Why Golden Ocean Shares Are Trading Higher Today

  • Golden Ocean Group Ltd GOGL reported a first-quarter FY22 revenue increase of 67.8% year-over-year to $265.18 million. Revenues declined 30.1% from 4Q21.
  • EPS improved to $0.62 from $0.14 in 1Q21 but declined from $1.01 recorded in 4Q21.
  • The company recorded a net operating income of $102.47 million versus $21.83 million a year ago; and a margin of 38.6%, compared to 13.8% a year ago.
  • Golden Ocean generated cash from operating activities of $123.62 million in Q1, compared to $6.58 million in 1Q21.
  • Adjusted EBITDA increased to $149.36 million from $54.59 million a year ago, and the margin expanded to 56.3%, from 34.5% a year ago.
  • Additionally, Golden Ocean declared a cash dividend of $0.50 per share, payable on or about June 8, 2022, to shareholders of record on June 1, 2022.
  • The company had cash and equivalents of $115.7 million as of March 31, 2022. The book value of long-term debt was $1.23 billion, including the current portion of long-term debt of $104.4 million.
  • TCE rates for Capesize and Panamax/Ultramax vessels were $24,778 per day and $23,693 per day, respectively, and $24,330 per day for the whole fleet in Q1.
  • Outlook: For 2Q22, Golden Ocean's estimated TCE rates are $28,300 per day for 78% of Capesize available days and $27,500 per day for 77% of Panamax available days.
  • For 3Q22, the company has secured 15% of total days at an average rate of $38,200 per day for Capesize vessels and 33% of total days for Panamax vessels at an average rate of $34,900 per day.
  • GOGL believes it is well-positioned in the near term, with highly profitable charter coverage for most of its available days in 2Q22 and approximately 21% in 3Q22.
  • Price Action: GOGL shares are trading higher by 10.8% at $16.31 on the last check Thursday.
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