(i) gain from the sale of a vessel of US$15.1 million,
(ii) non-cash unrealized loss on interest rate derivatives of
US$1.4 million, and
(iii) non-cash impairment charge on fixed assets of US$20.2 million.
Net income for 2008 reached US$42.8 million, an increase of 257% from the
US$12.0 million during 2007. Excluding the US$15.1 million gain from the
sale of the vessel and the US$20.2 million impairment charge, Net Income
was US$47.9 million.
Basic earnings per share of US$1.495 calculated on 28,650,255
weighted-average number of shares and diluted earnings per share of
US$1.481 calculated on 28,907,066 weighted-average number of shares for the
full year ended December 31, 2008, compared to basic and diluted earnings
per share of US$0.4713 on 23,785,402 for the full year 2007.
Cash Flow
Net cash provided by operating activities for the twelve months ended
December 31, 2008 and 2007, was US$73.2 million and US$31.9 million,
respectively. The increase was primarily due to the operation of a larger
fleet and a higher TCE during the period.
Adjustments to reconcile net income to operating cash flows include the
US$15.1 million gain from the sale of the M/V Ocean Globe, the US$1.4
million non-cash loss on interest rate derivatives, the US$20.2 million
non-cash impairment charge on fixed assets, and US$0.8 million in non-cash
share-based payment to the Directors of the Company.
Net cash provided from investing activities was US$24.3 million for the
twelve months ended December 31, 2008 as compared to net cash used in
investing activities of US$184.7 million for the twelve months ended
December 31, 2007. While for 2007 the cash was mostly used for vessel
acquisitions, during 2008, cash provided from investing activities
primarily relates to the proceeds from the sale of the M/V Ocean Globe in
the amount of US$36.7 million, offset by investing US$10.0 million in a
Time Deposit for four months.
Net cash used in financing activities for the twelve months ended December
31, 2008 was US$72.9 million as compared to net cash provided by financing
activities of US$159.8 million for the twelve months ended December 31,
2007. For the twelve months ended December 31, 2008, net cash used in
financing activities mainly consisted of the drawdown of the new loan of
US$85.0 million from Deutsche Schiffsbank in March, offset by the repayment
of US$120.6 million of bank debt (including the full repayment of the 2006
HSH Nordbank credit facility in March), the payment of both the 2007-final
dividend plus the 2008-interim dividends totalling US$18.5 million, and the
pledge of a deposit of US$21.4 million.
Scheduled Vessel Repairs
1. the M/V "Tiara Globe" underwent her scheduled repairs during Q1-08 and Q2-08; 2. the M/V "Island Globe" completed her scheduled repairs during Q2-08; 3. the M/V "Sea Globe" completed her scheduled repairs during Q4-08.The US$2.8 million cost of these scheduled repairs was funded with cash from operations and will be amortized over the next two and a half years. The M/V "Gulf Globe" is scheduled for dry-docking in Q2-09, while the M/V "Lake Globe" and M/V "Coral Globe" are scheduled for repairs during Q3-09 and Q4-09 respectively. We budget 20 days per dry docking per vessel. Actual length will vary based on the condition of each vessel, yard schedules, and other factors. Depreciation and Dry Dock Amortization Expenses Depreciation of fixed assets reached US$17.4 million in 2008 versus US$10.2 million during 2007. The Company continues the policy to depreciate vessels over a useful life of 25 years, on a straight line basis down to their scrap value calculated at their lightweight at US$200 per tonne. Dry Dock Amortization reached US$1.6 million in 2008 as compared to US$1 million in 2007. Interest and Finance Expenses Interest and Finance expenses increased to US$7.7 million versus US$5.6 million in 2007 due to the higher number of vessels. Interest income reached US$1.0 million, 67% higher than the US$0.6 million in 2007 due to the higher cash balances. Following the sale of the M/V "Ocean Globe" on November 12, 2008 for US$37.0 million in cash before commissions and other costs related to the sale, Globus has repaid US$16.1 million to Deutsche Schiffsbank. A quarterly instalment of US$1.8 million plus interest was also paid to this bank on December 29, 2008, which reduced the debt outstanding to this bank to US$62.6 million. Update on Credit Facilities The global economic conditions during the fourth quarter of the 2008, including the significant disruptions in global trade and the slowdown in the availability of credit, had broad effects on our industry. Since September 2008, the spot and time charter rates in the dry bulk market have fallen significantly, and as a result the market values of dry bulk vessels also declined. This sharp correction of vessel values caused a breach of the collateral maintenance covenants in our two bank loans, for which the Company took the following actions ensuring that it will not be affected by the current volatility in asset values:
1. The Company obtained a waiver from Credit Suisse which is valid until January 31, 2010; and 2. As agreed with Deutsche Schiffsbank, the Company pledged an amount of US$21.4 million in favour of the bank. The US$62.6 million is included as a Current Liability on the Balance Sheet.Further to the above steps, on February 12, 2009, the Company voluntarily prepaid the amount of US$3.9 million to Deutsche Schiffsbank, against instalments due in 2009, and thus reduced its debt outstanding to this bank from US$62.6 million to US$58.7 million. This amount was paid from the pledged cash deposit in favour of the bank, which now stands at US$17.6 million.
SELECTED FINANCIAL INFORMATION (Unaudited)
For the 3-Months Ended For the 12-Months Ended
------------------------ ------------------------
(in thousands of US 31 December 31 December 31 December 31 December
dollars) 2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (audited)
Income Statement Data:
Gross Revenue 17,468 13,142 98,597 40,960
Voyage expenses (incl.
commissions) - 2,278 - 748 - 6,674 - 2,245
----------- ----------- ----------- -----------
Net Revenue 15,190 12,394 91,923 38,715
Vessels operating
expenses - 2,864 - 2,417 - 12,537 - 7,639
Administrative expenses - 589 - 1,590 - 4,108 - 3,049
Gain from Sale of
Vessel 15,095 15,095
Impairment Loss - 20,224 - 20,224
Other income / (expenses) - 2 227 408 - 36
Depreciation - 4,068 - 3,128 - 17,407 - 10,212
Amortization of
dry-docking costs - 422 - 296 - 1,572 - 1,033
----------- ----------- ----------- -----------
Operating income before
finance costs 2,116 5,190 51,578 16,746
Interest expense - 1,673 - 1,707 - 7,707 - 5,596
Interest income 464 213 946 577
Loss on Interest Rate
Derivatives - 1,373 - 1,373
Foreign exchange
gains / (losses) - 30 - 20 - 626 298
----------- ----------- ----------- -----------
Profit for the period - 496 3,676 42,818 12,025
----------- ----------- ----------- -----------
EBITDA(8) 5,233 8,614 69,184 27,991
Impairment Loss 20,224 20,224
Gain from Sale of
Vessel - 15,095 - 15,095
Loss on Interest Rate
Derivatives 1,373 1,373
----------- ----------- ----------- -----------
ADJUSTED EBITDA 11,735 75,686
Net Debt(9) to Assets
(at year end) 32% 60%
Net Debt to Book
Capitalization(9)
(at year end) 43% 64%
Cash Flow Data:
Net cash flow from
operating activities 10,614 10,687 73,206 31,936
Net cash flow (used in)/
from investing
activities 26,502 - 100,285 24,254 - 184,732
Net cash flow (used in)/
from financing
activities - 41,401 94,421 - 72,857 159,770
FLEET OPERATING DATA
The following
information is
unaudited
Fleet Data:
Average number of
vessels(1) 7.5 6.3 7.9 5.5
Number of vessels at
end of period 7.0 8.0 7.0 8.0
Ownership days(2) 686 580 2,878 2,017
Available days(3) 670 548 2,808 1,965
Operating days(4) 658 546 2,781 1,837
Fleet utilization(5) 98.2% 99.6% 99.0% 93.5%
Average Daily Results:
Vessel operating
expenses (U.S.
dollars)(6) 4,175 4,167 4,356 3,787
Administrative Expenses
(U.S. dollars) 859 2,741 1,427 1,512
Time Charter Equivalent
rate (U.S. dollars)(7) 22,672 22,617 32,736 19,702
Notes:
(1) Average number of vessels is the number of vessels that constituted the
fleet for the relevant period, as measured by the sum of the number of days
each vessel was a part of the fleet during the period divided by the number
of calendar days in the period.
(2) Ownership days are the aggregate number of days in a period during
which each vessel in the fleet has been owned. Ownership days are an
indicator of the size of the fleet over a period and affect both the amount
of revenues and the amount of expenses that the Company records during a
period.
(3) Available days are the number of ownership days less the aggregate
number of days that the vessels are off-hire due to scheduled repairs or
repairs under guarantee, vessel upgrades or special surveys and the
aggregate amount of time spent positioning the vessels. The shipping
industry uses available days to measure the number of days in a period
during which vessels should be capable of generating revenues.
(4) Operating days are the number of available days in a period less the
aggregate number of days that the vessels are off-hire due to any reason,
including unforeseen circumstances. The shipping industry uses operating
days to measure the aggregate number of days in a period during which
vessels generate revenues.
(5) Fleet utilisation is measured by dividing the number of operating days
during a period by the number of available days during the same period. The
shipping industry uses fleet utilisation to measure a company's efficiency
in finding suitable employment for its vessels and minimising the amount of
days that its vessels are off-hire for reasons other than scheduled repairs
or repairs under guarantee, vessel upgrades, special surveys or vessel
positioning.
(6) Average daily vessel operating expenses, which include crew wages and
related costs, the cost of insurance, expenses relating to repairs and
maintenance, the costs of spares and consumable stores, tonnage taxes and
other miscellaneous expenses, are calculated by dividing vessel operating
expenses by ownership days for the relevant period.
(7) TCE rates are defined as time and voyage charter revenues less voyage
expenses during a period divided by the number of available days during the
period, which is consistent with industry standards. Voyage expenses
include port charges, bunker (fuel oil and diesel oil) expenses, canal
charges and commissions. TCE rate is a standard shipping industry
performance measure used primarily to compare daily earnings generated by
vessels on time charters with daily earnings generated by vessels on voyage
charters, because charter hire rates for vessels on voyage charters are
generally not expressed in per day amounts while charter hire rates for
vessels on time charters are generally expressed in such amounts.
(8) EBITDA has been calculated as follows: Profit + Depreciation +
Depreciation of dry-docking costs + interest expense - interest income + FX
losses (gains).
(9) Net Debt is defined as bank debt net of unamortized fees less cash and
cash equivalents and pledged and restricted deposits. Net Debt to Book
Capitalization is defined as Net Debt divided by the sum of Net Debt and
Total Equity.
Fleet Time Charter Profile as at the day of this press release:
The following tables represent our fleet as on the date of this release
Table 1: Fleet Profile
Year Month/Yr
Vessel Built Yard Type Delivered DWT FLAG
----------- ------- ----------------- -------- ------- -------- -----------
Lake Globe 1994 Hyundai Handymax 12/2006 43,216 Bahamas
----------- ------- ----------------- -------- ------- -------- -----------
Coral Globe 1994 Hyundai Handymax 11/2006 43,189 Bahamas
----------- ------- ----------------- -------- ------- -------- -----------
Gulf Globe 1994 Hyundai Handymax 1/2007 43,245 Bahamas
----------- ------- ----------------- -------- ------- -------- -----------
Sea Globe 1995 Hyundai Handymax 9/2006 43,171 Bahamas
----------- ------- ----------------- -------- ------- -------- -----------
River Globe 2007 Yangzhou Dayang Handymax 12/2007 53,500 Marshall Is
----------- ------- ----------------- -------- ------- -------- -----------
Island Globe 1995 Samsung Panamax 7/2007 73,119 Marshall Is
----------- ------- ----------------- -------- ------- -------- -----------
Tiara Globe 1998 Hudong Zhonghua Panamax 12/2007 72,929 Marshall Is
----------- ------- ----------------- -------- ------- -------- -----------
Weighted 11.6 Years at 31/12/08
Average ------- ----------------- -------- ------- ======== -----------
Age 11.7 Years at 28/02/09 372,369
----------- ------- ----------------- -------- ------- -------- -----------
Table 2: Time Charter Profile
Charter
Expiration Date Gross Daily
Vessel Charterer (Earliest) rate (US$)
-------------------- ----------------- ----------------- -----------------
Lake Globe Currently on Spot Mid May 6,500
-------------------- ----------------- ----------------- -----------------
Coral Globe Currently on Spot Late April 7,000
-------------------- ----------------- ----------------- -----------------
Gulf Globe Currently on Spot Late March 6,000
-------------------- ----------------- ----------------- -----------------
Sea Globe Currently on Spot Ballasting
-------------------- ----------------- ----------------- -----------------
River Globe Currently on Spot Early April 7,500
-------------------- ----------------- ----------------- -----------------
Tiara Globe Korea Line Corp December 2009 66,000
-------------------- ----------------- ----------------- -----------------
Island Globe DS Norden June 2009 30,000
-------------------- ----------------- ----------------- -----------------
GLOBUS MARITIME LIMITED
CONSOLIDATED BALANCE SHEET
At December 31, 2008
(Expressed in thousands of U.S. Dollars, except share and per share data)
December 31,
----------------------
ASSETS 2008 2007
------ ---------- ----------
NON-CURRENT ASSETS
Vessels, net 216,007 273,720
Office furniture and equipment 58 51
Other assets 10 10
---------- ----------
Total non-current assets 216,075 273,781
CURRENT ASSETS
Cash and bank balances and bank deposits 65,342 9,341
Restricted cash - 732
Trade receivables, net 830 35
Inventories 565 553
Prepayments and other assets 1,634 1,058
---------- ----------
Total current assets 68,371 11,719
---------- ----------
TOTAL ASSETS 284,446 285,500
========== ==========
EQUITY AND LIABILITIES
----------------------
EQUITY ATTRIBUTABLE TO SHAREHOLDERS
Share capital 29 29
Share premium 87,600 87,411
Retained earnings 34,154 9,237
---------- ----------
Total shareholders' equity 121,783 96,677
---------- ----------
NON-CURRENT LIABILITIES
Long-term borrowings, net of current portion 79,705 157,039
Provision 30 30
---------- ----------
Total non-current liabilities 79,735 157,069
---------- ----------
CURRENT LIABILITIES
Current portion of long-term borrowings 77,278 25,477
Trade accounts payable 2,212 3,093
Accrued liabilities and other payables 707 745
Derivative financial instruments at fair value
through income statement 1,373 -
Deferred revenue 1,358 2,439
---------- ----------
Total current liabilities 82,928 31,754
---------- ----------
TOTAL LIABILITIES 162,663 188,823
---------- ----------
TOTAL EQUITY AND LIABILITIES 284,446 285,500
========== ==========
GLOBUS MARITIME LIMITED
CONSOLIDATED INCOME STATEMENT
At December 31, 2008
(Expressed in thousands of U.S. Dollars, except share and per share data)
For the year ended
December 31,
2008 2007
--------- ---------
REVENUE:
Time charter revenue 98,597 40,960
EXPENSES & OTHER OPERATING INCOME:
Voyage expenses (6,674) (2,245)
Vessels operating expenses (12,537) (7,639)
Depreciation (17,407) (10,212)
Depreciation of dry docking costs (1,572) (1,033)
Administrative expenses (2,324) (1,476)
Administrative expenses payable to related parties (1,784) (1,573)
Impairment Loss (20,224) -
Gain on sale of vessel 15,095 -
Other income/(expenses) net 408 (36)
--------- ---------
Operating profit before finance costs 51,578 16,746
Interest income 946 577
Interest expense and finance costs (7,707) (5,596)
Loss on derivative financial instruments at fair
value through income statement (1,373) -
Foreign exchange (losses)/gains, net (626) 298
--------- ---------
Total finance costs, net (8,760) (4,721)
--------- ---------
PROFIT FOR THE YEAR 42,818 12,025
========= =========
Attributable to:
Globus Maritime Limited shareholders 42,818 11,210
Minority interest - 815
--------- ---------
42,818 12,025
========= =========
Earnings per share (U.S.$):
- Basic EPS for the year 1.495 0.4713
- Diluted EPS for the year 1.481 0.4713
GLOBUS MARITIME LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended December 31, 2008
(Expressed in thousands of U.S. Dollars, except share and per share data)
Common Stock
------------------------ Total
Issued Share-
Number of Par Share Share Retained Minority holders'
Shares Value Capital Premium Earnings Interest Equity
---------- ----- ------- ------ ------- ------- -------
Balance at
January 1, 2007 7,333 2 14 28,783 940 5,298 35,035
Profit for the
year - - - - 11,210 815 12,025
Issuance of
share capital 402 2 1 - - - 1
Capital
contributions - - - 1,575 - 4,000 5,575
Acquisition of
minority
interest 2,342 2 4 10,109 - (10,113) -
Conversion of
share capital 20,174,154 0.001 - - - - -
Proceeds from
initial public
offering 8,423,333 0.001 10 50,017 - - 50,027
Transaction
costs - - - (3,449) - - (3,449)
Share based
payment 38,666 0.001 - 376 4 - 380
Dividends paid - - - - (2,917) - (2,917)
---------- ----- ------- ------ ------- ------- -------
Balance at
December 31,
2007 28,636,153 0.001 29 87,411 9,237 - 96,677
---------- ----- ------- ------ ------- ------- -------
Profit for the
year - - - - 42,818 - 42,818
Share based
payment 29,297 0.001 - 189 581 - 770
Dividends paid - - - - (18,482) - (18,482)
---------- ----- ------- ------ ------- ------- -------
Balance at
December 31,
2008 28,665,450 0.001 29 87,600 34,154 - 121,783
---------- ----- ------- ------ ------- ------- -------
GLOBUS MARITIME LIMITED.
CONSOLIDATED CASHFLOW STATEMENT
At December 31, 2008
(Expressed in thousands of U.S. Dollars, except share
and per share data)
For the year ended
December 31,
2008 2007
--------- ---------
Cash Flows from Operating Activities:
Profit for the year 42,818 12,025
Adjustments for:
Depreciation 17,407 10,212
Depreciation of deferred dry docking costs 1,572 1,033
Gain on sale of vessel (15,095) -
Impairment Loss 20,224 -
Provision - 30
Loss on derivative financial instruments at fair
value through income statement 1,373 -
Interest expense and finance costs 7,707 5,596
Interest income (946) (577)
Foreign exchange losses/(gains), net 626 (298)
Share based payment 770 380
(Increase)/Decrease in:
Due from related parties - 489
Trade receivables, net (795) (16)
Inventories (12) (171)
Prepayments and other assets (591) (1,020)
Increase/(Decrease) in:
Trade accounts payable (881) 2,480
Due to related parties - (77)
Accrued liabilities and other payables 110 234
Deferred revenue (1,081) 1,616
--------- ---------
Net cash provided by operating activities 73,206 31,936
--------- ---------
Cash Flows from Investing Activities:
Vessel acquisition - (184,841)
Vessels Improvements (307) -
Deferred dry docking costs (2,823) (1,688)
Time deposits with maturity of three months or more (10,000) -
Net proceeds from sale of vessel 36,752 -
Fixed asset purchase (24) (80)
Seller's credit - 1,294
Interest received 656 583
--------- ---------
Net cash provided by/(used in) investing activities 24,254 (184,732)
--------- ---------
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt 95,000 147,000
Repayment of long-term debt (120,635) (30,115)
Contributions to paid-in capital - 5,575
Proceeds from issuance of share capital, net of
transaction costs - 46,593
Pledged Bank deposits (21,400) -
Restricted cash 732 (364)
Payment of financing costs (284) (549)
Dividends paid (18,482) (2,917)
Interest paid (7,788) (5,453)
--------- ---------
Net cash (used in)/provided by financing activities (72,857) 159,770
--------- ---------
Net increase in cash and cash equivalents 24,603 6,974
Net foreign exchange difference (2) 298
Cash and cash equivalents at the beginning of the year 9,341 2,069
Cash and cash equivalents at the end of the year 33,942 9,341
Further Information - Notes to Editors
About Globus Maritime Limited
Globus is a global provider of seaborne transportation services for dry
bulk cargoes, including among others iron ore, coal, grain, cement, and
fertilizers, along worldwide shipping routes. The Company owns and operates
five Handymax vessels and two Panamax vessels, with a weighted average age
of approximately 11.7 years as at February 28, 2008 and a total carrying
capacity of 372,369 dwt. Six of the seven vessels are geared.
Globus is listed on the AIM of the London Stock Exchange under ticker GLBS.
Jefferies International Limited is acting as nominated adviser and broker
to the Company.
Contact Information: For further information please contact: Globus Maritime Limited George Karageorgiou CEO +30 210 960 8300 info@globusmaritime.gr Jefferies International Limited Schuyler Evans Anne Dovigen +44 20 7029 8000 Capital Link - London Annie Evangeli +44 20 3206 1322 globus@capitallink.com Capital Link - New York Ramnique Grewal +1 212 661 7566 globus@capitallink.com