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GOGL – First Quarter 2021 Results
Ocean of gold Group Limited (NASDAQ: GOGL / OSE: GOGL) (the “Company” or “Golden Ocean”), a leading dry bulk transportation company, today announced its results for the quarter ended March 31, 2021.
- Net income of $ 23.6 million and earnings per share of $ 0.14 for the first quarter of 2021, the best first quarter result in the Company’s history, compared to net income of 25.4 million dollars and earnings per share of $ 0.18 in the fourth quarter of 2020.
- Adjusted EBITDA of $ 54.6 million for the first quarter of 2021, compared to $ 59.3 million for the fourth quarter of 2020.
- Reported TCE rates for Capesize and Panamax / Ultramax vessels of $ 16,611 per day and $ 14,777 per day, respectively, in the first quarter of 2021. Reported TCE rate for the entire fleet of $ 15,886 per day, respectively. day.
- Signing of an agreement in principle with subsidiaries of Hemen Holding Ltd (“Hemen”), a related party, to acquire 15 modern dry bulk vessels and three new vessels for a total amount of $ 752 million.
- Successful private placement of $ 338.0 million at NOK 53.00 per share (approximately $ 6.24 per share based on the then prevailing exchange rate), to partially fund the acquisition of the aforementioned vessel.
- The offer was completed following the private placement and issued 2,710,377 new shares at NOK 53.00 per share, generating gross proceeds of NOK 143.6 million (approximately $ 16.9 million).
- Capitalized on the strength of the spot market and converted from a floating rate to a fixed rate through the second quarter of 2022 in time charters relating to three Capesize vessels: Golden Fulham at $ 28,500, Golden Incus at $ 32,250 and Golden Bexley at $ 31,000.
- Has taken delivery of three Capesize vessels and five Panamax vessels as of the date of this report.
- The estimated TCE rates for the second quarter of 2021, including charter coverage and calculated on a load to unload basis, are as follows:
- approximately $ 29,000 per day contracted for 64% of days available for Capesize vessels;
- approximately $ 18,800 per day subscribed for 84% of days available for Panamax vessels We expect spot TCEs for the entire second quarter of 2021 to be lower than currently contracted TCEs, due to the impact of ballast days at the end of the second quarter of 2021 as well as fluctuations in freight rates.
- Publication of our third annual ESG report for 2020, available on the company’s website.
- Announces a cash dividend of $ 0.25 per share for the first quarter of 2021.
Ulrik Andersen, CEO, commented:
“As happy as we are to have generated the best first quarter result in the company’s history, we are more excited about what lies ahead. The combination of counter-seasonal strength and rate volatility indicates a tightening of the market equilibrium, and we are increasingly optimistic about the potential for an extended period of higher rates. Golden Ocean is well positioned in this market, particularly following our recent acquisition of 18 vessels, including three new vessels. Our focus on the broad classes of ships that have the greatest leverage to improve markets and our ability to maintain extremely competitive cash flow levels will result in significant cash flow generation. Golden Ocean has always returned created value to its shareholders, and the resumption of our dividend payment is a strong reflection of our expectation that the market will remain strong for the foreseeable future. “
Hamilton Board of Directors, Bermuda May 20, 2021
Questions should be directed to:
Ulrik Andersen: Managing Director, 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.
Matters discussed in this earnings report may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995, or the PSLRA, provides safe haven protections for forward-looking statements in order to encourage companies to provide forward-looking information about their activity. Forward-looking statements include statements about future plans, objectives, goals, strategies, events or performance, as well as underlying assumptions and other statements, which are other than statements of historical fact.
The Company takes advantage of the Safe Harbor provisions of the PSSRA and includes this caveat in this regard. This document and any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. This results report includes assumptions, expectations, projections, intentions and beliefs about future events. These statements are intended to be “forward-looking statements”. The Company cautions against the fact that assumptions, expectations, projections, intentions and beliefs about future events can and often are different 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 expressions may identify forward-looking statements.
The forward-looking statements contained in this report are based on various assumptions, many of which, in turn, are based on other assumptions, including, without limitation, management’s review of historical operating trends, data contained in company records and other data available from third parties. parties. Although the Company believes these assumptions were reasonable when made, since 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 does not can assure you that it will meet or achieve these expectations. , beliefs or projections. Therefore, you are cautioned not to rely on forward-looking statements.
In addition to these important factors and matters discussed elsewhere herein, the important factors which, in the opinion of the Company, could cause actual results to differ materially from those discussed in the forward-looking statements, include, but are not limited to: the company’s future operating or financial results. ; the Company’s continued availability to borrow under its borrowing agreements and compliance with the covenants contained therein; the ability of the company to obtain or have access to financing, the liquidity of the company and the adequacy of cash flows for the operations of the company; the company’s ability to successfully employ its existing and new dry bulk vessels; changes in the company’s operating expenses, including bunker prices, dry dock costs and insurance; the company’s ability to finance capital expenditures and future investments in the construction, acquisition and refurbishment of the company’s vessels (including the amount and nature of these and the timing of their completion , delivery and start dates, expected downtime and lost revenue); planned, current or recent acquisitions, business strategy and planned capital or operating expenses, including drydocking, investigations, upgrades and insurance costs; the risks associated with the construction of ships; the company’s expectations regarding the availability of vessel acquisitions and its ability to complete planned acquisition transactions; vessel breakdowns and non-rental cases; potential conflicts of interest involving members of the company’s board of directors, or board, and senior management; potential liability in the event of ongoing or future litigation; potential exposure or loss resulting from an investment in derivative instruments; general trends in the dry bulk transport market, including fluctuations in charter rental rates and vessel values; changes in supply and demand in the dry bulk transport industry, including the Company’s vessel market and the number of new buildings In construction; the strength of global economies; stability of Europe and the euro; fluctuations in interest rates and exchange rates; changes in shipping and other transportation; changes in government rules and regulations or actions taken by regulatory authorities; general national and international political conditions; potential disruption of shipping routes due to accidents or political events; and other material factors described from time to time in reports filed by the Company with the United States Securities and Exchange Commission, including the latest annual report filed by the Company on Form 20-F for the fiscal year ended December 31, 2020.
The company cautions readers of this report not to place undue reliance on these forward-looking statements, which speak only as of their date. Except to the extent required by applicable law or regulation, the Company does not undertake to publicly publish any revision of these forward-looking statements to reflect events or circumstances after the date of this annual report or to reflect the occurrence of unforeseen events. These forward-looking statements are not guarantees future performance of the company, as well as actual results and future developments may differ materially from those projected in forward-looking statements.
This information is subject to disclosure obligations in accordance with section 5-12 of the Norwegian Securities Law.
GOGL – Results for the 1st quarter of 2021
Source: Golden Ocean Group Limited