Golden Ocean Group Limited, the world’s largest listed owner of large size dry bulk vessels, announced its unaudited results for the three and twelve months period ended December 31, 2022.
Highlights
- Net income of $68.2 million and earnings per share of $0.34 for the fourth quarter of 2022 compared with net income of $104.6 million and earnings per share of $0.52 for the third quarter of 2022
- Adjusted EBITDA of $112.4 million for the fourth quarter of 2022, compared with $118.2 million for the third quarter of 2022
- Reported TCE rates for Capesize and Panamax/Ultramax vessels of $21,399 per day and $18,992 per day, respectively, in the fourth quarter of 2022.
- Reported TCE rate for the total fleet of $20,421 per day
- Entered into agreements to acquire six modern Newcastlemax vessels for a total consideration of $291 million from an unrelated third party. The vessels will be chartered back to the seller for a period of 36 months at an average net TCE rate of $21,000 per day
- Entered into a $250 million facility refinancing 20 Capesize and Panamax vessels at highly attractive terms
- Completed the sale of the 2008 and 2009 built Panamax vessels Golden Ice and Golden Strength, at attractive prices
- Entered into agreements to purchase three scrubbers to be installed on certain Capesize vessels due for drydock in 2023
- Acquired an aggregate of 462,085 shares in open market transactions under the share buy-back program
- Estimated TCE rates, inclusive of charter coverage, calculated on a load-to-discharge basis are approximately:
- $13,150 per day for 63% of Capesize available days and $14,900 per day for 73% of Panamax available days for the first quarter of 2023.
- $21,100 per day for 19% of Capesize available days and $17,900 per day for 14% of Panamax available days for the second quarter of 2023.
- Announced a cash dividend of $0.20 per share for the fourth quarter of 2022, payable on or about March 9, 2023 to shareholders of record on February 28, 2023. Shareholders holding the Company’s shares through Euronext VPS may receive this cash dividend later, on or about March 13, 2023
Ulrik Andersen, Chief Executive Officer, commented:
“On a challenging macroeconomic backdrop, Golden Ocean delivered another strong result in the fourth quarter of 2022. The result was driven by the superior efficiency of Golden Ocean’s modern fleet, as well as our active chartering strategy. We continue our fleet renewal strategy of selling older inefficient tonnage and recycling the cash proceeds into modern tonnage. Since our third quarter release, we sold two older Panamax vessels and acquired six modern Newcastlemax vessels. It means that since 2021, we have divested 11 vessels and acquired or contracted 34 vessels.
Combined with a continuous focus on improving our daily cash break-even levels, we have delivered on our commitment to return value to our shareholders through dividends and share repurchases. Looking ahead, we continue to have a positive view on dry bulk fundamentals given the expected boost in demand from China’s discontinuation of the zero covid policy combined with highly favorable supply-side dynamics.”