GOGL – Second Quarter 2019 Results
August 15 2019 - 2:05AM
Golden Ocean Group Limited (NASDAQ: GOGL
/ OSE: GOGL) (the “Company” or “Golden Ocean”), a leading dry bulk
shipping company, today announced its results for the quarter ended
June 30, 2019.
Highlights
- Net loss of $33.1 million and loss per share of $0.23 for the
second quarter of 2019, which includes $13.3 million in mark to
market losses on derivatives, compared with net loss of $7.5
million and loss per share of $0.05 for the first quarter of
2019
- Adjusted EBITDA of $21.5 million for the second quarter of
2019, compared with $36.0 million for the first quarter of
2019
- Declared four options for scrubber installations, increasing
the total number to 23 installations
- Completed refinancing of the non-recourse loans for 14 vessels,
reducing interest expense and cash break-even levels
- Invested in Singapore Marine, a dry bulk freight operator
- Entered into a non-binding term sheet together with Trafigura
and Frontline to establish a JV for supply of marine fuels
- Announced a cash dividend of $0.10 per share for the second
quarter of 2019
Birgitte Ringstad Vartdal, Chief Executive
Officer of Golden Ocean Management AS, commented:
“Following a weak first half of the year, the
third quarter has started off on a very strong note. Increased iron
ore volumes and supply imbalances, combined with fewer vessels in
the market due to scrubber installations have led to a dramatic
turnaround in the market, which we expect will improve our third
quarter results. The upcoming IMO2020 regulations are widely
expected to positively impact the market and create a further
competitive advantage for owners with modern, fuel-efficient
fleets. There may also be supply chain issues that constrain supply
of compliant fuels for some owners. We believe the scale of our
fleet will again benefit us and that our joint venture with
Trafigura and Frontline will further strengthen our ability to
source competitively priced bunker fuel of good quality when and
where we need it.“
Per Heiberg, Chief Financial Officer of Golden
Ocean Management AS, commented:
“The weak second quarter results were negatively
impacted by losses on our portfolio of derivatives of $13.3
million as falling U.S. forward interest rates affected our
interest rate hedges and improvement in freight rates late in the
quarter partially reversed the unrealized gains on our FFA hedges
in previous quarters. These losses coincided with a heavy
drydocking schedule during the second quarter, which increased
operating expenses. Excluding these effects, we managed to limit
the influence of the weak market by delivering an average TCE rate
above the market indexes for all of our vessel classes.“
The Board of DirectorsHamilton, BermudaAugust
15, 2019
Questions should be directed to:
Birgitte Ringstad Vartdal: Chief Executive Officer, Golden Ocean
Management AS+47 22 01 73 53
Per Heiberg: Chief Financial Officer, Golden Ocean Management
AS+47 22 01 73 45
The full report is available in the link below.
Forward Looking
StatementsMatters discussed in this report may constitute
forward-looking statements. The Private Securities Litigation
Reform Act of 1995 provides safe harbor protections for
forward-looking statements, which include statements concerning
plans, objectives, goals, strategies, future events or performance,
and underlying assumptions and other statements, which are other
than statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. Words
such as "believe," "anticipate," "intends," "estimate," "forecast,"
"project," "plan," "potential," "may," "will," "should," "expect,"
"pending" and similar expressions identify forward-looking
statements. The forward-looking statements in this report are based
upon various assumptions. Although we believe that these
assumptions were reasonable when made, because these assumptions
are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections. The
information set forth herein speaks only as of the date hereof, and
we disclaim any intention or obligation to update any
forward-looking statements as a result of developments occurring
after the date of this communication.
In addition to these important factors and
matters discussed elsewhere herein, important factors that, in our
view, could cause actual results to differ materially from those
discussed in the forward-looking statements include the strength of
world economies, fluctuations in currencies and interest rates,
general market conditions, including fluctuations in charter hire
rates and vessel values, changes in demand in the dry bulk market,
changes in our operating expenses, including bunker prices,
drydocking and insurance costs, the market for our vessels,
availability of financing and refinancing, changes in governmental
rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general
domestic and international political conditions, potential
disruption of shipping routes due to accidents, political events or
acts by terrorists, and other important factors described from time
to time in the reports filed by the Company with the U.S.
Securities and Exchange Commission.
This information is subject to the disclosure
requirements pursuant to section 5-12 of the Norwegian Securities
Trading Act.
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