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,
2021.
Highlights
- Net income of $104.5 million and earnings per share of $0.52
for the second quarter of 2021 compared with net income of $23.6
million and earnings per share of $0.14 for the first quarter of
2021
- Adjusted EBITDA of $130.5 million for the second quarter of
2021, compared with $54.6 million for the first quarter of
2021
- Reported TCE rates for Capesize and Panamax/Ultramax vessels of
$29,372 per day and $18,987 per day, respectively, in the second
quarter of 2021. Reported TCE rate for the whole fleet of $24,920
per day
- Completed the previously announced acquisitions of 15 modern
dry bulk vessels and three newbuildings, all of which have been
delivered as of the date of this report
- Signed agreements to refinance existing credit facility with
Sterna Finance, securing up to $435 million of new long-term
financing. The highly attractive terms of the refinancing will
lower the average cash break even rate for the acquired vessels
with an estimated $415 per day
- Converted time charters from floating rates to average fixed
rates of $33,250 gross until the second quarter of 2022 for three
Capesize vessels (180k dwt)
- In August 2021 terminated relationship with Capesize Chartering
Ltd, taking full control of the Company's commercial activities on
the Capesize vessels
- Estimated TCE rates for the third quarter of 2021, based on
contracted time charters and current spot fixtures on a
load-to-discharge basis, are:
- approximately $33,500 per day contracted for 71% of the
available days for Capesize vessels;
- approximately $22,900 per day contracted for 92% of the
available days for Panamax vesselsWe expect the spot TCEs for the
full third quarter of 2021 to be lower than the TCEs currently
contracted, due to the impact of ballast days at the end of the
third quarter of 2021 as well as fluctuations in freight rates
- Announces the appointment of Mr Ben Mills as Director of the
Company to fill a vacancy. Mr Mills has extensive experience from
the dry bulk market through tenures in Trafigura and the Baltic
Exchange, particularly focusing on the Capesize segment. Mr Mills
is currently Head of Dry Cargo in Seatankers Management Ltd, an
affiliate of Hemen Holding Ltd, the Companys largest
shareholder.
- Announces a cash dividend of $0.50 per share for the second
quarter of 2021
Ulrik Andersen, Chief Executive Officer,
commented:
“Golden Ocean’s result for the second quarter of
2021 reflects the dry bulk market’s strong underlying fundamentals,
but also our strategy of maintaining a significant portion of our
fleet exposed to the spot market. As pleased as we are with the net
profit for the second quarter of 2021, we are more excited about
what lies ahead. Our longer-term market outlook is positive based
on the pace of the growth in the demand, coupled with slowing fleet
growth through at least 2023. While in the short term, port and
supply chain inefficiencies will continue to result in rate
volatility and periods of exceptionally strong rates.
As evidenced this quarter with a $0.50 per share
dividend, Golden Ocean intends to pay out a significant portion of
the earnings. With no material capital expenses, no debt maturities
or vessels on order, Golden Ocean, as the largest listed owner in
the world, is well-positioned to continue to generate significant
cash flows to the benefit of the shareholders.”
The Board of DirectorsHamilton, BermudaAugust
26, 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, or the PSLRA, provides safe harbor
protections for forward-looking statements in order to encourage
companies to provide prospective information about their business.
Forward-looking statements 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 is taking advantage of the safe
harbor provisions of the PSLRA and is including this cautionary
statement in connection therewith. This document and any other
written or oral statements made by the Company or on its behalf may
include forward-looking statements, which reflect the Company’s
current views with respect to future events and financial
performance. This earnings report includes assumptions,
expectations, projections, intentions and beliefs about future
events. These statements are intended as “forward-looking
statements.” The Company cautions that assumptions, expectations,
projections, intentions and beliefs about future events may and
often do vary from actual results and the differences can be
material. When used in this document, the words “believe,”
“expect,” “anticipate,” “estimate,” “intend,” “plan,” “targets,”
“projects,” “likely,” “will,” “would,” “could” 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. As a result,
you are cautioned not to rely on any forward-looking
statements.
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 Company’s future operating or financial
results; the Company’s continued borrowing availability under its
debt agreements and compliance with the covenants contained
therein; the Company’s ability to procure or have access to
financing, the Company’s liquidity and the adequacy of cash flows
for the Company’s operations; the Company’s ability to successfully
employ its existing and newbuilding dry bulk vessels and replace
its operating leases on favorable terms, or at all; changes in the
Company’s operating expenses and voyage costs, including bunker
prices, fuel prices (including increases costs for low sulfur
fuel), dry docking, crewing and insurance costs; the Company’s
ability to fund future capital expenditures and investments in the
construction, acquisition and refurbishment of the Company’s
vessels (including the amount and nature thereof and the timing of
completion thereof, the delivery and commencement of operations
dates, expected downtime and lost revenue); planned, pending or
recent acquisitions, business strategy and expected capital
spending or operating expenses, including drydocking, surveys,
upgrades and insurance costs; risks associated with vessel
construction; the Company’s expectations regarding the availability
of vessel acquisitions and its ability to complete acquisition
transactions planned; vessel breakdowns and instances of off-hire;
potential differences in interest by or among certain members of
the Company’s board of directors, or the Board, executive officers,
senior management and shareholders; potential liability from
pending or future litigation; potential exposure or loss from
investment in derivative instruments; general dry bulk shipping
market trends, including fluctuations in charter hire rates and
vessel values; changes in supply and demand in the dry bulk
shipping industry, including the market for the Company’s vessels
and the number of newbuildings under construction; the strength of
world economies; stability of Europe and the Euro; fluctuations in
interest rates and foreign exchange rates; changes in seaborne and
other transportation; changes in governmental rules and regulations
or actions taken by regulatory authorities; general domestic and
international political conditions; potential disruption of
shipping routes due to accidents or political events; 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, 2020.
The Company cautions readers of this report not
to place undue reliance on these forward-looking statements, which
speak only as of their dates. Except to the extent required by
applicable law or regulation, the Company undertakes no obligation
to release publicly any revisions to these forward-looking
statements to reflect events or circumstances after the date of
this annual report or to reflect the occurrence of unanticipated
events. These forward-looking statements are not guarantees of the
Company’s future performance, and actual results and future
developments may vary materially from those projected in the
forward-looking statements.
This information is subject to the disclosure
requirements pursuant to section 5-12 of the Norwegian Securities
Trading Act.
- GOGL - 2nd Quarter 2021 Results
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