Globus Maritime Limited, a dry bulk shipping company, reported its unaudited consolidated operating and financial results for the quarter and nine month period ended September 30, 2015.

Management Commentary

George Karageorgiou, President, Chief Executive Officer and Chief Financial Officer of Globus Maritime Limited, stated:

“Given that our vessels are employed in the spot market, Globus’ financial results for the third quarter 2015 were heavily affected by the historical low dry bulk markets. Specifically, our time charter equivalent rate decreased by 25% for the third quarter of 2015 compared to the same period in 2014. At the same time, we continue our efforts towards maintaining operational efficiency as our average daily operating expenses decreased by 6% in the first nine months of 2015 versus the same period last year. Our objective in 2016 is to maintain our chartering strategy with full spot exposure that will allow Globus to capitalize on the eventual market recovery. While the drybulk market remains depressed year to date, including this fourth quarter, which historically is a strong period for the market, the freight rate weakness helps keep the supply side from growing with minimum newbuilding orders placed alleviating what has been a problem for the industry. While the slowing demand has also hampered the sector, we remain cautiously optimistic on China’s economy and expect demand for dry bulk commodities going forward to remain strong.”

  

Third quarter of the year 2015 compared to the third quarter of the year 2014

Total comprehensive loss for the third quarter of the year 2015 amounted to $2.5 million or $0.24 basic loss per share based on 10,264,256 weighted average number of shares, compared to total comprehensive income of $0.2 million for the same period last year or $0.02 basic earnings per share based on 10,236,134 weighted average number of shares.

Revenue

During the three-month period ended September 30, 2015 and 2014, our revenue reached $3.2 million and $6.3 million respectively. The 49% decrease in revenue was mainly attributed to the decrease in the average time charter rates achieved by our vessels during the third quarter of 2015 compared to the same period in 2014. Time Charter Equivalent rate (TCE) for the third quarter of 2015 amounted to $5,664 per vessel per day against $7,524 per vessel per day during the same period in 2014 corresponding to a decrease of 25%.

Voyage expenses

Voyage expenses reached $0.2 million during the third quarter of 2015 compared to $0.9 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. Bunker expenses during the third quarter of 2015 reached $0.03 million compared to $0.6 million during the same period in 2014.

Vessel operating expenses

Vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oils, insurance, maintenance, and repairs, increased by $0.2 million or 8% to $2.6 million during the three month period ended September 30, 2015 compared to $2.4 million during the same period in 2014.

Average daily operating expenses during the three-month periods ended September 30, 2015 and 2014 were $4,704 per vessel per day and $4,277 per vessel per day respectively, corresponding to an increase of 10%. It should be noted though that the performance of the company over its operating cost should be based on longer periods of time than three-month periods. For the twelve month period ended September 30, 2015 average daily operating expenses reached $4,223 per vessel per day compared to $4,568 per vessel per day during the same period last year corresponding to a decrease of 8%, in line with our efforts towards maintaining operational efficiency.

Amortization of fair value of time charter attached to vessels

Amortization of the fair value of the time charter attached to vessels refers to the fair value of the time charter attached to the vessel m/v Sun Globe, acquired during the second half of 2011 and was amortized on a straight line basis over the remaining period of the time charter. The vessel was redelivered during January 2015.

Interest expense and finance costs

Interest expense and finance costs reached $0.7 million for the third quarter of 2015 compared to $0.5 million for the same period in 2014. The weighted average interest rate on our debt outstanding during the third quarter of 2015 reached 3.26% compared to 2.08% during the same period last year. Our weighted average debt outstanding during the third quarter of 2015 was $78.3 million compared to $83.8 million during the same period last year.