Printer Friendly

GLOBAL OCEAN CARRIERS ANNOUNCES FIRST QUARTER 1993 RESULTS; PROFITS IMPROVE; ONE VESSEL SOLD FOR JULY DELIVERY

 PIRAEUS, Greece, May 25 /PRNewswire/ -- Global Ocean Carriers Limited (AMEX: GLO) announced today that for the first quarter ended March 31, 1993 operating revenues were $4.59 million, compared to $4.60 million in the first quarter of 1992. For the first quarter, the company recorded a profit of $422,577 or $0.10 per share, approximately a 60 percent increase compared to a profit of $264,939 or $.06 per share in the first quarter of 1992. Expenses for the quarter excluding depreciation were $3.30 million compared to $3.43 million in the first quarter of 1992.
 Sale of Vessel
 The company also announced that the Global Ling, its 1971 built capesize bulk carrier, had been sold for scrap at a price of $3.99 million, representing the highest reported scrap price per ton achieved to date in 1993 for a vessel of its size. The vessel has been profitable chartered to the Far East and is to be delivered to the breakers in China in July 1993.
 Commentary
 Mr. Michael G. Jolliffe, president of Global, commenting on results, stated:
 "The profit for the quarter represents an increase over our fourth quarter 1992 result and to some extent reflects the improving freight market in certain sectors.
 "The dry bulk freight market for handysize and panamax vessels has increased sharply since the end of 1992. By contrast, the product tanker and capesize markets remain close to the low levels experienced throughout 1992. Five of the company's seven vessels have completed employment and have been refixed since the end of 1992. Certain vessels have therefore been fixed at rates well above their previous levels but others have had to accept lower rates on refixing. Because of this, the results for the first quarter should not be interpreted as the beginning of a sustained uptrend.
 "We have continued to keep a tight control on expenses and offhire for the quarter was minimal.
 "The sale of the Global Ling follows the completion in May 1993 of a two-year period charter. During the last year she has served us well, earning approximately double the spot market rate.
 "The vessel has been sold at a price approximating book value. However, the unamortized special survey and drydocking expenses will be written off during the course of this year which will affect profits."
 Dividend Announcement
 The board of directors have decided to omit a dividend in respect in the first quarter of 1993. No dividend was paid in respect of the third or fourth quarters of 1992. The last dividend of $0.03 per share in respect of the quarter ended June 30, 1992 was paid on Sept. 18, 1992.
 Commenting on the dividend omission, the chairman, Alan Kennedy, said, "Our policy is to pay out about 50 percent of net earnings, depending on prevailing circumstances. If we continue to record improving profits and the market outlook remains favorable, we shall take the earliest prudent opportunity to reinstate the dividend."
 Fleet Developments
 The company owns a fleet of seven vessels, one of which is to be sold in July 1993.
 During the first quarter, the total on-hire period for the fleet was 623 days out of a maximum possible of 630 days, i.e., offhire of only 1.1 percent. All the offhire was accounted for by one vessel ballasting between employment.
 The Global Star, the Global Seahorse and the GL Panorama are on period time charters until November 1993, February 1994 and March 1994, respectively.
 Besides the Global Ling referred to above, the company's two panamaxes, the Global Dream and the Global Makatcha, and the handysize Global Jane are on short-term time charters expiring in the second and third quarters of 1993. Both the panamax vessels achieved higher rates on refixing and the Jane has achieved a rate more than double her previous rate, which illustrates the current strength in these two sectors.
 Bank Debt
 At March 31, 1993, total bank debt including all amounts outstanding under the long-term loan and the revolving line of credit was $19.475 million while cash balances totaled $7.3 million. The company has $4 million in undrawn long-term loans available to its as well as $2 million available under its revolving line of credit.
 Prospects
 Mr. Jolliffe said, "We have continued to inspect vessels with a view to possible purchases and have entered into serious negotiations on several. We expect to conclude the acquisition of one or more vessels soon. We anticipate that the freight market improvements in the handysize amd panamax sectors will be sustained for the rest of the year and that this may spread to the capesize sector, though to a lesser degree. Overall, this would have a positive effect on our revenues especially if we are successful in buying one or more newer vessels."
 Annual Meeting Held
 The company's annual meeting of shareholders was held on Friday, May 21 in Copenhagen, Denmark and all resolutions proposed were passed.
 Global Ocean Carriers Limited, founded in 1988, has a fleet of seven vessels consisting of two capesize combination carriers (one of which is to be sold in July 1993), two panamax and two handysize bulk carriers and a product tanker.
 GLOBAL OCEAN CARRIERS LIMITED
 Consolidated Statement of Operations
 (Unaudited -- Expressed in U.S. Dollars)
 Quarter Ended March 31 1993 1992
 Revenues
 Charter hire/voyage freight (net
 of commissions and voyage expenses) $4,848,050 $4,679,153
 Less: other voyage costs (260,280) (79,039)
 Total 4,587,770 4,600,114
 Expenditures
 Vessels' operating expenses 2,494,502 2,791,552
 General and administration 257,898 289,955
 Interest expense (net) 302,962 301,573
 Exchange (gain)/loss (42,522) (57,286)
 Amortization of/provision for DD & SS 285,000 109,000
 Total 3,297,840 3,434,794
 Net profit before depreciation 1,289,930 1,165,320
 Less: Depreciation 867,353 900,681
 Net profit 422,577 264,639
 Earnings per share:
 Before depreciation $0.31 $0.28
 After depreciation 0.10 0.06
 Shares outstanding 4,151,804 4,212,404
 -0- 5/25/93
 /CONTACT: Michael Jolliffe of Global Ocean Carriers, in Greece, 011-301-422-4880, or James Fairbairn in London, 011-4481-994-2687, or Jennifer R. Wall or Marisa A. Heine of D.F. King & Co., Inc., 212-265-5550, for Global Ocean Carriers/
 (GLO)


CO: Global Ocean Carriers Limited ST: IN: MAR SU: ERN

TS-PL -- NY051 -- 2174 05/25/93 12:43 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 25, 1993
Words:1068
Previous Article:NEW ENGLAND ELECTRIC INCREASES DIVIDEND
Next Article:ABRAXAS ANNOUNCES RECORD RESULTS FOR FIRST QUARTER 1993
Topics:


Related Articles
GLOBAL OCEAN CARRIERS FIXES RECORD DATE FOR RIGHTS ISSUE; RECORD DATE SET FOR NOV. 8, 1991
GLOBAL OCEAN CARRIERS ANNOUNCES PROFITABLE FIRST QUARTER RESULTS ALSO DECLARES DIVIDEND
GLOBAL OCEAN CARRIERS ANNOUNCES SECOND QUARTER AND FIRST HALF RESULTS; EARNINGS & DIVIDENDS REMAIN STEADY; FREIGHT MARKET IS SUBDUED
GLOBAL OCEAN CARRIERS ANNOUNCES FOURTH QUARTER AND UNAUDITED ANNUAL RESULTS; ANOTHER PROFITABLE YEAR; SIGNS OF IMPROVEMENT IN FREIGHT LEVELS
GLOBAL OCEAN CARRIERS ANNOUNCES RECORD DATE FOR ANNUAL MEETING OF SHAREHOLDERS
GLOBAL OCEAN CARRIERS ANNOUNCES THIRD QUARTER AND FIRST NINE MONTHS 1993 RESULTS; REPORTS QUARTERLY OPERATING PROFIT BEFORE DEPRECIATION
GLOBAL OCEAN CARRIERS ANNOUNCES FOURTH QUARTER AND PRELIMINARY 1993 ANNUAL RESULTS
GLOBAL OCEAN CARRIERS ANNOUNCES FIRST QUARTER 1994 RESULTS; FIRST QUARTER LOSS AFTER DEPRECIATION
GLOBAL OCEAN CARRIERS ANNOUNCES SECOND QUARTER AND FIRST HALF 1994 RESULTS; OPERATING PROFITABLY, LOSS ON VESSEL SALES
Global Ocean Carriers Announces 1997 First Quarter Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters