Globus Maritime Limited Reports Financial Results for the Quarter and Six-Month Period Ended June 30, 2019.

ENPNewswire-September 30, 2019--Globus Maritime Limited Reports Financial Results for the Quarter and Six-Month Period Ended June 30, 2019

(C)2019 ENPublishing - http://www.enpublishing.co.uk

Release date- 27092019 - GLYFADA - Globus Maritime Limited ('Globus,' the 'Company,' 'we,' or 'our') (NASDAQ: GLBS), a dry bulk shipping company, today reported its unaudited consolidated operating and financial results for the six-month period ended June 30, 2019.

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 EBITDA to total comprehensive loss and net cash (used in)/ generated from operating activities, which are the most directly comparable financial measures calculated and presented in accordance with the GAAP measures.

The weighted average number of shares for the six-month period ended June 30, 2019 was 3,642,256 compared to 3,196,161 shares for the six-month period ended June 30, 2018. The weighted average number of shares for the three-month period ended June 30, 2019 was 4,070,153 compared to 3,202,574 shares for the three-month period ended June 30, 2018.

Daily Time charter equivalent rate (TCE) is a measure not in accordance with generally accepted accounting principles ('GAAP').

Current Fleet Profile

As of the date of this press release, Globus' subsidiaries own and operate five dry bulk carriers, consisting of four Supramax and one Panamax.

Current Fleet Deployment

All our vessels are currently operating on short term time charters ('on spot').

Management Commentary

'During the second quarter of the year the market was under severe pressure mainly due to the ongoing concerns in the trade war and the ongoing iron ore supply disruptions. The pressure was increased further by the seasonal weakness in the quarter. Yet, the Company managed by sheer effort to keep operational costs down without sacrificing the efficient operations and high utilization of the fleet.

'As the second quarter was ending the market started rising and reached high and healthy levels in the third quarter where we are currently in. We are elated that charter rates occasionally reached multiyear highs. We expect the market to stay healthy for the remainder of 2019 and strengthen even further as we move closer and into 2020, mainly because of ship supply disruptions caused by the new IMO 2020 regulation. Whilst, as stated above we expect the market to continue improving, we do anticipate volatility as it moves to higher levels. However, at this time, we are delighted to seize the moment and enjoy charter rates double and triple the rates in the previous quarter.

'At present shipping companies are faced with the option to install scrubbers or consume a 'cleaner' grade of oil which contains lower sulfur contents. In our view Scrubber installation for our vessel segment and size is not an option, this machinery is costly to install and operate, and the uncertainties around it are many. The majority of Panamax and Supramax vessels will not be scrubber fitted in the immediate future, the option left, to consume the cleaner grade of fuel will potentially lead to lower fleet speed and by extent higher charter rates due to an increased fleet utilization.'

'The Company while committed to a reasonable and disciplined cost structure will continue to strive for high commercial and technical utilization and maintain its focus on shareholder value.'

Management Discussion and Analysis of the Results of Operations

Recent Developments

New Convertible Note

On March 13, 2019, the Company signed a securities purchase agreement with a private investor and on March 13, 2019 issued, for gross proceeds of $5 million, a senior convertible note (the 'Convertible Note') that is convertible into shares of the Company's common stock, par value $0.004 per share. If not converted or redeemed beforehand pursuant to the terms of the Convertible Note, the Convertible Note matures upon the anniversary of its issue. We have used part of the proceeds from the Convertible Note for general corporate purposes and working capital including repayment of debt. The Convertible Note was issued in a transaction exempt from registration under the Securities Act.

Further to the conversion clause included into the Convertible Note, during July and September 2019, a total amount of approximately $428 thousand, principal and accrued interest, was converted to share capital with the conversion price of $2.25 per share and a total number of 190,403 new shares issued in the name of the holder of the Convertible Note. The Convertible Note provides that the 'Floor Price' (as defined in the Note), which is currently...

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