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Competitive Strengths |
We believe that we possess a number of strengths that give us a competitive advantage in the shipping industry:
A modern, high quality fleet of dry bulk vessels. We have a modern fleet consisting of vessels with a weighted average age of approximately 3.4 years as at June 30, 2010 as compared to the average age of approximately 15 years for the world fleet. All our vessels were built in reputable yards such as Hyundai and Samsung, who have a reputation for constructing high-quality vessels. We believe that owning a modern, high-quality fleet:
- reduces operating costs and fuel consumption;
- allows us to secure favourable financing terms by enhancing lenders’ confidence in their collateral;
- makes our fleet more reliable by reducing the likelihood of breakdowns and periods of off-hire;
- reduces potential liabilities by enabling us to perform charters within the agreed parameters; and
- provides us with a competitive advantage in securing favourable time charters from charterers who prefer vessels with greater fuel efficiency that can serve with fewer interruptions due to breakdowns, compared to older vessels.
Geared vessels. We have a fleet of four geared vessels, three Supramax and one Panamax, all capable of transporting various dry bulk cargoes and operating in ports with minimal shore-side infrastructure. Due to the ability to switch between various dry bulk cargo types and to service a wider variety of ports, the day rates for geared vessels tend to have a premium.
A strong balance sheet for growth. From June 2007 when our shares were admitted on AIM, we have monitored the ratio of net indebtedness to total net capitalisation. We believe that our level of debt should facilitate our ability to borrow to finance further vessel acquisitions and implement our growth strategy and dividend policy. Maintaining a moderate level of indebtedness will also allow us to remain competitive in adverse market conditions.
An experienced management team. Our executive management team is led by our Chief Executive Officer and co-founder, George Karageorgiou, and has a total of over 19 years of experience in the shipping industry. Mr. Karageorgiou has extensive shipping and capital markets experience including 12 years as a Director/Corporate Secretary of Stelmar Shipping Limited (a Company listed on the New York Stock Exchange between 2001 and 2004).
Our in-house ship management avoids the risk of conflicts of interest. Unlike other shipping companies which tend to be managed externally, our operations are managed by our wholly-owned subsidiary, Globus Shipmanagement Corp (“GSC”). This means that we avoid any conflicts of interest inherent with external ship management. Our in-house commercial and technical management teams focus exclusively on our vessels, further avoiding conflicts with vessels not owned by us. As a result, our Shareholders can have confidence that our affairs are always managed in their best interests. We are committed to maintaining a high standard of Corporate Governance and intend to comply with those aspects of the Combined Code which we consider appropriate, taking into account Globus’ size and nature of business.
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