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 December
31, 2020.
Highlights
▪ Net income of
$25.4 million and earnings per share of $0.18 for the fourth
quarter of 2020 compared with net income of $39.1 million and
earnings per share of $0.27 for the third quarter of
2020.▪ Adjusted EBITDA of $59.3
million for the fourth quarter of 2020, compared with $76.7 million
for the third quarter of 2020.▪
Signed the Neptune Declaration on Seafarer Wellbeing and Crew
Change.▪ In December 2020,
entered into an agreement to sell the Golden Shea, a Panamax
vessel, for $9.6 million to an unrelated third
party.▪ In January 2021,
entered into an agreement to sell the Golden Saguenay, a Panamax
vessel, for $8.4 million to an unrelated third
party.▪ In February 2021,
entered into a Heads of Agreement to acquire 18 modern dry bulk
vessels for a total consideration of $752 million.
▪ Reported TCE rates for
Capesize and Panamax/Ultramax vessels of $18,214 per day and
$12,586 per day, respectively, in the fourth quarter of 2020.
▪ Estimated TCE rates for the
first quarter of 2021, inclusive of charter coverage and calculated
on a load-to-discharge basis, are:·approximately $18,200 per day
contracted for 66% of the available days for Capesize vessels;
·approximately $13,800 per day contracted for 86% of the available
days for Panamax vessels
We expect the spot TCEs for the full first
quarter of 2021 to be lower than the TCEs currently contracted, due
to the impact of ballast days at the end of the first quarter of
2021 as well as current weaker rates.
Ulrik Andersen,
Chief Executive Officer, commented:
"The Company continued to deliver a strong
performance in the fourth quarter of 2020, despite volatility in
freight rates. Thus far the first quarter in 2021 has been the
strongest in recent years, which suggests a tight supply and demand
balance in the market and bodes well for the balance of the
year. We expect positive impacts from seasonality as well as
a broader rebound in freight demand as the pandemic softens its
grip on the global economy.
Our recently-announced acquisition of 18 large,
modern dry bulk vessels significantly increases our exposure to
positive market dynamics while also reducing cash break even levels
across our fleet. With a best-in-class fleet focused
exclusively on large vessel classes, limited capital expenditure
commitments and no debt maturities until 2023, Golden Ocean is very
well positioned to generate significant cash flow and create value
for our shareholders.”
The Board of DirectorsHamilton, BermudaFebruary
18, 2021
Questions should be directed to:
Ulrik Andersen: Chief Executive Officer, Golden
Ocean Management AS+47 22 01 73 53
Peder Simonsen: Chief Financial Officer, Golden
Ocean Management AS+47 22 01 73 45
The full report is available in the link below.
Forward Looking Statements
Matters discussed in this earnings 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," "expect," "anticipate," "estimate," "intend,"
"plan," "targets," "projects," "likely," "will," "would," "could,"
"seeks," "potential," "continue," "contemplate," "possible,"
"might," "forecasts," "may," "should" and similar expressions or
phrases may identify forward-looking statements. The
forward-looking statements in this report are based upon various
assumptions. many of which are based, in turn, upon further
assumptions, including without limitation, management's examination
of historical operating trends, data contained in the Company's
records and other data available from third parties. Although the
Company believes 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 the Company's control, the Company cannot
assure you that it will achieve or accomplish these expectations,
beliefs or projections. The information set forth herein speaks
only as of the date hereof, and the Company disclaims 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 the
Company's view, could cause actual results to differ materially
from those discussed in the forward-looking statements include,
among other things, 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, the length and severity
of the COVID-19 outbreak, the impact of public health threats and
outbreaks of other highly communicable diseases, changes in the
Company's operating expenses, including bunker prices, drydocking
and insurance costs, the market for the Company's vessels,
availability of financing and refinancing, the impact of the
expected discontinuance of LIBOR after 2021 on interest rates of
the Company's debt that reference LIBOR, 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, including the Company's most
recently filed Annual Report on Form 20-F for the year ended
December 31, 2019.
This information is subject to the disclosure
requirements pursuant to section 5-12 of the Norwegian Securities
Trading Act.
- GOGL - Fourth Quarter 2020 Results
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