Globus posts lower loss in first half

Globus_Maritime

Globus Maritime, a dry bulk shipping company, today reported its unaudited consolidated operating and financial results for the six month period ended June 30, 2016.

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Management Commentary

Athanasios Feidakis, President, Chief Executive Officer and Chief Financial Officer of Globus Maritime Limited, stated:

“The dry bulk shipping outlook for the remainder of 2016 remains bleak as we continue to deal with a quite large order book for new ships and oversupply continues to remain the biggest thorn in the industry which coupled with the reduced demand for iron ore and coal from both China and India, places most of us in the industry in peril.

“Hence, it has been a very challenging year for us and as a small cap company we have limited control over the supply and demand side of the equation, notwithstanding the above, we have focused on matters and issues that we control mainly our own operating performance through careful work with all our stakeholders.

“In March 2016, we sold the subsidiary Kelty Marine Ltd owner of the m/v Energy Globe to an unaffiliated third party and applied the total net proceeds from the sale to the loan facility held by Commerzbank AG resulting to the remaining principal amount of the loan being written off thus reducing our total debt leverage whilst improving Company’s balance sheet.

“We are also pleased that in April of 2016, we reached amicable agreements with our lenders DVB Bank and HSH Nordbank AG as a result of that the Company received certain waivers and relaxations on its loan covenant as well deferments in certain loan payments due in 2016.

“In April of 2016, the Company transferred from the NASDAQ Global Market to the NASDAQ Capital Market since it no longer met the minimum MVPHS requirements of the first. The Company views this as a positive step since it reinforces its commitment to remain publicly trading.

“Whilst we remain cautious and guarded, we note that all our vessels are deployed at better rates than last year, which allows us to be optimistic about our earnings and cash flow generation capacity in the near future. We continue to be committed and unrelenting in our intention forging ahead.”

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