Golden Ocean Group Limited, the world’s largest listed owner of Capesize vessels, yesterday announced its results for the quarter ended September 30, 2021.
• Net income of $195.3 million and earnings per share of $0.97 for the third quarter of 2021 compared with net income of $104.5 million and earnings per share of $0.52 for the second quarter of 2021.
• Adjusted EBITDA of $229.7 million for the third quarter of 2021, compared with $130.5 million for the second quarter of 2021.
• Reported TCE rates for Capesize and Panamax/Ultramax vessels of $38,142 per day and $24,733 per day, respectively, in the third quarter of 2021. Reported TCE rate for the whole fleet of $32,262 per day.
• Entered into agreements to construct seven latest generation ECO-type Kamsarmax vessels.
• Sold two older Panamax vessels at attractive prices, as part of the fleet renewal strategy.
• Completed refinancing of $413.6 million facility provided by Sterna Finance, and secured $435 million of long-term financing.
• Estimated TCE rates inclusive of charter coverage and calculated on a load-to-discharge basis, are:
• approximately $41,900 per day contracted for 83% of the available days for Capesize vessels and $27,300 per day contracted for 87% of the available days for Panamax vessels for the fourth quarter of 2021; and
• approximately $33,200 per day contracted for 30% of the available days for Capesize vessels and $24,150 per day contracted for 36% of the available days for Panamax vessels for the first quarter of 2022.
• Announced a cash dividend of $0.85 per share in respect of the third quarter of 2021.
Ulrik Andersen, Chief Executive Officer, commented:
“Golden Ocean has maintained significant exposure to the strong freight rate environment throughout the year, resulting in significant cash flow generation. In keeping with the Company’s long-standing policy, I am pleased that we are in the position to return value to our shareholders through dividend payments, which have amounted to $321 million thus far in 2021, including the Q3 distribution. We have already contracted more than 30% of our open days for Q1 2022, mitigating risk and ensuring cash generation into next year. The combination of expected global demand growth, modest fleet growth and inefficiencies we believe will persist in the coming years creates a powerful dynamic for Golden Ocean. Based on our long-term market outlook and the successful execution of our fleet growth and renewal program, which has positioned the Company as the industry leader in the large size dry bulk segments, we expect to continue to deliver strong operating performance to the benefit of all stakeholders.”