Globus narrows loss

Greek bulker owner Globus Maritime (Globus) took another beating in the second quarter due to turbulence in its core markets but did manage to reduce the flow of red ink.
Globus is led by CEO George Karageorgiou.

Globus is led by CEO George Karageorgiou.

The Nasdaq-listed operator of seven bulkers on Tuesday carded a loss of $1.3m for the three months to 30 June, which was slightly better than the $2.4m deficit posted 12 months prior.

Globus, which saw revenue decline to $6.8m from $7.7m year-on-year despite an uptick in operating days due to lower time charter rates, said adjusted earnings before interest, taxes, depreciation and amortization rose to $2.5m from $1.7m.

In a statement chief executive George Karageorgiou, who continues to serve as interim CFO as well following the recent departure of Elias Deftereos, said his company remains committed to a strategy that relies on a mix of both spot and period contracts.

"During the second quarter of 2013 we began to see signs of moderation in terms of dry bulk fleet growth, which we believe will continue into 2014,” he continued after applauding an approach to chartering that may prove profitable if the markets turn.

“While we don't anticipate this translating into a material increase in the charter rate environment in 2013, we believe 2014 and beyond will provide the most significant opportunity for an already robust demand for dry bulk commodities to outpace overall supply growth.”

At the end of the period Globus said cash, bank balances and bank deposits stood at $6.1m while outstanding debt weighed in at $95.7m, figures that will likely take centre stage during a conference call with investors who appear to be growing increasingly concerned about its financial health.

The Athens-based company, whose shares rose 4.47% before hitting $2.57 at the close, is scheduled to host an earnings briefing and question-and-answer session with management at 9:30 am EST on Wednesday, 4 September.

Globus Maritime Limited
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