Globus Maritime Limited reports year-end financial results

Stock Markets — By on April 11, 2014 at 6:44 PM

Globus Maritime Limited - logoGlobus 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 4th quarter and year ended December 31st, 2013.

As of the date of this press release, Globus’ subsidiaries own and operate seven dry bulk carriers, consisting of four Supramax, two Panamax and one Kamsarmax.

Current Fleet Deployment

The vessels Star Globe, Sky Globe, Moon Globe, River Globe and Tiara Globe are currently operating on short term time charters (“on spot”).

The “Jin Star” is on a bareboat charter with Eastern Media International and Far Eastern Silo & Shipping, that began during June 2010, for a period of five years (which can be extended for one year at the charterer’s option, and thereafter extended one additional year at our option), at $14, 250 per day gross.

The “Sun Globe” is currently on a T/C with Cosco Qingdao until January 2015 at $16, 000 per day gross.  Assuming all charter counterparties fully perform under the terms of the respective charters, and based on the earliest redelivery dates, as of the day of this press release, the Company has secured employment approximately 29% of our fleet days for the rest of 2014.

Management Commentary

George Karageorgiou, President, Chief Executive Officer and Chief Financial Officer of Globus Maritime Limited, stated: “We are very pleased to report a net income of $4.3 million or $0.40 per share for the fourth quarter 2013 and $5.7 million or $0.52 per share for fiscal year 2013. We consider this a solid performance, due in part to our lean, cost‐efficient operations, which saw a 4% decrease year over year, from 2012. We believe that 2014 will be a significant turning point in the trajectory of charter rates, as much of the underlying fundamentals of the dry bulk market have begun to improve. We have positioned the Company to make certain that our vessels are available for employment, in order to have the ability to capture more attractive rates upon a meaningful recovery in charter rates. For 2014, only approximately 29% of our fleet days have secured employment.

“Looking ahead, the fundamentals of the dry bulk market have shown signs of improvement over 2013, significantly and the market has already shown some signs of a potential recovery. Following a lengthy period of oversupply with regards to dry bulk ships, we’ve seen an improvement in the orderbook. In fact, 2013 new building deliveries were 37% lower than in 2012, which led to just 6% growth in the overall fleet – the slowest growth level since 2003. In addition, spot and short term charter rates continue to fluctuate, while asset values have risen throughout the end of 2013 and into the first quarter of 2014. These are strong indicators that the market sentiment is improving, along with the supply‐demand balance.

“In the meantime, we remain committed to our ongoing fleet deployment strategy of short‐term (Spot) time charters that maximize our revenue capability, and capitalize upon a market recovery. We maintain strong competitive advantages which include a modern fleet, tested management, efficient in‐house technical and commercial management, and significant exposure to an improving dry bulk market. We continue to be optimistic about the long‐term fundamentals of the industry in stimulating a more sustainable, long term recovery, one which will bring significant value to Globus, and our loyal shareholders.

Please see the full report here.

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