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Globus Maritime gets boost from analysts |
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Friday, 12 March 2010 |
 Two separate market analysts have reiterated their positive stance on Globus Maritime, the AIM-listed dry bulk company, based in Athens. The company recently announced its financial year 2009 and fourth quarter results. It reported net income (adjusted) of $19 million, a net loss of $10.1 million and EPS (earnings per share) of $0.35.
As a result of incurring losses the company won’t provide dividends on
2009 results, as was expected.
Clarskon Investement Services issued an analysis rating on Globus’
stock. The most interesting thing is that it raised its target price
price to GBp 140.00 (prev. GBp 125.00) and amend its recommendation to
‘Accumulate’ from ’Hold’. “We continue maintaining a cautious stance in
view of the demand/ supply imbalance in the dry bulk market” said
Clarkson. In justifying its recommendation, it said that Globus
Maritime’s “2009 results were slightly ahead of our and consensus
expectations. The company navigated a tough year, benefiting from the
recovery in the dry bulk market due to some vessels operating in the
spot/ short-term market after expiry of contracts. The company sold
three vessels in 2009 reducing debt significantly but was impacted by
losses on sale of vessels and impairment charges. The average time
charter equivalent earnings for FY 2009 stood at US$ 21,550 per day with
98.6% fleet utilisation.
The company presently has one handymax and one panamax bulk carrier in
its fleet. With the panamax bulk carrier fixed on minimum two-year
charter, the forward contract coverage stands at 50%. The company’s net
cash position and low debt with revolver credit facility from Credit
Suisse enables it to look for attractive vessel acquisitions. Post
results, we revise our forecasts slightly upwards with 2010 net revenues
at US$ 12.7m (prev. US$ 12.3m) and net loss at US$ 0.3m (prev. US$
0.9m). We expect accretive vessel acquisitions over the year to
strengthen the bottom line” concluded the report.
In a separate analysis, Panmure Gordon & Co Plc. also said that
Globus’ full year results were marginally better than it had forecasted.
“Following the completion of its asset disposal programme last month,
Globus Maritime has 2 dry bulk ships left. Its strong balance sheet
places it in an excellent position to take advantage of market
opportunities and grow the tonnage and earnings capacity of the fleet.
Despite a strong recovery in the share price, Globus Maritime trades at a
substantial discount to the estimated 190p current net asset value. We
upgrade our target price from 130p to 150p and retain our Buy
recommendation. This still leaves a substantial discount to the net
asset value of the company, which we believe is prudent given the
uncertainty of the large order book” Panmure Gordon said in its report.
It added that even though the company remains concerned about the effect
of the large order book of vessels scheduled to be delivered in 2010,
Globus Maritime is well positioned to take advantage of market
opportunities as and when these occur, and could potentially invest up
to US$100m in additional tonnage.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
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