Globus Maritime reports quarterly basic loss per share $1.07

Globus_Maritime

Globus Maritime reported its unaudited consolidated operating and financial results for the quarter and nine month period ended September 30, 2016.

Management Discussion and Analysis of the Results of Operations

Third quarter of the year 2016 compared to the third quarter of the year 2015

Total comprehensive loss for the third quarter of the year 2016 amounted to $2.8 million or $1.07 basic loss per share based on 2,606,000 weighted average number of shares, compared to total comprehensive loss of $2.5 million for the same period last year or $0.96 basic loss per share based on 2,566,064 weighted average number of shares.

Voyage revenues
During the three-month period ended September 30, 2016 and 2015, our revenue reached $2.5 million and $3.2 million respectively. The 22% decrease in voyage revenues was mainly attributed to the decrease in the average time charter rates achieved by our vessels during the third quarter of 2016 compared to the same period in 2015. Time Charter Equivalent rate (TCE) for the third quarter of 2016 amounted to $5,031 per vessel per day against $5,664 per vessel per day during the same period in 2015 corresponding to a decrease of 11%. There was also a decrease of the average number of vessels of the fleet from 6.1, during the third quarter of 2015, to 5.0 for the respective period in 2016 due to the sale of m/v Tiara Globe in July 2015 and the subsidiary ship-owning company of m/v Energy Globe in March 2016.

Vessel operating expenses
Vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oils, insurance, maintenance, and repairs, decreased by $0.5 million or 19% to $2.1 million during the three month period ended September 30, 2016 compared to $2.6 million during the same period in 2015.

Average daily operating expenses during the three-month periods ended September 30, 2016 and 2015 were $4,483 per vessel per day and $4,704 per vessel per day respectively, corresponding to a decrease of 5%. There was also a decrease of the average number of vessels of the fleet from 6.1, during the third quarter of 2015, to 5.0 for the respective period in 2016 due to the sale of m/v Tiara Globe in July 2015 and the subsidiary ship-owning company of m/v Energy Globe in March 2016.

Total administrative expenses
Total administrative expenses increased by $0.3 million or 50% to $0.9 million during the three month period ended September 30, 2016 compared to $0.6 million during the same period in 2015. This is mainly attributed to the compensation given to the former CEO of the Company.

Nine month period ended September 30, 2016 compared to the nine month period ended September 30, 2015

Total comprehensive loss for the nine month period ended September 30, 2016 amounted to $9.7 million or $3.74 basic loss per share based on 2,595,841 weighted average number of shares, compared to total comprehensive loss of $16.1 million for the same period last year or $6.36 basic loss per share based on 2,566,064 weighted average number of shares.

Voyage revenues
During the nine month period ended September 30, 2016 and 2015, our voyage revenue reached $6.3 million and $10.1 million respectively. The 38% decrease in voyage revenue was mainly attributed to the decrease in the average time charter rates achieved by our vessels during the nine month period ended September 30, 2016 compared to the same period in 2015. Time Charter Equivalent rate (TCE) for the nine month period in 2016 amounted to $3,711 per vessel per day against $4,553 per vessel per day during the same period in 2015 corresponding to a decrease of 18%. There was also a decrease of the average number of vessels of the fleet from 6.7, during the nine months of 2015, to 5.3 for the respective period in 2016 due to the sale of m/v Tiara Globe in July 2015 and the subsidiary ship-owning company of m/v Energy Globe in March 2016.

Voyage expenses
Voyage expenses reached $0.9 million during the nine month period ended September 30, 2016 compared to $1.7 million during the same period last year. Voyage expenses include commissions on revenue, port and other voyage expenses and bunker expenses. Bunker expenses mainly refer to the cost of bunkers consumed during periods that our vessels are travelling seeking employment.

Vessel operating expenses
Vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oils, insurance, maintenance, and repairs, reached $6.3 million during the nine month period ended September 30, 2016 compared to $7.6 million during the same period in 2015.

Average daily operating expenses during the nine month periods ended September 30, 2016 and 2015 were $4,384 per vessel per day and $4,194 per vessel per day respectively, corresponding to an increase of 5%. However, the average number of vessels of the fleet decreased to 5.3, during the nine months of 2016, from 6.7 for the respective period in 2016 and the total expense decreased.

Depreciation
Depreciation charge during the nine month period ended September 30, 2016 decreased by $0.8 million and reached $3.8 million compared to $4.6 million recognized during the same period in 2015. The decrease is attributed to the decrease of the average number of vessels of the fleet from 6.7, during the nine months of 2015, to 5.3 for the respective period in 2016 due to the sale of m/v Tiara Globe in July 2015 and the subsidiary ship-owning company of m/v Energy Globe in March 2016.

Impairment loss
On May 11, 2015 we entered into a memorandum of agreement for the sale of vessel m/v Tiara Globe for a sale price of $5.5 million. On that date, the vessel was classified as held for sale, stopped being depreciated and subsequently measured at its fair value less cost to sell. As a result, we recognized an impairment charge of $7.7 million corresponding to the difference of the vessel’s carrying value at that time and its fair value less cost to sale.

Loss from sale of subsidiary
In March 2016, the Company entered into an agreement with Commerzbank to sell the shares of Kelty Marine Ltd., to an unaffiliated third party and apply the total net proceeds from the sale towards the respective loan facility. Based on certain financial conditions agreed beforehand with the Bank this resulted in the remaining principal amount of the loan to be written off. The financial effect from the sale of Kelty Marine Ltd. resulted to a loss of $0.15 million. Globus Shipmanagement Corp., the Company’s ship management subsidiary continued to act as Kelty Marine Ltd.’s ship manager at $900 per day until June 27, 2016 when it ceased being its manager.

Interest expense and finance costs
Interest expense and finance costs reached $2.1 million during both the nine month period ended September 30, 2016 and 2015. The weighted average interest rate on our debt outstanding during the nine month period ended September 30, 2015 reached 3.68% compared to 2.99% during the same period last year. Our weighted average debt outstanding during the nine month period in 2016 was $68.8 million compared to $81.1 million during the same period last year.

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