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Globus Maritime expands fleet with new Ultramax carrier

Published 10/02/2024, 04:12 PM
GLBS
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GLYFADA, Greece - Globus Maritime Limited (NASDAQ:GLBS), a company specializing in dry bulk shipping, has recently expanded its fleet with the addition of a new Ultramax dry bulk carrier, the M/V Glbs Magic. The vessel, which boasts a carrying capacity of approximately 64,000 deadweight tonnage (DWT), was delivered on September 20, 2024, from the Nantong COSCO KHI Ship Engineering Co., Ltd.

Athanasios Feidakis, the President and CEO of Globus, expressed satisfaction with the delivery, noting it as the third Ultramax newbuilding received by the company this year from a respected shipbuilder. The M/V Glbs Magic has been chartered to a reputable European Operator at a gross daily rate equal to 124% of the Baltic Supramax Index 10 TC routes for about one year.

This latest acquisition brings Globus Maritime's fleet to a total of eight dry bulk carriers, with a combined carrying capacity of around 571,313 DWT and an average age of 7.1 years as of the delivery date of the M/V Glbs Magic.

Globus Maritime operates internationally, transporting a diverse range of dry bulk cargoes, including iron ore, coal, grain, steel products, cement, and alumina. The company's growth strategy includes increasing its fleet size and capacity to meet the demands of the marine transportation industry.

The information provided in this article is based on a press release statement from Globus Maritime Limited. It is important to note that the company's communication also contained forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. These statements are based on current expectations and assumptions and are not guarantees of future performance. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

In other recent news, Globus Maritime Limited surpassed financial expectations for the second quarter of 2024, as reported by Maxim Group. The company's financial performance led to adjustments in forecasts, including a reduction in cost predictions for the second half of 2024. This change is attributed to the delivery of two new dry bulk ships and recent market rates. Despite maintaining the revenue forecast for 2025, the projection for per-share loss has been narrowed, reflecting lower operating costs associated with a more modern fleet.

In addition to its financial performance, Globus Maritime took possession of its second newbuild vessel in August 2024 and is scheduled to receive a third before the end of the third quarter of 2024. Maxim Group anticipates that Globus Maritime will add debt in 2024 and 2026 to finance the acquisition of a total of five newbuild dry bulk ships.

On the governance front, Globus Maritime recently held its annual shareholder meeting, with outcomes including the confirmation of all nominees proposed by the company's board for directorial positions and the approval of the firm's independent auditors for the fiscal year. The company's amended and restated articles of incorporation and bylaws were also reviewed and ratified by the assembly. These developments are now incorporated into the company's registration statements filed with the Securities and Exchange Commission.

InvestingPro Insights

Globus Maritime Limited's recent fleet expansion with the M/V Glbs Magic aligns with several key financial indicators and market trends. According to InvestingPro data, the company's market capitalization stands at $41.68 million, reflecting its position in the dry bulk shipping sector.

One of the InvestingPro Tips highlights that Globus Maritime is "Trading at a low Price / Book multiple," with a Price / Book ratio of 0.23 for the last twelve months as of Q2 2024. This suggests that the stock may be undervalued relative to its book value, which could be attractive for value investors considering the company's fleet expansion strategy.

Another relevant InvestingPro Tip indicates that the company has seen a "Strong return over the last month," with data showing a 32.6% price total return over the past month. This positive momentum could be partly attributed to investor optimism surrounding the delivery of new vessels like the M/V Glbs Magic.

It's worth noting that while Globus Maritime is expanding its fleet, an InvestingPro Tip cautions that the company is "Quickly burning through cash." This information suggests that investors should closely monitor how the new vessel acquisitions impact the company's cash flow and financial stability.

For readers interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for Globus Maritime, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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