Globus can manage for a good while even if the ships are not earning any income.
GLOBUS Maritime chief executive George Karageorgiou has said that the handymax and panamax owning company can meet its current debt obligations for the next two or three years.
?We can manage for a good while even if the ships are not earning any income,? he told.
Mr Karageorgiou was commenting on third quarter and nine month financial details released this week that show net income of $43.3m in the year to September 30, compared with $8.3m in the same period last year.
The company, which listed on London"s AIM market in June 2007, cited a modern fleet, experienced management but especially modest gearing and high liquidity for its assertion that it is ?well positioned? to weather current turmoil in the dry bulk markets.
Globus has increased its total cash deposits to about $65m while annual principal repayments on debt are running at about $22m for 2009 and $16m for 2010, Mr Karageorgiou said.
The market has a liquidity problem
Revenues were up to just over $81m from $27.8m in the same period of 2007, reflecting an increase in fleet size and a near doubling of average time charter rates across the fleet to $35,890 per day.
Despite the stronger unaudited results, the next session saw Globus" share price slump by about 30% on AIM.
?The market has a liquidity problem and that is all because one investor wanted to sell 15,000 shares, since there was not a robust market for them,? Mr Karageorgiou commented.