Golden Ocean Group Limited, the world’s leading owner of large size dry bulk vessels, announced its unaudited results for the quarter ended March 31, 2022.
• Net income of $125.3 million and earnings per share of $0.63 (basic) for the first quarter of 2022 compared with net income of $203.8 million and earnings per share (basic) of $1.02 for the fourth quarter of 2021.
• Adjusted EBITDA of $149.4 million for the first quarter of 2022, compared with $243.5 million for the fourth quarter of 2021.
• Reported TCE rates for Capesize and Panamax/Ultramax vessels of $24,778 per day and $23,693 per day, respectively, and $24,330 per day for the whole fleet in the first quarter of 2022.
• Estimated TCE rates inclusive of charter coverage calculated on a load-to-discharge basis, are approximately:
$28,300 per day for 78% of Capesize available days and $27,500 per day for 77% of Panamax available days for the second quarter of 2022; and
$38,200 per day for 15% of Capesize days and $34,900 per day for 33% of Panamax days for the third quarter of 2022.
• Signed loan agreement for a $275 million facility refinancing 14 Capesize vessels. The new facility will improve cash break even rates for these vessels by approximately $1,500 per day.
• Announced a cash dividend of $0.50 per share for the first quarter of 2022, payable on or about June 8, 2022 to shareholders of record on June 1, 2022. Shareholders holding the Company’s shares through Euronext VPS may receive this cash dividend later, on or about June 10, 2022.
Ulrik Andersen, Chief Executive Officer, commented:
“Golden Ocean delivered another strong quarter on the back of a firm Panamax market and a high degree of contract coverage for our Capesize fleet secured at attractive levels last year.
With the anticipated strengthening of the freight market in the second half of the year, we expect to generate significant cash flows. Given our strong balance sheet and low debt, our capital allocation strategy will continue to focus on returning capital to our shareholders.
Although the global recovery from the COVID-19 pandemic faces numerous new challenges, we maintain an optimistic outlook due to healthy forecasted demand growth and an extremely favorable fleet supply dynamic. Fleet growth is slowing significantly, and new environmental regulations will both reduce effective fleet supply and create a further competitive advantage for Golden Ocean due to our fleet’s scale, modernity and fuel efficiency.”