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Dry Bulk Owner Golden Ocean “Endures” Weaker Market Conditions During First Quarter

Golden Ocean Group Limited, a leading dry bulk shipping company, yesterday announced its results for the quarter ended March 31, 2019.

Highlights
Net loss of $7.5 million and loss per share of $0.05 for the first quarter of 2019, compared with net income of $23.6 million and earnings per share of $0.16 for the fourth quarter of 2018
Adjusted EBITDA of $36.0 million for the first quarter of 2019, compared with $70.4 million for the fourth quarter of 2018
Refinanced the non-recourse loans for 14 vessels, reducing interest expense and cash break even levels
Invested in Singapore Marine, a newly established dry bulk operator
Announced a cash dividend of $0.025 per share for the first quarter of 2019

Birgitte Ringstad Vartdal, Chief Executive Officer of Golden Ocean Management AS, commented:

“Golden Ocean’s first quarter results reflect a weaker market environment brought about by disruptions in iron ore trade and continued uncertainty due to trade tensions. Strong commercial performance with well-timed contract coverage late last year combined with a modern, fuel-efficient fleet allowed the Company to generate earnings well above the market benchmarks in the quarter. In weaker markets with high fuel prices, the value of fuel efficiency gains relative importance. With IMO2020 approaching we believe the benefit of having a modern, fuel efficient fleet will continue to be a competitive advantage in the market.”

Per Heiberg, Chief Financial Officer of Golden Ocean Management AS, commented:

“We are very pleased to announce that we have refinanced the debt related to 14 vessels acquired in 2017. The refinancing was done at favorable terms with both existing and new lenders. The refinancing reduces the cost of the debt for these vessels from a margin of 310 bps to 212 bps, and extends the amortization profile, which reduces the Company’s daily running cash break even rates by $1,300 for these 14 vessels and by $200 for the entire fleet.
Full Report

Source: Golden Ocean Group

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