TIDMGLBS
RNS Number : 0693W
Globus Maritime Ltd
12 November 2010
Globus Maritime Update on the Intended Cancellation of the AIM Listing
andTrading Update for the Three and Nine Months Ended September 30, 2010.
Athens, Greece, November 12, 2010. Globus Maritime Limited ("Globus" or the
"Company"), (AIM: 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
+------------+-------+-------------+-----------+-----------+---------+----------+
| Vessel | Year | | | Month/Yr | DWT | FLAG |
| | Built | Yard | Type | Delivered | | |
+------------+-------+-------------+-----------+-----------+---------+----------+
| Tiara | 1998 | Hudong | Panamax | Dec | 72,928 | Marshall |
| Globe | | Zhonghua | | 2007 | | Is |
+------------+-------+-------------+-----------+-----------+---------+----------+
| River | 2007 | Yangzhou | Supramax | Dec | 53,627 | Marshall |
| Globe | | Dayang | | 2007 | | Is |
+------------+-------+-------------+-----------+-----------+---------+----------+
| Sky Globe | 2009 | Taizhou | Supramax | May | 56,785 | Marshall |
| | | Kouan | | 2010 | | Is |
+------------+-------+-------------+-----------+-----------+---------+----------+
| Star Globe | 2010 | Taizhou | Supramax | May | 56,785 | Marshall |
| | | Kouan | | 2010 | | Is |
+------------+-------+-------------+-----------+-----------+---------+----------+
| Jin Star | 2010 | Jiangsu | Kamsarmax | June | 79,788 | Panama |
| | | Eastern | | 2010 | | |
+------------+-------+-------------+-----------+-----------+---------+----------+
|W. Average | 3.7 | Years at | | |319,913 | |
| Age | | 30/09/10 | | | | |
+------------+-------+-------------+-----------+-----------+---------+----------+
Table 2: Employment Profile
+----------+---------------------+------------+----------+---------+
| Vessel | Charterer | Charter | Type | Gross |
| | |Expiration | | Daily |
| | | Date | | rate |
| | |(Earliest) | | |
+----------+---------------------+------------+----------+---------+
| Tiara | Transgrain Shipping | Jan 2010 | Time | $20,000 |
| Globe | | | charter | |
+----------+---------------------+------------+----------+---------+
| River | Spot | n/a | Spot | n/a |
| Globe | | | | |
+----------+---------------------+------------+----------+---------+
| Sky | Spot | n/a | Spot | n/a |
| Globe | | | | |
+----------+---------------------+------------+----------+---------+
| Star | Transgrain Shipping |April 2011 | Time | $22,000 |
| Globe | | | charter | |
+----------+---------------------+------------+----------+---------+
| Jin Star | Eastern Media | Jan 2015 |Bareboat | $14,250 |
| | International and | | | |
| | Far Eastern Silo & | | | |
| | Shipping | | | |
+----------+---------------------+------------+----------+---------+
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 | 30 | 30 | 30 |
| | September | September | September | 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 | 2,289 | 2,730 | 3,379 | (8,899) |
| period | | | | |
+----------------------------------+-------------+-------------+-------------+-------------+
| 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) | 18,234 | 24,496 | 19,316 | 21,083 |
| rate (6) | | | | |
+----------------------------------+-------------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+-------------+-------------+-------------+-------------+
| Adjusted EBITDA reconciliation | | | | |
| with Total income/(loss) for the | | | | |
| period | | | | |
+----------------------------------+-------------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+-------------+-------------+-------------+-------------+
| Total income/(loss) for the | 2,289 | 2,730 | 3,379 | (8,899) |
| period | | | | |
+----------------------------------+-------------+-------------+-------------+-------------+
| Interest expense and finance | 583 | 490 | 1,337 | 1,593 |
| costs, net | | | | |
+----------------------------------+-------------+-------------+-------------+-------------+
| Gain/(loss) on derivative | 395 | 261 | 959 | (48) |
| financial instruments | | | | |
+----------------------------------+-------------+-------------+-------------+-------------+
| Foreign exchange (losses)/gains, | (96) | 204 | 860 | 170 |
| net | | | | |
+----------------------------------+-------------+-------------+-------------+-------------+
| Depreciation | 2,263 | 2,550 | 5,079 | 9,539 |
+----------------------------------+-------------+-------------+-------------+-------------+
| Depreciation of dry-docking | 132 | 505 | 392 | 1,341 |
| costs | | | | |
+----------------------------------+-------------+-------------+-------------+-------------+
| 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 | 30 | 30 | 30 |
| | September | September | September | 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 | 1,262 | - | 1,283 | - |
| revenue | | | | |
+-----------------------------------+-------------+-------------+-------------+-------------+
| Net Revenue | 6,710 | 14,428 | 17,462 | 38,898 |
+-----------------------------------+-------------+-------------+-------------+-------------+
| Available days net of bareboat | 368 | 589 | 904 | 1,845 |
| charter days | | | | |
+-----------------------------------+-------------+-------------+-------------+-------------+
| 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:
Ø Adjusted EBITDA does not reflect the Company's cash expenditures or future
requirements for capital expenditures or contractual commitments;
Ø Adjusted EBITDA does not reflect the interest expense or the cash requirements
necessary to service interest or principal payments on the Company's debt;
Ø Adjusted EBITDA does not reflect changes in or cash requirements for the
Company's working capital needs; and
Ø 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.
- ENDS -
For further information please contact:
Globus Maritime Limited +30 210 960 8300
Elias Deftereos, CFO deftereos@globusmaritime.gr
Jefferies International Limited +44 (0) 20 7029 8000
Oliver Griffiths
Capital Link - London +44 (0) 20 3206 1322 /
globus@capitallink.com
Annie Evangeli
Capital Link - New York +1 212 661 7566 / globus@capitallink.com
Ramnique Grewal
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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