GOGL – First Quarter 2022 Results

Rhea-AI Summary

Golden Ocean Group Limited (NASDAQ: GOGL) reported its unaudited results for Q1 2022, showing a net income of $125.3 million and earnings per share of $0.63, a decline from $203.8 million and $1.02 in Q4 2021. Adjusted EBITDA was $149.4 million, down from $243.5 million the previous quarter. The Company announced a cash dividend of $0.50 per share, payable on June 8, 2022. Average TCE rates for Capesize and Panamax vessels were reported at $24,778 and $23,693 per day, with expectations for higher rates in Q2 and Q3 2022.

Positive

• Cash dividend of $0.50 per share for Q1 2022 announced, signaling continuous shareholder returns.
• Loan agreement signed for a $275 million facility, which will improve cash break even rates by approximately $1,500 per day for 14 Capesize vessels.
• Strong contract coverage for Capesize fleet at attractive levels expected to boost cash flows.

Negative

• Net income and earnings per share significantly decreased compared to previous quarter (from $203.8 million to $125.3 million and from $1.02 to $0.63, respectively).
• Adjusted EBITDA fell from $243.5 million in Q4 2021 to $149.4 million in Q1 2022.

Golden Ocean Group Limited (NASDAQ: GOGL / OSE: GOGL) (the “Company” or “Golden Ocean”), the world's leading owner of large size dry bulk vessels, today announced its unaudited results for the quarter ended March 31, 2022.

Highlights

• Net income of $125.3 million and earnings per share of $0.63 (basic) for the first quarter of 2022 compared with net income of $203.8 million and earnings per share (basic) of $1.02 for the fourth quarter of 2021.
• Adjusted EBITDA of $149.4 million for the first quarter of 2022, compared with $243.5 million for the fourth quarter of 2021.
• Reported TCE rates for Capesize and Panamax/Ultramax vessels of $24,778 per day and $23,693 per day, respectively, and $24,330 per day for the whole fleet in the first quarter of 2022.
• Estimated TCE rates inclusive of charter coverage calculated on a load-to-discharge basis, are approximately:
  • $28,300 per day for 78% of Capesize available days and $27,500 per day for 77% of Panamax available days for the second quarter of 2022; and
  • $38,200 per day for 15% of Capesize days and $34,900 per day for 33% of Panamax days for the third quarter of 2022.
• Signed loan agreement for a $275 million facility refinancing 14 Capesize vessels. The new facility will improve cash break even rates for these vessels by approximately $1,500 per day.
• Announced a cash dividend of $0.50 per share for the first quarter of 2022, payable on or about June 8, 2022 to shareholders of record on June 1, 2022. Shareholders holding the Company’s shares through Euronext VPS may receive this cash dividend later, on or about June 10, 2022.

Ulrik Andersen, Chief Executive Officer, commented:

“Golden Ocean delivered another strong quarter on the back of a firm Panamax market and a high degree of contract coverage for our Capesize fleet secured at attractive levels last year.

With the anticipated strengthening of the freight market in the second half of the year, we expect to generate significant cash flows. Given our strong balance sheet and low debt, our capital allocation strategy will continue to focus on returning capital to our shareholders.

Although the global recovery from the COVID-19 pandemic faces numerous new challenges, we maintain an optimistic outlook due to healthy forecasted demand growth and an extremely favorable fleet supply dynamic. Fleet growth is slowing significantly, and new environmental regulations will both reduce effective fleet supply and create a further competitive advantage for Golden Ocean due to our fleet's scale, modernity and fuel efficiency.”

The Board of Directors
Golden Ocean Group Limited
Hamilton, Bermuda
May 19, 2022

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 limitation, management's examination of historical operating trends, data contained in the Company's records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. As a result, you are cautioned not to rely on any forward-looking statements.

In addition to these important factors and matters discussed elsewhere herein, important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements, include among other things: the Company’s future operating or financial results; the Company’s continued borrowing availability under its debt agreements and compliance with the covenants contained therein; the Company’s ability to procure or have access to financing, the Company’s liquidity and the adequacy of cash flows for the Company’s operations; the Company’s ability to successfully employ its existing and newbuilding dry bulk vessels and replace its operating leases on favorable terms, or at all; changes in the Company’s operating expenses and voyage costs, including bunker prices, fuel prices (including increases costs for low sulfur fuel), dry docking, crewing and insurance costs; the Company’s ability to fund future capital expenditures and investments in the construction, acquisition and refurbishment of the Company’s vessels (including the amount and nature thereof and the timing of completion thereof, the delivery and commencement of operations dates, expected downtime and lost revenue); planned, pending or recent acquisitions, business strategy and expected capital spending or operating expenses, including drydocking, surveys, upgrades and insurance costs; risks associated with vessel construction; the Company’s expectations regarding the availability of vessel acquisitions and its ability to complete acquisition transactions planned; vessel breakdowns and instances of off-hire; potential differences in interest by or among certain members of the Company’s board of directors, or the Board, executive officers, senior management and shareholders; potential liability from pending or future litigation; potential exposure or loss from investment in derivative instruments; general dry bulk shipping market trends, including fluctuations in charter hire rates and vessel values; changes in supply and demand in the dry bulk shipping industry, including the market for the Company’s vessels and the number of newbuildings under construction; the strength of world economies; stability of Europe and the Euro; fluctuations in interest rates and foreign exchange rates; changes in seaborne and other transportation; changes in governmental rules and regulations or actions taken by regulatory authorities; general domestic and international political conditions; potential disruption of shipping routes due to accidents, climate-related (acute and chronic), political instability, terrorist attacks, piracy or international hostilities, including the ongoing aggression between Russia and Ukraine; he length and severity of epidemics and pandemics, including COVID-19 and its impact on the demand for seaborne transportation in the dry bulk sector; the impact of increasing scrutiny and changing expectations from investors, lenders, charterers and other market participants with respect to our Environmental, Social and Governance practices; new environmental regulations and restrictions, whether at a global level stipulated by the International Maritime Organization, and/or regional/national imposed by regional authorities such as the European Union or individual countries; and other important factors described from time to time in the reports filed by the Company with the U.S. Securities and Exchange Commission, including the Company's most recently filed Annual Report on Form 20-F for the year ended December 31, 2021.

The Company cautions readers of this report not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events. These forward-looking statements are not guarantees of the Company’s future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

 

Attachment

• GOGL - 1st Quarter 2022 Results

FAQ

What were Golden Ocean Group's Q1 2022 earnings results?

In Q1 2022, Golden Ocean reported a net income of $125.3 million, with earnings per share of $0.63.

How much cash dividend is Golden Ocean Group declaring for Q1 2022?

Golden Ocean is declaring a cash dividend of $0.50 per share for Q1 2022, payable on June 8, 2022.

What are the TCE rates reported by Golden Ocean Group for Q1 2022?

The TCE rates reported for Capesize vessels were $24,778 per day and for Panamax vessels $23,693 per day.

What are the expectations for Golden Ocean Group's TCE rates in Q2 and Q3 2022?

Expectations indicate TCE rates of approximately $28,300 per day for 78% of Capesize days in Q2 2022 and $38,200 per day for 15% of Capesize days in Q3 2022.

What is the significance of the $275 million loan agreement for Golden Ocean Group?

The $275 million loan agreement will refinance 14 Capesize vessels, improving cash break even rates by approximately $1,500 per day.