Golden Ocean Group Limited, the world’s largest listed owner of large size dry bulk vessels, announced its unaudited results for the quarter ended March 31, 2023.
Highlights
- Net loss of $8.8 million and loss per share of $0.04 (basic) for the first quarter of 2023, including vessel impairment loss of $11.8 million relating to the sale of two older vessels. This compares with a net income of $68.2 million and earnings per share of $0.34 (basic) for the fourth quarter of 2022.
- Adjusted EBITDA of $54.7 million for the first quarter of 2023, compared with $112.4 million for the fourth quarter of 2022.
- Reported TCE rates for Capesize and Panamax/Ultramax vessels of $13,620 per day and $16,630 per day, respectively, and $14,929 per day for the entire fleet in the first quarter of 2023, or approximately $5,000 per day per vessel above the benchmark indices.
- In February 2023, entered into an agreement to acquire six modern Newcastlemax vessels, three of which have been delivered as of the date of this report. In March 2023, entered into a $233.0 million two-year credit facility to partially finance the acquisition.
- Entered into an agreement to sell two older Capesize vessels, Golden Feng and Golden Shui, to an unrelated third party for an aggregate net sale price of $43.6 million.
- Entered into a $80.0 million facility agreement to partially finance four Kamsarmax newbuildings being delivered during the second quarter of 2023.
- Took delivery of the first of ten Kamsarmax newbuildings under construction.
- Published our fifth consecutive annual Environmental, Social and Governance (ESG) report. We measured a 9.1% drop in CO2 emissions since 2019, a big step towards our goals of reaching 15% by 2026 and 30% by 2030.
- Estimated TCE rates, inclusive of charter coverage calculated on a load-to-discharge basis, are approximately:
- $20,010 per day for 74% of Capesize available days and $14,600 per day for 76% of Panamax available days for the second quarter of 2023.
- $22,300 per day for 26% of Capesize days and $19,600 per day for 38% of Panamax days for the third quarter of 2023.
- Announced a cash dividend of $0.10 per share for the first quarter of 2023, which is payable on or about June 6, 2023 to shareholders of record on May 26, 2023.
- Shareholders holding the Company’s shares through Euronext VPS may receive this cash dividend later on or about June 8, 2023.
Ulrik Andersen, Chief Executive Officer, commented:
“Following a period of seasonal weakness in the first quarter, freight rates have rebounded, and the outlook for the rest of the year is positive, driven by the gradual recovery of the Chinese economy.
We took advantage of a temporary softening in asset prices in the first quarter to acquire six modern and high-efficient vessels. Upon completion, Golden Ocean will have acquired 34 vessels in two years, bringing down the average age of the fleet to just 6.5 years and cementing our market-leading position in the large-sized segment bulkers.
Over the next two years, demand is forecast to increase as fleet supply growth reaches historic lows. This dynamic will support high fleet utilization, which has historically led to strong freight rates.
The Company has a proven track record of generating healthy cash flows due to our industry-leading cash breakeven levels and the fuel efficiency of our fleet. This provides a unique level of downside protection in periods of market weakness. Equally important, it supports our mission to deliver value to our shareholders through consistent dividends in the strong markets we expect in the coming years.”