GOGL – Fourth Quarter 2020 Results
Golden Ocean Group Limited (NASDAQ: GOGL) reported its fourth quarter 2020 results, showing a net income of $25.4 million and earnings per share of $0.18, down from $39.1 million and $0.27 in Q3. Adjusted EBITDA was $59.3 million, down from $76.7 million. The company signed the Neptune Declaration on seafarer wellbeing and sold two vessels for a total of $18 million. A significant acquisition of 18 modern dry bulk vessels was announced for $752 million. TCE rates are projected lower in Q1 2021 due to market conditions.
- Acquisition of 18 modern dry bulk vessels for $752 million expected to enhance market positioning.
- Net income of $25.4 million indicates stable earnings despite a downturn from the previous quarter.
- TCE rates for Capesize vessels estimated at $18,200 per day for Q1 2021, indicating strong demand.
- Net income decline from $39.1 million in Q3 to $25.4 million in Q4 2020.
- Adjusted EBITDA decreased from $76.7 million in Q3 to $59.3 million in Q4 2020.
- Forecast for lower TCE rates in Q1 2021 due to anticipated market weakness.
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 December 31, 2020.
Highlights
▪ Net income of
▪ Adjusted EBITDA of
▪ 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
▪ In January 2021, entered into an agreement to sell the Golden Saguenay, a Panamax vessel, for
▪ In February 2021, entered into a Heads of Agreement to acquire 18 modern dry bulk vessels for a total consideration of
▪ Reported TCE rates for Capesize and Panamax/Ultramax vessels of
▪ Estimated TCE rates for the first quarter of 2021, inclusive of charter coverage and calculated on a load-to-discharge basis, are:
·approximately
·approximately
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.”
The Board of Directors
Hamilton, Bermuda
February 18, 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 provides safe harbor protections for forward-looking statements, which 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 desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. Words such as "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "projects," "likely," "will," "would," "could," "seeks," "potential," "continue," "contemplate," "possible," "might," "forecasts," "may," "should" 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. The information set forth herein speaks only as of the date hereof, and the Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.
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 strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter hire rates and vessel values, changes in demand in the dry bulk market, the length and severity of the COVID-19 outbreak, the impact of public health threats and outbreaks of other highly communicable diseases, changes in the Company's operating expenses, including bunker prices, drydocking and insurance costs, the market for the Company's vessels, availability of financing and refinancing, the impact of the expected discontinuance of LIBOR after 2021 on interest rates of the Company's debt that reference LIBOR, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents, political events or acts by terrorists, 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, 2019.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Attachment
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