Globus Maritime Limited Reports Financial Results for the quarter and nine-month period ended September 30, 2021
Globus Maritime Limited (GLBS) reported a significant turnaround in its financial performance for the nine-month period ended September 30, 2021. Total revenues surged 217% to $24.8 million, driven by increased voyage revenues and time charter rates. The company achieved a comprehensive income of $4.8 million, reversing a loss of $14.5 million from the previous year. Cash and bank balances grew by 222% to $67.9 million. The Adjusted EBITDA rose to $12.2 million, indicating improved operational efficiency, despite increased vessel operating expenses. Management remains optimistic about market conditions.
- Total revenues increased 217% to $24.8 million for 9M2021.
- Total comprehensive income amounted to $4.8 million, compared to a loss of $14.5 million in 9M2020.
- Adjusted EBITDA increased by approximately $14.3 million compared to 9M2020.
- Cash and bank balances rose 222% to $67.9 million as of September 30, 2021.
- Daily Time Charter Equivalent rate increased from $4,191 to $13,325.
- Average operating expenses per vessel per day increased from $4,422 to $5,278.
- Total administrative expenses rose to $2.3 million from $1.7 million in 9M2020.
GLYFADA, Greece, Nov. 30, 2021 (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 quarter and nine-month period ended September 30, 2021.
Financial Highlights
- In 9M2021, Total revenues increased by about
217% compared to 9M2020. - For the 9M2021 the Total comprehensive income amounted to
$4.8 million compared to a Total comprehensive loss of$14.5 million for 9M2020. - The Adjusted EBITDA for 9M2021 increased by about 14.3 million compared to 9M2020.
- As at September 30, 2021, and December 31, 2020, our cash and bank balances and bank deposits (including restricted cash) were
$67.9 and$21.1 million , respectively, an increase of222% . - As at September 30, 2021, the total outstanding borrowings under our Loan agreements decreased to
$33 million compared to$37 million as at December 31, 2020, gross of unamortized debt discount, a decrease of about11% .
| Three months ended September 30, | Nine months ended September 30, | |||||
| (Expressed in thousands of U.S dollars except for daily rates and per share data) | 2021 | 2020 | 2021 | 2020 | ||
| Total revenues | 12,755 | 3,183 | 24,751 | 7,772 | ||
| Total comprehensive income/(loss) | 5,576 | (1,267 | ) | 4,787 | (14,466 | ) |
| Adjusted EBITDA (1) | 7,814 | 294 | 12,175 | (2,153 | ) | |
| Basic and Diluted income/(loss) per share (2) | 0.27 | (0.80 | ) | 0.37 | (24.76 | ) |
| Daily Time charter equivalent rate (“TCE”) (3) | 17,057 | 6,404 | 13,325 | 4,191 | ||
| Average operating expenses per vessel per day | 4,981 | 4,391 | 5,278 | 4,422 | ||
| Average number of vessels | 7.8 | 5.0 | 6.7 | 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 operating activities, which are the most directly comparable financial measures calculated and presented in accordance with the GAAP measures. |
| (2) | The basic and diluted weighted average number of shares for the nine-month period ended September 30, 2021, was 12,865,496 compared to 584,158 shares for the nine-month period ended September 30, 2020. The basic and diluted weighted average number of shares for the three-month period ended September 30, 2021, was 20,467,086 compared to 1,574,877 shares for the three-month period ended September 30, 2020. |
| (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 at the date of this press release, Globus’ subsidiaries own and operate nine dry bulk carriers, consisting of four Supramax, one Panamax and four Kamsarmax.
| 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. |
| Galaxy Globe | 2015 | Hudong-Zhonghua | Kamsarmax | October 2020 | 81,167 | Marshall Is. |
| Diamond Globe | 2018 | Jiangsu New Yangzi Shipbuilding Co. | Kamsarmax | June 2021 | 82,027 | Marshall Is. |
| Power Globe | 2011 | Universal Shipbuilding Corporation | Kamsarmax | July 2021 | 80,655 | Marshall Is. |
| Orion Globe | 2015 | Tsuneishi Zosen | Kamsarmax | November 2021 | 81,837 | Marshall Is. |
| Weighted Average Age: 10.1 Years as at November 30, 2021 | 626,257 | |||||
Current Fleet Deployment
All our vessels are currently operating on short-term time charters (“on spot”).
Management Commentary
“The third quarter of 2021 was pivotal for our company -- it signified the return to profit after a prolonged time of depressed market conditions. We were pleased that the market moved to higher territories and provided rates for our vessels not seen in a long time. We remain optimistic on the supply and demand fundamentals of the market for the near and medium term.
We continue to operate on short term spot charters in order to try and fully utilize the market dynamics. We expect short-term fluctuations and generally take into account the volatility involved in market seasonality as we examine market opportunities.
This quarter was the first quarter that we fully benefited from our previously announced refinancing arrangements as it is indicated in our financing costs stated for the period. We continue to scan the market for financing options that best suit our needs and plans for the future. At the same time, we are evaluating possible vessel candidates in our constant effort for fleet expansion and renewal.
COVID-19 continues to significantly affect our market and our operations. We remain vigilant to the inefficiencies and issues related to the pandemic that affect trade routes, ports and charterer operations. We remain committed at these tough times to support and help our crew on board of our vessels, and to take care of their needs.
Last but not least we are confident that we are well positioned to reap the benefits of a robust market and we believe that our balance sheet is strong enough to support future growth and expansion.”
Management Discussion and Analysis of the Results of Operations
Recent Developments
Issuance of the Series B preferred shares
On March 2, 2021, we issued an additional 10,000 of our Series B Preferred Shares to Goldenmare Limited in return for
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.
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
As at September 30, 2021, Goldenmare Limited owned 10,300 of the Company’s Series B preferred shares.
Public Offerings
On January 13, 2021, the remaining pre-funded warrants from the December 2020 Pre-Funded Warrants were exercised and 130,000 common shares, par value
On January 27, 2021, the Company entered into a securities purchase agreement with certain unaffiliated institutional investors to issue (a) 2,155,000 common shares, par value
The January 2021 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 the Company 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 issuance of the common shares underlying the warrants under the Securities Act is not effective, 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. If the Company does not issue the shares in a timely fashion, the warrant contains certain liquidated damages provisions.
On February 12, 2021, the Company entered into a securities purchase agreement with certain unaffiliated institutional investors to issue (a) 3,850,000 common shares par value
The February 2021 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 the Company 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 issuance of the common shares underlying the warrants under the Securities Act is not effective, 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. If the Company does not issue the shares in a timely fashion, the warrant contains certain liquidated damages provisions.
On June 25, 2021, the Company entered into a securities purchase agreement with certain unaffiliated institutional investors to issue (a) 8,900,000 common shares par value
The June 2021 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 the Company 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 issuance of the common shares underlying the warrants under the Securities Act is not effective, 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. If the Company does not issue the shares in a timely fashion, the warrant contains certain liquidated damages provisions.
The total outstanding number of warrants as at September 30, 2021, was 19,701,120 to purchase an aggregate of 19,701,120 common shares.
Acquisition of new vessels
On June 9, 2021, the Company took delivery of the m/v “Diamond Globe”, a 2018-built Kamsarmax dry bulk carrier, through its subsidiary, Argo Maritime Limited, for a purchase price of
On July 20, 2021, the Company took delivery of the m/v “Power Globe”, a 2011-built Kamsarmax dry bulk carrier, through its subsidiary, Talisman Maritime Limited, for a purchase price of
On November 29, 2021, the Company took delivery of the m/v “Orion Globe”, a 2015-built Kamsarmax dry bulk carrier, through its subsidiary, Salaminia Maritime Limited, for a purchase price of
Debt financing
In March 2021, the Company prepaid
On May 10, 2021, the Company reached an agreement with CiT Bank N.A. for a loan facility of
Impact of COVID-19 on the Company’s Business
The spread of the COVID-19 virus, which has been declared a pandemic by the World Health Organization in 2020 had caused substantial disruptions in the global economy and the shipping industry, as well as significant volatility in the financial markets.
The measures taken by governments worldwide in response to the outbreak, which included numerous factory closures, self-quarantining, and restrictions on travel, as well as potential labour shortages resulting from the outbreak, had slowed down production of goods worldwide and decreased the amount of goods exported and imported worldwide.
Crewing and Crew management operations.
Due to COVID-19 there are restrictions on travelling on many jurisdictions. We may face problems in the embarkation and disembarkation our crew members. Many airports around the world as well as many countries impose heavy travel restrictions such as quarantine periods for incoming and outgoing travelers. By extent it is increasingly hard, if not restrictive, for our crews to be relieved by new crew members. We continue to monitor the situation with respect and utmost care for our seafarers, always communicating with the relevant authorities in order to assist them as much as we can in these unprecedented times.
Disruption in operations in case crew members get infected.
In case one of our crew members is found to be infected by COVID-19 this may lead to delays in cargo operations. It may also need to a detention and quarantine of the ship for an unspecified amount of time. Relevant authorities may require us to perform disinfection and fumigation operations if a crew member gets infected by COVID-19. Crew members may be quarantined if a member is found to be infected. The above may lead to increased costs and lower utilization of our fleet.
Dry docking and Repairs.
Repair yards and dry docks in the Far East, usually selected for the scheduled maintenance of our vessels, may be affected by the closures and travel restrictions in their countries. Shipyard staff and third-party experts as well as spare parts may be harder to procure and provide making the maintenance process potentially lengthier, costlier or unfeasible. Spare parts and supplies may be harder to produce and deliver to a shipyard where they would be utilized for a scheduled maintenance. In addition to the above, and always relating to COVID-19 travel restrictions, it will be difficult for our in-house technical teams to travel to the shipyards in order to monitor the maintenance process, so the maintenance may have to be postponed or 3rd party monitoring technical crews will be hired. Finally, classification society surveyor attendance may be restricted thus not only affecting the time spent within a repair facility but also causing scheduled survey work to be postponed as far as this is permissible.
Effect on the following technical department activities yet not limited to:
- Logistics and supply of spares and expert services may incur increased costs and disruption in Planned Maintenance and consequently lead to increased failures / incidents.
- Office Personnel attendance is disrupted or impossible, which can have as a result inadequate supervision and lead to increased incidents in third party inspection and reduced maintenance quality.
- Long-Term planned maintenance (dry docking) unsupervised by company personnel, that can result to lower quality and increased costs.
- Delays in class surveys, which can lead to postponements.
The above ultimately are translated to possible increased costs and reduced maintenance quality which in the long term shall spiral to cost increases again as the aftermath shall have to be dealt with. However, there are presently insufficient statistics to reach to prediction model as regards to the actual increase in costs due to the above disruptions.
The Company has evaluated the impact of current economic situation on the recoverability of the carrying amount of its vessels. During the first nine months of 2020, the Company concluded that events and circumstances triggered the existence of potential impairment of its vessels. These indicators included volatility in the charter market as well as the potential impact the current marketplace may have on the future operations. As a result, the Company performed an impairment assessment of the Company’s vessels by comparing the discounted projected net operating cash flows for each vessel to her carrying values. For the first nine months of 2020, the Company concluded that the recoverable amounts of the vessels were lower than their carrying amounts and an impairment loss of
Results of Operations
Third quarter of the year 2021 compared to the third quarter of the year 2020
Total comprehensive income for the third quarter of the year 2021 amounted to
The following table corresponds to the breakdown of the factors that led to the increase in total comprehensive income during the third quarter of 2021 compared to the third quarter of 2020 (expressed in
3rd Quarter of 2021 vs 3rd Quarter of 2020
| Net loss for the 3rd quarter of 2020 | (1,267 | ) |
| Increase in Voyage revenues | 9,494 | |
| Increase in Management and consulting fee income | 78 | |
| Increase in Voyage expenses | (297 | ) |
| Increase in Vessels operating expenses | (1,551 | ) |
| Increase in Depreciation | (639 | ) |
| Increase in Depreciation of dry-docking costs | (510 | ) |
| Increase in Total administrative expenses | (228 | ) |
| Increase in Other income, net | 23 | |
| Decrease in Interest income | (1 | ) |
| Decrease in Interest expense and finance costs | 523 | |
| Decrease in Gain on derivative financial instruments | (156 | ) |
| Decrease in Foreign exchange losses | 107 | |
| Net income for the 3rd quarter of 2021 | 5,576 | |
Voyage revenues
During the three-month period ended September 30, 2021, and 2020, our Voyage revenues reached
Management and consulting fee income
On July 15, 2021, the Company entered into a consultancy agreement with Eolos Shipmanagement S.A., a related party, for the purpose of providing consultancy services to Eolos Shipmanagement S.A. For these services the Company receives a daily fee of
Voyage expenses
Voyage expenses reached
| In | 2021 | 2020 |
| Commissions | 181 | 47 |
| Bunkers expenses | 131 | 190 |
| Other voyage expenses | 222 | - |
| Total | 534 | 237 |
This increase is mainly attributed to the increase of the fleet to average of 7.8 vessels during the three-month period ended September 30, 2021, compared to average of 5 vessels during the same period in 2020.
Vessel operating expenses
Vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oils, insurance, maintenance, and repairs, increased by
The breakdown of our operating expenses for the quarters ended September 30, 2021 and 2020 was as follows:
| 2021 | 2020 | |||
| Crew expenses | 60 | % | 55 | % |
| Repairs and spares | 12 | % | 19 | % |
| Insurance | 9 | % | 8 | % |
| Stores | 12 | % | 10 | % |
| Lubricants | 4 | % | 5 | % |
| Other | 3 | % | 3 | % |
Average daily operating expenses during the three-month periods ended September 30, 2021 and 2020 were
Depreciation
Depreciation charge during the third quarter of 2021 reached
Interest expense and finance costs
Interest expense and finance costs reached
| In | 2021 | 2020 | |
| Interest payable on long-term borrowings | 334 | 836 | |
| Bank charges | 8 | 7 | |
| Operating lease liability interest | (24 | ) | 11 |
| Amortization of debt discount | 38 | 75 | |
| Loss on Interest rate Swap | 57 | - | |
| Other finance expenses | 4 | 11 | |
| Total | 417 | 940 | |
The decrease in interest payable is mainly attributed to the decrease of the weighted interest rate, which is attributed to the refinance of the EnTrust loan facility with CiT loan facility in May 2021. The EnTrust loan facility had a margin of
Nine-month period ended September 30, 2021, compared to the nine-month period ended September 30, 2020
Total comprehensive income for the nine-month period ended September 2021 amounted to
The following table corresponds to the breakdown of the factors that led to the decrease in total comprehensive loss during the nine-month period ended September 30, 2021, compared to the nine-month period ended September 30, 2020, (expressed in
9-month period of 2021 vs 9-month period of 2020
| Net loss and total comprehensive loss for the 9-month period of 2020 | (14,466 | ) |
| Increase in voyage revenues | 16,901 | |
| Increase in management and consulting fee income | 78 | |
| Decrease in Voyage expenses | 1,384 | |
| Increase in Vessels operating expenses | (3,573 | ) |
| Increase in Depreciation | (956 | ) |
| Increase in Depreciation of dry-docking costs | (768 | ) |
| Increase in Total administrative expenses | (608 | ) |
| Decrease in Impairment loss | 4,615 | |
| Increase in Other income, net | 143 | |
| Decrease in Interest income | (7 | ) |
| Decrease in Interest expense and finance costs | 255 | |
| Decrease in Loss on derivative financial instruments | 1,646 | |
| Decrease in Foreign exchange loss | 143 | |
| Net income and total comprehensive income for the 9-month period of 2021 | 4,787 | |
Voyage revenues
During the nine-month periods ended September 30, 2021 and 2020, our Voyage revenues reached
Management and consulting fee income
On July 15, 2021, the Company entered into a consultancy agreement with Eolos Shipmanagement S.A., a related party, for the purpose of providing consultancy services to Eolos Shipmanagement S.A. For these services the Company receives a daily fee of
Voyage expenses
Voyage expenses reached
| In | 2021 | 2020 |
| Commissions | 366 | 108 |
| Bunkers expenses | 44 | 2,035 |
| Other voyage expenses | 418 | 69 |
| Total | 828 | 2,212 |
This decrease is mainly attributed to the decreased ballasting days of the fleet during the nine-month period ended September 30, 2021, compared to the same period in 2020.
Vessel operating expenses
Vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oils, insurance, maintenance, and repairs, reached
| 2021 | 2020 | |||
| Crew expenses | 56 | % | 56 | % |
| Repairs and spares | 18 | % | 18 | % |
| Insurance | 8 | % | 8 | % |
| Stores | 11 | % | 10 | % |
| Lubricants | 4 | % | 5 | % |
| Other | 3 | % | 3 | % |
Average daily operating expenses during the nine-month periods ended September 30, 2021 and 2020, were
Depreciation
Depreciation charge during the nine-month period ended September 30, 2021, reached
Total administrative expenses
Total administrative expenses, including administrative expenses to related parties and share bases payments, increased to
Impairment loss
During the first nine months of 2020, the Company concluded that the recoverable amounts of its 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 | 2021 | 2020 | |
| Interest payable on long-term borrowings | 1,637 | 2,897 | |
| Bank charges | 50 | 19 | |
| Operating lease liability interest | 34 | 34 | |
| Amortization of debt discount | 509 | 216 | |
| Other finance expenses | 608 | 16 | |
| Interest and Accrued Interest on Interest rate Swap | 89 | - | |
| Total | 2,927 | 3,182 | |
As at September 30, 2021, and 2020, we and our vessel-owning subsidiaries had outstanding borrowings under our Loan agreements of an aggregate of
Loss on derivative financial instruments
For the period ended September 30, 2020, the loss on the derivative financial instruments is mainly attributed to the valuation of the “Convertible Note” (as defined in note 11 of the Company’s 2020 Annual Report). Further to the conversion clause included into the Convertible Note for the period ended September 30, 2020 a total amount of approximately
Following the new loan facility with CiT Bank N.A. the Company entered into an Interest Rate Swap agreement on May 10, 2021, and recognized a loss of
Capital resources
As at September 30, 2021, and December 31, 2020, our cash and bank balances and bank deposits (including restricted cash) were
Net cash generated from operating activities for the three-month period ended September 30, 2021, was
Net cash generated from operating activities for the nine-month period ended September 30, 2021, was
Net cash used in investing activities for the three-month period ended September 30, 2021, was
Net cash used in investing activities for the nine-month period ended September 30, 2021, was
Net cash (used in)/generated from financing activities during the three-month and nine-month periods ended September 30, 2021 and 2020 were as follows:
| Three months ended September 30, | Nine months ended September 30, | |||||||
| In | 2021 | 2020 | 2021 | 2020 | ||||
| Proceeds from issuance of share capital | - | 13,950 | 89,580 | 38,158 | ||||
| Proceeds from issuance of warrants | 5 | - | 25 | 194 | ||||
| Transaction costs on issue of new common shares | - | (355 | ) | (401 | ) | (888 | ) | |
| Proceeds from loans | - | - | 34,250 | - | ||||
| Repayment of long-term debt | (1,250 | ) | - | (2,743 | ) | - | ||
| Prepayment of long-term debt | - | (800 | ) | (35,507 | ) | (3,040 | ) | |
| Increase in restricted cash | (742 | ) | (356 | ) | (2,417 | ) | (439 | ) |
| Repayment of lease liability | (86 | ) | (160 | ) | (166 | ) | (160 | ) |
| Interest paid | (406 | ) | (1,467 | ) | (2,179 | ) | (3,195 | ) |
| Payment of financing costs | - | - | (545 | ) | - | |||
| Net cash (used in)/generated from financing activities | (2,479 | ) | 10,812 | 79,897 | 30,630 | |||
As at September 30, 2021 and 2020, 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 | Nine months ended | |||||||
| September 30, | September 30, | |||||||
| 2021 | 2020 | 2021 | 2020 | |||||
| (in thousands of U.S. dollars, except per share data) | (unaudited) | (unaudited) | ||||||
| Consolidated statement of comprehensive income / (loss) data: | ||||||||
| Voyage revenues | 12,677 | 3,183 | 24,763 | 7,772 | ||||
| Management and consulting fee income | 78 | - | 78 | - | ||||
| Total Revenues | 12,755 | 3,183 | 24,751 | 7,772 | ||||
| Voyage expenses | (534 | ) | (237 | ) | (828 | ) | (2,212 | ) |
| Vessel operating expenses | (3,571 | ) | (2,020 | ) | (9,631 | ) | (6,058 | ) |
| Depreciation | (1,189 | ) | (549 | ) | (2,681 | ) | (1,725 | ) |
| Depreciation of dry-docking costs | (731 | ) | (222 | ) | (1,846 | ) | (1,078 | ) |
| Administrative expenses | (708 | ) | (538 | ) | (1,783 | ) | (1,358 | ) |
| Administrative expenses payable to related parties | (153 | ) | (95 | ) | (462 | ) | (184 | ) |
| Share-based payments | (10 | ) | (10 | ) | (30 | ) | (30 | ) |
| Impairment loss | - | - | - | (4,615 | ) | |||
| Other income, net | 35 | 11 | 158 | 12 | ||||
| Operating profit/(loss) | 5,894 | (477 | ) | 7,648 | (9,571 | ) | ||
| Interest income | 2 | 3 | 5 | 15 | ||||
| Interest expense and finance costs | (417 | ) | (940 | ) | (2,927 | ) | (3,182 | ) |
| Gain/(Loss) on derivative financial instruments | 64 | 221 | (1 | ) | (1,647 | ) | ||
| Foreign exchange gains/(losses), net | 33 | (74 | ) | 62 | (81 | ) | ||
| Total finance costs, net | (318 | ) | (790 | ) | (2,861 | ) | (4,895 | ) |
| Total comprehensive income / (loss) for the period | 5,576 | (1,267 | ) | 4,787 | (14,466 | ) | ||
| Basic and diluted earnings / (loss) per share for the period (1) | 0.27 | (0.80 | ) | 0.37 | (24.76 | ) | ||
| Adjusted EBITDA (2) | 7,814 | 294 | 12,175 | (2,153 | ) | |||
(1) Shares and per share data give effect to the 1‐for‐100 reverse stock split, effective on October 21, 2020. The weighted average number of shares for the nine-month period ended September 30, 2021 was 12,865,496 compared to 584,158 shares for the nine-month period ended September 30, 2020. The weighted average number of shares for the three-month period ended September 30, 2021 was 20,467,086 compared to 1,574,877 shares for the three-month period ended September 30, 2020.
(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 | Nine months ended | |||||||
| September 30, | September 30, | |||||||
| (Expressed in thousands of U.S. dollars) | 2021 | 2020 | 2021 | 2020 | ||||
| (Unaudited) | (Unaudited) | |||||||
| Total comprehensive income/(loss) for the period | 5,576 | (1,267 | ) | 4,787 | (14,466 | ) | ||
| Interest and finance costs, net | 417 | 940 | 2,927 | 3,182 | ||||
| Interest income | (2 | ) | (3 | ) | (5 | ) | (15 | ) |
| (Gain)/Loss on derivative financial instruments | (64 | ) | (221 | ) | 1 | 1,647 | ||
| Foreign exchange (gains)/losses, net | (33 | ) | 74 | (62 | ) | 81 | ||
| Depreciation | 1,189 | 549 | 2,681 | 1,725 | ||||
| Depreciation of dry-docking costs | 731 | 222 | 1,846 | 1,078 | ||||
| Impairment loss | - | - | - | 4,615 | ||||
| Adjusted EBITDA | 7,814 | 294 | 12,175 | (2,153 | ) | |||
| Share-based payments | 10 | 10 | 30 | 30 | ||||
| Payment of deferred dry-docking costs | (451 | ) | (491 | ) | (2,676 | ) | (984 | ) |
| Net decrease/(increase) in operating assets | (328 | ) | (492 | ) | 351 | (127 | ) | |
| Net (increase)/decrease in operating liabilities | (1,198 | ) | 58 | (1,917 | ) | (1,356 | ) | |
| Provision for staff retirement indemnities | 1 | 1 | (9 | ) | 4 | |||
| Foreign exchange gains/(losses) net, not attributed to cash & cash equivalents | 5 | (24 | ) | (19 | ) | (27 | ) | |
| Net cash generated from/(used in) operating activities | 5,853 | (644 | ) | 7,935 | (4,613 | ) | ||
| Three months ended | Nine months ended | |||||||
| September 30, | September 30, | |||||||
| (Expressed in thousands of U.S. dollars) | 2021 | 2020 | 2021 | 2020 | ||||
| (Unaudited) | (Unaudited) | |||||||
| Statement of cash flow data: | ||||||||
| Net cash generated from / (used in) operating activities | 5,853 | (644 | ) | 7,935 | (4,613 | ) | ||
| Net cash used in investing activities | (14,710 | ) | (54 | ) | (43,435 | ) | (42 | ) |
| Net cash (used in) / generated from financing activities | (2,479 | ) | 10,812 | 79,897 | 30,630 | |||
| As at September 30, | As at December 31, | |
| (Expressed in thousands of U.S. Dollars) | 2021 | 2020 |
| (Unaudited) | ||
| Consolidated condensed statement of financial position: | ||
| Vessels, net | 102,889 | 62,350 |
| Other non-current assets (including non-current restricted cash) | 4,775 | 1,810 |
| Total non-current assets | 107,664 | 64,160 |
| Cash and cash equivalents (including current restricted cash) | 64,404 | 19,853 |
| Other current assets | 2,077 | 2,428 |
| Total current assets | 66,481 | 22,281 |
| Total assets | 174,145 | 86,441 |
| Total equity | 136,245 | 42,094 |
| Total debt net of unamortized debt discount | 32,516 | 36,552 |
| Other liabilities | 5,384 | 7,795 |
| Total liabilities | 37,900 | 44,347 |
| Total equity and liabilities | 174,145 | 86,441 |
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, 2020 | 12 | 195,102 | (153,020 | ) | 42,094 | ||
| Total comprehensive income for the period | - | - | 4,787 | 4,787 | |||
| Issuance of common shares | 60 | 89,520 | - | 89,580 | |||
| Issuance of new common shares due to exercise of Warrants | 10 | 15 | - | 25 | |||
| Issuance of Class B preferred shares | - | 130 | - | 130 | |||
| Transaction costs on issue of new common shares | - | (401 | ) | - | (401 | ) | |
| Share-based payments | - | 30 | - | 30 | |||
| As at September 30, 2021 | 82 | 284,396 | (148,233 | ) | 136,245 |
Operational data
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||
| Ownership days (1) | 717 | 460 | 1,825 | 1,370 | ||||||||
| Available days (2) | 712 | 460 | 1,790 | 1,327 | ||||||||
| Operating days (3) | 696 | 436 | 1,738 | 1,292 | ||||||||
| Fleet utilization (4) | ||||||||||||
| Average number of vessels (5) | 7.8 | 5.0 | 6.7 | 5.0 | ||||||||
| Daily time charter equivalent (TCE) rate (6) | ||||||||||||
| Daily operating expenses (7) | ||||||||||||
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 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. |
Voyage Revenues to Daily Time Charter Equivalent (“TCE”) Reconciliation
| (Expressed in thousands of U.S. Dollars, except TCE rate) | Three months ended September 30, | Nine months ended September 30, | ||||||
| 2021 | 2020 | 2021 | 2020 | |||||
| (Unaudited) | (Unaudited) | |||||||
| Voyage revenues | 12,677 | 3,183 | 24,673 | 7,772 | ||||
| Less: Voyage expenses | 534 | 237 | 828 | 2,212 | ||||
| Net revenues | 12,143 | 2,946 | 23,845 | 5,560 | ||||
| Available days net of bareboat charter days | 712 | 460 | 1,790 | 1,327 | ||||
| Daily TCE rate (1) | ||||||||
(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 nine dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina and other dry bulk cargoes internationally. Globus’ subsidiaries own and operate nine vessels with a total carrying capacity of 626,257 Dwt and a weighted average age of 10.1 years as at November 30, 2021.
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 at 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 |
FAQ
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