Globus Maritime Ltd (NASDAQ: GLBS) is flying in the market this morning after reporting its financial results for the third quarter. Throughout the quarter, the company saw incredible growth, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about what we saw from the financial results, what we’re seeing from the stock, and what we’ll be watching for ahead.
GLBS Reports Strong Q3 Results
As mentioned above, Globus Maritime is having an incredibly strong start to the trading session this morning after reporting its financial results for Q3. Here’s what we saw from the report:
- Revenue – In terms of revenue, GLBS did incredibly well. During the quarter, the company generated revenue of $4.861 million. That figure showed strong, 27% growth year over year.
- Earnings – This was where investors got the most excited as the company reported its first positive earnings in four years. During the quarter, the company generated total comprehensive income of $245,000. That compared well to the loss of $1.473 million reported in the same quarter last year. On a per-share basis, earnings came in at $0.08. That figure saw massive growth over the $0.53 per share loss reported in Q3 of 2017.
- Vessel Operating Expenses – It’s also clear that the company is benefiting from lower fuel expenses as oil continues to trade on lows. Total vessel operating expenses fell by about 14% when compared to Q3 of 2017.
In a statement, Athanasios Feidakis, President, CEO and CFO at GLBS, had the following to offer:
After four long years, we are pleased to report our return to profitability.
Our effort to control costs as well as the strengthening of the market led us to positive quarterly results. We managed to decrease our operational costs by about 25% compared to last quarter without hampering our operational ability and utilization of the fleet.
We are very encouraged to see an improved sentiment across all sectors compared to a year ago. In the Dry Bulk sector, not only have we experienced a higher BDI, but also the demand for dry bulk vessels is picking up significantly during the recent months with rates increasing in the Atlantic and Pacific basins. As a result, we have enjoyed higher rates and this is evident in our results for the third quarter and nine months. In Q3 2018, total revenues increased by about 27% compared to Q3 in 2017, resulting in a total comprehensive income of $254,000. During the first nine months of 2018, overall total revenues increased by about 31% compared to the nine month period in 2017. We are delighted with our performance and overall improvement of the dry bulk sector.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Globus Maritime, the news proved to be incredibly positive. After all, the company has finally worked its way to profitability as it takes advantage of the chaging tides in the shipping sector. So, it comes as no surprise that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:00), GLBS is trading at $10.00 per share after a gain of $2.15 per share or 27.39% so far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on GLBS. In particular, we’re interested in following the continued growth of the company as the sector seems to be going through a change that is beneficial to shippers. We’ll also be watching oil prices. As long as they stay low, operational costs are likely to continue downward. Finally, we’ll be watching for any vessel acquisition or revenue opportunities ahead. Nonetheless, we’ll continue to keep a close eye on the news and bring it to you as it breaks!