GOGL – Second Quarter 2020 Results
Golden Ocean Group Limited (NASDAQ: GOGL) reported a net loss of $41.3 million for Q2 2020, with a loss per share of $0.29, a significant improvement from the $160.8 million loss in the previous quarter. The adjusted EBITDA for the quarter was $4.2 million, down from $12.3 million in Q1 2020. The company completed its final scrubber installations and has increased charter coverage for the remainder of 2020. As of now, 38% of Capesize and 56% of Panamax vessel days are covered. The estimated TCE rates for Q3 are $17,960 and $12,980 respectively.
- Reduced net loss from $160.8 million in Q1 to $41.3 million in Q2.
- Adjusted EBITDA of $4.2 million indicates consistent operational performance.
- Completion of scrubber installations minimizes future capital expenses.
- Increased charter coverage for the remainder of 2020, ensuring stable cash flows.
- Adjusted EBITDA decreased from $12.3 million in Q1 to $4.2 million in Q2, indicating declining profitability.
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 June 30, 2020.
Highlights
▪ Net loss of
▪ Adjusted EBITDA1 of
▪ Completed final eight of 23 planned installations of exhaust gas cleaning systems (“scrubbers”), and the Company had no material capital expenditure requirements as of the date of this report.
▪ Utilized market strength in the end of the second and beginning of the third quarter of 2020 to secure additional charter coverage. As of the date of this report, of the remaining trading days in 2020:
•
•
▪ Estimated TCE rate for the third quarter of 2020 to be
▪ As part of the Company’s continuous focus on ESG initiatives, joined the Getting to Zero Coalition, a powerful alliance within the maritime and other sectors, committed to accelerating maritime shipping’s decarbonization.
Ulrik Andersen, Chief Executive Officer, commented:
"While we believe that the recent improvement in rates reflects the diminishing impact of COVID-19 on the underlying demand for dry bulk commodities, uncertainty persists in the near term. We have therefore increased our charter coverage for the balance of 2020, although we maintain enough spot exposure to meaningfully participate in the strong rate environment expected for the remainder of the year. This balanced commercial approach will ensure healthy continued cash flows and a corresponding increase in our liquidity. Additionally, the significant one-off capital expenditures related to scrubber installations and the non-cash impairments that impacted our results in the first half of the year are behind us. It means the recent market strength will directly benefit our second-half cashflow and results.”
The Board of Directors
Hamilton, Bermuda
August 18, 2020
Questions should be directed to:
Ulrik Andersen: Chief Executive Officer, Golden Ocean Management AS
+47 22 01 73 53
Per Heiberg: 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 our records and other data available from third parties. Although we believe 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 our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. The information set forth herein speaks only as of the date hereof, and we disclaim 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 our 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 our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, the impact of the expected discontinuance of LIBOR after 2021 on interest rates of our 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 our 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
FAQ
What was Golden Ocean Group's net loss for Q2 2020?
How did Golden Ocean's EBITDA change from Q1 to Q2 2020?
What percentage of days are covered for Capesize and Panamax vessels in 2020?
What are the estimated TCE rates for Golden Ocean Group in Q3 2020?
