Globus Maritime Limited Reports Financial Results for the Quarter and Nine-Month Period Ended September 30, 2019.
ENPNewswire-December 10, 2019--Globus Maritime Limited Reports Financial Results for the Quarter and Nine-Month Period Ended September 30, 2019
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Release date- 09122019 - 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 quarter and nine-month period ended September 30, 2019.
Adjusted EBITDA is a measure not in accordance with generally accepted accounting principles ('GAAP').
The weighted average number of shares for the nine-month period ended September 30, 2019 was 3,905,305 compared to 3,198,894 shares for the nine-month period ended September 30, 2018. The weighted average number of shares for the three-month period ended September 30, 2019 was 4,422,825 compared to 3,204,271 shares for the three-month period ended September 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 third quarter we experienced a short-term spike in the spot market that allowed us to enjoy higher than normal rates. However, the spike was short-lived and fluctuation returned full-speed, spilling over into the fourth quarter. This was mainly due to the an increase in vessel supply returning online from dry docks and was further deteriorated by some demand-driven pressure which put a weight on rates. By the end of the quarter and the beginning of the fourth quarter there was a strong downward pressure which thankfully started to reverse later on.
'The doubling and tripling of day rates showed us however, that there is steam in the market, and these upward swings can be expected. Of course we are still being affected by the negative sentiment created by the trade war, as well as the ore export bans in Indonesia and the coal import quotas in China.
'Coming up into the fourth quarter we have scheduled maintenance repairs for two of our vessels. We do not expect any extraordinary items during the repairs, normal maintenance of hull, cargo holds and machineries will take place. We expect the repairs to last for about 40 days. Notwithstanding our constant vigilance on cost our first priority is to keep our vessels safe.
'The market is expected to be volatile, but we do expect an upward trend. The huge industry adjustment to IMO 2020 regulation is just around the corner, and we will see the full effect of this event during the first half of the year. We believe it will be a net positive for the industry. The margin at the moment of the low sulfur fuel oils and high sulfur fuel oils is at about $250. Our company will be using the low sulfur fuel oil option in order to comply with the new regulations. We believe that this is a better-suited approach for the type and size of our vessels than using exhaust gas scrubbers that are expensive to install and operate.'
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 the third quarter of 2019, a total amount of approximately $488 thousand, principal and accrued interest, was converted to share capital with the conversion price of $2.25 per share and a total number of 216,863 new shares issued in the name of the holder of the Convertible Note. Furthermore, during October and November 2019, an additional total amount of approximately $1,170 thousand, principal and accrued interest, was converted to share capital with the conversion price of $2.25 per share and a total number of 519,874 new shares issued in the name of the holder of the Convertible Note. The Convertible...
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