Globus Maritime Ltd (NASDAQ:GLBS) Drops As Revenues Surge

Globus Maritime Ltd (NASDAQ:GLBS)

Globus Maritime Ltd (NASDAQ:GLBS)

Globus Maritime Ltd (NASDAQ:GLBS) shares fell 7.55% after the dry bulk shipping company reported unaudited, consolidated operating and financial results for the first half of the year. Revenues in the first half increased 63% compared to last year.

Globus Maritime Ltd (NASDAQ:GLBS)

Improving Fundamentals

According to the Chief Executive Officer, Athanasios Feidakis, the revenue growth indicates that the company’s efforts are finally bearing fruit. However, it appears investors remain skeptical about the company’s growth prospects.

Globus Maritime Ltd (NASDAQ:GLBS) has underperformed the overall industry even after the recovery of benchmark dry-bulk rates. The stock is down by more than 70% for the year as it continues to trade in a strong downtrend.

However, the Chief Executive Officer remains bullish about the company’s prospects buoyed by the 63% increase in revenues. Globus Maritime Ltd (NASDAQ:GLBS) has also trimmed its debt by about 30%, a further indication of bottom-line growth. Recovery in benchmark dry-bulk rates has allowed Global Maritime to hire its vessels out at a much higher rate.

“We are hoping to see a further improvement of the market fundamentals in the medium term future. We remain cautiously optimistic, and are following the market closely in our undertaking to best serve our clients and shareholders,” said Mr. Feidakis

Globus Financial Results

For the three months ended June 30, 2017, Globus Maritime Ltd (NASDAQ:GLBS) generated a net loss of (-$1.4) million or (-$0.05) a share, less than half a net loss of (-$2.9) million reported last year. The company attributes the decrease in net loss to an 80% increase in voyage revenues that came in at $3.6 million. Vessel operating expenses were down by $0.1 million or 5%.

For the first six months of the year, net loss totaled (-$3.7) million or (-$0.17) a share, compared to a net loss of (-$4.6) million for the corresponding period last year. Voyage revenue over the period was up 66% to $6.3 million as vessel operating expenses remained flat at $4.3 million.

Separately, an investor holding warrants, originally issued under February 2017 private placement, has exercised their right to purchase 500,000 shares of the company’s common stock at a price of $1.60 a share.

“We are pleased to have strengthened our balance sheet by $800,000. We consider this evidence of our investors’ support for our relentless efforts to move forward,” said Mr. Feidakis.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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