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GOLDEN OCEAN GROUP LTD.
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By:
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/s/ Peder Simonsen
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Date: May 16, 2023
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Name: Peder Simonsen
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Title: Principal Financial Officer
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▪ |
Net loss of $8.8 million and loss per share of $0.04 (basic) for the first quarter of 2023, including vessel impairment loss of $11.8 million relating to the sale of two
older vessels. This compares with a net income of $68.2 million and earnings per share of $0.34 (basic) for the fourth quarter of 2022.
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▪ |
Adjusted EBITDA1 of $54.7 million for the first quarter of 2023, compared with $112.4 million for the fourth quarter of 2022.
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▪ |
Reported TCE2 rates for Capesize and Panamax/Ultramax vessels of $13,620 per day and $16,630 per day, respectively, and $14,929 per day for the entire fleet
in the first quarter of 2023, or approximately $5,000 per day per vessel above the benchmark indices.
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▪ |
In February 2023, entered into an agreement to acquire six modern Newcastlemax vessels, three of which have been delivered as of the date of this report. In March 2023,
entered into a $233.0 million two-year credit facility to partially finance the acquisition.
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▪ |
Entered into an agreement to sell two older Capesize vessels, Golden Feng and Golden Shui, to an unrelated third party for an aggregate net sale price of $43.6 million.
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▪ |
Entered into a $80.0 million facility agreement to partially finance four Kamsarmax newbuildings being
delivered during the second quarter of 2023.
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▪ |
Took delivery of the first of ten Kamsarmax newbuildings under construction.
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▪ |
Published our fifth consecutive annual Environmental, Social and Governance (ESG) report. We measured a 9.1% drop in CO2 emissions since 2019, a big step towards our goals of reaching 15% by 2026 and 30% by 2030.
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▪ |
Estimated TCE rates, inclusive of charter coverage calculated on a load-to-discharge basis, are
approximately:
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• |
$20,010 per day for 74% of Capesize available days and $14,600 per day for 76% of Panamax available days for
the second quarter of 2023.
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• |
$22,300 per day for 26% of Capesize days and $19,600 per day for 38% of Panamax days for the third quarter of 2023.
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▪ |
Announced a cash dividend of $0.10 per share for the first quarter of 2023, which is payable on or about June 6, 2023 to shareholders of record on May 26, 2023.
Shareholders holding the Company’s shares through Euronext VPS may receive this cash dividend later on or about June 8, 2023.
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GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
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2 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
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3 |
|
a. |
78 vessels owned by the Company (51 Capesize and 27 Panamax vessels);
|
|
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. |
Nine 85,000 dwt Kamsarmax vessels on order.
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GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
4 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
5 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
6 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
7 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
8 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
9 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
10 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
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, FIRST QUARTER 2023
|
12 |
(in thousands of $, except per share data)
|
Three months
ended
March 31,
2023
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Three months
ended
December 31,
2022
|
Three months
ended
March 31,
2022
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|||||||||
Operating revenues
|
||||||||||||
Time charter revenues
|
75,341
|
122,779
|
161,848
|
|||||||||
Voyage charter revenues
|
120,085
|
126,626
|
103,173
|
|||||||||
Other revenues
|
1,091
|
153
|
163
|
|||||||||
Total operating revenues
|
196,517
|
249,558
|
265,184
|
|||||||||
Gain from disposal of vessels
|
2,583
|
2,812
|
—
|
|||||||||
Other operating income (expenses)
|
—
|
—
|
(413
|
)
|
||||||||
Operating expenses
|
||||||||||||
Voyage expenses and commissions
|
64,231
|
69,189
|
56,273
|
|||||||||
Ship operating expenses
|
61,630
|
58,100
|
58,165
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|||||||||
Charter hire expenses
|
16,782
|
12,544
|
10,303
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|||||||||
Administrative expenses
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4,162
|
4,965
|
5,127
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|||||||||
Impairment loss on vessels
|
11,780
|
—
|
—
|
|||||||||
Depreciation
|
31,497
|
32,394
|
32,434
|
|||||||||
Total operating expenses
|
190,082
|
177,192
|
162,302
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|||||||||
Net operating income
|
9,018
|
75,178
|
102,469
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|||||||||
Other income (expenses)
|
||||||||||||
Interest income
|
1,515
|
1,326
|
54
|
|||||||||
Interest expense
|
(22,013
|
)
|
(18,963
|
)
|
(10,041
|
)
|
||||||
Gain/(loss) on derivatives
|
(2,083
|
)
|
2,699
|
18,750
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||||||||
Equity results of associated companies
|
4,941
|
7,773
|
14,454
|
|||||||||
Other financial items
|
(170
|
)
|
474
|
(328
|
)
|
|||||||
Net other (expenses) income
|
(17,810
|
)
|
(6,691
|
)
|
22,889
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|||||||
Net income (loss) before income taxes
|
(8,792
|
)
|
68,487
|
125,358
|
||||||||
Income tax expense
|
30
|
279
|
35
|
|||||||||
Net income (loss)
|
(8,822
|
)
|
68,208
|
125,323
|
||||||||
Per share information:
|
||||||||||||
Earnings (loss) per share: basic
|
$
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(0.04
|
)
|
$
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0.34
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$
|
0.63
|
|||||
Earnings (loss) per share: diluted
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$
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(0.04
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)
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$
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0.34
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$
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0.62
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GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
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13 |
(in thousands of $)
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As of
March 31, 2023 |
As of
December 31, 2022 |
||||||
ASSETS
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||||||||
Current assets
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||||||||
Cash and cash equivalents
|
118,422
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134,784
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||||||
Restricted cash
|
4,818
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3,289
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Other current assets
|
156,498
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161,074
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||||||
Total current assets
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279,738
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299,147
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||||||
Vessels and equipment, net
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2,693,358
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2,665,785
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Vessels held for sale
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43,560
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12,542
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Newbuildings
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111,096
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91,898
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Finance leases, right of use assets, net
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79,904
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83,589
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Operating leases, right of use assets, net
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14,324
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15,646
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Other long term assets
|
92,561
|
88,684
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Total assets
|
3,314,541
|
3,257,291
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||||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Current portion of long-term debt
|
97,402
|
92,865
|
||||||
Current portion of finance lease obligations
|
18,720
|
18,387
|
||||||
Current portion of operating lease obligations
|
5,646
|
5,546
|
||||||
Other current liabilities
|
123,067
|
94,830
|
||||||
Total current liabilities
|
244,835
|
211,628
|
||||||
Long-term debt
|
1,104,316
|
1,027,991
|
||||||
Non-current portion of finance lease obligations
|
82,681
|
87,588
|
||||||
Non-current portion of operating lease obligations
|
11,576
|
13,051
|
||||||
Other long-term liabilities
|
3,389
|
—
|
||||||
Total liabilities
|
1,446,797
|
1,340,258
|
||||||
Equity
|
1,867,744
|
1,917,033
|
||||||
Total liabilities and equity
|
3,314,541
|
3,257,291
|
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
14 |
(in thousands of $)
|
Three months
ended
March 31,
2023
|
Three months
ended
December 31,
2022
|
Three months
ended
March 31,
2022
|
|||||||||
Net income (loss)
|
(8,822
|
)
|
68,208
|
125,323
|
||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating
activities;
|
||||||||||||
Gain from disposal of vessels
|
(2,583
|
)
|
(2,812
|
)
|
—
|
|||||||
Depreciation
|
31,497
|
32,394
|
32,434
|
|||||||||
Impairment loss on vessels
|
11,780
|
—
|
—
|
|||||||||
Dividends from associated companies
|
15,268
|
2,150
|
6,552
|
|||||||||
Equity results from associated companies
|
(4,941
|
)
|
(7,773
|
)
|
(14,454
|
)
|
||||||
Mark to market value on derivatives
|
5,773
|
(50
|
)
|
(18,930
|
)
|
|||||||
Other, net
|
1,904
|
(3,633
|
)
|
(1,032
|
)
|
|||||||
Change in operating assets and liabilities
|
26,643
|
37,121
|
(6,269
|
)
|
||||||||
Net cash provided by operating activities
|
76,519
|
125,605
|
123,624
|
|||||||||
Investing activities
|
||||||||||||
Additions to vessels and right of use assets
|
(123,864
|
)
|
(1,486
|
)
|
(1,394
|
)
|
||||||
Additions to newbuildings
|
(15,711
|
)
|
(18,386
|
)
|
—
|
|||||||
Repayments of loans receivable from related parties
|
925
|
—
|
5,350
|
|||||||||
Proceeds from sale of vessels
|
15,313
|
14,333
|
—
|
|||||||||
Other investing activities, net
|
2
|
2
|
2
|
|||||||||
Net cash provided by (used in) investing activities
|
(123,335
|
)
|
(5,537
|
)
|
3,958
|
|||||||
Financing activities
|
||||||||||||
Repayment of long-term debt
|
(247,545
|
)
|
(34,583
|
)
|
(33,230
|
)
|
||||||
Proceeds from long-term debt
|
330,000
|
—
|
—
|
|||||||||
Debt fees paid
|
(3,592
|
)
|
—
|
—
|
||||||||
Dividends paid
|
(40,085
|
)
|
(70,310
|
)
|
(180,392
|
)
|
||||||
Share repurchases
|
(509
|
)
|
(3,273
|
)
|
—
|
|||||||
Repayment of finance leases
|
(6,286
|
)
|
(6,084
|
)
|
(8,256
|
)
|
||||||
Net cash provided by (used in) financing activities
|
31,983
|
(114,250
|
)
|
(221,878
|
)
|
|||||||
Net change
|
(14,833
|
)
|
5,818
|
(94,296
|
)
|
|||||||
Cash, cash equivalents and restricted cash at start of period
|
138,073
|
132,255
|
210,017
|
|||||||||
Cash, cash equivalents and restricted cash at end of period
|
123,240
|
138,073
|
115,721
|
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
15 |
(in thousands of $, except for share data)
|
Three months
ended
March 31,
2023
|
Three months
ended
March 31,
2022
|
||||||
Number of shares outstanding
|
|
|||||||
Balance at beginning of period
|
200,485,621
|
200,435,621
|
||||||
Repurchase of shares
|
(62,085
|
)
|
—
|
|||||
Balance at end of period
|
200,423,536
|
200,435,621
|
||||||
Share capital
|
||||||||
Balance at beginning of period
|
10,061
|
10,061
|
||||||
Shares issued
|
—
|
—
|
||||||
Balance at end of period
|
10,061
|
10,061
|
||||||
Treasury shares
|
||||||||
Balance at beginning of period
|
(5,014
|
)
|
(4,309
|
)
|
||||
Repurchase of shares
|
(509
|
)
|
—
|
|||||
Balance at end of period
|
(5,523
|
)
|
(4,309
|
)
|
||||
Additional paid in capital
|
||||||||
Balance at beginning of period
|
851
|
285
|
||||||
Stock option expense
|
127
|
148
|
||||||
Balance at end of period
|
978
|
433
|
||||||
Contributed capital surplus
|
||||||||
Balance at beginning of period
|
1,582,257
|
1,762,649
|
||||||
Distributions to shareholders
|
—
|
(180,392
|
)
|
|||||
Balance at end of period
|
1,582,257
|
1,582,257
|
||||||
Accumulated earnings
|
||||||||
Balance at beginning of period
|
328,878
|
160,055
|
||||||
Distributions to shareholders
|
(40,085
|
)
|
—
|
|||||
Net income (loss)
|
(8,822
|
)
|
125,323
|
|||||
Balance at end of period
|
279,971
|
285,378
|
||||||
Total equity
|
1,867,744
|
1,873,820
|
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
16 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
17 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
18 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
19 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
20 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
21 |
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
22 |
(in thousands of $)
|
Three months
ended
March 31,
2023
|
Three months
ended
December 31,
2022
|
Three months
ended
March 31,
2022
|
|||||||||
Net income (loss)
|
(8,822
|
)
|
68,208
|
125,323
|
||||||||
Interest income
|
(1,515
|
)
|
(1,326
|
)
|
(54
|
)
|
||||||
Interest expense
|
22,013
|
18,963
|
10,041
|
|
||||||||
Income tax expense
|
30
|
279
|
35
|
|||||||||
Depreciation
|
31,497
|
32,394
|
32,434
|
|||||||||
Earnings before Interest Taxes Depreciation and Amortization
|
43,203
|
118,518
|
167,779
|
|||||||||
Impairment loss on vessels
|
11,780
|
—
|
—
|
|||||||||
Gain from sale of vessels
|
(2,583
|
)
|
(2,812
|
)
|
—
|
|||||||
(Gain)/loss on derivatives
|
2,083
|
(2,699
|
)
|
(18,750
|
)
|
|||||||
Other financial items
|
232
|
(560
|
)
|
330
|
||||||||
Adjusted Earnings before Interest Taxes Depreciation
and Amortization
|
54,715
|
112,447
|
149,359
|
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
23 |
(in thousands of $)
|
Three months
ended
March 31,
2023
|
Three months
ended
December 31,
2022
|
Three months
ended
March 31,
2022
|
|||||||||
Total operating revenues
|
196,517
|
249,558
|
265,184
|
|||||||||
Add: Other operating income (expenses)
|
—
|
—
|
(413
|
)
|
||||||||
Less: Other revenues*
|
1,091
|
153
|
163
|
|||||||||
Net time and voyage charter revenues
|
195,426
|
249,405
|
264,608
|
|||||||||
Less: Voyage expenses & commission
|
64,231
|
69,189
|
56,273
|
|||||||||
Time charter equivalent income
|
131,195
|
180,216
|
208,335
|
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
24 |
(in thousands of $, except for TCE rate and days)
|
Three months
ended
March 31,
2023
|
Three months
ended
December 31,
2022
|
Three months
ended
March 31,
2022
|
|||||||||
TCE Income Capesize vessels
|
67,635
|
112,109
|
124,509
|
|||||||||
TCE Income Panamax vessels and Ultramax vessels
|
63,560
|
68,107
|
83,826
|
|||||||||
Total Time charter equivalent income
|
131,195
|
180,216
|
208,335
|
|||||||||
in days
|
||||||||||||
Fleet onhire days Capesize vessels
|
4,966
|
5,239
|
5,025
|
|||||||||
Fleet onhire days Panamax and Ultramax vessels
|
3,822
|
3,586
|
3,538
|
|||||||||
Total Fleet onhire days
|
8,788
|
8,825
|
8,563
|
|||||||||
in $ per day
|
||||||||||||
TCE per day Capesize vessels
|
13,620
|
21,399
|
24,778
|
|||||||||
TCE per day Panamax and Ultramax vessels
|
16,630
|
18,992
|
23,693
|
|||||||||
Time charter equivalent rate
|
14,929
|
20,421
|
24,330
|
GOLDEN OCEAN GROUP LIMITED, FIRST QUARTER 2023
|
25 |