Globus Maritime Limited Reports Financial Results for the Quarter and Six-Month Period Ended June 30, 2020
Globus Maritime Limited (GLBS) reported financial results for the six-month period ending June 30, 2020, showcasing a total revenue decrease to $4.6 million from $6.9 million in 2019. The company experienced a total comprehensive loss of $13.2 million, translating to a basic loss per share of $1.58. Daily Time Charter Equivalent rates plunged by 53% to $3,016 per vessel per day. Despite a challenging environment due to COVID-19, the company raised significant capital through offerings and is exploring debt financing for potential vessel acquisitions.
- Raised significant capital from public offerings.
- Maintained operational capacity with five vessels.
- Initiated discussions for debt financing for vessel acquisitions.
- Total comprehensive loss increased to $13.2 million.
- Voyage revenues dropped 34% year-over-year.
- Daily Time Charter Equivalent rate decreased 53%.
GLYFADA, Greece, Sept. 25, 2020 (GLOBE NEWSWIRE) -- 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, 2020.
Financial Highlights
| Three months ended | Six months ended | ||||||||
| June 30, | June 30, | ||||||||
| (Expressed in thousands of U.S dollars except for daily rates and per share data) | 2020 | 2019 | 2020 | 2019 | |||||
| Total revenues | 2,299 | 3,399 | 4,589 | 6,942 | |||||
| Adjusted EBITDA (1) | (783 | ) | 110 | (2,447 | ) | 485 | |||
| Total comprehensive loss | (4,197 | ) | (3,001 | ) | (13,199 | ) | (3,473 | ) | |
| Basic loss per share (2) | (0.39 | ) | (0.74 | ) | (1.58 | ) | (0.95 | ) | |
| Daily Time charter equivalent rate (TCE) (3) | 3,778 | 5,985 | 3,016 | 6,358 | |||||
| Average operating expenses per vessel per day | 4,353 | 4,898 | 4,437 | 4,767 | |||||
| Average number of vessels | 5.0 | 5.0 | 5.0 | 5.0 | |||||
| (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 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. |
| (2) | The weighted average number of shares for the six-month period ended June 30, 2020 was 8,339,137 compared to 3,642,256 shares for the six-month period ended June 30, 2019. The weighted average number of shares for the three-month period ended June 30, 2020 was 10,861,371 compared to 4,070,153 shares for the three-month period ended June 30, 2019. |
| (3) | Daily Time charter equivalent rate (TCE) is a measure not in accordance with generally accepted accounting principles (“GAAP”). See a later section of this press release for a reconciliation of Daily TCE to Voyage revenues. |
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.
| Vessel | Year Built | Yard | Type | Month/Year Delivered | DWT | Flag | ||||||
| Moon Globe | 2005 | Hudong-Zhonghua | Panamax | June 2011 | 74,432 | Marshall Is. | ||||||
| Sun Globe | 2007 | Tsuneishi Cebu | Supramax | Sept 2011 | 58,790 | Malta | ||||||
| River Globe | 2007 | Yangzhou Dayang | Supramax | Dec 2007 | 53,627 | Marshall Is. | ||||||
| Sky Globe | 2009 | Taizhou Kouan | Supramax | May 2010 | 56,855 | Marshall Is. | ||||||
| Star Globe | 2010 | Taizhou Kouan | Supramax | May 2010 | 56,867 | Marshall Is. | ||||||
| Weighted Average Age: 12.3 Years as of June 30, 2020 | 300,571 | |||||||||||
Current Fleet Deployment
All our vessels are currently operating on short-term time charters (“on spot”).
Management Commentary
The first half of 2020 was a challenging period because the Company experienced a weak spot market due to a mixture of seasonal weakness as well as the effects of the coronavirus pandemic that affected the shipping industry. The dry bulk market started improving in later part of the second quarter of 2020 from the lows we saw earlier in the year.
It was at this time that we successfully tapped the capital markets and completed offerings and private placements, raising significant capital. We also initiated discussions for debt financing to support potential vessel acquisitions, when and if we wanted to do so. As of today, we have enough cash and believe that we have debt financing support to be able to acquire additional vessels, if we choose. After completion of the capital markets activities, we inspected the technical and commercial capabilities of about half a dozen vessels in order to ascertain whether any of them would be appropriate to acquire but determined not to move forward with any of them. We are inspecting vessels, however, there can be no assurance that any of the acquisitions we have been considering or will consider will occur.
When deciding whether to purchase a vessel, we make a financial and commercial analysis of the potential acquisition; we do not just buy a vessel only to increase the number of vessels on the water we own and operate. If we believe a vessel has the right technical and commercial aspects and we expect that the market (in addition to a calculated residual value) can support certain returns we target, then we will consider such acquisition.
Additionally, the company also elected to lower and pay off some of our high-interest and convertible debt as we move forward with a stronger balance sheet.
We are pleased that the company today is financially strong, with cash on hand, and we look into the future with resolve to thrive and potentially expand.
We have been fortunate to have good onboard personnel. Our focus and concentrated operational efforts are towards them. Due to the coronavirus pandemic and the associated travel restrictions and quarantines, it is very difficult for seafarers to embark and disembark from vessels. This has kept a lot of them away from their families and loved ones. We realize that it is an industrywide problem, which we hope will be resolved soon with the intervention of governments and regulators. In the meantime, we are doing our best to support our onboard personnel and look after their wellbeing and safety with all means we have available.
Management Discussion and Analysis of the Results of Operations
Recent Developments
Convertible Note
On March 13, 2020, Company and the holder of the Convertible Note entered into a waiver regarding the Convertible Note (the “Waiver”). The Waiver waived the Company’s obligation to repay the Convertible Note on the existing maturity date of March 13, 2020 and did not require the Company to repay the Convertible Note until March 13, 2021. The Convertible Note was fully repaid in June 2020.
Firment Shipping Inc.
On May 8, 2020, the Company and Firment Shipping Inc. agreed to enter into an amended and restated agreement. The final maturity of the Firment Shipping Credit Facility was extended to October 31, 2021 and the available amount to be drawn under this Facility increased to
Receipt of Nasdaq Notice of Deficiency
On March 6, 2020, the Company received written notification from The Nasdaq Stock Market dated March 2, 2020, indicating that because the closing bid price of our common stock for the last 30 consecutive business days was below
Issuance of the Series B preferred shares
On June 12, 2020, the Company entered into a stock purchase agreement and issued 5,000 of our newly-designated Series B Preferred Shares, par value
The issuance of the Series B preferred shares to Goldenmare Limited was approved by an independent committee of the Board of Directors of the Company, which received a fairness opinion from an independent financial advisor that the transaction was for a fair value.
Each Series B preferred share entitles the holder thereof to 25,000 votes per share on all matters submitted to a vote of the shareholders of the Company, provided however, that no holder of Series B preferred shares may exercise voting rights pursuant to Series B preferred shares that would result in the aggregate voting power of any beneficial owner of such shares and its affiliates(whether pursuant to ownership of Series B preferred shares, common shares or otherwise) to exceed
In July 2020, we issued an additional 25,000 of our Series B preferred shares to Goldenmare Limited in return for
In addition, we increased the maximum voting rights under the Series B preferred shares from
Public Offerings
On June 22, 2020, the Company issued 34,285,714 units in an underwritten public offering at a price of
The prefunded warrants are exercisable at any time after their original issuance until exercised in full. The Class A Warrants are exercisable at any time after their original issuance up to the date that is (a) five years after their original issuance. Each of the prefunded warrants and the Class A Warrants will be exercisable, in whole or in part by delivering to us a duly executed exercise notice and, at any time a registration statement registering the issuance of the common shares underlying the warrants under the Securities Act is effective and available for the issuance of such shares, by payment in full in immediately available funds for the number of common shares purchased upon such exercise. If a registration statement registering the issuance of the common shares underlying the warrants under the Securities Act is not effective or available, the holder may, in its sole discretion, elect to exercise the warrant through a cashless exercise, in which case the holder would receive upon such exercise the net number of common shares determined according to the formula set forth in the warrant. The Company may be required to pay certain amounts as liquidated damages as specified in the warrants in the event it does not deliver common shares upon exercise of the warrants within the time periods specified in the warrants.
On June 30, 2020, the Company issued 45,850,000 of its common shares in a registered direct offering and 45,850,000 warrants (“PP Warrants”) in a concurrent private placement for a purchase price of
The PP Warrants are exercisable for a period of five and one-half years commencing on the date of issuance. The warrants will be exercisable, at the option of each holder, in whole or in part by delivering to us a duly executed exercise notice with payment in full in immediately available funds for the number of common shares purchased upon such exercise. If a registration statement registering the resale of the common shares underlying the private placement warrants under the Securities Act is not effective or available at any time after the six-month anniversary of the date of issuance of the private placement warrants, the holder may, in its sole discretion, elect to exercise the private placement warrant through a cashless exercise, in which case the holder would receive upon such exercise the net number of common shares determined according to the formula set forth in the warrant. If the Company does not issue the shares in a timely fashion, the warrant contains certain liquidated damages provisions.
On July 21, 2020, the Company issued 83,333,333 of its common shares in a registered direct offering and 83,333,333 of its July PP Warrants to purchase common shares in a concurrent private placement for a purchase price of
The PP Warrants are exercisable for a period of five and one-half years commencing on the date of issuance. The warrants will be exercisable, at the option of each holder, in whole or in part by delivering to us a duly executed exercise notice with payment in full in immediately available funds for the number of common shares purchased upon such exercise. If a registration statement registering the resale of the common shares underlying the private placement warrants under the Securities Act is not effective or available at any time after the six-month anniversary of the date of issuance of the private placement warrants, the holder may, in its sole discretion, elect to exercise the private placement warrant through a cashless exercise, in which case the holder would receive upon such exercise the net number of common shares determined according to the formula set forth in the warrant. If the Company does not issue the shares in a timely fashion, the warrant contains certain liquidated damages provisions.
From June 22, 2020 till today, the Company issued 555,000 common shares pursuant to exercises of outstanding Class A Warrants. As of September 25, 2020, no PP Warrants had been exercised.
LIBOR will be replaced as the reference rate under debt obligations
On July 27, 2017, the UK Financial Conduct Authority announced that it would phase out LIBOR by the end of 2021. As a result, lenders have insisted on provisions that entitle the lenders, in their discretion, to replace published LIBOR as the basis for the interest calculation with their cost-of-funds rate. Certain of the Company’s existing financing arrangements, provide for the use of replacement rates if LIBOR is discontinued. The Company is in the process of evaluating the impact of LIBOR discontinuation. While it cannot predict the effect of the potential changes to LIBOR or the establishment and use of alternative rates or benchmarks, the interest payable on debt could be subject to volatility and the lending costs could increase, which would have an adverse effect on the Company’s profitability, earnings and cash flow.
Results of Operations
Second quarter of the year 2020 compared to the second quarter of the year 2019
Total comprehensive loss for the second quarter of the year 2020 amounted to
The following table corresponds to the breakdown of the factors that led to the decrease in total comprehensive loss during the second quarter of 2020 compared to the second quarter of 2019 (expressed in
2nd Quarter of 2020 vs 2nd Quarter of 2019
| Net loss for the 2nd quarter of 2019 | (3,001 | ) | ||
| Decrease in voyage revenues | (1,100 | ) | ||
| Decrease in Voyage expenses | 95 | |||
| Decrease in Vessels operating expenses | 248 | |||
| Decrease in Depreciation | 666 | |||
| Decrease in Depreciation of dry docking costs | 91 | |||
| Increase in Total administrative expenses | (96 | ) | ||
| Decrease in Other income, net | (42 | ) | ||
| Decrease in Interest income | (8 | ) | ||
| Decrease in Interest expense and finance costs | 474 | |||
| Decrease in Gain on derivative financial instruments | (1,522 | ) | ||
| Increase in Foreign exchange losses | (2 | ) | ||
| Net loss for the 2nd quarter of 2020 | (4,197 | ) |
Voyage revenues
During the three-month period ended June 30, 2020 and 2019, our Voyage revenues reached
Voyage expenses
Voyage expenses reached
| In | 2020 | 2019 | ||
| Commissions | 29 | 47 | ||
| Bunkers expenses | 545 | 552 | ||
| Other voyage expenses | 6 | 76 | ||
| Total | 580 | 675 |
Vessel operating expenses
Vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oils, insurance, maintenance, and repairs, decreased by
| 2020 | 2019 | |||||
| Crew expenses | 55 | % | 54 | % | ||
| Repairs and spares | 18 | % | 21 | % | ||
| Insurance | 9 | % | 5 | % | ||
| Stores | 9 | % | 11 | % | ||
| Lubricants | 6 | % | 5 | % | ||
| Other | 3 | % | 4 | % |
Average daily operating expenses during the three-month periods ended June 30, 2020 and 2019 were
Depreciation
Depreciation charge during the second quarter of 2020 reached
Interest expense and finance costs
Interest expense and finance costs reached
| In | 2020 | 2019 | ||
| Interest payable on long-term borrowings | 1,002 | 722 | ||
| Bank charges | 7 | 6 | ||
| Operating lease liability interest | 11 | 26 | ||
| Amortization of debt discount | 71 | 221 | ||
| Other finance expenses | 2 | 592 | ||
| Total | 1,093 | 1,567 |
Other finance expenses for the second quarter of 2019 include approximately
First half of the year 2020 compared to the first half of the year 2019
Total comprehensive loss for the first half of the year 2020 amounted to
The following table corresponds to the breakdown of the factors that led to the increase in total comprehensive loss during the first half of 2020 compared to the first half of 2019 (expressed in
1st half of 2020 vs 1st half of 2019
| Net loss for the 1st half of 2019 | (3,473 | ) | ||
| Decrease in voyage revenues | (2,353 | ) | ||
| Increase in Voyage expenses | (788 | ) | ||
| Decrease in Vessels operating expenses | 276 | |||
| Decrease in Depreciation | 1,172 | |||
| Decrease in Depreciation of dry docking costs | 54 | |||
| Decrease in Total administrative expenses | 11 | |||
| Increase in Impairment loss | (4,615 | ) | ||
| Decrease in Other income, net | (78 | ) | ||
| Increase in Interest income | 3 | |||
| Decrease in Interest expense and finance costs | 36 | |||
| Decrease in Gain on derivative financial instruments | (3,440 | ) | ||
| Increase in Foreign exchange losses | (4 | ) | ||
| Net loss for the 1st half of 2020 | (13,199 | ) |
Voyage revenues
During the six-month period ended June 30, 2020 and 2019, our Voyage revenues reached
Voyage expenses
Voyage expenses reached
| In | 2020 | 2019 | ||
| Commissions | 61 | 93 | ||
| Bunkers expenses | 1,825 | 965 | ||
| Other voyage expenses | 89 | 129 | ||
| Total | 1,975 | 1,187 |
Bunkers expenses for the six-month period ended June 30, 2020 reached
Vessel operating expenses
Vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oils, insurance, maintenance, and repairs, reached
| 2020 | 2019 | |||||
| Crew expenses | 56 | % | 55 | % | ||
| Repairs and spares | 18 | % | 19 | % | ||
| Insurance | 8 | % | 7 | % | ||
| Stores | 10 | % | 10 | % | ||
| Lubricants | 5 | % | 5 | % | ||
| Other | 3 | % | 4 | % |
Average daily operating expenses during the six-month periods ended June 30, 2020 and 2019 were
Depreciation
Depreciation charge during the first half of 2020 reached
Impairment loss
During the 1st quarter of 2020, the Company concluded that the recoverable amounts of the vessels were lower than their respective carrying amounts and recognized an impairment loss of
Interest expense and finance costs
Interest expense and finance costs reached
| In | 2020 | 2019 | |||
| Interest payable on long-term borrowings | 2,061 | 1,343 | |||
| Bank charges | 12 | 14 | |||
| Operating lease liability interest | 23 | 26 | |||
| Amortization of debt discount | 141 | 250 | |||
| Other finance expenses | 5 | 645 | |||
| Total | 2,242 | 2,278 | |||
As of June 30, 2020, and 2019 we and our vessel-owning subsidiaries had outstanding borrowings under our Loan agreements of an aggregate of
Gain/(Loss) on derivative financial instruments
The loss on the derivative financial instruments is mainly attributed to the conversions and the repayment of the “Convertible Note”. Further to the conversion clause included into the Convertible Note during the 1st half of 2020 a total amount of approximately
Liquidity and capital resources
As of June 30, 2020 and 2019, our cash and bank balances and bank deposits (including restricted cash) were
Net cash used in operating activities for the three-month period ended June 30, 2019 was
Net cash used in operating activities for the six-month period ended June 30, 2020 was
Net cash generated from financing activities during the three-month and six-month period ended June 30, 2020 and 2019 were as follows:
| Three months ended June 30, | Six months ended June 30, | ||||||||
| In | 2020 | 2019 | 2020 | 2019 | |||||
| Proceeds from loans | - | 37,800 | - | 43,700 | |||||
| Proceeds from issuance of share capital | 24,207 | - | 24,207 | - | |||||
| Proceeds from issuance of warrants | 194 | - | 194 | - | |||||
| Transaction costs on issue of new common shares | (532 | ) | - | (532 | ) | - | |||
| Prepayment of long term debt | (2,240 | ) | (33,833 | ) | (2,240 | ) | (33,833 | ) | |
| Repayment of long term debt | - | (694 | ) | - | (1,830 | ) | |||
| Restricted cash | (446 | ) | (659 | ) | (83 | ) | (809 | ) | |
| Payment of financing costs | - | (880 | ) | - | (880 | ) | |||
| Repayment of lease liability | - | (30 | ) | - | (30 | ) | |||
| Interest paid | (1,259 | ) | (1,253 | ) | (1,728 | ) | (1,833 | ) | |
| Net cash generated from financing activities | 19,924 | 451 | 19,818 | 4,485 | |||||
As of June 30, 2020 and 2019 we and our vessel-owning subsidiaries had outstanding borrowings under our Loan agreements of an aggregate of
SELECTED CONSOLIDATED FINANCIAL & OPERATING DATA
| Three months ended | Six months ended | ||||||||
| June 30, | June 30, | ||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||
| (in thousands of U.S. dollars, except per share data) | (unaudited) | (unaudited) | |||||||
| Consolidated statement of comprehensive loss data: | |||||||||
| Voyage revenues | 2,299 | 3,399 | 4,589 | 6,942 | |||||
| Total Revenues | 2,299 | 3,399 | 4,589 | 6,942 | |||||
| Voyage expenses | (580 | ) | (675 | ) | (1, 975 | ) | (1,187 | ) | |
| Vessel operating expenses | (1,981 | ) | (2,229 | ) | (4,038 | ) | (4,314 | ) | |
| Depreciation | (543 | ) | (1,209 | ) | (1,176 | ) | (2,348 | ) | |
| Depreciation of dry docking costs | (365 | ) | (456 | ) | (856 | ) | (910 | ) | |
| Administrative expenses | (426 | ) | (364 | ) | (820 | ) | (827 | ) | |
| Administrative expenses payable to related parties | (92 | ) | (60 | ) | (184 | ) | (188 | ) | |
| Share-based payments | (10 | ) | (10 | ) | (20 | ) | (20 | ) | |
| Impairment loss | - | - | (4,615 | ) | - | ||||
| Other income, net | 7 | 49 | 1 | 79 | |||||
| Operating loss | (1,691 | ) | (1,555 | ) | (9,094 | ) | (2,773 | ) | |
| Interest income | 1 | 9 | 12 | 9 | |||||
| Interest expense and finance costs | (1,093 | ) | (1,566 | ) | (2,242 | ) | (2,278 | ) | |
| Gain / (Loss) on derivative financial instruments | (1,374 | ) | 148 | (1,868 | ) | 1,572 | |||
| Foreign exchange losses, net | (40 | ) | (37 | ) | (7 | ) | (3 | ) | |
| Total finance costs, net | (2,506 | ) | (1,446 | ) | (4,105 | ) | (700 | ) | |
| Total comprehensive loss for the period | (4,197 | ) | (3,001 | ) | (13,199 | ) | (3,473 | ) | |
| Basic & diluted loss per share for the period(1) | (0.39 | ) | (0.74 | ) | (1.58 | ) | (0.95 | ) | |
| Adjusted EBITDA (2) | (783 | ) | 110 | (2,447 | ) | 485 | |||
| (1) | The weighted average number of shares for the six-month period ended June 30, 2020 was 8,339,137 compared to 3,642,256 shares for the six-month period ended June 30, 2019. The weighted average number of shares for the three-month period ended June 30, 2020 was 10,861,371 compared to 4,070,153 shares for the three-month period ended June 30, 2019. |
| (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 total comprehensive 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 total comprehensive loss and net cash used in operating activities for the periods presented:
| Three months ended | Six months ended | ||||||||
| June 30, | June 30, | ||||||||
| (Expressed in thousands of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | |||||
| (Unaudited) | (Unaudited) | ||||||||
| Total comprehensive loss for the period | (4,197 | ) | (3,001 | ) | (13,199 | ) | (3,473 | ) | |
| Interest and finance costs, net | 1,093 | 1,566 | 2,242 | 2,278 | |||||
| Interest income | (1 | ) | (9 | ) | (12 | ) | (9 | ) | |
| Gain / (Loss) on derivative financial instruments | 1,374 | (148 | ) | 1,868 | (1,572 | ) | |||
| Foreign exchange losses, net | 40 | 37 | 7 | 3 | |||||
| Depreciation | 543 | 1,209 | 1,176 | 2,348 | |||||
| Depreciation of dry docking costs | 365 | 456 | 856 | 910 | |||||
| Impairment loss | - | - | 4,615 | - | |||||
| Adjusted EBITDA | (783 | ) | 110 | (2,447 | ) | 485 | |||
| Share-based payments | 10 | 10 | 20 | 20 | |||||
| Payment of deferred dry docking costs | (493 | ) | (128 | ) | (493 | ) | (481 | ) | |
| Net decrease/(increase) in operating assets | 440 | 234 | 365 | (901 | ) | ||||
| Net decrease in operating liabilities | (1,159 | ) | (854 | ) | (1,414 | ) | (873 | ) | |
| Provision for staff retirement indemnities | 2 | (64 | ) | 3 | (63 | ) | |||
| Foreign exchange (losses) net, not attributed to cash & cash equivalents | (10 | ) | (3 | ) | (3 | ) | (5 | ) | |
| Net cash used in operating activities | (1,993 | ) | (695 | ) | (3,969 | ) | (1,818 | ) | |
| Three months ended | Six months ended | ||||||||
| June 30, | June 30, | ||||||||
| (Expressed in thousands of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | |||||
| (Unaudited) | (Unaudited) | ||||||||
| Statement of cash flow data: | |||||||||
| Net cash used in operating activities | (1,993 | ) | (695 | ) | (3,969 | ) | (1,818 | ) | |
| Net cash generated from/(used in) investing activities | 1 | (4 | ) | 12 | (4 | ) | |||
| Net cash provided by financing activities | 19,924 | 451 | 19,818 | 4,485 | |||||
| As of June 30, | As of December 31, | |
| (Expressed in thousands of U.S. Dollars) | 2020 | 2019 |
| (Unaudited) | ||
| Consolidated condensed statement of financial position: | ||
| Vessels, net | 43,167 | 48,242 |
| Other non-current assets | 1,852 | 1,925 |
| Total non-current assets | 45,019 | 50,167 |
| Cash and bank balances and bank deposits | 19,495 | 3,551 |
| Other current assets | 1,573 | 1,938 |
| Total current assets | 21,068 | 5,489 |
| Total assets | 66,087 | 55,656 |
| Total equity | 21,524 | 9,879 |
| Total debt net of unamortized debt discount | 36,706 | 37,746 |
| Other liabilities | 7,857 | 8,031 |
| Total liabilities | 44,563 | 45,777 |
| Total equity and liabilities | 66,087 | 55,656 |
| Consolidated statement of changes in equity: | |||||||
| (Expressed in thousands of U.S. Dollars) | Issued share | Share | (Accumulated | Total | |||
| Capital | Premium | Deficit) | Equity | ||||
| As at December 31, 2019 | 21 | 145,506 | (135,648 | ) | 9,879 | ||
| Loss for the period | - | - | (13,199 | ) | (13,199 | ) | |
| Issuance of common stock due to conversion | 5 | 810 | - | 815 | |||
| Issuance of new common shares | 341 | 23,866 | - | 24,207 | |||
| Issuance of new common shares due to exercise of Warrants | 2 | 192 | - | 194 | |||
| Issuance of Class B preferred shares | - | 150 | - | 150 | |||
| Transaction costs on issue of new common shares | - | (532 | ) | - | (532 | ) | |
| Share-based payments | - | 10 | - | 10 | |||
| As at June 30, 2020 | 369 | 170,002 | (148,847 | ) | 21,524 |
| Three months ended June 30, | Six months ended June 30, | ||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||
| Ownership days (1) | 455 | 455 | 910 | 905 | |||||
| Available days (2) | 455 | 455 | 867 | 905 | |||||
| Operating days (3) | 448 | 438 | 856 | 887 | |||||
| Fleet utilization (4) | 98.5 | % | 96.4 | % | 98.8 | % | 98 | % | |
| Average number of vessels (5) | 5.0 | 5.0 | 5.0 | 5.0 | |||||
| Daily time charter equivalent (TCE) rate (6) | 3,778 | 5,985 | 3,016 | 6,358 | |||||
| Daily operating expenses (7) | 4,353 | 4,898 | 4,437 | 4,767 | |||||
| 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 excluding bareboat charter days, which is consistent with industry standards. TCE is a measure not in accordance with GAAP. |
| (7) | We calculate daily vessel operating expenses by dividing vessel operating expenses by ownership days for the relevant time period excluding bareboat charter days. |
Voyage Revenues to Daily Time Charter Equivalent (“TCE”) Reconciliation
| Three months ended June 30, | Six months ended June 30, | |||
| 2020 | 2019 | 2020 | 2019 | |
| (Unaudited) | (Unaudited) | |||
| Voyage revenues | 2,299 | 3,399 | 4,589 | 6,942 |
| Less: Voyage expenses | 580 | 675 | 1,975 | 1,187 |
| Net revenues | 1,719 | 2,724 | 2,614 | 5,755 |
| Available days net of bareboat charter days | 455 | 455 | 867 | 905 |
| Daily TCE rate (1) | 3,778 | 5,985 | 3,016 | 6,358 |
(1) Subject to rounding.
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 five dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina and other dry bulk cargoes internationally. Globus’ subsidiaries own and operate five vessels with a total carrying capacity of 300,571 Dwt and a weighted average age of 12.3 years as of June 30, 2020.
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 |
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