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 PIRAEUS, Greece, Dec. 10 /PRNewswire/ -- Global Ocean Carriers Limited (ASE: GLO) announced today that for the third quarter ended Sept. 30, 1993, operating revenues were $4.18 million, compared to $4.63 million in the third quarter of 1992. For the 1993 third quarter, the company recorded a loss after depreciation of $148,143 or $0.04 per share compared to a loss after depreciation of $401,463 or $0.10 per share in the third quarter of 1992. Expenses for the quarter excluding depreciation were $3.46 million compared to $4.16 million in the third quarter of 1992.
 For the nine month period ended Sept. 30, 1993, revenues were $13.57 million (1992: $14.52 million), the net loss after depreciation was $1.18 million or $0.28 per share (1992 net profit: $124,926 or $0.03 per share) and expenses excluding depreciation were $11.13 million (1992: $11.73 million).
 Michael G. Jolliffe, president of Global, commenting on the results, stated: "Before depreciation, net operating income for the third quarter was $716,693 (1992: $465,890) and the company continues to generate cash after all expenses and debt service. The small loss for the third quarter after depreciation reflects market conditions with freight rates unchanged in some sectors and lower in others. We were unfortunate in that one ship was redelivered two weeks earlier than anticipated from a very profitable charter which, had it been completed as planned, would have allowed us to break even. The results for the nine months continue to reflect the write-off of the unamortized dry docking and special survey costs associated with the July 1993 sale of `Global Ling.'
 "Expenses have been carefully controlled and only a small portion of the reduction in expenses is attributed to having one less vessel under management for most of the third quarter.
 "The company's newest vessel, the panamax carrier `Global Adelaide,' was delivered to the company in early October and after some minor upgrades was immediately fixed on a time charter at over $12,000 per day completing late this year."
 In-line with the company's strategy of disposing of older tonnage, the Global Seahorse has been sold. This is the third vessel sale by the company since its inception -- the Global Ling was sold earlier this year and the Global Sun was sold in 1992.
 Mr. Jolliffe concluded, "We believe that the dry bulk freight market will be supported by increasing economic activity in North America and continued high levels of growth in Asia. We plan to capitalize on this trend when refixing our dry bulk vessels -- all of which are due for refixing in the next three months. Earnings prospects should remain reasonably sound and we expect to refix our ships near their current levels or better. We will pursue charters of one year or more on some vessels if we believe rates justify it."
 Dividend Announcement
 The board has decided not to recommend a dividend in respect of the third quarter of 1993 given that company policy is to pay out of net earnings at a rate of approximately 50%. No dividend was paid in respect of the third or fourth quarters of 1992 or the first or second quarter of 1993. The last dividend of $0.03 per share in respect of the quarter ended June 30, 1992, was paid on Sept. 18, 1992.
 Fleet Developments
 The company currently owns a fleet of seven vessels.
 "Global Seahorse" has been sold for a price of $2.45 million with delivery to the new owner scheduled for December 1993. The sale price represents a profit of about $635,000 over book value. A total of $404,000 unamortized special survey and dry docking expenses will be written-off against this vessel on delivery.
 "Global Star" is on time charter till January 1994. "Global Makatcha" and "GL Panorama" are on time charters until January 1994 and March 1994, respectively.
 "Global Dream," "Global Jane" and "Global Adelaide" are on short-term time charters all expiring before the end of this year.
 During the third quarter the total on-hire period for the fleet was 542 days out of a maximum possible of 558 days, i.e., off-hire of 2.9%. All the off-hire was accounted for by one vessel ballasting between employments.
 Bank Debt
 At Sept. 30, 1993, total bank debt including all amounts outstanding under the long-term loan and the revolving line of credit was $15.6 million (June 30, 1993: $18.20 million) while cash balances totaled $4.9 million (June 30, 1993: $6.9 million).
 On the sale of "Global Seahorse" a total of $1.3 million will be repaid while an additional $3.85 million has been borrowed to finance the purchase of "Global Adelaide."
 Global Ocean Carriers, founded in 1988, has a current fleet of seven vessels consisting of one capesize combination carrier, three panamax and two handysize bulk carriers and a product tanker.
 Consolidated Statement of Operations
 (Expressed in U.S. dollars)
 Periods ended Quarter Nine Months
 Sept. 30 1993 1992 1993 1992
 Charter hire/voyage
 freight (net of
 commissions and
 voyage expenses) $4,317,429 $4,754,993 $14,143,359 $14,726,782
 Less: Other voyage
 costs (136,264) (128,909) (572,900) (202,488)
 Total $4,181,165 $4,626,084 $13,570,459 $14,524,294
 Vessels' operating
 expenses $2,803,340 $3,402,900 $8,628,183 $9,946,246
 General & administration 270,460 320,196 797,284 891,933
 Interest expense (net) 171,349 289,945 718,477 866,115
 Exchange (gain)/loss 7,323 (25,847) (14,673) (88,999)
 Amortization of DD&SS 212,000 173,000 782,000 461,000
 Insurance claims -- -- -- (190,000)
 Profit/(loss) on disposal
 of vessel -- -- 216,398 (155,642)
 Total $3,464,472 $4,160,194 $11,127,669 $11,730,653
 Net profit before extr.
 Extraordinary item
 and depreciation 716,693 465,890 2,442,790 2,793,641
 Less: Extraordinary DD/SS
 write-off -- -- 1,019,876 --
 Net profit before
 depreciation 716,693 465,890 1,422,914 2,793,641
 Less: Depreciation 864,836 867,353 2,599,542 2,668,715
 Net profit/(loss) after
 depreciation (148,143) (401,463) (1,176,628) 124,926
 Earnings per share:
 Before depreciation $0.17 $0.11 $0.34 $0.67
 After depreciation $(0.04) $(0.10) $(0.28) $0.03
 Dividends (paid)
 per share: $0.00 $0.00 $0.00 $0.06
 -0- 12/10/93
 /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., 212-269-5550/

CO: Global Ocean Carriers ST: IN: TRN SU: ERN

CK-WB -- NY059 -- 2701 12/10/93 14:15 EST
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Publication:PR Newswire
Date:Dec 10, 1993

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