GLYFADA, Greece - Globus Maritime Limited (NASDAQ: GLBS), a dry bulk shipping company, has announced the signing of agreements to acquire two Kamsarmax scrubber-fitted dry bulk vessels, expanding its fleet. The first vessel, built in 2016, boasts a carrying capacity of approximately 81,119 dwt and is priced at $27.5 million. The second, from 2014, has a capacity of around 81,817 dwt, with a purchase price of $26.5 million.
The acquisitions, approved by an independent committee of the company's Board of Directors, involve entities controlled by the Chairman and related to the CEO. Each vessel is slated for delivery during the fourth quarter of 2024, subject to standard closing conditions.
An initial payment of $18.0 million for the 2016-built vessel and $17.0 million for the 2014-built vessel will be made upon delivery, with the remaining balance due in a lump sum within a year of the agreements. The payments at delivery will be funded entirely with cash on hand, according to the company.
These transactions are expected to bring Globus Maritime's total fleet to ten dry bulk carriers with a combined carrying capacity of approximately 734,249 dwt. The company currently operates a fleet of eight vessels with a total capacity of 571,313 dwt and an average age of 7.2 years.
Globus Maritime specializes in the transportation of various dry bulk cargoes, including iron ore, coal, grain, and cement, among others. The purchase prices are based on independent third-party broker valuations.
This expansion comes as part of the company's strategy to grow its fleet and enhance its service offerings in the marine transportation sector. The information regarding this fleet expansion is based on a press release statement issued by Globus Maritime Limited.
In other recent news, Globus Maritime Limited continues to make strides in its expansion plans with the delivery of a newly built Ultramax dry bulk vessel, "Glbs Magic," increasing the company's fleet to eight vessels. This is part of the company's ongoing efforts to modernize its fleet for enhanced operational efficiency and financial performance. The 2024-built "Glbs Magic" is expected to contribute significantly to Globus Maritime's service offerings in the competitive dry bulk sector. Maxim Group reports that the company's second quarter 2024 results exceeded expectations, leading to a downward revision of cost predictions for the second half of 2024. Despite maintaining the revenue forecast for 2025, the projection for per-share loss has been narrowed. Maxim Group maintains its Buy rating on Globus Maritime and anticipates the company will add debt in 2024 and 2026 to finance the acquisition of additional newbuild dry bulk ships. In governance developments, Globus Maritime recently held its annual shareholder meeting, confirming all director nominees and approving the firm's independent auditors for the fiscal year.
InvestingPro Insights
Globus Maritime Limited's recent fleet expansion aligns with its growth strategy, but investors should consider the company's financial position and market performance when evaluating this move. According to InvestingPro data, Globus Maritime has a market capitalization of $36.02 million, which is relatively small in the shipping industry.
The company's P/E ratio of 5.18 suggests that it may be undervalued compared to its earnings, which could be attractive to value investors. This is further supported by an InvestingPro Tip indicating that Globus is trading at a low Price / Book multiple of 0.2, potentially offering a margin of safety for investors.
However, another InvestingPro Tip warns that the company is quickly burning through cash, which is a concern given the substantial cash outlay required for the new vessel acquisitions. This cash burn rate should be monitored closely in the context of the company's expansion plans.
On a positive note, Globus Maritime's revenue for the last twelve months stands at $32.02 million, with a gross profit margin of 42.22%. The company has also been profitable over the last twelve months, and analysts predict it will remain profitable this year, as highlighted by another InvestingPro Tip.
Investors seeking a more comprehensive analysis can access additional insights from InvestingPro, which offers 12 more tips for Globus Maritime Limited beyond those mentioned here.
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