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 second quarter and
six-month period ended June 30, 2024.
- Revenue
- $9.5 million in Q2 2024
- $17.2 million in H1 2024
- Net income
- $3.3 million net income in Q2 2024
- $3 million net income in H1 2024
- Adjusted EBITDA
- $4 million in Q2
2024
- $6 million in H1
2024
- Time Charter
Equivalent
- $14,578 per day in Q2
2024
- $13,246 per day in H1
2024
Current Fleet ProfileAs of the
date of this press release, Globus’ subsidiaries own and operate
seven dry bulk carriers, consisting of one Supramax, four Kamsarmax
and two Ultramax.
Vessel |
Year Built |
Yard |
Type |
Month/Year Delivered |
DWT |
Flag |
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. |
GLBS Hero |
2024 |
Nihon Shipyard Co., Ltd. |
Ultramax |
January 2024 |
64,000 |
Marshall Is. |
GLBS Might |
2024 |
Nantong Cosco KHI Ship Engineering Co., Ltd. |
Ultramax |
August 2024 |
64,000 |
Marshall Is. |
Weighted Average Age: 7.9 Years as at September 12, 2024 |
|
507,313 |
|
|
|
|
|
Current Fleet DeploymentAll our
vessels are currently operating on short-term time charters (“on
spot”).
Management Commentary
“We are pleased to deliver once again positive
half year results whilst maintaining a healthy balance sheet and
remaining committed to renew and expand our fleet with modern and
fuel-efficient vessels.
The chartering market so far in 2024, albeit not
spectacular, has been relatively healthy. Various dynamics and
cargo flows keep shifting constantly, we have managed to remain
profitable and keep our operating costs at reasonable levels and
the fleet utilization high. Notwithstanding the significant
geopolitical challenges around the world, we are navigating through
these challenges without having to forego market opportunities that
may appear.
2024 so far has been a significant year for the
Company, having taken delivery of two newbuilding Ultramaxes and
expecting to take delivery of a third one shortly. In addition to
these vessels, we also have two newbuilding vessels being built in
Japan to be delivered in 2026. At the same time, we have disposed
of a 2005 Panamax for a gain. Furthermore, we managed to
finance the new vessels acquired under what we view as favorable
terms and conditions.
It is so satisfactory to see our new vessels
competitive and sought after by reputable charterers and currently
trading at premiums to the BSI 58 index; additionally, and so far,
they have proven to be significantly more efficient than the older
Supramaxes replaced in the fleet.
We continue to evaluate newbuildings of
larger size as well as alternative fuel options and at the same
time keep an eye in the secondhand market examining possibilities
for further expansion of the fleet with fuel-efficient
vessels.
Internal discussions are ongoing regarding the
options we see in the market, the prices and the delivery
positions. At the same time, we are exploring various financing
opportunities that open up to new markets across the globe. Our
goal is to create and expand shareholder value while maintaining a
healthy balance sheet as well as meeting or exceeding the safety
and quality standards of our industry and customers.”
Recent Developments
Delivery of new building
vessel
On January 22, 2024, the Company paid the
remaining $18.5 million at Nihon Shipyard Co. in Japan and on
January 25, 2024, the Company took delivery of a new Ultramax with
carrying capacity of approximately 64,000 DWT, of which the Company
had previously announced on May 10, 2022, and was named “m/v GLBS
Hero”. The total cost of the new vessel was approximately $37.5
million.
On August 12, 2024, the Company paid the
remaining $18.0 million at Nantong Cosco KHI Ship Engineering Co.,
Ltd. and on August 20, 2024, the Company took delivery of a new
Ultramax with carrying capacity of approximately 64,000 DWT, of
which the Company had previously announced on August 23, 2023, and
was named “m/v GLBS Might”. The total cost of the new vessel was
approximately $35.3 million.
Debt financing & Financial
Liability
On February 23, 2024, the Company, through its
subsidiary Daxos Maritime Limited, entered into a $28 million sale
and leaseback agreement with SK Shipholding S.A., a subsidiary of
Shinken Bussan Co., Ltd. of Japan, with respect to the
approximately 64,000 dwt bulk carrier “GLBS Might” which was
delivered from the relevant shipyard on August 20, 2024. The
Company has an obligation to purchase back the vessel at the end of
the ten-year charter period. On February 28, 2024, the Company drew
down the amount of $2.8 million, being the 10% deposit of the
purchase price and on August 16, 2024, the Company drew down the
remaining 90% of the purchase price, being $25.2 million.
On May 23, 2024, the Company reached an
agreement with Marguerite Maritime S.A., a Panamanian subsidiary of
a Japanese leasing company unaffiliated with us, for a loan
facility of $23 million bearing interest at Term SOFR plus a margin
of 2.3% per annum. This loan agreement provides that it is to be
repaid by 20 consecutive quarterly instalments of $295,000 each,
and $17.1 million to be paid together with the 20th (and last)
instalment. The proceeds of this financing will be used for general
corporate purposes. As collateral for the loan, among other things,
a mortgage over the m/v GLBS Hero was granted, and a general
assignment was granted over the earnings, the insurances, any
requisition compensation, any charter and any charter guarantee
with respect to the m/v GLBS Hero. Globus Maritime Limited
guaranteed the loan. On May 30, 2024, the Company drew down the
amount of $22.65 million, being the loan amount minus the upfront
fee of $0.35 million.
Sale of vessel
On May 28, 2024, the Company, through a wholly
owned subsidiary, entered into an agreement to sell the 2005-built
Moon Globe for a gross price of $11.5 million, before commissions,
to an unaffiliated third party. The vessel was delivered to its new
owners on July 8, 2024.
Miscellaneous Developments
On March 13, 2024, the Company awarded a
consultant affiliated with our chief executive officer a one-time
bonus of $3 million, half of which is payable immediately upon the
delivery of the newbuilding vessel Hull NE442 (i.e., the vessel
being constructed by Nantong Cosco Khi Ship Engineering pursuant to
the agreement dated May 13, 2022) and the balance at the delivery
of Hull NE443 (i.e., the vessel being constructed by Nantong Cosco
Khi Ship Engineering pursuant to the other agreement dated May 13,
2022), in each case assuming Athanasios Feidakis remains Chief
Executive Officer at each such relevant time, i.e. August 20, 2024
and September 20, 2024, respectively.
Following the successful delivery of the
newbuilding vessel Hull NE442, named GLBS Might, the Company paid
the $1.5 million bonus on August 26, 2024, to the consultant as per
the aforementioned award.
On March 13, 2024, the Board of Directors
adopted the Globus Maritime Limited 2024 Equity Incentive Plan, or
the Plan. The purpose of the Plan is to provide Company’s officers,
key employees, directors, consultants and service provider, whose
initiative and efforts are deemed to be important to the successful
conduct of Company’s business, with incentives to (a) enter into
and remain in the service of the Company or affiliates, (b) acquire
a proprietary interest in the success of the Company, (c) maximize
their performance and (d) enhance the long-term performance of the
Company. The number of common shares reserved for issuance under
the Plan is 2,000,000 shares. No shares have been issued under the
plan.
Earnings Highlights
|
Three months ended June 30, |
|
Six months ended June 30, |
|
(Expressed in thousands of U.S dollars except for daily rates and
per share data) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Revenue |
9,516 |
|
7,835 |
|
17,229 |
|
16,414 |
|
Net income/(loss) |
3,279 |
|
(1,161 |
) |
2,980 |
|
1,425 |
|
Adjusted EBITDA (1) |
3,966 |
|
907 |
|
5,974 |
|
2,248 |
|
Basic income/(loss) per
share (2) |
0.16 |
|
(0.06 |
) |
0.14 |
|
0.07 |
|
|
|
|
|
|
|
|
|
|
(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/(loss) 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
six-month period ended June 30, 2024, and 2023 was 20,582,301. The
weighted average number of shares for the three-month period ended
June 30, 2024, and 2023 was 20,582,301.
Second quarter of the year 2024 compared
to the second quarter of the year 2023
Net income for the second quarter of the year
2024 amounted to $3.3 million or $0.16 basic income per share based
on 20,582,301 weighted average number of shares compared to net
loss of $1.2 million or $0.06 basic loss per share based on
20,582,301 weighted average number of shares for the same period
last year.
RevenueDuring the three-month
period ended June 30, 2024, and 2023, our Revenues reached $9.5
million and $7.8 million, respectively. The 22% increase in
Revenues was mainly attributed to the increase in the average time
charter rates achieved by our vessels during the second quarter of
2024 compared to the same period in 2023. Daily Time Charter
Equivalent rate (TCE) for the second quarter of 2024 was $14,578
per vessel per day against $8,244 per vessel per day during the
same period in 2023 corresponding to an increase of 77%.
First half of the year 2024 compared to
the first half of the year 2023
Net income for the six-month period ended June
30, 2024, amounted to $3 million or $0.14 basic income per share
based on 20,582,301 weighted average number of shares, compared to
$1.4 million for the same period last year or $0.07 basic income
per share based on 20,582,301 weighted average number of
shares.
RevenueDuring the six-month
period ended June 30, 2024, and 2023, our Revenues reached $17.2
million and $16.4 million, respectively. The 5% increase in
Revenues was mainly attributed to the increase in the average time
charter rates achieved by our vessels during the six-month period
ended June 30, 2024, compared to the same period in 2023. Daily
Time Charter Equivalent rate (TCE) for the six-month period of 2024
was $13,246 per vessel per day against $8,518 per vessel per day
during the same period in 2023, corresponding to an increase of
56%, which is attributed to the better conditions throughout the
bulk market for the first half of 2024.
Fleet Summary data
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Ownership days (1) |
|
637 |
|
|
793 |
|
|
1,250 |
|
|
1,603 |
|
Available days (2) |
|
637 |
|
|
748 |
|
|
1,250 |
|
|
1,531 |
|
Operating days (3) |
|
635 |
|
|
730 |
|
|
1,239 |
|
|
1,507 |
|
Fleet utilization (4) |
|
99.7% |
|
|
97.6% |
|
|
99.1% |
|
|
98.5% |
|
Average number of vessels (5) |
|
7.0 |
|
|
8.7 |
|
|
6.9 |
|
|
8.9 |
|
Daily time charter equivalent (TCE) rate (6) |
$14,578 |
|
$8,244 |
|
$13,246 |
|
$8,518 |
|
Daily operating expenses (7) |
$5,060 |
|
$5,464 |
|
$5,082 |
|
$5,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 ended |
|
Six months ended |
|
|
June 30, |
|
June 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(In thousands of U.S. dollars, except per share data) |
(unaudited) |
(unaudited) |
Consolidated Condensed Statements of
Operations: |
|
|
|
|
Revenue |
9,516 |
|
7,835 |
|
17,229 |
|
16,414 |
|
Voyage and Operating vessel
expenses |
(3,362 |
) |
(5,915 |
) |
(6,842 |
) |
(12,048 |
) |
General and administrative
expenses |
(2,148 |
) |
(998 |
) |
(4,380 |
) |
(2,112 |
) |
Depreciation and
amortization |
(2,130 |
) |
(2,329 |
) |
(4,385 |
) |
(4,767 |
) |
Reversal of Impairment |
1,891 |
|
- |
|
1,891 |
|
4,400 |
|
Other (expenses)/income &
gain from sale of vessel, net |
(40 |
) |
56 |
|
(33 |
) |
65 |
|
Interest expense/income,
finance cost and foreign exchange (losses) / gains, net |
(578 |
) |
(503 |
) |
(1,042 |
) |
(1,009 |
) |
Gain on derivative financial
instruments, net |
130 |
|
693 |
|
542 |
|
482 |
|
Net income/(loss) for
the period |
3,279 |
|
(1,161 |
) |
2,980 |
|
1,425 |
|
|
|
|
|
|
Basic net income/(loss) per
share for the period (1) |
0.16 |
|
(0.06 |
) |
0.14 |
|
0.07 |
|
Adjusted EBITDA (2) |
3,966 |
|
907 |
|
5,974 |
|
2,248 |
|
|
|
|
|
|
|
|
|
|
(1) The weighted average number of shares for
the six-month period ended June 30, 2024, and 2023 was 20,582,301.
The weighted average number of shares for the three-month period
ended June 30, 2024, and 2023 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/(loss) and net cash
generated from operating activities for the periods
presented:
|
Three months ended |
|
Six months ended |
|
|
June 30, |
|
June 30, |
|
(Expressed in thousands of U.S. dollars) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Net income/(loss) for the
period |
3,279 |
|
(1,161 |
) |
2,980 |
|
1,425 |
|
Interest expense/income, finance
cost and foreign exchange (losses) / gains, net |
578 |
|
503 |
|
1,042 |
|
1,009 |
|
Gain on derivative financial
instruments, net |
(130 |
) |
(693 |
) |
(542 |
) |
(482 |
) |
Depreciation and
amortization |
2,130 |
|
2,329 |
|
4,385 |
|
4,767 |
|
Reversal of Impairment loss |
(1,891 |
) |
- |
|
(1,891 |
) |
(4,400 |
) |
Gain from sale of vessel |
- |
|
(71 |
) |
- |
|
(71 |
) |
Adjusted EBITDA |
3,966 |
|
907 |
|
5,974 |
|
2,248 |
|
Payment of deferred dry-docking
costs |
(10 |
) |
(2,441 |
) |
(537 |
) |
(6,387 |
) |
Net decrease/(increase) in
operating assets |
1,131 |
|
912 |
|
(126 |
) |
988 |
|
Net (increase)/decrease in
operating liabilities |
1,169 |
|
(1,036 |
) |
2,371 |
|
(1,082 |
) |
Provision for staff retirement
indemnities |
(35 |
) |
(1 |
) |
32 |
|
26 |
|
Foreign exchange (losses)/gains
net, not attributed to cash & cash equivalents |
13 |
|
(10 |
) |
13 |
|
(17 |
) |
Net cash generated
from/(used in) operating activities |
6,234 |
|
(1,669 |
) |
7,727 |
|
(4,224 |
) |
|
Three months ended |
|
Six months ended |
|
|
June 30, |
|
June 30, |
|
(Expressed in thousands of U.S. dollars) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
(Unaudited) |
(Unaudited) |
Statement of cash flow
data: |
|
|
|
Net cash generated from/ (used
in) operating activities |
6,234 |
|
(1,669 |
) |
7,727 |
|
(4,224 |
) |
Net cash (used in) / generated
from investing activities |
(10,121 |
) |
14,059 |
|
(29,244 |
) |
10,705 |
|
Net cash generated from/ (used
in) financing activities |
17,964 |
|
(5,313 |
) |
18,080 |
|
(6,080 |
) |
|
As at June 30, |
|
As at December 31, |
|
(Expressed in thousands of U.S. Dollars) |
2024 |
|
2023 |
|
|
(Unaudited) |
Consolidated Condensed Balance Sheet Data: |
|
|
|
|
Vessels and other fixed assets, net |
164,830 |
|
147,803 |
|
Cash and cash equivalents (including current restricted cash) |
74,370 |
|
77,822 |
|
Other current and non-current assets & Held for sale |
17,115 |
|
5,776 |
|
Total assets |
256,315 |
|
231,401 |
|
Total equity |
178,950 |
|
175,970 |
|
Total debt & Finance liabilities, net of unamortized debt
discount |
72,305 |
|
52,259 |
|
Other current and non-current liabilities |
5,060 |
|
3,172 |
|
Total equity and liabilities |
256,315 |
|
231,401 |
|
|
|
|
|
|
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 seven vessels with a total carrying
capacity of 507,313 Dwt and a weighted average age of 7.9 years as
at September 12, 2024.
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 |
|
|
Globus Maritime (NASDAQ:GLBS)
Historical Stock Chart
From Oct 2024 to Oct 2024
Globus Maritime (NASDAQ:GLBS)
Historical Stock Chart
From Oct 2023 to Oct 2024