GOGL – Fourth Quarter 2024 Results
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 quarter ended December 31, 2024.
Highlights
- Net income of $39.0 million and
earnings per share of $0.20 (basic) for the fourth quarter of 2024,
compared to net income of $56.3 million and earnings per share of
$0.28 (basic) for the third quarter of 2024.
- Net income of $223.2 million and
earnings per share of $1.12 (basic) for full year 2024, compared to
net income of $112.3 million and earnings per share of $0.56
(basic) for full year 2023.
- Adjusted EBITDA of $69.9 million
for the fourth quarter of 2024, compared to $124.4 million for the
third quarter of 2024.
- Adjusted net income of $12.7
million for the fourth quarter of 2024, compared to $66.7 million
for the third quarter of 2024.
- A total of $34.3 million in
drydocking expense was recorded in the fourth quarter of 2024 in
connection with 13 drydockings compared to $9.7 million for five
drydockings in the third quarter of 2024.
- Reported TCE rates for Capesize and
Panamax vessels of $24,656 per day and $14,771 per day,
respectively, and $20,809 per day for the entire fleet in the
fourth quarter of 2024.
- Repurchased 625,000 shares at an
aggregate purchase price of $5.7 million, or $9.08 per
share.
- Exercised a purchase option for
eight vessels chartered in on long-term leases from SFL Corporation
Limited (“SFL”) for a total aggregate purchase price of $112
million. The acquisition will be partially financed by a new $90
million credit facility at attractive terms.
- Finalized the sale of one
Newcastlemax vessel and one Panamax vessel for a total net
consideration of $56.8 million.
- Estimated TCE rates, inclusive of
charter coverage calculated on a load-to-discharge basis, are
approximately:
- $15,100 per day for 77% of Capesize
available days and $9,900 per day for 81% of Panamax available days
for the first quarter of 2025.
- $20,900 per day for 16% of Capesize
available days and $14,200 per day for 10% of Panamax available
days for the second quarter of 2025.
- Announced a cash dividend of $0.15
per share for the fourth quarter of 2024, which is payable on or
about March 21, 2025, to shareholders of record on March 11, 2025.
Shareholders holding the Company’s shares through Euronext VPS may
receive this cash dividend later, on or about March 24, 2025.
Peder Simonsen, Interim Chief Executive Officer
and Chief Financial Officer, commented:
"Golden Ocean delivered another quarter of solid performance
despite ongoing market fluctuations. The resilience of our business
is a testament to our strong commercial capabilities, disciplined
cost structure, and focused approach in the Capesize and
Newcastlemax vessel segments, which holds the most favorable market
dynamics. We are utilizing the current market weakness to upgrade
the fleet significantly and with a modern and fuel-efficient fleet,
we remain well-positioned to generate strong cash flow across
market cycles. Looking ahead, we are encouraged by the continued
strength in global dry bulk demand, the supportive supply-side
dynamics, and the structural tailwinds in key commodities, all of
which reinforce our long-term confidence in the market and our
ability to create value for shareholders."
The Board of Directors
Golden Ocean Group Limited
Hamilton, Bermuda
February 26, 2025
Questions should be directed to:
Peder Simonsen: Interim Chief Executive Officer and Chief Financial
Officer, Golden Ocean Management AS
+47 22 01 73 40
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: general market trends in the dry bulk
industry, which is cyclical and volatile, including fluctuations in
charter hire rates and vessel values; a decrease in the
market value of the Company’s vessels; changes in supply and demand
in the dry bulk shipping industry, including the market for the
Company’s vessels; an oversupply of dry bulk vessels, which may
depress charter rates and profitability; the Company’s future
operating or financial results; the Company’s continued borrowing
availability under the Company’s 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
failure of the Company’s contract counterparties to meet their
obligations, including changes in credit risk with respect to the
Company’s counterparties on contracts; the loss of a large customer
or significant business relationship; the strength of world
economies; the volatility of prevailing spot market and
charter-hire charter rates, which may negatively affect the
Company’s earnings; the Company’s ability to successfully employ
the Company’s dry bulk vessels and replace the Company’s operating
leases on favorable terms, or at all; changes in the Company’s
operating expenses and voyage costs, including bunker prices, fuel
prices (including increased costs for low sulfur fuel), drydocking,
crewing and insurance costs; the adequacy of the Company’s
insurance to cover the Company’s losses, including in the case of a
vessel collision; vessel breakdowns and instances of offhire; 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 of vessels under construction, the
delivery and commencement of operation dates, expected downtime and
lost revenue); risks associated with any future vessel construction
or the purchase of second-hand vessels; effects of new products and
new technology in the Company’s industry, including the potential
for technological innovation to reduce the value of the Company’s
vessels and charter income derived therefrom; the impact of an
interruption or failure of the Company’s information technology and
communications systems, including the impact of cybersecurity
threats and data security breaches, upon the Company’s ability to
operate; potential liability from safety, environmental,
governmental and other requirements and potential significant
additional expenditures (by the Company and the
Company’s customers) related to complying with such
regulations; changes in governmental rules and regulations
or actions taken by regulatory authorities and the impact of
government inquiries and investigations; the arrest
of the Company’s vessels by maritime
claimants; government requisition of the Company’s vessels
during a period of war or emergency; the Company’s compliance with
complex laws, regulations, including environmental laws and
regulations and the U.S. Foreign Corrupt Practices Act of 1977;
potential difference in interests between or among certain members
of the Board of Directors, executive officers, senior management
and shareholders; the Company’s ability to attract, retain and
motivate key employees; work stoppages or other labor disruptions
by the Company’s employees or the employees of other companies in
related industries; potential exposure or loss from investment in
derivative instruments; stability of Europe and the Euro or the
inability of countries to refinance their debts; inflationary
pressures and the central bank policies intended to combat overall
inflation and rising interest rates and foreign exchange rates;
fluctuations in currencies; the impact that any discontinuance,
modification or other reform or the establishment of alternative
reference rates have on the Company's floating interest rate debt
instruments; acts of piracy on ocean-going vessels, public health
threats, terrorist attacks and international hostilities and
political instability; potential physical disruption of shipping
routes due to accidents, climate-related (acute and chronic),
political instability, terrorist attacks, piracy, international
sanctions or international hostilities, including the developments
in the Ukraine region and in the Middle East, including the
conflicts in Israel and Gaza, and the Houthi attacks in the Red
Sea; general domestic and international political and geopolitical
conditions or events, including any further changes in U.S. trade
policy that could trigger retaliatory actions by affected
countries; the impact of the U.S. presidential and
congressional election results affecting the economic, future
government laws and regulations and trade policy matters, such as
the imposition of tariffs and other import restrictions; the impact
of adverse weather and natural disasters; the impact of increasing
scrutiny and changing expectations from investors, lenders and
other market participants with respect to the Company’s
Environmental, Social and Governance policies; changes in seaborne
and other transportation; the length and severity of epidemics and
pandemics and governmental responses thereto and the impact on the
demand for seaborne transportation in the dry bulk sector; impacts
of supply chain disruptions and market volatility surrounding
impacts of the Russian-Ukrainian conflict and the developments in
the Middle East; fluctuations in the contributions of the Company’s
joint ventures to the Company’s profits and losses; the potential
for shareholders to not be able to bring a suit against us or
enforce a judgement obtained against us in the United States; the
Company’s treatment as a “passive foreign investment company” by
U.S. tax authorities; being required to pay taxes on U.S. source
income; the Company’s operations being subject to economic
substance requirements; the Company potentially becoming subject to
corporate income tax in Bermuda in the future; the volatility of
the stock price for the Company’s common shares, from which
investors could incur substantial losses, and the future sale of
the Company’s common shares, which could cause the market price of
the Company’s common shares to decline; 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, 2023.
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.
- GOGL - 4th Quarter 2024 Results
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