Golden Ocean sees profits rise to record

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Golden Ocean Group Limited, the world’s leading owner of large size dry bulk vessels, announced its unaudited results for the quarter and full year ended December 31, 2021.

Highlights

• Net income of $203.8 million and earnings per share of $1.02 for the fourth quarter of 2021 compared with net income of $195.3 million and earnings per share of $0.97 for the third quarter of 2021.
• Adjusted EBITDA of $243.5 million for the fourth quarter of 2021, compared with $229.7 million for the third quarter of 2021.
• Reported TCE rates for Capesize and Panamax/Ultramax vessels of $39,304 per day and $29,635 per day, respectively, and $35,256 per day for the whole fleet in the fourth quarter of 2021. Estimated TCE rates inclusive of charter coverage and calculated on a load-to-discharge basis, are:
• approximately $26,100 per day contracted for 75% of the available days for Capesize vessels and $21,100 per day contracted for 72% of the available days for Panamax vessels for the first quarter of 2022; and
• approximately $31,400 per day contracted for 22% of the available days for Capesize vessels and $22,700 per day contracted for 14% of the available days for Panamax vessels for the second quarter of 2022.
• Announced a cash dividend of $0.90 per share in respect of the fourth quarter of 2021, payable on or about March 10, 2022 to shareholders of record on March 3, 2022.

Ulrik Andersen, Chief Executive Officer, commented:

“Today, we release the best quarterly result and the best full-year result in the history of Golden Ocean. The record result has been made possible through attractive market conditions, timely acquisitions and strong chartering performance. Staying true to our strategy of returning cash to our shareholders, we are paying out $0.90 per share in dividends for the quarter, taking the dividends relating to 2021 to more than $500 million.

Looking into 2022, we have a considerable amount of fixed profitable charter cover for the first quarter, which will protect our dividend capacity and build a bridge into what we expect to be a much more attractive second half of the year. Despite the recent weakening in freight rates, which we mainly attribute to seasonality, we believe the outlook for 2022 and beyond is positive due to a combination of steady demand growth and fleet supply that is at generationally low levels.”