Golden Ocean: Strong performance in Q3

Golden-Ocean

Golden Ocean Group Limited, a leading dry bulk shipping company, yesterday announced its results for the quarter ended September 30, 2019.

Highlights

▪ Net income of $36.7 million and earnings per share of $0.26 for the third quarter of 2019 compared with net loss of $33.1 million and loss per share of $0.23 for the second quarter of 2019
▪ Adjusted EBITDA of $81.1 million for the third quarter of 2019, compared with $21.5 million for the second quarter of 2019
▪ Took delivery of two chartered-in 103,000 dwt ice-class vessels on index-linked time charters
▪ Joint venture agreement signed between Golden Ocean, Trafigura and Frontline to establish a leading global supplier of marine fuels and made further investment in Singapore Marine, a dry bulk freight operator
▪ Completed refinancing of the $284 million loan facility financing 15 vessels at attractive terms
▪ Agreed with SFL Corporation a charter amendment for seven Capesize vessels whereby SFL will fund the scrubber investments previously announced by the Company in exchange for increased charter rates
▪ Acquired 125,000 shares in the third quarter and an additional 380,000 shares so far in the fourth quarter under the share buy-back program announced in December 2018
▪ Announced a cash dividend of $0.15 per share for the third quarter of 2019

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

“Our strong performance in the third quarter is the result of our strategic decision to gear our fleet towards modern, fuel-efficient vessels in the vessel segments that offer the greatest leverage during periods of market strength. While the market has eased as the fourth quarter has progressed, rates are still well above our highly competitive cash break-even levels, and we are pleased with our results thus far. The competitive advantage of our fleet will become more pronounced with the implementation of the upcoming IMO2020 regulations, which are widely expected to positively impact the market and help to drive cash flow going forward.“

Per Heiberg, Chief Financial Officer of Golden Ocean Management AS, commented:

“We are pleased to announce that we have been able to refinance a loan facility for 15 vessels at attractive terms with reputable shipping banks. The loan has a five year tenor with a 20-years age adjusted profile and eliminates our refinancing needs until 2021. Combined with a total financing of approximately $45 million of our scrubber investment this gives the Company a high degree of financial flexibility for the coming year.“

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