4 th Quarter and Full Year 2010 Results Presentation. 25 February 2011

Transcription

1 4 th Quarter and Full Year 2010 Results Presentation 25 February 2011

2 Disclaimer Forward Looking Statement This presentation includes statements that are, or may be deemed to be, forward-looking statements as defined under U.S. federal securities laws. These forward-looking statements reflect the current views, forecasts, expectations, beliefs and projections of Globus Maritime Limited (the Company ) with respect to future events and financial performance and may include plans, objectives, intentions and other statements concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Company operates, all of which are not historical facts. The forward-looking statements in this presentation are based on various assumptions, including without limitation, management s examination of historical operating trends, data from the Company s records and other data available from third parties. Because these assumptions are inherently subject to significant risks, uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company s control. Past performance, trends or activities of the Company or its shares cannot be relied on as a guide to future performance, trends or activities. The Company s actual results could differ materially from those anticipated in forward-looking statements for many reasons specifically as described in the Company s filings with the Securities and Exchange Commission. Accordingly, you should not unduly rely on these forward-looking statements, which speak only as of the date of this communication. The Company does not assume and expressly disclaims any obligation to update these forward looking statements or to reflect the occurrence or non-occurrence of any events. You should, however, review the factors and risks the Company describes in the reports it will file from time to time with the Securities and Exchange Commission after the date of this communication. The financial information and data contained in this communication is unaudited and does not conform to the Securities and Exchange Commission Regulation S-X. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in, the Company s filings with the Securities and Exchange Commission. This communication includes certain financial information that is not derived in accordance with generally accepted accounting principles ( GAAP ), and which may be deemed to be non-gaap financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The Company believes that the presentation of these non-gaap financial measures serves to enhance the understanding of the financial performance of the Company. However, these non- GAAP financial measures should be considered in addition to and not as substitutes for, or superior to, financial measures of financial performance prepared in accordance with GAAP. Please refer to the Company s filings with the Securities and Exchange Commission for a discussion of these non-gaap financial measures. 2

3 Company Update Report

4 Recent Developments Q Moved the head office from Jersey (a UK-friendly jurisdiction) to the Marshall Islands (a US-friendly jurisdiction) in November 2010; Moved our listing to the NASDAQ on 24 November 2010; $5.0 million of scheduled loan instalments were repaid to our two banks ($4.5 million to Credit Suisse in November and $0.5 million to Deutsche Schiffsbank in December); Based on the results of the 3 rd Quarter 2010, we paid a quarterly cash dividend of $0.16 on 28 December 2010; Q Based on the results of the 4 th Quarter 2010, we have declared a quarterly cash dividend of $0.16 to be paid on or about 17 March

5 4 th Quarter and Year 2010 Highlights Globus Maritime Limited (US$ million, except TCE) Q4-10 FY 2010 Ownership Days 460 1,458 TCE (excluding Bareboat revenues) 18,209 18,996 Gross revenues Net revenues Adjusted EBITDA Interest expenses Gain/Loss on SWAP Net Income

6 Strong Liquidity Position Globus Maritime Limited (US$ million) At December 31, 2010 At February 24, 2010 Cash $24.6 (1) $28.5 (1) Bank Debt $96.7 $96.7 Net Debt $72.0 $68.2 (1) Includes $1 of restricted cash 6

7 Current Fleet and Employment Profile (as of 24 February 2011) Vessel Name Type Year Built DWT Daily Charter Rate (1) Earliest Charter Expiration / remaining duration Charterer River Globe Supramax ,627 Spot Sky Globe Supramax ,785 Spot Star Globe Supramax ,785 $22,000 April 2011 Transgrain Tiara Globe Panamax ,928 $20,000 Jan 2012 Transgrain Jin Star Kamsarmax ,788 $14,250 (2) Jan 2015 (opt 1yr+opt 1yr) Eastern Media & Far Eastern At 31/12/2010 w. aver. age 4.0 years 319,913 (1) All rates are gross and include brokers commission.. (2) Jin Star rate is Bareboat 7

8 Market Update Report

9 Market Update Source: Baltic Exchange 9

10 Industry Overview In 2011 trade volume is expected to increase by 5% while tonnage supply by 14% adversely affecting freight rates. We believe that the Capesize sector is most vulnerable, while the smallest ships are least vulnerable. Chinese GDP accelerated from 9.6% in Q to 9.8% in Q January recorded record iron ore imports of 69mt and record port inventories of 80.1mt. Chinese CPI rose by 4.9% in January against an annual government target of 4%, while non food prices rose 2.6% and food prices rose 10.3%. Chinese Central bank trying to restrain money and credit growth, with 7 hikes in banks' reserve requirements (now at 20% for the large Chinese banks). This could ultimately have a negative effect on dry cargo demand Indian iron ore exports are -9% and further states consider imposing restrictions on iron ore exports adversely affecting the Indian freight market. 10

11 Industry Overview (cont.) Disruptions to coal supply from Australia cause price increases that keep Chinese demand focused on cheaper domestic supplies. Queensland floods and 125 newbuilding deliveries in January. BDI at 2 year low (1043 points 4 Feb). Freight rates now constitute a smaller percentage of commodity prices. Inefficiencies in fleet utilization (caused by port congestion and increased ballasting) will influence freight volatility. Asset prices for modern tonnage currently at a disconnect with freight market. S&P market stagnates as sellers refuse to accept new price levels. 11

12 Dry Bulk Fleet Age Profile & Orderbook Dry Orderbook (1/1/2011) Capes: 61.9% Panamax:56,1% Handymax:42% Handysize: 32.7% increase 75.9mDwt = +16.5% increase Scheduled :137.3mDwt Expect high slippage % Source: 12

13 13 Dry Bulk Fleet Profile as per

14 Port Congestion Source: 14

15 Financial Summary

16 Globus Strengths Moderately Leveraged Debt: $96.7m to two banks Compliant with all bank covenants (as of 31 December 2010) Liquidity on 24 Feb 2011: $28.5m in cash Fleet s weighted average age of 4.0 years (at 31 Dec 2010) Perceived Low Counterparty Default Risk Strong Relationship with Banks 16

17 Company Update from CFO (2010 and 2011-Year-to-date) We began 2010 with cash of $59.2m ($6m was pledged), outstanding debt of $70.6m and undrawn debt of $36.4m. During 2010 our debt evolved as follows: $27.0m repaid to DSB upon the sale of the Sea Globe & the Coral Globe in Q1; $35.5m drawn from CrS upon the purchase of the Star Globe & the Sky Globe in Q2; $26.7m drawn from DSB upon the purchase of the Jin Star a new loan in Q2; $9.1m repaid to CrS and DSB being regular installments. At 31 December 2010 we had debt of $96.7m (CrS: $71.0m plus DSB: $25.7m) and cash of $24.6m ($1m was pledged). All loan covenants are satisfied. On 24 February 2011 we had $28.5m in cash ($1m is pledged) and debt outstanding of $96.7m; Annual scheduled debt repayment is $11.0m to our two banks. 17

18 Operating Highlights Globus Maritime Limited F Y 2010 Q4-10 F Y 2009 Q4-09 Ownership Days Available Days Operating Days 1, , , , , , , , , Average No of Vessels Fleet Utilization 98.8% 98.3% 98.6% 99.1% TCE (pv/pd) $18,996 $18,209 $21,550 $23,546 Average Opex 1 (pv/pd) $4,628 $4,791 $4,381 $4,465 (1) Excluding Bareboat days 18

19 Balance Sheet Globus Maritime Limited (US$ 000 s) 31 / 12 / / 06 / / 12 / / 12 / 08 Cash 24,618 22,745 59,157 65,342 Non-Current Assets 191, ,216 93, ,075 Total Assets 218, , , ,446 Total Bank Debt (LT+ST) 96, ,687 70, ,983 Deferred Revenue ,358 Other Liabilities 3,900 3,470 3,526 4,322 Retained Earnings 28,942 26,138 24,913 34,154 Capital 88,846 88,558 88,545 87,629 Total Liabilities & Equity 218, , , ,446 19

20 Income Statement Globus Maritime Limited (US$ 000 s) F Y 2010 Q4-10 FY 2009 Q4 09 Net revenue 26,708 7,963 49,070 10,172 Operating expenses - 5,887-1,763-10,137-1,929 Admin expenses - 3,687-1,086-5,030-1,293 Other oper. Inc./exp Adjusted EBITDA 17,099 5,100 33,797 6,880 Profit (Loss) on Sale of Vessel Impairment Charge -28,429-6,104 Gain/Loss on SWAP Deprec & amortization - 7,777-2,306-12,716-1,836 Finance expenses - 2, , Finance income , FX gains/loss NET INCOME/Loss 6,003 2,624-10,079-1,180 20

21 2010 Dividends and Calendar for Quarterly Dividend for Q4-10 On September 24, 2010, when Globus shares were trading on AIM, we paid an interim cash dividend for H in the amount of $0.8 million; DPS $0.1129; On December 28, 2010, after Globus shares had begun trading on NASDAQ, we paid a quarterly cash dividend for Q3-10 in the amount of $1.2 million; DPS $0.16; There are 7,289,688 shares outstanding; Quarterly cash dividend for Q4-10 in the amount of $1.2 million; DPS $0.16; Record date: March 8, 2011 Ex-dividend: March 4, 2011 Payable: On or around March 17,

22 Appendix

23 Executive Team George Karageorgiou, Chief Executive Officer Co-founder, Chief Executive Officer since September years shipping experience (5 years of which involved public company experience) Projects engineer for Kassos Maritime Enterprises from Director and Corporate Secretary for the NYSE listed Stelmar Shipping Limited from During his time at Stelmar Shipping Limited, Mr. Karageorgiou assisted with both vessel acquisitions, financings and strategy Previously a director of easygroup Ltd, easyjet Holdings Ltd, easyinternetcafe Ltd, easycruise Ltd and a number of other easygroup subsidiaries Mr. Karageorgiou holds a BE in Mechanical Engineering and an ME in Ocean Engineering from Stevens Institute of Technology and an MSc in Shipping Trade and Finance from CASS Business School Elias Deftereos, Chief Financial Officer Chief Financial Officer since April years shipping experience: Olympic Maritime (Onassis Group) in Monte Carlo, ABN AMRO Bank shipping finance in London, Konkar Shipping Agencies and Astron Maritime in Athens 10 years banking and capital markets experience: Lehman Brothers in London and Mytilineos Holdings in Athens Mr. Deftereos holds a BA in Economics from the State University of New York at Buffalo and an MBA in Finance from the University of Chicago 23

24 Contacts Globus Maritime Limited George Karageorgiou Chief Executive Officer Tel: Elias Deftereos Chief Financial Officer Tel: Capital Link New York Nicolas Bornozis Matthew Abenante