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Globus Maritime: Freight Rates To Bounce Back During Second Half of 2019

Globus Maritime Limited, a dry bulk shipping company, reported its unaudited consolidated operating and financial results for the quarter ended March 31, 2019.

In Q1 2019, Average operating expenses per vessel per day decreased by about 19% compared to Q1 2018

Current Fleet Deployment

All of our vessels are currently operating on short term time charters (“on spot”).

Management Commentary

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

“We are pleased with our performance during the first quarter of 2019 despite the difficulties in the market this period we have managed to reduce our operating expenses while taking steps to strengthen our balance sheet. This has been a very precarious first quarter where rates in the dry bulk sector have taken an unexpected dive. We do see several factors that might have contributed to that, such as lower seasonal demand, weather disruptions in Australia and the Vale dam failure. Undoubtedly, weak rates have had a negative impact on the hiring of our vessels that were operating on the spot market during the quarter. However, the market is now at much better levels than what it was in the first two months of the year.

“Whilst we remain cautious, we are at the same time more optimistic about the latter part of the year where we expect rates to improve mainly due to continuous demand from China for dry bulk goods and the IMO 2020 regulations which we believe will have a positive impact on spot charter rates as the effective capacity of the fleet will be reduced since their owners in their efforts to comply with said regulations will try to burn more expensive compliant fuels more efficiently.

“At this time we are pleased to report our recent developments as follows:

On March 13, 2019, the Company signed a securities purchase agreement with a private investor and on March 13, 2019 issued, for gross proceeds of $5 million, a senior convertible note may be converted into shares of the Company’s common stock, par value $0.004 per share. If not converted or redeemed beforehand pursuant to the terms of the Convertible Note, the Convertible Note matures upon the anniversary of its issue.
In May and June we have executed term sheets leading to the refinance of the entire fleet later in the month.
“We will continue to strive to keep our operational costs down and maximize shareholder value, we feel fortunate that at these difficult times we have the full support of our investors and financial institutions.”

Management Discussion and Analysis of the Results of Operations

First Quarter of the Year 2019 compared to the First Quarter of the Year 2018
Total comprehensive loss for the first quarter of the year 2019 amounted to $0.5 million or $0.15 basic loss per share based on 3,209,604 weighted average number of shares, compared to total comprehensive loss of $1.5 million for the same period last year or $0.48 basic loss per share based on 3,189,678 weighted average number of shares.
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Source: Globus Maritime Limited

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