Golden Ocean: Strong Cash Flow Despite Softening Capesize Market

Golden-Ocean

Golden Ocean Group Limited, a leading dry bulk shipping company, announced its results for the quarter ended December 31, 2018.

Highlights

  • Net income of $23.6 million and earnings per share of $0.16 for the fourth quarter of 2018, compared with net income of $35.3 million and earnings per share of $0.24 for the third quarter of 2018 and net income of $27.1 million and earnings per share of $0.19 for the fourth quarter of 2017
  • Net income of $84.5 million and earnings per share of $0.59 for the full year 2018, compared with net loss of $2.3 million and loss per share of $0.02 for the full year 2017
  • Adjusted EBITDA of $70.4 million for the fourth quarter of 2018, compared with $78.8 million for the third quarter of 2018 and $65.3 million for the fourth quarter of 2017
  • Announced share buyback program in December 2018 to purchase up to an aggregate of six million of the Company’s common shares
  • Secured financing for up to 11 scrubber installations in combination with a 3 year extension and upsizing of an existing loan facility
  • Repaid the outstanding balance of the convertible bond at maturity in January 2019
  • Announced a cash dividend of $0.05 per share for the fourth quarter of 2018

Birgitte Ringstad Vartdal, Chief Executive Officer of Golden Ocean Management AS, commented:

“Golden Ocean generated strong cash flow during the fourth quarter, despite a softening Capesize market. The start of 2019 has been marked by uncertainty created by trade tensions and by the tragic dam accident in Brazil. The Company’s low cash breakeven levels and strong balance sheet are vitally important as we navigate through current market volatility. Although sentiment is surely negative in the short term, we believe most scenarios have been priced into the forward freight curve, and if this market continues we should see adjustments to supply.”

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