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GOLDEN OCEAN GROUP LTD.
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By: /s/ Peder Simonsen
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Date: November 16, 2022
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Name: Peder Simonsen
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Title: Principal Financial Officer
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▪ |
Net income of $104.6 million and earnings per share of $0.52 for the third quarter of 2022 compared with net income of $163.7 million and earnings per
share of $0.82 for the second quarter of 2022.
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▪ |
Adjusted EBITDA1 of $118.2 million for the third
quarter of 2022, compared with $191.6 million for the second quarter of 2022.
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▪ |
Reported TCE2 rates for Capesize and Panamax/Ultramax vessels of $22,658 per day and $23,562 per day, respectively, in the third quarter of 2022. Reported TCE
rate for the total fleet of $23,017 per day.
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▪ |
Completed the sale of two Ultramax vessels Golden Cecilie and Golden Cathrine, and recorded a gain of $21.9 million, and net cash proceeds of $43.0 million.
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▪ |
Announced a share buy-back program of up to $100.0 million.
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▪ |
Estimated TCE rates, inclusive of charter coverage, calculated on a load-to-discharge basis are approximately:
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▪ |
$23,100 per day for 75% of Capesize available days and $19,100 per day for 78% of Panamax available days for the fourth quarter of 2022; and
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▪ |
$21,300 per day for 4% of Capesize available days and $21,150 per day for 21% of Panamax available days for the first quarter of 2023.
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▪ |
Announced a cash dividend of $0.35 per share for the third quarter of 2022, payable on or about December 5, 2022 to shareholders of record on November 28, 2022.
Shareholders holding the Company’s shares through Euronext VPS may receive this cash dividend later, on or about December 7, 2022.
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GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
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2 |
a. |
76 vessels owned by the Company (48 Capesize and 28 Panamax vessels);
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b. |
Eight Capesize vessels chartered in on long-term leases with profit-sharing arrangements;
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c. |
One Ultramax vessel chartered in; and
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d. |
Ten 85,000 dwt Kamsarmax vessels on order.
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GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
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3 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
4 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
5 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
6 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
7 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
8 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
9 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
10 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
11 |
Unaudited Interim Condensed Consolidated Statements of Operations
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Unaudited Interim Condensed Consolidated Balance Sheets
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Unaudited Interim Condensed Consolidated Cash Flow Statements
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Unaudited Interim Condensed Consolidated Statements of Changes in Equity
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Selected Notes to the Unaudited Interim Condensed Consolidated Financial Statements
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GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
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12 |
(in thousands of $, except per share data)
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Three months ended
September 30,
2022
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Three months ended
June 30,
2022
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Three months ended
September 30,
2021
|
Nine months ended
September 30,
2022
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Nine months ended
September 30,
2021
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|||||||||||||||
Operating revenues
|
||||||||||||||||||||
Time charter revenues
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125,776
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183,393
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188,764
|
471,017
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394,282
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|||||||||||||||
Voyage charter revenues
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155,614
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132,985
|
198,618
|
391,772
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425,841
|
|||||||||||||||
Other revenues
|
659
|
287
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236
|
1,109
|
1,250
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|||||||||||||||
Total operating revenues
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282,049
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316,665
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387,618
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863,898
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821,373
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|||||||||||||||
Gain from disposal of vessels
|
21,856
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9,516
|
4,860
|
31,372
|
4,860
|
|||||||||||||||
Other operating income (expenses)
|
—
|
—
|
792
|
(413
|
)
|
4,351
|
||||||||||||||
Operating expenses
|
||||||||||||||||||||
Voyage expenses and commissions
|
86,460
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66,628
|
81,734
|
209,361
|
183,922
|
|||||||||||||||
Ship operating expenses
|
59,336
|
50,369
|
52,371
|
167,870
|
151,271
|
|||||||||||||||
Charter hire expenses
|
19,179
|
15,380
|
31,240
|
44,862
|
78,312
|
|||||||||||||||
Administrative expenses
|
4,787
|
5,497
|
4,602
|
15,411
|
13,322
|
|||||||||||||||
Impairment loss on vessels
|
—
|
—
|
—
|
—
|
4,187
|
|||||||||||||||
Depreciation
|
32,477
|
32,534
|
33,299
|
97,445
|
90,345
|
|||||||||||||||
Total operating expenses
|
202,239
|
170,408
|
203,246
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534,949
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521,359
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|||||||||||||||
Net operating income
|
101,666
|
155,773
|
190,024
|
359,908
|
309,225
|
|||||||||||||||
Other income (expenses)
|
||||||||||||||||||||
Interest income
|
725
|
240
|
76
|
1,020
|
330
|
|||||||||||||||
Interest expense
|
(15,131
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)
|
(12,113
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)
|
(10,846
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)
|
(37,285
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)
|
(29,400
|
)
|
||||||||||
Gain on derivatives
|
11,391
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7,127
|
5,598
|
37,268
|
29,254
|
|||||||||||||||
Equity results of associated companies
|
5,900
|
12,666
|
11,076
|
33,020
|
14,607
|
|||||||||||||||
Other financial items
|
49
|
86
|
(569
|
)
|
(193
|
)
|
(533
|
)
|
||||||||||||
Net other income (expenses)
|
2,934
|
8,006
|
5,335
|
33,830
|
14,258
|
|||||||||||||||
Net income before income taxes
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104,600
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163,779
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195,359
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393,738
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323,483
|
|||||||||||||||
Income tax expense
|
35
|
30
|
30
|
100
|
80
|
|||||||||||||||
Net income
|
104,565
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163,749
|
195,329
|
393,638
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323,403
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Per share information:
|
||||||||||||||||||||
Earnings per share: basic
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$
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0.52
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$
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0.82
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$
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0.97
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$
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1.96
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$
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1.71
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||||||||||
Earnings per share: diluted
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$
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0.52
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$
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0.81
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$
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0.97
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$
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1.95
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$
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1.70
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GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
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13 |
(in thousands of $)
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As of
September 30, 2022 |
As of
June 30, 2022 |
As of
December 31, 2021 |
|||||||||
ASSETS
|
||||||||||||
Current assets
|
||||||||||||
Cash and cash equivalents
|
129,270
|
163,981
|
197,032
|
|||||||||
Restricted cash
|
2,985
|
4,340
|
12,985
|
|||||||||
Other current assets
|
192,090
|
186,784
|
159,373
|
|||||||||
Total current assets
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324,345
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355,105
|
369,390
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|||||||||
Vessels and equipment, net
|
2,718,422
|
2,744,961
|
2,880,321
|
|||||||||
Vessels held for sale
|
—
|
39,884
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—
|
|||||||||
Newbuildings
|
73,583
|
49,830
|
35,678
|
|||||||||
Finance leases, right of use assets, net
|
87,356
|
91,123
|
98,535
|
|||||||||
Operating leases, right of use assets, net
|
27,330
|
25,652
|
19,965
|
|||||||||
Other long-term assets
|
93,475
|
81,150
|
50,288
|
|||||||||
Total assets
|
3,324,511
|
3,387,705
|
3,454,177
|
|||||||||
LIABILITIES AND EQUITY
|
||||||||||||
Current liabilities
|
||||||||||||
Current portion of long-term debt
|
94,460
|
96,070
|
105,864
|
|||||||||
Current portion of finance lease obligations
|
18,106
|
18,517
|
21,755
|
|||||||||
Current portion of operating lease obligations
|
14,754
|
11,695
|
13,860
|
|||||||||
Other current liabilities
|
103,191
|
103,943
|
106,594
|
|||||||||
Total current liabilities
|
230,511
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230,225
|
248,073
|
|||||||||
Long-term debt
|
1,060,001
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1,101,399
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1,156,481
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|||||||||
Non-current portion of finance lease obligations
|
92,241
|
96,823
|
105,975
|
|||||||||
Non-current portion of operating lease obligations
|
19,481
|
21,150
|
14,907
|
|||||||||
Total liabilities
|
1,402,234
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1,449,597
|
1,525,436
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|||||||||
Equity
|
1,922,277
|
1,938,108
|
1,928,741
|
|||||||||
Total liabilities and equity
|
3,324,511
|
3,387,705
|
3,454,177
|
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
14 |
(in thousands of $)
|
Three months
ended
September 30,
2022
|
Three months
ended
June 30,
2022
|
Three months
ended
September 30,
2021
|
Nine months
ended
September 30,
2022
|
Nine months
ended
September 30,
2021
|
|||||||||||||||
Net income
|
104,565
|
163,749
|
195,329
|
393,638
|
323,403
|
|||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities;
|
||||||||||||||||||||
Gain from disposal of vessels
|
(21,856
|
)
|
(9,516
|
)
|
(4,860
|
)
|
(31,372
|
)
|
(4,860
|
)
|
||||||||||
Depreciation
|
32,477
|
32,534
|
33,299
|
97,445
|
90,345
|
|||||||||||||||
Impairment loss on vessels
|
—
|
—
|
—
|
—
|
4,187
|
|||||||||||||||
Dividends from associated companies
|
6,626
|
945
|
—
|
14,123
|
—
|
|||||||||||||||
Equity results from associated companies
|
(5,900
|
)
|
(12,666
|
)
|
(11,076
|
)
|
(33,020
|
)
|
(14,607
|
)
|
||||||||||
Amortization of time charter party out contracts
|
—
|
—
|
45
|
—
|
1,055
|
|||||||||||||||
Mark to market value on derivatives
|
(12,975
|
)
|
(7,541
|
)
|
(2,797
|
)
|
(39,446
|
)
|
(13,205
|
)
|
||||||||||
Other, net
|
707
|
1,271
|
(896
|
)
|
946
|
(4,322
|
)
|
|||||||||||||
Change in operating assets and liabilities
|
(4,963
|
)
|
(13,300
|
)
|
(8,559
|
)
|
(24,532
|
)
|
(40,754
|
)
|
||||||||||
Net cash provided by operating activities
|
98,681
|
155,476
|
200,485
|
377,782
|
341,242
|
|||||||||||||||
Investing activities
|
||||||||||||||||||||
Additions to vessels and right of use assets
|
(1,275
|
)
|
(848
|
)
|
(802
|
)
|
(3,517
|
)
|
(289,744
|
)
|
||||||||||
Additions to newbuildings
|
(23,915
|
)
|
(13,727
|
)
|
—
|
(37,642
|
)
|
(116,445
|
)
|
|||||||||||
Repayments of loans receivable from related parties
|
—
|
—
|
—
|
5,350
|
—
|
|||||||||||||||
Proceeds from sale of vessels
|
61,740
|
51,479
|
—
|
113,219
|
17,652
|
|||||||||||||||
Other investing activities, net
|
2
|
939
|
939
|
943
|
961
|
|||||||||||||||
Net cash provided by (used in) investing activities
|
36,552
|
37,843
|
137
|
78,353
|
(387,576
|
)
|
||||||||||||||
Financing activities
|
||||||||||||||||||||
Repayment of long-term debt
|
(43,986
|
)
|
(305,418
|
)
|
(434,866
|
)
|
(382,634
|
)
|
(538,173
|
)
|
||||||||||
Proceeds from long-term debt
|
—
|
275,000
|
435,000
|
275,000
|
497,975
|
|||||||||||||||
Net proceeds from share distributions
|
—
|
828
|
62
|
828
|
636
|
|||||||||||||||
Debt fees paid
|
—
|
(2,750
|
)
|
(4,432
|
)
|
(2,750
|
)
|
(4,432
|
)
|
|||||||||||
Net proceeds from share issuance
|
—
|
—
|
—
|
—
|
352,225
|
|||||||||||||||
Dividends paid
|
(120,531
|
)
|
(100,443
|
)
|
(100,218
|
)
|
(401,366
|
)
|
(150,322
|
)
|
||||||||||
Repayment of finance leases
|
(6,782
|
)
|
(7,936
|
)
|
(8,523
|
)
|
(22,975
|
)
|
(24,215
|
)
|
||||||||||
Net cash provided by (used in) financing activities
|
(171,299
|
)
|
(140,719
|
)
|
(112,977
|
)
|
(533,897
|
)
|
133,694
|
|||||||||||
Net change
|
(36,066
|
)
|
52,600
|
87,645
|
(77,762
|
)
|
87,360
|
|||||||||||||
Cash, cash equivalents and restricted cash at start of period
|
168,321
|
115,721
|
174,817
|
210,017
|
175,102
|
|||||||||||||||
Cash, cash equivalents and restricted cash at end of period
|
132,255
|
168,321
|
262,462
|
132,255
|
262,462
|
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
15 |
(in thousands of $, except for the share data)
|
Nine months
ended
September 30,
2022
|
Nine months
ended
September 30,
2021
|
||||||
Number of shares outstanding
|
|
|||||||
Balance at beginning of period
|
200,435,621
|
143,327,697
|
||||||
Shares issued
|
—
|
56,917,924
|
||||||
Distribution of treasury shares
|
450,000
|
190,000
|
||||||
Balance at end of period
|
200,885,621
|
200,435,621
|
||||||
Share capital
|
||||||||
Balance at beginning of period
|
10,061
|
7,215
|
||||||
Shares issued
|
—
|
2,846
|
||||||
Balance at end of period
|
10,061
|
10,061
|
||||||
Treasury shares
|
||||||||
Balance at beginning of period
|
(4,309
|
)
|
(5,386
|
)
|
||||
Share distribution
|
2,568
|
1,077
|
||||||
Balance at end of period
|
(1,741
|
)
|
(4,309
|
)
|
||||
Additional paid in capital
|
||||||||
Balance at beginning of period
|
285
|
979
|
||||||
Shares issued
|
—
|
349,379
|
||||||
Stock option expense
|
436
|
467
|
||||||
Transfer to contributed surplus
|
—
|
(350,671
|
)
|
|||||
Balance at end of period
|
721
|
154
|
||||||
Contributed capital surplus
|
||||||||
Balance at beginning of period
|
1,762,649
|
1,732,670
|
||||||
Distributions to shareholders
|
(180,392
|
)
|
(150,322
|
)
|
||||
Transfer from additional paid in capital
|
—
|
350,671
|
||||||
Balance at end of period
|
1,582,257
|
1,933,019
|
||||||
Accumulated earnings (deficit)
|
||||||||
Balance at beginning of period
|
160,055
|
(366,722
|
)
|
|||||
Distributions to shareholders
|
(220,974
|
)
|
—
|
|||||
Distribution treasury shares
|
(1,740
|
)
|
(443
|
)
|
||||
Net income
|
393,638
|
323,403
|
||||||
Balance at end of period
|
330,979
|
(43,762
|
)
|
|||||
Total equity
|
1,922,277
|
1,895,163
|
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
16 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
17 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
18 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
19 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
20 |
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
21 |
(in thousands of $)
|
Three months ended
September 30,
2022
|
Three months ended
June 30,
2022
|
Three months ended
September 30,
2021
|
Nine months ended
September 30,
2022
|
Nine months ended
September 30,
2021
|
|||||||||||||||
Net income
|
104,565
|
163,749
|
195,329
|
393,638
|
323,403
|
|||||||||||||||
Interest income
|
(725
|
)
|
(240
|
)
|
(76
|
)
|
(1,020
|
)
|
(330
|
)
|
||||||||||
Interest expense
|
15,131
|
12,113
|
10,846
|
37,285
|
29,400
|
|||||||||||||||
Income tax expense
|
35
|
30
|
30
|
100
|
80
|
|||||||||||||||
Depreciation
|
32,477
|
32,534
|
33,299
|
97,445
|
90,345
|
|||||||||||||||
Amortization of time charter party out contracts
|
—
|
—
|
45
|
—
|
1,055
|
|||||||||||||||
Earnings before Interest Taxes Depreciation and Amortization
|
151,483
|
208,186
|
239,473
|
527,448
|
443,953
|
|||||||||||||||
Impairment loss on vessels
|
—
|
—
|
—
|
—
|
4,187
|
|||||||||||||||
Gain from disposal of vessels
|
(21,856
|
)
|
(9,516
|
)
|
(4,860
|
)
|
(31,372
|
)
|
(4,860
|
)
|
||||||||||
Gain on derivatives
|
(11,391
|
)
|
(7,127
|
)
|
(5,598
|
)
|
(37,268
|
)
|
(29,254
|
)
|
||||||||||
Other financial items
|
(48
|
)
|
100
|
637
|
381
|
673
|
||||||||||||||
Adjusted Earnings before Interest Taxes Depreciation and Amortization
|
118,188
|
191,643
|
229,652
|
459,189
|
414,699
|
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
22 |
(in thousands of $)
|
Three months ended
September 30,
2022
|
Three months ended
June 30,
2022
|
Three months ended
September 30,
2021
|
Nine months ended
September 30,
2022
|
Nine months ended
September 30,
2021
|
|||||||||||||||
Total operating revenues
|
282,049
|
316,665
|
387,618
|
863,898
|
821,373
|
|||||||||||||||
Add: Amortization of time charter party out contracts
|
—
|
—
|
45
|
—
|
1,055
|
|||||||||||||||
Add: Other operating income (expenses)
|
—
|
—
|
792
|
(413
|
)
|
4,351
|
||||||||||||||
Less: Other revenues*
|
659
|
287
|
236
|
1,109
|
1,250
|
|||||||||||||||
Net time and voyage charter revenues
|
281,390
|
316,378
|
388,219
|
862,376
|
825,529
|
|||||||||||||||
Less: Voyage expenses & commission
|
86,460
|
66,628
|
81,734
|
209,361
|
183,922
|
|||||||||||||||
Time charter equivalent income
|
194,930
|
249,750
|
306,485
|
653,015
|
641,607
|
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
23 |
(in thousands of $, except for TCE rate and days)
|
Three months ended
September 30,
2022
|
Three months ended
June 30,
2022
|
Three months ended
September 30,
2021
|
Nine months ended
September 30,
2022
|
Nine months ended
September 30,
2021
|
|||||||||||||||
TCE Income Capesize vessels
|
115,716
|
156,277
|
203,449
|
396,502
|
424,207
|
|||||||||||||||
TCE Income Panamax vessels and Ultramax vessels
|
79,214
|
93,473
|
103,036
|
256,513
|
217,401
|
|||||||||||||||
Total Time charter equivalent income
|
194,930
|
249,750
|
306,485
|
653,015
|
641,608
|
|||||||||||||||
in days
|
||||||||||||||||||||
Fleet onhire days Capesize vessels
|
5,107
|
5,097
|
5,334
|
15,229
|
14,835
|
|||||||||||||||
Fleet onhire days Panamax and Ultramax vessels
|
3,362
|
3,389
|
4,166
|
10,289
|
10,851
|
|||||||||||||||
Total Fleet onhire days
|
8,469
|
8,486
|
9,500
|
25,518
|
25,686
|
|||||||||||||||
in $ per day
|
||||||||||||||||||||
TCE per day Capesize vessels
|
22,658
|
30,661
|
38,142
|
26,036
|
28,595
|
|||||||||||||||
TCE per day Panamax and Ultramax vessels
|
23,562
|
27,581
|
24,733
|
24,931
|
20,035
|
|||||||||||||||
Time charter equivalent rate
|
23,017
|
29,431
|
32,262
|
25,590
|
24,979
|
GOLDEN OCEAN GROUP LIMITED, THIRD QUARTER 2022
|
24 |
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