Golden Ocean Reports Fourth Quarter Net Income of $25.4 Million

Golden Ocean Group Limited, a leading dry bulk shipping company, yesterday announced its results for the quarter ended December 31, 2020.

Highlights

▪ Net income of $25.4 million and earnings per share of $0.18 for the fourth quarter of 2020 compared with net income of $39.1 million and earnings per share of $0.27 for the third quarter of 2020.
▪ Adjusted EBITDA of $59.3 million for the fourth quarter of 2020, compared with $76.7 million for the third quarter of 2020.
▪ Signed the Neptune Declaration on Seafarer Wellbeing and Crew Change.
▪ In December 2020, entered into an agreement to sell the Golden Shea, a Panamax vessel, for $9.6 million to an unrelated third party.
▪ In January 2021, entered into an agreement to sell the Golden Saguenay, a Panamax vessel, for $8.4 million to an unrelated third party.
▪ In February 2021, entered into a Heads of Agreement to acquire 18 modern dry bulk vessels for a total consideration of $752 million.
▪ Reported TCE rates for Capesize and Panamax/Ultramax vessels of $18,214 per day and $12,586 per day, respectively, in the fourth quarter of 2020.
▪ Estimated TCE rates for the first quarter of 2021, inclusive of charter coverage and calculated on a load-to-discharge basis, are:
·approximately $18,200 per day contracted for 66% of the available days for Capesize vessels;
·approximately $13,800 per day contracted for 86% of the available days for Panamax vessels

We expect the spot TCEs for the full first quarter of 2021 to be lower than the TCEs currently contracted, due to the impact of ballast days at the end of the first quarter of 2021 as well as current weaker rates.

Ulrik Andersen, Chief Executive Officer, commented:

“The Company continued to deliver a strong performance in the fourth quarter of 2020, despite volatility in freight rates. Thus far the first quarter in 2021 has been the strongest in recent years, which suggests a tight supply and demand balance in the market and bodes well for the balance of the year. We expect positive impacts from seasonality as well as a broader rebound in freight demand as the pandemic softens its grip on the global economy.

Our recently-announced acquisition of 18 large, modern dry bulk vessels significantly increases our exposure to positive market dynamics while also reducing cash break even levels across our fleet. With a best-in-class fleet focused exclusively on large vessel classes, limited capital expenditure commitments and no debt maturities until 2023, Golden Ocean is very well positioned to generate significant cash flow and create value for our shareholders.”

Full Report

Source: Golden Ocean