Golden Ocean delivers strong result in second quarter of 2022

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Golden Ocean, the world’s leading owner of large size dry bulk vessels, announced its unaudited results for the three and six month period ended June 30, 2022.

Highlights

  • Net income of $163.7 million and earnings per share of $0.82 for the second quarter of 2022 compared with net income of $125.3 million and earnings per share of $0.63 for the first quarter of 2022.
  • Adjusted EBITDA of $191.6 million for the second quarter of 2022, compared with $149.4 million for the first quarter of 2022.
  • Reported TCE rates for Capesize and Panamax/Ultramax vessels of $30,661 per day and $27,581 per day, respectively, in the second quarter of 2022. Reported TCE rate for the total fleet of $29,431 per day.
  • Completed the $275 million refinancing of 14 Capesize vessels at attractive terms, further reducing the industry low cash break-even rate.
  • Entered into agreements to sell two Ultramax vessels and construct three Kamsarmax vessels at attractive prices.
  • Estimated TCE rates, inclusive of charter coverage, calculated on a load-to-discharge basis are approximately:
    • $27,900 per day for 80% of Capesize available days and $27,100 per day for 96% of Panamax available days for the third quarter of 2022; and
    • $29,500 per day for 25% of Capesize available days and $21,900 per day for 27% of Panamax available days for the fourth quarter of 2022.
  • Published the Company’s fourth annual ESG report for 2021, which can be found on the Company’s website.
  • Announced a cash dividend of $0.60 per share for the second quarter of 2022, payable on or about September 14, 2022 to shareholders of record on September 7, 2022. Shareholders holding the Company’s shares through Euronext VPS may receive this cash dividend later, on or about September 16, 2022.

Ulrik Andersen, Chief Executive Officer, commented:

“Golden Ocean delivered another strong result in the second quarter of 2022 despite trade disruptions and economic headwinds. Our performance is attributable to the strength of our commercial operations as well as the quality of our fleet, which allowed us to generate a solid premium to benchmark rates.

Despite recent weakness in freight rates caused by easing port congestion and the contraction in China’s economy due, in part, to its “zero COVID” policy, our market outlook remains optimistic. Slowing fleet growth and new environmental regulations provide a strong offset to a potential short-term slowing of demand growth which combined with our charter coverage and superior fuel economics from our modern fleet will support continued healthy returns.“