GOGL – First Quarter 2021 Results
GOGL announced its first quarter 2021 results, achieving a net income of $23.6 million and earnings per share of $0.14, marking its best first quarter performance ever. Adjusted EBITDA was $54.6 million. The company entered a Heads of Agreement to acquire 15 dry bulk vessels and three newbuildings for $752 million. A successful $338 million private placement helped finance this acquisition. A cash dividend of $0.25 per share was announced, reflecting optimistic market expectations.
- Net income of $23.6 million for Q1 2021, best first quarter in company history.
- Announced a cash dividend of $0.25 per share.
- Entered into agreement to acquire 15 vessels for $752 million, enhancing fleet capacity.
- Successfully completed a $338 million private placement to finance the acquisition.
- Earnings per share decreased from $0.18 in Q4 2020 to $0.14 in Q1 2021.
- Adjusted EBITDA declined from $59.3 million in Q4 2020 to $54.6 million in Q1 2021.
- Estimated TCE rates for Q2 2021 are expected to be lower due to market fluctuations.
GOGL – First Quarter 2021 Results
Golden Ocean Group Limited (NASDAQ: GOGL / OSE: GOGL) (the “Company” or “Golden Ocean”), a leading dry bulk shipping company, today announced its results for the quarter ended March 31, 2021.
Highlights
- Net income of
$23.6 million and earnings per share of$0.14 for the first quarter of 2021, the best first quarter result in the history of the Company, compared with net income of$25.4 million and earnings per share of$0.18 for the fourth quarter of 2020. - Adjusted EBITDA of
$54.6 million for the first quarter of 2021, compared with$59.3 million for the fourth quarter of 2020. - Reported TCE rates for Capesize and Panamax/Ultramax vessels of
$16,611 per day and$14,777 per day, respectively, in the first quarter of 2021. Reported TCE rate for the whole fleet of$15,886 per day. - Entered into a Heads of Agreement with affiliates of Hemen Holding Ltd (“Hemen”), a related party, to acquire 15 modern dry bulk vessels and three newbuildings for a total consideration of
$752 million . - Successfully completed a
$338.0 million private placement at NOK 53.00 per share (approximately$6.24 per share based on the prevailing exchange rate at the time), to part finance the above-referenced vessel acquisition. - Completed subsequent offering following the private placement and issued 2,710,377 new shares at NOK 53.00 per share, raising gross proceeds of NOK 143.6 million (or approximately
$16.9 million ). - Capitalised on the spot market strength and converted from a floating to a fixed rate until second quarter of 2022 in the time charters relating to three Capesize vessels: Golden Fulham at
$28,500 , Golden Incus at$32,250 and Golden Bexley at$31,000. - Took delivery of three Capesize vessels and five Panamax vessels as of the date of this report.
- Estimated TCE rates for the second quarter of 2021, inclusive of charter coverage and calculated on a load-to-discharge basis, are:
- approximately
$29,000 per day contracted for64% of the available days for Capesize vessels; - approximately
$18,800 per day contracted for84% of the available days for Panamax vessels.
We expect the spot TCEs for the full second quarter of 2021 to be lower than the TCEs currently contracted, due to the impact of ballast days at the end of the second quarter of 2021 as well as fluctuations in freight rates.
- approximately
- Published our third annual ESG report for 2020, which can be found on the Company’s website.
- Announces a cash dividend of
$0.25 per share for the first quarter of 2021.
Ulrik Andersen, Chief Executive Officer, commented:
“As pleased as we are to have generated the best first quarter result in the history of the Company, we are more excited for what lies ahead. The combination of counter-seasonal strength and the volatility in rates is indicative of a tightening market balance, and we have grown increasingly optimistic about the potential for a prolonged period of higher rates. Golden Ocean is well-positioned for this market, particularly following our recent acquisition of 18 vessels, including three newbuildings. Our focus on larger vessel classes that have the greatest leverage to improving markets and our ability to maintain extremely competitive cash breakeven levels will result in significant cash flow generation. Golden Ocean has historically returned value created to its shareholders, and the resumption of our dividend payment is a strong reflection of our expectation that the market will remain strong for the foreseeable future."
The Board of Directors
Hamilton, Bermuda
May 20, 2021
Questions should be directed to:
Ulrik Andersen: Chief Executive Officer, Golden Ocean Management AS
+47 22 01 73 53
Peder Simonsen: Chief Financial Officer, Golden Ocean Management AS
+47 22 01 73 45
The full report is available in the link below.
Forward Looking Statements
Matters discussed in this earnings report may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995, or the PSLRA, provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The Company is taking advantage of the safe harbor provisions of the PSLRA and is including this cautionary statement in connection therewith. This document and any other written or oral statements made by the Company or on its behalf may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. This earnings report includes assumptions, expectations, projections, intentions and beliefs about future events. These statements are intended as “forward-looking statements.” The Company cautions that assumptions, expectations, projections, intentions and beliefs about future events may and often do vary from actual results and the differences can be material. When used in this document, the words “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “targets,” “projects,” “likely,” “will,” “would,” “could” and similar expressions or phrases may identify forward-looking statements.
The forward-looking statements in this report are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitati
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