GOGL – Fourth Quarter 2022 Results
Golden Ocean Group Limited (GOGL) reported unaudited financial results for Q4 and FY 2022, highlighting a net income of $68.2 million and earnings per share of $0.34 for the fourth quarter, down from $104.6 million and $0.52 in Q3. The company achieved an adjusted EBITDA of $112.4 million in Q4. TCE rates for Capesize vessels averaged $21,399, and for Panamax/Ultramax vessels, $18,992. The company announced a cash dividend of $0.20 per share and disclosed plans to acquire six Newcastlemax vessels for $291 million, with financing arrangements in place. CEO Ulrik Andersen remains optimistic about future dry bulk demand.
- Net income of $68.2 million for Q4 2022.
- Adjusted EBITDA of $112.4 million for Q4 2022.
- Plans to acquire six Newcastlemax vessels for $291 million.
- Cash dividend of $0.20 per share announced.
- Decline in net income from $104.6 million in Q3 2022 to $68.2 million in Q4 2022.
- Earnings per share fell from $0.52 in Q3 2022 to $0.34 in Q4 2022.
Golden Ocean Group Limited (NASDAQ/OSE: GOGL) (the “Company” or “Golden Ocean”), the world's largest listed owner of large size dry bulk vessels, today announced its unaudited results for the three and twelve months period ended December 31, 2022.
Highlights
- Net income of
$68.2 million and earnings per share of$0.34 for the fourth quarter of 2022 compared with net income of$104.6 million and earnings per share of$0.52 for the third quarter of 2022 - Adjusted EBITDA of
$112.4 million for the fourth quarter of 2022, compared with$118.2 million for the third quarter of 2022 - Reported TCE rates for Capesize and Panamax/Ultramax vessels of
$21,399 per day and$18,992 per day, respectively, in the fourth quarter of 2022. Reported TCE rate for the total fleet of$20,421 per day - Entered into agreements to acquire six modern Newcastlemax vessels for a total consideration of
$291 million from an unrelated third party. The vessels will be chartered back to the seller for a period of 36 months at an average net TCE rate of$21,000 per day - Entered into a
$250 million facility refinancing 20 Capesize and Panamax vessels at highly attractive terms - Completed the sale of the 2008 and 2009 built Panamax vessels Golden Ice and Golden Strength, at attractive prices
- Entered into agreements to purchase three scrubbers to be installed on certain Capesize vessels due for drydock in 2023
- Acquired an aggregate of 462,085 shares in open market transactions under the share buy-back program
- Estimated TCE rates, inclusive of charter coverage, calculated on a load-to-discharge basis are approximately:
$13,150 per day for63% of Capesize available days and$14,900 per day for73% of Panamax available days for the first quarter of 2023.$21,100 per day for19% of Capesize available days and$17,900 per day for14% of Panamax available days for the second quarter of 2023.
- Announced a cash dividend of
$0.20 per share for the fourth quarter of 2022, payable on or about March 9, 2023 to shareholders of record on February 28, 2023. Shareholders holding the Company’s shares through Euronext VPS may receive this cash dividend later, on or about March 13, 2023
Ulrik Andersen, Chief Executive Officer, commented:
“On a challenging macroeconomic backdrop, Golden Ocean delivered another strong result in the fourth quarter of 2022. The result was driven by the superior efficiency of Golden Ocean's modern fleet, as well as our active chartering strategy. We continue our fleet renewal strategy of selling older inefficient tonnage and recycling the cash proceeds into modern tonnage. Since our third quarter release, we sold two older Panamax vessels and acquired six modern Newcastlemax vessels. It means that since 2021, we have divested 11 vessels and acquired or contracted 34 vessels.
Combined with a continuous focus on improving our daily cash break-even levels, we have delivered on our commitment to return value to our shareholders through dividends and share repurchases. Looking ahead, we continue to have a positive view on dry bulk fundamentals given the expected boost in demand from China’s discontinuation of the zero covid policy combined with highly favorable supply-side dynamics.”
The Board of Directors
Golden Ocean Group Limited
Hamilton, Bermuda
February 16, 2023
Questions should be directed to:
Ulrik Andersen: Chief Executive Officer, Golden Ocean Management AS
+47 22 01 73 40
Peder Simonsen: Chief Financial Officer, Golden Ocean Management AS
+47 22 01 73 40
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; central bank policies intended to combat overall inflation and the rising 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), damage to storage or receiving facilities, political instability, terrorist attacks, piracy or international hostilities, including the ongoing aggression between Russia and Ukraine; the 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.
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