-- 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.
Contact Information: For further information please contact: Globus Maritime Limited Elias Deftereos, CFO +30 210 960 8300 deftereos@globusmaritime.gr Jefferies International Limited Oliver Griffiths +44 (0) 20 7029 8000 Capital Link - London Annie Evangeli +44 (0) 20 3206 1322 globus@capitallink.com Capital Link - New York Ramnique Grewal +1 212 661 7566 globus@capitallink.com