,337        1,593
Gain/(loss) on
 derivative financial
 instruments                    395          261          959          (48)
Foreign exchange
 (losses)/gains, net            (96)         204          860          170
Depreciation                  2,263        2,550        5,079        9,539
Depreciation of
 dry-docking costs              132          505          392        1,341
Loss/(gain) on sale of
 vessel                           -          896           (7)         896
Impairment loss                   -        3,499            -       22,325
                        -----------  -----------  -----------  -----------
Adjusted EBITDA(7)            5,566       11,135       11,999       26,917
                        -----------  -----------  -----------  -----------


                           Three months ended         Nine months ended
                        30 September 30 September 30 September 30 September
                            2010         2009         2010         2009
                        (unaudited)  (unaudited)  (unaudited)  (unaudited)

Time charter revenue           8,828       14,958       20,446       41,498
Less: Voyage expenses            856          530        1,701        2,600
Less: Bareboat charter
 net revenue                   1,262            -        1,283            -
                        ------------ ------------ ------------ ------------
Net Revenue                    6,710       14,428       17,462       38,898
Available days net of
 bareboat charter days           368          589          904        1,845
Daily TCE rate                18,234       24,496       19,316       21,083

Notes:

(1) Ownership days are the aggregate number of days in a period during which each vessel in the fleet has been owned.

(2) Available days are the number of ownership days less the aggregate number of days that 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 vessels.

(3) 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.

(4) The Company calculates 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 the fleet during a relevant period divided by the number of calendar days in such period.

(6) TCE rates are voyage and time charter revenues less voyage expenses during a period divided by the number of available days during the period excluding bareboat charter days and net revenue, which is consistent with industry standards. Voyage expenses include port charges, bunker (fuel oil and diesel oil) expenses, canal charges and commissions. TCE is a measure not in accordance with generally accepted accounting principles.

(7) 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 drydocking costs, impairment and gains or losses from 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 International Financial Reporting Standards, and the calculation of Adjusted EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is not a recognized measurement under International Financial Reporting Standards.

Adjusted EBITDA is included herein because it is a basis upon which the Company assesses its financial performance and because the Company believes 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 the Company's industry.

Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of the Company's results as reported under International Financial Reporting Standards. Some of these limitations are:

--  Adjusted EBITDA does not reflect the Company's 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 the
    Company's debt;

--  Adjusted EBITDA does not reflect changes in or cash requirements for
    the Company's working capital needs; and

-- other companies in the Company's industry may calculate Adjusted EBITDA
   differently than the Company does, limiting its usefulness as a
   comparative measure.

Because of these limitations, Adjusted EBITDA should not be considered a measure of discretionary cash available to the Company to invest in the growth of the Company's business.

Further Information - Notes to Editors

About Globus Maritime Limited

Globus is a global provider of seaborne transportation services for dry bulk cargoes, including among others iron ire, coal, grain, cement and fertilizers, along worldwide shipping routes. Globus' subsidiaries own and operate three Supramax, one Panamax, and one Kamsarmax vessels, with a weighted average age of 3.7 years as at September 30, 2010, and a total carrying capacity of 319,913 DWT.

Globus is listed on the AIM market of the London Stock Exchange under ticker GLBS. Jefferies International Limited is acting as nominated adviser and broker to the Company.

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