GLOBAL OCEAN CARRIERS ANNOUNCES THIRD QUARTER RESULTS
PIRAEUS, Greece, Nov. 21 /PRNewswire/ -- Global Ocean Carriers (AMEX: GLO) announced today that for the three months ended Sept. 30, 1991, revenues were $5.94 million, reflecting a $730,000 increase over the second quarter of 1991. Similarly, net income before depreciation but after a provision for dry dockings and special surveys was $1.87 million reflecting a $405,000 increase over the second quarter of this year. Net income after depreciation was $600,048 compared to $315,699 in the second quarter of 1991.
Comparative figures for the third quarter of 1990 were revenues of $4.23 million, net income before depreciation but after a provision for dry dockings and special surveys of $1.27 million and net income of $284,615.
As of Sept. 30, 1991 Global's fleet had a market value of approximately $55 million, based on the average of two independent valuations, compared to approximately $52.5 million as of June 30, 1991.
Results for the Nine Months to Sept. 30, 1991
Revenues for the nine months ended Sept. 30, 1991 were $15.16 million as compared to $14.71 million in the same period of 1990. Income before depreciation but after a provision for dry dockings and special surveys for the first nine months of 1991 amounted to $3.96 million or $1.45 per share, compared to $5.40 million or $2.08 per share for the same period in 1990. The net income after depreciation for the first nine months of 1991 was $466,689 or 15 cents per share. In the same period of 1990 net income was $2.40 million or 80 cents per share.
Expenses for the first nine months of 1991 amounted to $10.67 million compared to $8.50 million in 1990 for the same period. Expenses including depreciation and a provision for special surveys and dry dockings were $14.70 million compared to $12.32 million in the first nine months of 1990.
The increase in expenses is attributable in part to the addition of the "GL PANORAMA" from June 12, 1991. Other factors contributing to increased expenses include: higher repair and maintenance costs not covered by insurance; higher crew costs; and spares and inventories on vessels which are now charged direct to the profit and loss account as opposed to being capitalized on the balance sheet as in previous years.
Michael G. Jolliffe, president of Global, commenting on the results, stated, "We are pleased to report continued increases in both revenues and net income from the first and second quarters of this year. The increases are attributable to the contribution of the "GL PANORAMA" and to a resilient bulk market during the summer months. Thus far, the outlook for the remainder of 1991 is encouraging for the bulk shipping industry."
The company currently owns a fleet of eight vessels. During the quarter the charter on the "GLOBAL DREAM" was extended to the end of 1992 with the existing charterer at a higher rate. Six of the company's vessels are on period charters expiring at various times from the first quarter of 1992 to the first quarter of 1993.
During the third quarter, the total on-hire period for the fleet was 709 days, out of a maximum possible of 736 days. Twenty-seven days of off-hire was recorded during the quarter in respect of repairs to one vessel. Most of the loss of revenue owing to the off-hire and most of the cost of the repairs to that vessel are covered by insurance.
The company commenced a rights offering to shareholders of record on Nov. 8, 1991 in respect of the offering of up to 1,200,000 shares at a price of $4.50 per share. The offer expires at 5 p.m., EST, on Nov. 29, 1991 unless extended by the company. Copies of the prospectus are available from D.F. King & Co., Inc., New York, N.Y.
Global declared a dividend of 7 cents per share in respect of the quarter ended Sept. 30, 1991. The dividend will be payable on Dec. 27, 1991 to shareholders of record on Dec. 16, 1991. On Sept. 27, 1991, the company paid a second quarter dividend of 7 cents per share. Shares subscribed in the company's current rights offering which is due to expire on Nov. 29, 1991 (unless extended by the company) will be entitled to receive the third quarter dividend.
Jolliffe commented, "We are pleased to be in a position to maintain the dividend rate on the expanded share capital. Now that Global is a perpetual life company we will be declaring dividends normally out of net earnings rather than cashflow."
During the quarter and additional term loan of up to $13 million was negotiated with the company's bankers of which $7.95 million has been used to repay the short term promissory note issued by the company to purchase the "GL PANORAMA", acquired on June 12, 1991. From the net proceeds of the rights offering, $4.45 million of this loan will be repaid. Thus, $9.5 million will remain available for drawing to finance purchases of additional vessels. The company currently has no commitments or understandings for the purchase of vessels.
Global Ocean Carriers, founded in 1988, has a current fleet of eight vessels consisting of two capesize combination carriers, two panamax and three handysize bulk carriers, and a tanker.
GLOBAL OCEAN CARRIERS LIMITED
Consolidated Statement of Operations
(in U.S. dollars)
Period ended Three months Nine months
Sept. 30; 1991 1990 1991 1990
(net of commissions
and voyage expenses) 6,044,854 4,255,195 15,826,728 14,739,883
Less: other voyage
expenses (100,529) (25,694) (665,526) (25,694)
Total 5,944,325 4,229,501 15,161,202 14,714,189
expenses 3,359,129 2,015,647 9,091,013 6,547,826
G&A 253,880 237,652 924,192 913,749
Interest expense (net) 403,998 362,132 1,147,431 952,529
Exchange (gain)/loss 9,860 58,013 (122,913) 70,395
Proceeds from insurance
claims net of deferred
repair costs (284,854) -- (556,786) --
Provision for bad debts 178,717 -- 178,717 --
Total 3,920,730 2,673,444 10,661,654 8,484,499
Net profit before
provision for DD & SS
and depreciation 2,023,595 1,556,057 4,499,548 6,229,690
Less: provision for
DD & SS 156,750 290,000 543,750 830,000
Net profit before
depreciation 1,866,845 1,266,057 3,964,798 5,399,690
Less: depreciation 1,266,797 981,442 3,498,109 3,000,116
and provision for
DD & SS 600,048 284,615 466,689 2,399,574
Earnings per share:
and provision for
DD & SS 0.65 0.52 1.45 2.08
After depreciation and
provision for DD & SS 0.19 0.09 0.15 0.80
Dividends per share 0.07 0.05 0.19 0.67
/CONTACT: Michael Jolliffe, 011-301-411-8911, or James Fairbairn, 011-4471-377-1030 or 011-4481-994-2687, both of Global Ocean Carriers; or Jennifer R. Wall or Peter C. Harkins of D.F. King & Co., 212-269-5550, for Global Ocean Carriers/
(GLO) CO: Global Ocean Carriers ST: IN: MAR SU: ERN SH-FC -- NY084 -- 6030 11/21/91 15:51 EST