Golden Ocean Reports Lower Third Quarter Income

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Golden Ocean Group Limited, the world’s largest listed owner of large size dry bulk vessels, announced its unaudited results for the three and nine months ended September 30, 2023.

Highlights

Net income of $28.7 million and earnings per share of $0.14 (basic) for the third quarter of 2023, compared with net income of $34.9 million and earnings per share of $0.17 (basic) for the second quarter of 2023.
Adjusted EBITDA of $78.9 million for the third quarter of 2023, compared with $80.4 million for the second quarter of 2023.
Reported TCE rates for Capesize and Panamax/Supramax vessels of $18,173 per day and $15,389 per day, respectively, and $17,076 per day for the entire fleet in the third quarter of 2023.
Entered into back-to-back agreements to buy and sell a Supramax vessel. The Company expects to recognize a gain from sale of approximately $6 million upon delivery of the vessel to its new owners.
Completed the sale of one Panamax vessel, recognizing a gain from sale of $0.8 million and net cash proceeds of $7.2 million.
Repurchased 125,000 shares at an aggregate purchase price of $0.9 million, or $7.20 per share in the third quarter of 2023 and extended share buy-back program for one additional year.
Estimated TCE rates, inclusive of charter coverage calculated on a load-to-discharge basis, are approximately:
$23,045 per day for 79% of Capesize available days and $17,275 per day for 83% of Panamax available days for the fourth quarter of 2023.
$21,700 per day for 12% of Capesize days and $15,600 per day for 23% of Panamax days for the first quarter of 2024.
Announced a cash dividend of $0.10 per share for the third quarter of 2023, which is payable on or about December 13, 2023, to shareholders of record on December 6, 2023. Shareholders holding the Company’s shares through Euronext VPS may receive this cash dividend later on or about December 15, 2023.

Lars-Christian Svensen, Interim Chief Executive Officer, commented:

“Golden Ocean continues to deliver solid results against stable, but subdued market sentiment. The actions taken over the last several years to grow and optimize the Company’s fleet through vessel acquisitions and sales has reinforced our market-leading position and further increased the competitiveness of our fleet. This has been accomplished without compromising our low cash breakeven levels, which helps to ensure that the Company remains profitable during periods of market weakness while maintaining significant operating leverage. Looking forward, the market is well-balanced in the near term, supported by evolving trades that are expected to contribute to tonne-mile demand growth. The supply side picture remains very favorable, particularly in the Capesize segment, which supports a positive longer term market view.”

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