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GLOBAL OCEAN CARRIERS ANNOUNCES FOURTH QUARTER AND UNAUDITED ANNUAL RESULTS; ANOTHER PROFITABLE YEAR; SIGNS OF IMPROVEMENT IN FREIGHT LEVELS

 PIRAEUS, Greece, March 17 /PRNewswire/ -- Global Ocean Carriers Limited (AMEX: GLO) announced today that for the fourth quarter ended Dec. 31, 1992, operating revenues were $4.87 million, compared to $5.90 million in the fourth quarter of 1991. For the fourth quarter the company recorded a profit of $222,267 or $0.05 per share compared to a profit of $515,566 or $0.12 per share in the fourth quarter of 1991.
 Annual Results
 For the year ended Dec. 31, 1992, the company recorded an unaudited net profit of $347,193 or $0.08 per share compared with a net profit in 1991 of $982,255 or $0.27 per share. Unaudited 1992 revenues were $19.4 million (1991: $21.1 million). The 1992 figures are subject to audit.
 The 1991 fourth quarter and annual results are stated before the cumulative effect of a change in accounting policy.
 Commentary
 Michael G. Jolliffe, president of Global, commenting on the results, stated, "In 1992 freight rates were, on average, lower than in any year since the mid-1980s and the cost of insuring our fleet increased from $1.3 million to $2.5 million owing to the decrease in capacity in the marine insurance markets. In 1992, we also drydocked five of our seven vessels, the largest number in any one year since our inception.
 "Despite this, total expenses actually declined from $15.9 million in 1991 to $15.7 million and it is satisfying to report that general and administrative expenses declined by 12 percent or $157,000.
 "Revenues also declined by $1.7 million to $19.4 million, partly due to the lower freight market and partly due to off-hire as a result of the drydockings mentioned above. Revenues were sustained, however, by our policy of fixing some vessels on period charters. Several of our vessels thus enjoyed significantly higher rates during the year than they would have earned had they been employed on the spot market.
 "The dry cargo market is showing signs of modest improvement but we do not anticipate a significant upturn before the autumn of 1993."
 Dividend Announcement
 The board of directors have decided to omit a dividend in respect of the fourth quarter of 1992. No dividend was paid in respect of the third quarter 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 deputy chairman, Nabil E. Bahu, said, "Our policy is to pay out about 50 percent of net earnings, depending on prevailing circumstances, and we have already paid out more than that proportion from 1992's unaudited net earnings. The company is in sound condition with a prudent level of debt. Over the year we generated sufficient cash to meet debt service and to pay for dry docking and special survey costs incurred in the year. The market appears to be improving and payment of dividends will be resumed as soon as the company's results, and market conditions, justify it."
 Fleet Developments
 The company currently owns a fleet of seven vessels.
 The directors have adopted a valuation of the company's fleet of approximately $32.5 million as of March 1993.
 During the fourth quarter the total on-hire period for the fleet was 629 days out of a maximum possible of 644 days. All of the off-hire was accounted for by one vessel ballasting between employment.
 In November 1992, the Global Star was committed to a one-year oil- storage charter with a national oil company at a rate well in excess of that available for the same vessel on the current spot market. As the vessel is being used for storage and is not steaming, daily operating costs have been reduced by about 40 percent, thus enhancing the profitability of this charter.
 Five of the company's seven vessels will complete their current employment during the first half of 1993 and will have to be refixed. While some vessels finishing period charters will be employed at lower rates, others now on spot fixtures should enjoy somewhat higher rates in line with the recent modest improvement in freight levels. Overall, the effect on revenues and net earnings should be neutral.
 Bank Debt
 At Dec. 31, 1992, total debt including all amounts outstanding under the long-term loan and the revolving line of credit was $21.85 million while cash balances totaled $9.4 million.
 Prospects
 Mr. Jolliffe said, "Since we last reported in December 1992, we have inspected 14 vessels with a view to a possible purchase and we expect to conclude the acquisition of one or more relatively modern vessels soon. Any purchases will probably be followed by the sale of one or more of our existing ships. The outlook is for steady earnings but if the freight market improves, as we expect, in the latter part of the year Global Ocean Carriers should see the benefits in improved profitability."
 Annual Meeting
 The company's annual meeting of shareholders will be held on Friday, May 21, 1993, in Copenhagen, Denmark. The annual report and proxy statement are expected to be mailed to shareholders during the last week of April 1993.
 Global Ocean Carriers Limited, founded in 1988, has a current fleet of seven vessels consisting of two capesize combination carriers, 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)
 Periods ended Quarter Year
 Dec. 31 1992 1991 1992 1991
 REVENUES:
 Charter hire/voyage
 freight (net of
 commissions and
 voyage expenses) $4,880,451 $6,108,569 $19,607,233 $21,935,297
 Less: other voyage
 expenses (9,769) (203,834) (212,257) (869,360)
 Total 4,870,682 5,904,735 19,394,976 21,065,937
 EXPENDITURES:
 Vessels' operating
 expenses 2,657,722 3,360,696 12,603,968 12,451,709
 General and admin. 232,660 356,851 1,124,593 1,281,043
 Interest exp. (net) 284,650 382,033 1,150,765 1,529,464
 Exchange (gain)/loss 33,624 82,369 (55,375) (40,544)
 Amortization of/
 provision for
 DD & SS 331,000 (246,738) 792,000 288,012
 Insurance claims 241,406 (45,831) 51,406 (602,617)
 Profit on disposal
 of GL.SUN -- -- (155,642) --
 Provision for bad
 debts -- 232,992 -- 411,709
 Total 3,781,062 4,122,372 15,511,715 15,318,776
 Net profit before
 depreciation 1,089,620 1,782,363 3,883,261 5,747,161
 Less: depreciation 867,353 1,266,797 3,536,068 4,764,906
 Net profit/(loss)
 after depreciation
 and amortization
 of provision for
 DD & SS 222,267 515,566 347,193 982,255
 Cumulative effect of
 change in accounting
 policy -- -- -- 2,058,500
 Net profit/(loss) $ 222,267 $ 515,566 $ 347,193 $ 3,040,755
 Earnings per share:
 Before depreciation $0.26 $0.42 $0.93 $1.57
 After depreciation $0.05 $0.12 $0.08 $0.27
 Dividends (paid)
 per share 0.00 $0.06 $0.06 $0.25
 -0- 3/17/93
 /CONTACT: Michael Jolliffe, president, in Piraeus, 011-301-422-4880, or James Fairbairn, in London, 011-4481-994-2687, both of Global; or Jennifer R. Wall or Marisa A. Heine of D. F. King & Co., in New York, 212-269-5550, for Global/
 (GLO)


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

GK-OS -- NY035 -- 7027 03/17/93 12:05 EST
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Date:Mar 17, 1993
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