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Globus Maritime Limited Reports Best First Quarter in its History

Globus Maritime Limited, a dry bulk shipping company, reported its unaudited consolidated operating and financial results for the quarter ended March 31, 2022.

“We are proud to announce our Q1 2022 results. This has been one of the best first quarters in the Company’s recent history. During the last couple of years, the Company took significant steps to improve its balance sheet and at the same time expand and renew its fleet. During this time, we have also refinanced our debt position at lower costs. We are pleased that our efforts are now bearing fruits. The Company is well-positioned to grow further while it takes full advantage and enjoys a strong market.

As previously announced, we have recently entered into three new agreements for the construction of three new vessels; we view this as a pivotal next step for the Company going forward well-aligned with our continuous effort to prepare for future environmental regulations and compliance. We are excited in our modern, fuel-efficient new building units which we hope will add significant competitive advantages to our existing operations.

As the market continues to be healthy, we look for these prosperous days to remain, however, there are a lot of threats and uncertainties in the world today; the effects of the pandemic and the conflict in Ukraine have had significant impact in our industry; we do still experience various disruptions in the market such as delays at ports and crewing operations as well as a shift of cargo flows. Therefore, we always need to be ready and agile to adjust and cope with any such difficulties. We also find ourselves operating in an uncertain world economic environment, the galloping of inflation and the possible hike in interest rates are major events that we are closely monitoring. We continue to be vigilant on the financial, operational, and environmental regulation front, and we hope that our strong balance sheet will help us overcome any short-term volatility.

Last but not least, we are always looking for ways to expand and upgrade our fleet and operations, with the current market remaining healthy we continue to explore further growth opportunities and ways to produce value for our shareholders.”

Management Discussion and Analysis of the Results of Operations

First Quarter of the Year 2022 compared to the First Quarter of the Year 2021

Total comprehensive income for the three-month period ended March 2022 amounted to $12.1 million or $0.59 basic and diluted income per share based on 20,582,301 weighted average number of shares, compared to total comprehensive loss of $0.8 million for the same period last year or $0.11 basic and diluted loss per share based on 7,209,657 weighted average number of shares.

Voyage revenues
During the three-month period ended March 31, 2022, and 2021, our Voyage revenues reached $18.4 million and $5.2 million respectively. The 256% increase in Voyage revenues was mainly attributed to the increase in the average time charter rates achieved by our vessels during the three-month period ended March 31, 2022, compared to the same period in 2021. Furthermore, the Company operated a fleet of nine vessels during the 1st quarter of 2022 compared to six vessels for the same period in 2021. Daily Time Charter Equivalent rate (TCE) for the three-month period of 2022 was $23,643 per vessel per day against $9,857 per vessel per day during the same period in 2021 corresponding to an increase of 140%, which is attributed to the better conditions throughout the bulk market for the first quarter of 2022.

Management & consulting fee income

On July 15, 2021, the Company entered into a consultancy agreement with Eolos Shipmanagement S.A., a related party, for the purpose of providing consultancy services to Eolos Shipmanagement S.A. For these services the Company receives a daily fee of $1,000. The total income from these fees is classified in the income statement component of the consolidated statement of comprehensive income/(loss) under management & consulting fee income.

Voyage expenses

Voyage expenses reached $0.3 million during the three-month period ended March 31, 2022, compared to $0.1 million during the same period last year. Voyage expenses include commissions on revenues, 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.

Gain on sale of bunkers, net

During the three-month period ended March 31, 2022, we recognized a gain of approximately $1.1 million from bunkers. This resulted mainly from the difference in the value of bunkers paid by us when the vessel is redelivered from the charterer under the vessel’s previous time charter agreement and the value of bunkers sold when the vessel is delivered to a new charterer. For the three-month period ended March 31, 2021, no gain from bunkers had been recognized.

Vessel operating expenses

Vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oils, insurance, maintenance, and repairs, reached $4.4 million during the three-month period ended March 31, 2022, compared to $3.1 million during the same period last year. This is mainly attributed to the fact that the fleet of the Company has increased to nine vessels during the first quarter of 2022 compared to six vessels for the same period in 2021.

Average daily operating expenses during the three-month periods ended March 31, 2022, and 2021 were $5,377 per vessel per day and $5,698 per vessel per day respectively, corresponding to a decrease of 6%.

Depreciation

Depreciation charge during the three-month period ended March 31, 2022, reached $1.4 million compared to $0.7 million during the same period in 2021. This is mainly attributed to the increase of the fleet from 6 vessels during the three-month period ended March 31, 2021, to 9 vessels for the same period in 2022. Nonetheless, this increase has been partly counterbalanced from the increase of scrap rate in our books from $300/ton to $380/ton during the fourth quarter of 2021, due to the increased scrap rates worldwide.

Total administrative expenses

Total administrative expenses, including administrative expenses to related parties and share bases payments, increased to $1.1 million during the three-month period ended March 31, 2022, compared to $0.7 million in the same period of 2021. The increase is partly attributed to new personnel hirings, as a result of the fleet expansion from 6 vessels, during the first quarter of 2021, to 9 vessels for the same period in 2022

Full Report

Source: Globus Maritime Limited

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