Globus Maritime Limited Reports Financial Results for the Quarter and Nine-Month Period Ended September 30, 2020
Globus Maritime Limited (NASDAQ: GLBS) reported significant financial results for Q3 and the nine-month period ending September 30, 2020. Total assets rose to $76.4 million, a 37% increase from $55.7 million in December 2019. Cash and bank balances surged by 550% to $31.2 million. However, total comprehensive loss for Q3 was $1.3 million, with a loss per share of $0.80. Voyage revenues fell 35% to $7.8 million, driven by a 44% drop in daily time charter equivalent rates due to COVID-19 impacts. Management remains optimistic about improving market conditions in 2021.
- Total assets increased to $76.4 million, up 37% from last year.
- Cash and bank balances rose to $31.2 million, an increase of 550%.
- Average operating expenses per vessel per day decreased by 11%, from $4,943 to $4,422.
- Total comprehensive loss of $14.5 million for the nine-month period ended September 30, 2020.
- Voyage revenues decreased by 35% to $7.8 million compared to last year.
- Loss per share was $24.76, compared to a loss of $83.95 in the previous year.
GLYFADA, Greece, Dec. 04, 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 quarter and nine-month period ended September 30, 2020.
- As of September 30, 2020 the Total Assets of the Company were
$76.4 million compared to$55.7 million as of December 31, 2019, an increase of37% . - As of September 30, 2020 and December 31, 2019, our cash and bank balances and bank deposits (including restricted cash) were
$31.2 and$4.8 million respectively, an increase of550% . - As of September 30, 2020 the Total Liabilities of the Company (including Total Debt) were
$42.4 million compared to$45.8 million as of December 31, 2019, a decrease of7% . - For the nine-month period ended September 30, 2020 the average operating expenses decreased to
$4,422 , per vessel/per day, compared to$4,943 for the same period in 2019, a decrease of11% .
Financial Highlights
| Three months ended | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| (Expressed in thousands of U.S dollars except for daily rates and per share data) | 2020 | 2019 | 2020 | 2019 | |||
| Total revenues | 3,183 | 4,946 | 7,772 | 11,888 | |||
| Adjusted EBITDA (1) | 294 | 1,639 | (2,153 | ) | 2,124 | ||
| Total comprehensive income/(loss) | (1,267 | ) | 198 | (14,466 | ) | (3,275 | ) |
| Basic earnings/(loss) per share (2) | (0.80 | ) | 4.47 | (24.76 | ) | (83.95 | ) |
| Daily Time charter equivalent rate (TCE) (3) | 6,404 | 9,863 | 4,191 | 7,539 | |||
| Average operating expenses per vessel per day | 4,391 | 5,288 | 4,422 | 4,943 | |||
| 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 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) | Shares and per share data give effect to the 1‐for‐100 reverse stock split that became effective on October 21, 2020. The weighted average number of shares for the nine-month period ended September 30, 2020 was 584,158 compared to 39,016 shares for the nine-month period ended September 30, 2019. The weighted average number of shares for the three-month period ended September 30, 2020 was 1,574,877 compared to 44,191 shares for the three-month period ended September 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 six dry bulk carriers, consisting of one Panamax, one Kamsarmax and four Supramax vessels.
| 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 | Oct 2020 | 81,167 | Marshall Is. |
| Weighted Average Age: 10.9 Years as of September 30, 2020 | 381,738 | |||||
Current Fleet Deployment
All our vessels are currently operating on short-term time charters (“on spot”).
Management Commentary
“During the third quarter we finally had a glimpse of hope in the market. Rates started to slowly pick up even though there were significant headwinds from the pandemic and the ongoing trade war. The company achieved a high fleet utilization rate while it kept the costs under control and managed to return with positive adjusted EBITDA figures.
We remain optimistic that the dry bulk industry will improve significantly in 2021 and 2022. As the world returns to some form of normality, trade and world GDP are expected to surge dramatically. What is interesting to see at this point in the industry is the historically low order book for new vessels; this means that the increase of new supply introduced in our industry will be also low. These two factors, the increase in world trade activity coupled with the low order book, should increase the worldwide fleet utilization and by extent pressure rates upwards.
In the 3rd Quarter we continued to focus on improving our balance sheet and have remained alert to opportunities for growth. It is along these lines that we completed, as previously announced, an asset acquisition and have taken delivery of a new vessel in October. This is the main theme for the rest of 2020 and the Company is ready to fully take advantage of what we think is going to be an exciting future for our industry. At present, we are looking at several financing options to further expand our fleet in order to fully leverage the operational and technical expertise the company provides.”
Management Discussion and Analysis of the Results of Operations
Recent Developments
Convertible Note
On March 13, 2020, the Company and the holder of the Convertible Note, which is further discussed in the 2019 Annual Report, 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
Gaining Compliance with NASDAQ Capital Market
On March 6, 2020, the Company received written notification from The Nasdaq Stock Market (“Nasdaq”) dated March 2, 2020, indicating that because the closing bid price of its common stock for the last 30 consecutive business days was below
On October 19, 2020 the Company determined to effect a 1‐for-100 reverse stock split in order to regain compliance with the Nasdaq Capital Market concerning the minimum bid price requirement. On October 21, 2020, the Company had the 1‐for‐100 reverse stock split effected and on November 5, 2020 it received notification from Nasdaq that it had regained compliance with the minimum bid price and the matter is now closed.
The 1-for-100 reverse stock split, reduced number of outstanding common shares from 175,675,651 to 1,756,720 shares (adjustments were made based on fractional shares). Unless otherwise noted, all historical share numbers, per share amounts, including common share, preferred shares and warrants, have been adjusted to give effect to this reverse split.
Issuance of the Series B preferred shares
On June 12, 2020, the Company entered into a stock purchase agreement and issued 50 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 250 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 completed its public offering of 342,857 units of the Company, each unit consisting of one common share and one Class A Warrant to purchase one common share (a “Class A Warrant”), for
The pre-funded warrants are exercisable at any time after their original issuance until exercised in full. The Class A Warrants are exercisable at an exercise price of
On June 30, 2020, the Company issued 458,500 of its common shares in a registered direct offering and 458,500 of its June Private Placement (“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 833,333 of its common shares in a registered direct offering and 833,333 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 through to date, the Company issued 5,550 common shares pursuant to exercises of outstanding Class A Warrants. As of December 4, 2020, no PP Warrants had been exercised.
Acquisition of new vessel
On October 29, 2020, the Company took delivery of the M/V “Galaxy Globe”, a 2015-built Kamsarmax dry bulk carrier, it acquired for a purchase price of
Results of Operations
Third quarter of the year 2020 compared to the third quarter of the year 2019
Total comprehensive loss for the third quarter of the year 2020 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 2020 compared to the third quarter of 2019 (expressed in
3rd Quarter of 2020 vs 3rd Quarter of 2019
| Net income for the 3rd quarter of 2019 | 198 | |
| Decrease in voyage revenues | (1,764 | ) |
| Decrease in Voyage expenses | 173 | |
| Decrease in Vessels operating expenses | 412 | |
| Decrease in Depreciation | 672 | |
| Decrease in Depreciation of dry docking costs | 191 | |
| Increase in Total administrative expenses | (182 | ) |
| Decrease in Other expenses, net | 18 | |
| Decrease in Interest income | (18 | ) |
| Decrease in Interest expense and finance costs | 296 | |
| Decrease in Gain on derivative financial instruments | (1,135 | ) |
| Decrease in Foreign exchange gains | (128 | ) |
| Net loss for the 3rd quarter of 2020 | (1,267 | ) |
Voyage expenses
Voyage expenses reached
| In | 2020 | 2019 |
| Commissions | 47 | 77 |
| Bunkers expenses | 190 | 283 |
| Other voyage expenses | - | 50 |
| Total | 237 | 410 |
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 | % | 48 | % |
| Repairs and spares | 19 | % | 27 | % |
| Insurance | 8 | % | 6 | % |
| Stores | 10 | % | 9 | % |
| Lubricants | 5 | % | 6 | % |
| Other | 3 | % | 4 | % |
Average daily operating expenses during the three-month periods ended September 30, 2020 and 2019 were
Depreciation
Depreciation charge during the three-month period ended September 30, 2020, reached
Interest expense and finance costs
Interest expense and finance costs reached
| In | 2020 | 2019 |
| Interest payable on long-term borrowings | 836 | 1,149 |
| Bank charges | 7 | 7 |
| Operating lease liability interest | 11 | 13 |
| Amortization of debt discount | 75 | 65 |
| Other finance expenses | 11 | 2 |
| Total | 940 | 1,236 |
This decrease is mainly due to the decrease of interest payable to EnTrust loan facility attributed to the decrease of LIBOR from
Gain on derivative financial instruments
For the three-month period ended September 30, 2020 the gain on the derivative financial instruments is attributed to the repayment of the total outstanding amount under the Firment Shipping Credit Facility on July 27, 2020. For the three-month period ended September 30, 2019 the gain on the derivative financial instruments is mainly attributed to the valuation of the Convertible Note. As per the conversion clause included in this agreement, the Company has recognized it as a hybrid instrument which includes an embedded derivative. This embedded derivative was separated to the derivative component and the non-derivative host. The derivative component is shown separately from the non-derivative host at fair value. The changes in the fair value of the derivative financial instrument are recognized in the consolidated statement of comprehensive loss. For the three-month period ended September 30, 2019 the Company recognized a gain on this derivative financial instrument amounting to
Nine-month period ended September 30, 2020 compared to the nine-month period ended September 30, 2019
Total comprehensive loss for the nine-month period ended September 2020 amounted to
The following table corresponds to the breakdown of the factors that led to the increase in total comprehensive loss during the nine-month period ended September 30, 2020 compared to the nine-month period ended September 30, 2019 (expressed in
9-month period of 2020 vs 9-month period of 2019
| Net loss and total comprehensive loss for the 9-month period of 2019 | (3,275 | ) |
| Decrease in voyage revenues | (4,116 | ) |
| Increase in Voyage expenses | (615 | ) |
| Decrease in Vessels operating expenses | 689 | |
| Decrease in Depreciation | 1,845 | |
| Decrease in Depreciation of dry docking costs | 245 | |
| Increase in Total administrative expenses | (174 | ) |
| Increase in Impairment loss | (4,615 | ) |
| Decrease in Other income, net | (61 | ) |
| Decrease in Interest income | (15 | ) |
| Decrease in Interest expense and finance costs | 332 | |
| Decrease in Gain on derivative financial instruments | (4,574 | ) |
| Decrease in Foreign exchange gains | (132 | ) |
| Net loss and total comprehensive loss for the 9-month period of 2020 | (14,466 | ) |
Voyage revenues
During the nine-month period ended September 30, 2020 and 2019, our Voyage revenues reached
Voyage expenses
Voyage expenses reached
| In | 2020 | 2019 |
| Commissions | 108 | 170 |
| Bunkers expenses | 2,035 | 1,247 |
| Other voyage expenses | 69 | 180 |
| Total | 2,212 | 1,597 |
Bunkers expenses for the nine-month period ended September 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 | % | 52 | % |
| Repairs and spares | 18 | % | 22 | % |
| Insurance | 8 | % | 7 | % |
| Stores | 10 | % | 9 | % |
| Lubricants | 5 | % | 6 | % |
| Other | 3 | % | 4 | % |
Average daily operating expenses during the nine-month periods ended September 30, 2020 and 2019 were
Depreciation
Depreciation charge during the nine-month period ended September 30, 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 | 2,897 | 2,492 |
| Bank charges | 19 | 21 |
| Operating lease liability interest | 34 | 39 |
| Amortization of debt discount | 216 | 314 |
| Other finance expenses | 16 | 648 |
| Total | 3,182 | 3,514 |
As of September 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
For the period ended September 30, 2020 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 September 30, 2020 and December 31, 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 September 30, 2020 was
Net cash used in operating activities for the nine-month period ended September 30, 2020 was
Net cash generated from/(used in) financing activities during the three-month and nine-month period ended September 30, 2020 and 2019 were as follows:
| Three months ended September 30, | Nine months ended September 30, | |||||||
| In | 2020 | 2019 | 2020 | 2019 | ||||
| Proceeds from loans | - | - | - | 43,700 | ||||
| Proceeds from issuance of share capital | 13,950 | - | 38,158 | - | ||||
| Proceeds from issuance of warrants | - | - | 194 | - | ||||
| Transaction costs on issue of new common shares | (355 | ) | - | (888 | ) | - | ||
| Prepayment of long term debt | (800 | ) | - | (3,040 | ) | (33,833 | ) | |
| Repayment of long term debt | - | - | - | (1,830 | ) | |||
| Increase in restricted cash | (356 | ) | (138 | ) | (439 | ) | (947 | ) |
| Payment of financing costs | - | - | - | (880 | ) | |||
| Repayment of lease liability | (160 | ) | (17 | ) | (160 | ) | (47 | ) |
| Interest paid | (1,467 | ) | (1,026 | ) | (3,195 | ) | (2,859 | ) |
| Net cash (used in)/generated from financing activities | 10,812 | (1,181 | ) | 30,630 | 3,304 | |||
As of September 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 | Nine months ended | |||||||
| September 30, | September 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 | 3,183 | 4,946 | 7,772 | 11,888 | ||||
| Total Revenues | 3,183 | 4,946 | 7,772 | 11,888 | ||||
| Voyage expenses | (237 | ) | (410 | ) | (2,212 | ) | (1,597 | ) |
| Vessel operating expenses | (2,020 | ) | (2,433 | ) | (6,058 | ) | (6,747 | ) |
| Depreciation | (549 | ) | (1,222 | ) | (1,725 | ) | (3,570 | ) |
| Depreciation of dry-docking costs | (222 | ) | (413 | ) | (1,078 | ) | (1,323 | ) |
| Administrative expenses | (538 | ) | (359 | ) | (1,358 | ) | (1,186 | ) |
| Administrative expenses payable to related parties | (95 | ) | (89 | ) | (279 | ) | (277 | ) |
| Share-based payments | (10 | ) | (10 | ) | (30 | ) | (30 | ) |
| Impairment loss | - | - | (4,615 | ) | - | |||
| Other (expenses)/income, net | 11 | (6 | ) | 12 | 73 | |||
| Operating profit/(loss) before financing activities | (477 | ) | 4 | (9,571 | ) | (2,769 | ) | |
| Interest income | 3 | 21 | 15 | 30 | ||||
| Interest expense and finance costs | (940 | ) | (1,236 | ) | (3,182 | ) | (3,514 | ) |
| Gain on derivative financial instruments | 221 | 1,355 | (1,647 | ) | 2,927 | |||
| Foreign exchange gains/(losses), net | (74 | ) | 54 | (81 | ) | 51 | ||
| Total finance costs, net | (790 | ) | 194 | (4,895 | ) | (506 | ) | |
| Total comprehensive income/(loss) for the period | (1,267 | ) | 198 | (14,466 | ) | (3,275 | ) | |
| Basic & diluted (loss)/earnings per share for the period (1) | (0.80 | ) | 4.47 | (24.76 | ) | (83.95 | ) | |
| Adjusted EBITDA (2) | 294 | 1,639 | (2,153 | ) | 2,124 | |||
(1) Shares and per share data give effect to the 1‐for‐100 reverse stock split that became effective on October 21, 2020. The weighted average number of shares for the nine-month period ended September 30, 2020 was 584,158 compared to 39,016 shares for the nine-month period ended September 30, 2019. The weighted average number of shares for the three-month period ended September 30, 2020 was 1,574,877 compared to 44,191 shares for the three-month period ended September 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 income/(loss) and net cash generated from/(used in) operating activities for the periods presented:
| Three months ended September 30, | Nine months ended September 30, | |||||||
| (Expressed in thousands of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | ||||
| (Unaudited) | (Unaudited) | |||||||
| Total comprehensive (loss)/income for the period | (1,267 | ) | 198 | (14,466 | ) | (3,275 | ) | |
| Interest and finance costs, net | 940 | 1,236 | 3,182 | 3,514 | ||||
| Interest income | (3 | ) | (21 | ) | (15 | ) | (30 | ) |
| (Loss)/Gain on derivative financial instruments | (221 | ) | (1,355 | ) | 1,647 | (3,009 | ) | |
| Foreign exchange losses/(gains) net, | 74 | (54 | ) | 81 | (51 | ) | ||
| Depreciation | 549 | 1,222 | 1,725 | 3,570 | ||||
| Depreciation of dry-docking costs | 222 | 413 | 1,078 | 1,323 | ||||
| Impairment loss | - | - | 4,615 | - | ||||
| Adjusted EBITDA | 294 | 1,639 | (2,153 | ) | 2,124 | |||
| Share-based payments | 10 | 10 | 30 | 30 | ||||
| Payment of deferred dry-docking costs | (491 | ) | (369 | ) | (984 | ) | (850 | ) |
| Net (increase)/decrease in operating assets | (492 | ) | 186 | (127 | ) | (715 | ) | |
| Net increase/(decrease) in operating liabilities | 58 | (626 | ) | (1,356 | ) | (1,499 | ) | |
| Provision for staff retirement indemnities | 1 | 1 | 4 | (62 | ) | |||
| Foreign exchange (losses)/gains net, not attributed to cash & cash equivalents | (24 | ) | 6 | (27 | ) | 1 | ||
| Net cash (used in)/generated from operating activities | (644 | ) | 847 | (4,613 | ) | (971 | ) | |
| Three months ended | Nine months ended | |||||||
| September 30, | September 30, | |||||||
| (Expressed in thousands of U.S. dollars) | 2020 | 2019 | 2020 | 2019 | ||||
| (Unaudited) | (Unaudited) | |||||||
| Statement of cash flow data: | ||||||||
| Net cash generated from/(used in) operating activities | (644 | ) | 847 | (4,613 | ) | (971 | ) | |
| Net cash generated from/(used in) investing activities | (54 | ) | 21 | (42 | ) | 17 | ||
| Net cash (used in)/generated from financing activities | 10,812 | (1,181 | ) | 30,630 | 3,304 | |||
| As of September 30, | As of December 31, | |
| (Expressed in thousands of U.S. Dollars) | 2020 | 2019 |
| (Unaudited) | ||
| Consolidated condensed statement of financial position: | ||
| Vessels, net | 42,523 | 48,242 |
| Other non-current assets | 1,820 | 1,925 |
| Total non-current assets | 44,343 | 50,167 |
| Cash and bank balances and bank deposits | 29,965 | 3,551 |
| Other current assets | 2,065 | 1,938 |
| Total current assets | 32,030 | 5,489 |
| Total assets | 76,373 | 55,656 |
| Total equity | 34,022 | 9,879 |
| Total debt net of unamortized debt discount | 36,474 | 37,746 |
| Other liabilities | 5,877 | 8,031 |
| Total liabilities | 42,351 | 45,777 |
| Total equity and liabilities | 76,373 | 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 | - | 145,527 | (135,648 | ) | 9,879 | ||
| Loss for the period | - | - | (14,466 | ) | (14,466 | ) | |
| Issuance of common shares due to conversion | - | 815 | - | 815 | |||
| Issuance of new common shares | 7 | 38,151 | - | 38,158 | |||
| Issuance of new common shares due to exercise of Warrants | - | 194 | - | 194 | |||
| Issuance of Class B preferred shares | - | 300 | - | 300 | |||
| Transaction costs on issue of new common shares | - | (888 | ) | - | (888 | ) | |
| Share-based payments | - | 30 | - | 30 | |||
| As at September 30, 2020 | 7 | 184,129 | (150,114 | ) | 34,022 |
| Three months ended September 30, | Nine months ended September 30, | |||||||
| 2020 | 2019 | 2020 | 2019 | |||||
| Ownership days (1) | 460 | 460 | 1,370 | 1,365 | ||||
| Available days (2) | 460 | 460 | 1,327 | 1,365 | ||||
| Operating days (3) | 436 | 457 | 1,292 | 1,343 | ||||
| Fleet utilization (4) | ||||||||
| Average number of vessels (5) | 5.0 | 5.0 | 5.0 | 5.0 | ||||
| Daily time charter equivalent (TCE) rate (6) | 6,404 | 9,863 | 4,191 | 7,539 | ||||
| Daily operating expenses (7) | 4,391 | 5,288 | 4,422 | 4,943 | ||||
| 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 September 30, | Nine months ended September 30, | |||
| 2020 | 2019 | 2020 | 2019 | |
| (Unaudited) | (Unaudited) | |||
| Voyage revenues | 3,183 | 4,946 | 7,772 | 11,888 |
| Less: Voyage expenses | 237 | 410 | 2,212 | 1,597 |
| Net revenues | 2,946 | 4,536 | 5,560 | 10,291 |
| Available days net of bareboat charter days | 460 | 460 | 1,327 | 1,365 |
| Daily TCE rate (1) | 6,404 | 9,863 | 4,191 | 7,539 |
(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 six dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina and other dry bulk cargoes internationally. Globus’ subsidiaries own and operate six vessels with a total carrying capacity of 381,738 Dwt and a weighted average age of 10.9 years as of September 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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