GOGL – Third Quarter 2023 Results
Golden Ocean Group
Limited (NASDAQ/OSE: GOGL) (the “Company” or “Golden Ocean”), the
world's largest listed owner of large size dry bulk vessels, today
announced its unaudited results for the three and nine months ended
September 30, 2023.
Highlights
- Net income of $28.7 million and
earnings per share of $0.14 (basic) for the third quarter of 2023,
compared with net income of $34.9 million and earnings per share of
$0.17 (basic) for the second quarter of 2023.
- Adjusted EBITDA of $78.9 million
for the third quarter of 2023, compared with $80.4 million for the
second quarter of 2023.
- Reported TCE rates for Capesize and
Panamax/Supramax vessels of $18,173 per day and $15,389 per day,
respectively, and $17,076 per day for the entire fleet in the third
quarter of 2023.
- Entered into back-to-back
agreements to buy and sell a Supramax vessel. The Company expects
to recognize a gain from sale of approximately $6 million upon
delivery of the vessel to its new owners.
- Completed the sale of one Panamax
vessel, recognizing a gain from sale of $0.8 million and net cash
proceeds of $7.2 million.
- Repurchased 125,000 shares at an
aggregate purchase price of $0.9 million, or $7.20 per share in the
third quarter of 2023 and extended share buy-back program for one
additional year.
- Estimated TCE rates, inclusive of
charter coverage calculated on a load-to-discharge basis, are
approximately:
- $23,045 per day for 79% of Capesize
available days and $17,275 per day for 83% of Panamax available
days for the fourth quarter of 2023.
- $21,700 per day for 12% of Capesize
days and $15,600 per day for 23% of Panamax days for the first
quarter of 2024.
- Announced a cash dividend of $0.10
per share for the third quarter of 2023, which is payable on or
about December 13, 2023, to shareholders of record on December 6,
2023. Shareholders holding the Company’s shares through Euronext
VPS may receive this cash dividend later on or about December 15,
2023.
Lars-Christian Svensen, Interim Chief Executive
Officer, commented:
“Golden Ocean continues to deliver solid results
against stable, but subdued market sentiment. The actions taken
over the last several years to grow and optimize the Company’s
fleet through vessel acquisitions and sales has reinforced our
market-leading position and further increased the competitiveness
of our fleet. This has been accomplished without compromising our
low cash breakeven levels, which helps to ensure that the Company
remains profitable during periods of market weakness while
maintaining significant operating leverage. Looking forward, the
market is well-balanced in the near term, supported by evolving
trades that are expected to contribute to tonne-mile demand growth.
The supply side picture remains very favorable, particularly in the
Capesize segment, which supports a positive longer term market
view.”
The Board of DirectorsGolden Ocean Group
LimitedHamilton, BermudaNovember 21, 2023
Questions should be directed to:
Lars-Christian Svensen: Interim Chief Executive
Officer, Golden Ocean Management AS+47 22 01 73 40
Peder Simonsen: Chief Financial Officer, Golden
Ocean Management AS+47 22 01 73 40
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: general market trends in the dry bulk industry,
which is cyclical and volatile, including fluctuations in charter
hire rates and vessel values; a decrease in the market value of the
Company’s vessels; 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; delays or
defaults in the construction of the Company’s newbuildings could
increase the Company’s expenses and diminish the Company’s net
income and cash flows; an oversupply of dry bulk vessels, which may
depress charter rates and profitability; the Company’s future
operating or financial results; the Company’s continued borrowing
availability under the Company’s 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
failure of the Company’s contract counterparties to meet their
obligations, including changes in credit risk with respect to the
Company’s counterparties on contracts; the loss of a large customer
or significant business relationship; the strength of world
economies; the volatility of prevailing spot market and
charter-hire charter rates, which may negatively affect the
Company’s earnings; the Company’s ability to successfully employ
the Company’s dry bulk vessels and replace the Company’s operating
leases on favorable terms, or at all; changes in the Company’s
operating expenses and voyage costs, including bunker prices, fuel
prices (including increased costs for low sulfur fuel), drydocking,
crewing and insurance costs; the adequacy of the Company’s
insurance to cover the Company’s losses, including in the case of a
vessel collision; vessel breakdowns and instances of offhire; 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 of vessels under construction, the
delivery and commencement of operation dates, expected downtime and
lost revenue); risks associated with any future vessel construction
or the purchase of second-hand vessels; effects of new products and
new technology in the Company’s industry, including the potential
for technological innovation to reduce the value of the Company’s
vessels and charter income derived therefrom; the impact of an
interruption or failure of the Company’s information technology and
communications systems, including the impact of cyber-attacks, upon
the Company’s ability to operate; potential liability from safety,
environmental, governmental and other requirements and potential
significant additional expenditures (by the Company and the
Company’s customers) related to complying with such regulations;
changes in governmental rules and regulations or actions taken by
regulatory authorities and the impact of government inquiries and
investigations; the arrest of the Company’s vessels by maritime
claimants; government requisition of the Company’s vessels during a
period of war or emergency; the Company’s compliance with complex
laws, regulations, including environmental laws and regulations and
the U.S. Foreign Corrupt Practices Act of 1977; potential
difference in interests between or among certain members of the
Board of Directors, executive officers, senior management and
shareholders; the Company’s ability to attract, retain and motivate
key employees; work stoppages or other labor disruptions by the
Company’s employees or the employees of other companies in related
industries; potential exposure or loss from investment in
derivative instruments; stability of Europe and the Euro or the
inability of countries to refinance their debts; the central bank
policies intended to combat overall inflation and rising interest
rates and foreign exchange rates; fluctuations in currencies; acts
of piracy on ocean-going vessels, public health threats, terrorist
attacks and international hostilities and political instability;
potential physical disruption of shipping routes due to accidents,
climate-related (acute and chronic), political instability,
terrorist attacks, piracy, international sanctions or international
hostilities, including the ongoing developments in the Ukraine
region; general domestic and international political and
geopolitical conditions or events, including any further changes in
U.S. trade policy that could trigger retaliatory actions by
affected countries; the impact of adverse weather and natural
disasters; the impact of increasing scrutiny and changing
expectations from investors, lenders and other market participants
with respect to the Company’s Environmental, Social and Governance
policies; changes in seaborne and other transportation; the length
and severity of epidemics and pandemics; fluctuations in the
contributions of the Company’s joint ventures to the Company’s
profits and losses; the potential for shareholders to not be able
to bring a suit against us or enforce a judgement obtained against
us in the United States; the Company’s treatment as a “passive
foreign investment company” by U.S. tax authorities; being required
to pay taxes on U.S. source income; the Company’s operations being
subject to economic substance requirements; the volatility of the
stock price for the Company’s common shares, from which investors
could incur substantial losses, and the future sale of the
Company’s common shares, which could cause the market price of the
Company’s common shares to decline; 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, 2022.
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 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 - 3rd Quarter 2023 Results
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