First Half 2010 Highlights versus First Half 2009
Globus had 5 vessels at the end of June 2010 versus 7 vessels at the end of
June 2009. Taking into consideration the reduction in the size of the fleet
and the prevailing market conditions:
-- Gross Revenues were $11.6 million (H1-09: $26.5 million);
-- Net Revenues were $10.8 million (H1-09: $24.5 million);
-- Operating Expenses were $2.6 million (H1-09: $5.7 million);
-- EBITDA reached $5.9 million with zero impairment charge versus -$2.7
million due to the impairment charge of $18.8 million in H1-09;
-- Cash flow from operations reached $5.9 million versus $16.9 million
in H1-09;
-- Net Income was $1.0 million versus a Net Loss of $11.6 million
in H1-09;
-- Average Time Charter Equivalent ("TCE") rate of $20,060 per vessel per
day with an average 2.97 vessels operating, versus an average TCE of
$19,484 per vessel per day with an average of 7 vessels operating
during H1-09;
-- Fleet utilization of 98.3% (H1-09: 98.7%).
Second Quarter 2010 Highlights versus Second Quarter 2009:
-- Gross Revenues reached $5.8 million (Q2-09: $14.8 million);
-- Net Revenue was $5.4 million (Q2-09: $13.8 million);
-- Operating Expenses were $1.3 million (Q2-09: $2.9 million);
-- EBITDA of $2.9 million with zero impairment charge versus -$9.8 million
due to the impairment charge of $18.8 million in Q2-09;
-- Cash flow from operations of $3.2 million versus $9.2 million in Q2-09;
-- Net Income of $0.6 million versus a Net Loss of $14.1 million in Q2-09;
-- Average TCE rate of $20,724 per vessel per day with an average 2.9
vessels operating, versus an average TCE of $22,065 per vessel per day
with an average of 7 vessels operating during Q2-09;
-- Fleet utilization of 100% (Q2-09: 98.9%).
Dividend Declaration
In implementation of the Company's dividend policy, the Directors declare
an interim cash dividend of GB 7.3 pence per share (US 11.29 cents per
share), amounting to $0.8 million in total, for the six months ended June
30, 2010.
This interim dividend will be payable on or about September 24, 2010 to all
shareholders on record on September 17, 2010.
Reverse Stock Split
Following the 1-for-4 reverse stock split which took effect on July 29,
2010, the issued share capital as of the date of this release is 7,240,852
shares of $0.004 each.
Fleet Development
In February 2010, the mid-1990s-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 en-bloc, from an unaffiliated
third party, two dry bulk sistership geared and grab-fitted Supramax
vessels for $32.85 million each. The vessels, named "Sky Globe" (built in
November 2009) and "Star Globe" (built in May 2010), were delivered to
Globus in May 2010.
In June 2010 the Company agreed to purchase from an unaffiliated third
party the dry bulk Kamsarmax vessel "Jin Star" (built in January 2010) for
$41.1 million, with an attached bareboat charter agreement at the gross
daily rate of $14,250. The vessel was delivered to Globus on June 29, 2010.
On the date of this release, the Company's subsidiaries own five modern dry
bulk carriers, consisting of three Supramaxes, one Panamax, and one
Kamsarmax. On June 30, 2010 the fleet had an aggregate carrying capacity of
319,913 DWT and a weighted average age of approximately 3.4 years, which is
a 72% reduction from the weighted average age of 12.1 years at June 30,
2009.
Fleet Deployment
The Panamax "Tiara Globe" is currently on a time charter with Transgrain
Shipping that began in February 2010 and is scheduled to expire in a
minimum of 24 months -- maximum of 26 months from such date, at the gross
rate of $20,000 per day.
The Supramax "Star Globe" is currently on a time charter with Transgrain
Shipping that began in May 2010 and is scheduled to expire in a minimum of
11 months -- maximum of 13 months from such date, at the gross rate of
$22,000 per day.
The Supramax "Sky Globe" is currently trading in the spot market.
The Supramax "River Globe" is currently on a time charter with Eastern Bulk
Carriers A/S that is scheduled to expire in September 2010 (maximum
November 2010) at the gross rate of $25,000 per day.
The Kamsarmax vessel "Jin Star" is on a bareboat charter with Eastern Media
International and Far Eastern Silo & Shipping 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.
As of the day of this press release, we have secured under fixed employment
73% of our fleet days for the remaining of 2010 and 51% for 2011.
Management Commentary
George Karageorgiou, Chief Executive Officer of Globus Maritime Limited,
said:
"Taking into consideration both the reduced size of our fleet during the
reporting period and the prevailing market conditions, we are happy to
report healthy results for the three month and six month periods ended June
30, 2010.
"During the first six months of 2010 we continued with our fleet renewal
and expansion strategy enhancing the foundation of long term growth for our
company. We sold two 'older Handymaxes' and acquired three 'newer and
larger' vessels, expanding the operational versatility of our fleet with
the addition of a Kamsarmax vessel. We now have a modern fleet of five dry
bulk carriers comprised of three Supramaxes, one Panamax and one Kamsarmax
with a weighted average age of just 3.4 years, which is a 72% reduction
from the weighted average age of 12.1 years at June 30, 2009.
"As of today, we have secured under fixed employment 73% of our fleet days
for 2010 and 51% for 2011.
"We are also pleased to reinstate the dividend, and have declared an
interim dividend of GB 7.3 pence per share, consistent with our dividend
policy.
"We are currently evaluating strategies that can enhance shareholder value
for the long term. In July 2010, we consolidated our shares through a
4-for-1 reverse split, in preparation of a possible listing on a U.S. Stock
Exchange. As announced, we believe that listing Globus on U.S. Exchange may
result in our shares trading at a more favorable price relative to their
net asset value than has recently been the case. In addition, we also
believe that through a U.S. listing our Company would be in a better
position to raise funds for its future development.
"We remain committed to pursue further accretive expansion opportunities,
while safeguarding the strength of our balance sheet maximizing shareholder
value. With a modern fleet, a strong balance sheet, a clear strategy and
experienced management team we believe that Globus is strategically
positioned to take advantage of the positive long term fundamentals of dry
bulk shipping."
Elias Deftereos, Chief Financial Officer, added:
"Our results for the reporting period reflect the smaller size of our fleet
and the continued volatility of market conditions. Taking into
consideration the reduced size of the fleet we report a net income of $1.0
million during the period compared to a net loss of $11.6 million in the
corresponding period in 2009.
"Our Company is in a strong financial condition. As of today, total bank
debt outstanding is $102.2 million while our restricted and unrestricted
cash balances are $27.1 million. Our net debt to net book capitalization
(net debt plus equity) stands at 40%, a moderate figure for our industry,
enabling us to pursue further fleet growth opportunities."
Review of Results for the Second Quarter 2010 -- unaudited
Globus began the second quarter of 2010 operating only two vessels, the
"River Globe" and the "Tiara Globe". The sistership vessels "Sky Globe" and
"Star Globe" were delivered to Globus in May 2010, and the vessel "Jin
Star" was delivered on June 29, 2010. Consequently during Q2-10 Globus had
an average of 2.9 vessels in its fleet whereas during Q2-09 the average
number was 7.0 vessels.
Gross revenues were $5.8 million during Q2-10 compared to $14.8 million
during Q2-09. Net revenues reached $5.4 million in Q2-10 compared to $13.8
million a year ago. The decrease is attributable to the decrease in the
size of the fleet. Furthermore, during Q2-10 the vessels earned an average
TCE of $20,724 per vessel per day as opposed to Q2-09 during which they
earned an average TCE of US$22,065.
Voyage expenses decreased by $0.6 million, or 60%, to $0.4 million in Q2-10
compared to $1.0 million in 2009. This decrease is attributable to the
decrease in revenues and the reduction of the size of the fleet.
Vessel operating expenses, which include crew costs, provisions, deck and
engine stores, lubricating oils, insurance, maintenance, and repairs,
decreased by $1.6 million, or 55%, and came to $1.3 million for Q2-10
versus $2.9 million a year ago, a decrease mainly due to the smaller fleet.
While crew salaries were paid in U.S. dollars, a significant portion of
other vessel operating expenses are regularly paid in currencies other than
the U.S. dollar.
Average daily operating expenses reached $5,146 in Q2-10 compared to
US$4,491 for the same period in 2009. The increase in the average daily
operating expenses is mostly due to the initial supplies for the vessels
"Sky Globe" and "Star Globe" which were delivered to Globus in May 2010.
Administrative expenses for Q2-10 decreased by $1.3 million or 62% to $0.8
million, compared to $2.1 million in 2009. The decrease is due to the
decrease of share-based payments.
Interest expenses amounted to $0.4 million versus $0.8 million in Q2-09,
attributable primarily to the lower level of debt.
Moreover, the results for the second quarter of 2010 include a $0.4 million
non-cash loss from the change in the fair value of interest rate
derivatives compared to a $0.2 million non-cash gain in the second quarter
of 2009. The valuation of these interest rate swaps at the end of each
quarter is affected by the prevailing interest rates at that time. The
changes in the fair values of interest rate swaps are recorded in income as
they do not meet the criteria for hedge accounting.
Foreign exchange losses amount to $0.2 million for Q2-10. Foreign exchange
losses resulted primarily from currency exchanges to pay for operating
expenses of the fleet and general and administrative expenses, a material
portion of which were in currencies other than the U.S. dollar.
Three newly-established 100% subsidiaries of the Company bought the vessels
"Sky Globe", "Star Globe", and "Jin Star" in Q2-10; cash used in investing
activities was $106.1 million in the second quarter of 2010.
Review of Results for Six Months Ended June 30, 2010 -- unaudited
Globus began the year operating four vessels. The vessels "Sea Globe" and
"Coral Globe" were sold in February 2010, the vessels "Sky Globe" and "Star
Globe" were delivered to Globus in May 2010, and the vessel "Jin Star" was
delivered on June 29, 2010. Consequently, during H1-10 the Company had an
average of 2.97 vessels in its fleet whereas during H1-09 the average
number was 7.0 vessels. The ownership days came to 538 versus 1,267
ownership days in H1-09, a reduction of 58%.
For the six months ended June 30, 2010, as a result of the decrease in the
number of vessels in the Company's fleet, gross revenues amounted to $11.6
million versus $26.5 million in the corresponding period of 2009. Net
revenues in H1-10 came to $10.8 million versus $24.5 million a year ago, a
reduction by 56%.
During the first half of 2010 the vessels were earning an average TCE of
$20,060 per vessel per day as opposed to H1-09 when they were earning an
average TCE of US$19,484.
Voyage expenses decreased by $1.3 million, or 62%, to $0.8 million in H1-10
compared to $2.1 million in 2009. This decrease is attributable to the
decrease in revenues and the reduction of the size of the fleet.
Vessel operating expenses decreased by $3.1 million, or 54%, and came to
$2.6 million for H1-10 versus $5.7 million a year ago, a decrease mainly
due to the smaller fleet. While crew salaries were paid in U.S. dollars, a
significant portion of other vessel operating expenses are regularly paid
in currencies other than the U.S. dollar.
Average daily operating expenses reached $4,922 compared to US$4,481 during
the same period in 2009. This 10% increase in the average daily operating
expenses is mostly due to the initial supplies for the vessels "Sky Globe"
and "Star Globe" which were delivered to Globus in May 2010.
Depreciation decreased by $4.2 million to $2.8 million for H1-10, compared
to $7.0 million for 2009. Amortization of drydocking costs decreased by
$0.5 million to $0.3 million compared to $0.8 million for 2009. The
decrease is directly the result of the decrease in the number of vessels in
the fleet.
Total administrative expenses for H1-10 (including administrative expenses
payable to related parties and non-cash share-based payments) decreased by
$1.3 million or 43% to $1.7 million, compared to $3.0 million in 2009. The
decrease is largely due to the decrease of non-cash share-based payments.
Non-cash share-based payments of $0.1 million for the six months ended June
30, 2010 relate to the amortization of the cost recognized for vested share
awards issued to executive officers and employees under the Company's
incentive plan.
In H1-09 the Company had incurred a non-cash impairment charge of $18.8
million. There was no impairment charge in H1-10.
Interest income decreased by $0.3 million to $0.2 million in 2010, as
compared to $0.5 million in the same period in 2009. The decrease is
attributable to the lower prevailing LIBOR rates.
Interest expense decreased by $0.6 million or 38%, to $1.0 million in 2010,
compared to $1.6 million in 2009. The decrease is attributable to the
decreased average loan balances. All of the Company's bank loans are
denominated in U.S. dollars.
Moreover, the results for the first half of 2010 include a $0.6 million
non-cash loss from the change in the fair value of interest rate
derivatives compared to a $0.3 million non-cash gain in the same period of
2009. The changes in the fair values of interest rate swaps are recorded in
income as they do not meet the criteria for hedge accounting.
Foreign exchange losses amount to $1.0 million for H1-10. Foreign exchange
losses resulted primarily from the change in the fair value of cash
deposits in Euro, as well as currency exchanges to pay for vessel operating
expenses and general and administrative expenses, a material portion of
which were in currencies other than the U.S. dollar.
Net Income for H1-10 came to $1.0 million versus a Net Loss of $11.6
million for the first six months of 2009.
Two subsidiaries of the Company sold the vessels "Sea Globe" and "Coral
Globe" for $33.0 million in total in Q1-10, and three newly-established
subsidiaries of the Company bought the vessels "Sky Globe", "Star Globe",
and "Jin Star" for $106.1 million in total in Q2-10; cash used in investing
activities was $72.7 million in the first half of 2010.
Financing Activities & Cash Management
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.
In February 2010, Globus fully repaid the $27.0 million loan to Deutsche
Schiffsbank upon the sale of the vessels "Sea Globe" and "Coral Globe". The
Bank released $5.0 million from the deposit that was pledged as security
for this loan.
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 the $35.5 million from Credit Suisse to
finance the vessels "Sky Globe" and "Star Globe".
In June 2010 a subsidiary of the Company agreed a new facility with
Deutsche Schiffsbank for $26.7 million, which it drew to finance the
acquisition of the vessel "Jin Star".
Globus paid $0.4 million in interest for its bank loans during Q2-10,
bringing the total interest paid for H1-10 to $0.9 million.
Cash provided by financing activities was $58.0 million in Q2-10 and $35.5
million in H1-10.
At June 30, 2010, total debt to the two banks amounted to $102.2 million
while no amount remained undrawn.
Cash at June 30, 2010 was $22.7 million. Cash on the date of this release
is $27.1 million.
Conference Call details
Today, September 9, 2010 at 2:30pm UK, 4:30pm Athens, 9:30am Eastern Time,
the Company's management team will host a conference call to discuss the
results.
Conference Call details:
Participants should dial into the call 10 minutes prior to the scheduled
time using the following numbers: 0800-953-0329 (from the UK),
1-866-819-7111 (from the US), 00800-4413-1378 (from Greece), or +44
(0)1452-542-301 (all other callers). Please quote "Globus Maritime".
A telephonic replay of the conference call will be available until
September 16, 2010 by dialing 0800-953-1533 (from the UK), 1-866-247-4222
(from the US), or +44(0)1452 550-000 (all other callers). Access Code:
36407079#
All information will also be accessible through the Globus Maritime Ltd
website www.globusmaritime.gr. An audio file with the Conference Call as
well as the slide presentation will remain archived on the company's
website www.globusmaritime.gr under the section "Investor Relations".
SELECTED FINANCIAL INFORMATION (Unaudited)
For the Three Months For the Six Months
Ended Ended
-------------------- --------------------
30 June 30 June 30 June 30 June
(in thousands of US dollars) 2010 2009 2010 2009
(unaudited)(unaudited)(unaudited)(unaudited)
Income Statement Data:
Gross Revenue 5,791 14,772 11,618 26,540
Voyage expenses (incl.
commissions) (361) (961) (845) (2,070)
--------- --------- --------- ---------
Net Revenue 5,430 13,811 10,773 24,470
Vessel operating expenses (1,343) (2,861) (2,638) (5,678)
Total administrative expenses (816) (2,099) (1,671) (2,990)
Other expenses (25) (2) (31) (20)
Gain on sale of vessel - - 7 -
Impairment loss - (18,826) - (18,826)
Depreciation (1,538) (3,259) (2,816) (6,989)
Amortization of dry-docking
costs (131) (425) (260) (836)
--------- --------- --------- ---------
Operating profit/(loss) before
finance costs 1,577 (13,661) 3,364 (10,869)
Interest expense (392) (825) (977) (1,591)
Interest income 26 185 223 488
(Loss)/gain on derivative
financial instruments (392) 164 (564) 309
Foreign exchange (loss)/gain (188) 13 (956) 34
--------- --------- --------- ---------
Profit/(loss) for the period 631 (14,124) 1,090 (11,629)
--------- --------- --------- ---------
Finance costs net of derivative
financial instruments 554 627 1,710 1,069
Depreciation 1,538 3,259 2,816 6,989
Amortization of dry-docking
costs 131 425 260 836
--------- --------- --------- ---------
EBITDA 2,854 (9,813) 5,876 (2,735)
--------- --------- --------- ---------
Impairment loss - 18,826 - 18,826
Gain on sale of vessel - (7)
Loss/(gain) on derivative
financial instruments 392 (164) 564 (309)
--------- --------- --------- ---------
Adjusted EBITDA 3,246 8,849 6,433 15,782
--------- --------- --------- ---------
Cash Flow Data:
Net cash flows from operating
activities 3,150 9,193 5,870 16,926
Net cash flows (used in)/from
investing activities (106,056) 197 (72,723) 10,769
Net cash flows from/(used in)
financing activities 57,978 (5,733) 35,531 (26,693)
--------- --------- --------- ---------
Net (decrease)/increase in cash
& cash equivalents (44,928) 3,657 (31,322) 1,002
--------- --------- --------- ---------
FLEET OPERATING DATA
The following information is
unaudited
Fleet Data:
Average number of vessels(1) 2.9 7 2.97 7
Number of vessels at end of
period 5 7 5 7
Weighted average age of fleet
(in years)(2) 3.4 12.1 3.4 12.1
Bareboat charter days 2 - 2 -
Bareboat charter revenue net
(in thousands of US dollars) 21 - 21 -
Ownership days(3) 263 637 538 1,267
Available days(4) 263 626 538 1,256
Operating days(5) 263 619 529 1,239
Fleet utilization(6) 100% 98.9% 98.3% 98.7%
Average Daily Results:
Vessel operating expenses (U.S.
dollars)(7) 5,146 4,491 4,922 4,481
Time charter equivalent (TCE)
rate (U.S. dollars)(8) 20,724 22,065 20,060 19,484
Notes:
(1) Average number of vessels is the number of vessels that constituted the
Company's fleet for the relevant period, as measured by the sum of the
number of days each vessel was a part of the fleet during the period
divided by the number of ownership days in the period.
(2) The average age of the fleet is calculated by aggregating the
individual age of each vessel in the fleet at the period end weighted by
each vessel's deadweight tonnage in proportion to the deadweight tonnage of
the whole fleet at the period end.
(3) Ownership days are the aggregate number of days in a period during
which each vessel in the fleet has been owned by the Company. Ownership
days are an indicator of the size of the fleet over a period and affect
both the amount of revenues and the amount of expenses that are recorded
during a period.
(4) 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. The shipping industry
uses available days to measure the number of days in a period during which
vessels should be capable of generating revenues.
(5) Operating days are the number of available days in a period less the
aggregate number of days that vessels are off-hire due to any reason,
including unforeseen circumstances. The shipping industry uses operating
days to measure the aggregate number of days in a period during which
vessels actually generate revenues.
(6) Fleet utilisation is measured by dividing the number of operating days
during a period by the number of available days during the same period. The
shipping industry uses fleet utilisation to measure a company's efficiency
in finding suitable employment for its vessels and minimising the amount of
days that its vessels are off-hire for reasons other than scheduled repairs
or repairs under guarantee, vessel upgrades, special surveys or vessel
positioning.
(7) Average daily vessel operating expenses, which include crew wages and
related costs, the cost of insurance, expenses relating to repairs and
maintenance, the costs of spares and consumable stores, tonnage taxes and
other miscellaneous expenses, are calculated by dividing vessel operating
expenses by ownership days for the relevant period, excluding bareboat
charter days.
(8) TCE rates are defined as time and voyage charter revenues less voyage
expenses during a period divided by the number of available days during the
period, excluding bareboat charter net revenue and days, which is
consistent with industry standards. Voyage expenses include port charges,
bunker (fuel oil and diesel oil) expenses, canal charges and commissions.
TCE rate is a standard shipping industry performance measure used primarily
to compare daily earnings generated by vessels on time charters with daily
earnings generated by vessels on voyage charters, because charter hire
rates for vessels on voyage charters are generally not expressed in per day
amounts while charter hire rates for vessels on time charters are generally
expressed in such amounts.
The following tables represent the Company's fleet as on the date of this
release:
Fleet Employment Profile as at the day of this press release:
Charter
Expiration
Charter Date Gross
Vessel Type Charterer Type (Earliest) Daily rate
--------- --------------- ------- -------------- -----------
Currently
Sky Globe Supramax on Spot
--------- --------------- ------- -------------- -----------
Transgrain
Star Globe Supramax Shipping T/C April 2011 $ 22,000
--------- --------------- ------- -------------- -----------
Eastern Bulk
River Globe Supramax Carriers T/C September 2010 $ 25,000
--------- --------------- ------- -------------- -----------
Transgrain
Tiara Globe Panamax Shipping T/C January 2012 $ 20,000
--------- --------------- ------- -------------- -----------
Eastern Media
Int'l and
Far Eastern
Jin Star Kamsarmax Silo & Shipping B/B January 2015 $ 14,250
--------- --------------- ------- -------------- -----------
Fleet Profile as of the date of this Press Release:
Year Month/Yr
Vessel Type Built Yard Delivered DWT FLAG
--------- ----- ---------------- --------- ------- -----------
Sky Globe Supramax 2009 Taizhou Kouan May 2010 56,785 Marshall Is
--------- ----- ---------------- --------- ------- -----------
Star Globe Supramax 2010 Taizhou Kouan May 2010 56,785 Marshall Is
--------- ----- ---------------- --------- ------- -----------
River Globe Supramax 2007 Yangzhou Dayang Dec 2007 53,627 Marshall Is
--------- ----- ---------------- --------- ------- -----------
Tiara Globe Panamax 1998 Hudong Zhonghua Dec 2007 72,928 Marshall Is
--------- ----- ---------------- --------- ------- -----------
Jin Star Kamsarmax 2010 Jiangsu Eastern June 2010 79,788 Panama
--------- ----- ---------------- --------- ------- -----------
--------- ----- ---------------- --------- ------- -----------
W. Aver. Age 3.4 years at 30/6/10 319,913
--------- ----- ---------------- --------- ------- -----------
GLOBUS MARITIME LIMITED
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At June 30, 2010
(Expressed in thousands of U.S. Dollars)
As at As at
June 30, December 31,
2010 2009
------------ ------------
ASSETS (Unaudited) (Audited)
------------ ------------
NON-CURRENT ASSETS
Vessels, net 196,184 93,166
Office furniture and equipment 22 28
Other assets 10 10
------------ ------------
Total non-current assets 196,216 93,204
CURRENT ASSETS
Cash and bank balances and bank deposits 22,745 59,157
Trade receivables, net 253 336
Inventories 416 355
Prepayments and other assets 958 1,488
------------ ------------
24,372 61,336
Non-current assets held for sale - 33,030
------------ ------------
Total current assets 24,372 94,366
------------ ------------
TOTAL ASSETS 220,588 187,570
============ ============
EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO SHAREHOLDERS
Share capital 29 29
Share premium 88,529 88,516
Retained earnings 26,138 24,913
------------ ------------
Total shareholders' equity 114,696 113,458
------------ ------------
NON-CURRENT LIABILITIES
Long-term borrowings, net of current portion 90,785 36,175
Provision 43 43
------------ ------------
Total non-current liabilities 90,828 36,218
------------ ------------
CURRENT LIABILITIES
Current portion of long-term borrowings 10,902 33,900
Trade accounts payable 935 1,158
Accrued liabilities and other payables 698 1,095
Derivative financial instruments 1,794 1,230
Deferred revenue 735 511
------------ ------------
Total current liabilities 15,064 37,894
------------ ------------
TOTAL LIABILITIES 105,892 74,112
------------ ------------
TOTAL EQUITY AND LIABILITIES 220,588 187,570
============ ============
GLOBUS MARITIME LIMITED
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended June 30, 2010
(Expressed in thousands of U.S. Dollars, except per share data)
(Unaudited)
--------------------
For the six months
ended June 30,
2010 2009
--------- ---------
REVENUE:
Time charter revenue 11,618 26,540
EXPENSES & OTHER OPERATING INCOME:
Voyage expenses (845) (2,070)
Vessel operating expenses (2,638) (5,678)
Depreciation (2,816) (6,989)
Depreciation of dry docking costs (260) (836)
Administrative expenses (1,005) (907)
Administrative expenses payable to related parties (518) (541)
Share-based payments (148) (1,542)
Impairment loss - (18,826)
Gain on sale of vessel 7 -
Other expenses, net (31) (20)
--------- ---------
Operating profit/(loss) before financial
activities 3,364 (10,869)
Interest income from bank balances & deposits 223 488
Interest expense and finance costs (977) (1,591)
Gain/(loss) on derivative financial instruments (564) 309
Foreign exchange losses, net (956) 34
--------- ---------
Total loss from financial activities, net (2,274) (760)
--------- ---------
TOTAL PROFIT/(LOSS) FOR THE PERIOD 1,090 (11,629)
Other Comprehensive Income/(loss) - -
--------- ---------
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD 1,090 (11,629)
========= =========
Attributable to:
--------- ---------
Globus Maritime Limited shareholders 1,090 (11,629)
========= =========
Earnings/(loss) per share (U.S.$):
- Basic EPS/(LPS) for the period 0.151 (1.619)
- Diluted EPS/(LPS) for the period 0.151 (1.619)
GLOBUS MARITIME LIMITED
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended June 30, 2010
(Expressed in thousands of U.S. Dollars, except share and per share data)
Ordinary shares
-------------------------
Issued Total
Number of Par Share Share Retained Shareholders'
Shares Value Capital Premium Earnings Equity
---------- ------ ------- ------- -------- ------------
Balance at
January 1, 2010
(audited) 28,956,172 0.001 29 88,516 24,913 113,458
Profit for the
period - - - - 1,090 1,090
Other comprehensive
income/(loss) - - - - - -
---------- ------ ------- ------- -------- ------------
Total comprehensive
income for the
period - - - - 1,090 1,090
Share-based payment 7,236 0.001 - 13 135 148
---------- ------ ------- ------- -------- ------------
Balance at June
30, 2010
(unaudited) 28,963,408 0.001 29 88,529 26,138 114,696
---------- ------ ------- ------- -------- ------------
Ordinary shares
-------------------------
Issued Total
Number of Par Share Share Retained Shareholders'
Shares Value Capital Premium Earnings Equity
---------- ------ ------- ------- -------- ------------
Balance at
January 1, 2009
(audited) 28,665,450 0.001 29 87,600 34,154 121,783
Loss for the
period - - - - (11,629) (11,629)
Other comprehensive
(loss)/income - - - - - -
---------- ------ ------- ------- -------- ------------
Total comprehensive
loss for the
period - - - - (11,629) (11,629)
Share-based payment 102,210 0.001 - 721 821 1,542
---------- ------ ------- ------- -------- ------------
Balance at June
30, 2009
(unaudited) 28,767,660 0.001 29 88,321 23,346 111,696
---------- ------ ------- ------- -------- ------------
GLOBUS MARITIME LIMITED
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended June 30, 2010
(Expressed in thousands of U.S. Dollars)
For the six months
ended June 30,
2010 2009
-------- --------
Cash Flows from Operating Activities:
Profit/(loss) for the period 1,090 (11,629)
Adjustments for:
Depreciation 2,816 6,989
Depreciation of deferred dry docking costs 260 836
Deferred dry docking costs - (312)
Gain on sale of vessel (7) -
Impairment loss - 18,826
Provision - 7
Loss/(gain) on derivative financial instruments 564 (309)
Interest expense and finance costs 977 1,591
Interest income (223) (488)
Foreign exchange losses/(gains), net 90 (34)
Share-based payment 148 1,542
(Increase)/Decrease in:
Trade receivables, net 83 91
Inventories (61) (46)
Prepayments and other assets 426 74
Increase/(Decrease) in:
Trade accounts payable (223) (136)
Accrued liabilities and other payables (294) 62
Deferred revenue 224 (138)
-------- --------
Net cash generated from operating activities 5,870 16,926
-------- --------
Cash Flows from Investing Activities:
Vessel acquisitions (106,084) -
Time deposits with maturity of three months or more - 10,000
Net proceeds from sale of vessels 33,037 -
Fixed asset purchase (office furniture and equipment) (3) (1)
Interest received 327 770
-------- --------
Net cash (used in)/generated from investing activities (72,723) 10,769
-------- --------
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt 62,170 -
Repayment of long-term debt (30,583) (28,900)
Pledged Bank deposits 5,000 3,800
Payment of financing costs (200) -
Interest paid (856) (1,593)
-------- --------
Net cash used in financing activities 35,531 (26,693)
-------- --------
Net (decrease)/increase in cash and cash equivalents (31,322) 1,002
Foreign exchange losses on cash and bank deposits (90) -
Cash and cash equivalents at the beginning of the period 53,157 33,942
-------- --------
Cash and cash equivalents at the end of the period 21,745 34,944
======== ========
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 3.4 years as at June 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 +30 210 960 8300 George Karageorgiou CEO info@globusmaritime.gr Jefferies International Limited +44 (0) 20 7029 8000 Oliver Griffiths Anne Dovigen 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