GOGL – Fourth 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 twelve months ended December 31,
2023.
Highlights
- Net income of $57.5 million and
earnings per share of $0.29 (basic) for the fourth quarter of 2023,
compared with net income of $28.7 million and earnings per share of
$0.14 (basic) for the third quarter of 2023.
- Net income of $112.3 million and
earnings per share of $0.56 (basic) for full year 2023, compared
with net income of $461.8 million and earnings per share of $2.30
(basic) for full year 2022.
- Adjusted EBITDA of $123.2
million for the fourth quarter of 2023, compared with $78.9 million
for the third quarter of 2023.
- Adjusted net income of $64.6
million for the fourth quarter of 2023, compared to $22.0 million
for the third quarter of 2023.
- Reported TCE rates for
Capesize and Panamax vessels of $25,176 per day and $16,738 per
day, respectively, and $21,958 per day for the entire fleet in the
fourth quarter of 2023.
- Completed a purchase and sale of a
Supramax vessel, recording a gain of $5.8 million upon delivery of
the vessel to its new owner.
- Entered into an agreement to sell
one Panamax vessel for net consideration of $15.8 million.
- Arranged financings in an aggregate
amount of $625 million at highly attractive terms. Upon completion,
the Company will have fully funded its remaining capex obligations
and refinanced all of its debt maturities until 2026.
- Estimated TCE rates, inclusive of
charter coverage calculated on a load-to-discharge basis, are
approximately:
- $25,000 per day for 74% of Capesize
available days and $15,400 per day for 84% of Panamax available
days for the first quarter of 2024.
- $25,000 per day for 25% of Capesize
available days and $14,200 per day for 19% of Panamax available
days for the second quarter of 2024.
- Announced a cash dividend of $0.30
per share for the fourth quarter of 2023, which is payable on or
about March 25, 2024, to shareholders of record on March 13, 2024.
Shareholders holding the Company’s shares through Euronext VPS may
receive this cash dividend later on or about March 27, 2024.
Lars-Christian Svensen, Chief Executive Officer,
commented:
“The Company’s large, modern fleet has been
predominantly exposed to the spot market, resulting in strong
performance in the fourth quarter of 2023 and thus far in 2024. The
market for large size dry bulk vessels continues to outperform the
broader freight market due to increasing tonne-mile demand for
various key commodities, including iron ore, coal, and bauxite. We
have entered 2024 with strong demand in Asia and a broad-based
global economic recovery underway, creating an overall healthy
demand picture. Fleet growth, particularly in the Capesize segment,
remains at historically low levels, and the global fleet is trading
at historically high efficiency levels. The Company maintains a
positive outlook, and with no unfunded capex or near-term debt
maturities, we are well positioned to continue to return value to
our shareholders through dividends. Golden Ocean has now paid a
dividend for 11 consecutive quarters, demonstrating the Company’s
potential as well as the resilience of its performance in weaker
market conditions.”
The Board of DirectorsGolden Ocean Group
LimitedHamilton, BermudaFebruary 28, 2024
Questions should be directed to:
Lars-Christian Svensen: 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 developments in the Middle East, including
the armed conflict in Israel and the Gaza Strip; 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 - 4th Quarter 2023 Results
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