GOGL - Earnings call 3 2023 | Golden Ocean Group Limited

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Operator

Good day, and thank you for standing by. Welcome to the Q3 2023 Golden Ocean Group Limited Earnings Conference Call and Webcast. [Operator Instructions] Please note that today's conference is being recorded. I would now like to turn the conference over to your speaker, Lars-Christian Svensen, Interim CEO. Please go ahead, sir.

Lars-Christian Svensen

very from a and there, good Oslo. afternoon Hi and interim CEO name is Golden the Svensen, Lars-Christian My of I'm Ocean. activities update Today, will CFO, on and outlook. guide I Ocean recent you you through our Peder our QX Simonsen forward in Golden and and numbers

Here for QX. highlights are our

This $XX.X second $XX.X EBITDA adjusted $X.XX. quarter. quarter. and of share a profit of at We and profit third to earnings $XX.X of XXXX ended quarter of delivered with Our compared of million million $XX.X per per the earnings second up $X.XX in net million compared in the net the for million share

TCE Our respectively, Capesize day, combined were vessels a total $XX,XXX net Panamax $XX,XXX. per rates fleet and of per for day $XX,XXX wide and TCE

have per of XX% secured of Capesize TCE the of we day XX% Panamax and net $XX,XXX day $XX,XXX days days. a QX, per for the for For

TCE of per per XX% QX, a $XX,XXX days. day we $XX,XXX and of days XX% net for day the Capesize Panamax secured have of For for the

the million also we the delivery expects which vessel, of and buy to sell and a QX, back-to-back is gain agreements date $X of year-end. the entered Supramax During held a from recognize before option. approximately The a as to upon purchase company delivery we into expected sale vessel have

of cash of million quarter the net owners, declared a to We we gain also and share completed to $X.XX XXXX. the of from about sale the per for one million. of recognizing True a new $X policy, sale and Panamax vessels about delivery dividend third our dividend of the $X of proceeds

Peder. pass the With that, will over word to I

Peder Carl Simonsen

strong loss. with quarter, in and the we previous and profit line $XX,XXX, commercial coming $XX,XXX, TCE with Panamax slightly you, to rates previous move We If -- coming is at from at in Thank in quarter. performance down our Cape Lars-Christian. delivered

in QX. in days total ships We approximately $XX,XXX, days fleet-wide XXX ships in QX, from resulting unchanged in was which dry-docked had off-hire QX was Our QX. versus equivalent X XXX materially versus time X off-hire charter

dry are vessel QX, the of through the which have ships compared added to deliveries, XXX new below to second QX. to -- expected We ship complete X QX vessel sales complete dock by just half days of quarter. be in We expected in net

revenues net $XXX compared at in in Our came $XXX.X to million million QX.

to at our the million versus previous million by We This quarter. impacted expenses. $XX.X was compared recorded in Looking the operating quarter. additional ship $XX.X previous days

million by $X.X recorded $X hire and also lower on dockings QX. previous to reclassified quarter versus expense was being average a addition, technical $X.X offset This In with approximately chartered managers by ships. certain of million few our -- the million compared relating quarter. was we fewer in change in OpEx dry quarter, QX The to from reclassified of charter the on this hire charter offset ships during in in

Our at million, general for and in adjusting $X.X is in unchanged from items nonrecurring when administrative which expenses QX, in million $X.X QX. fairly down came

per $XXX per at affiliated from ended day, $XXX recharge net cost companies, in day G&A to daily of down QX. Our

$XX.X to versus million hire of charter million in due portfolio, down QX. fewer Our $XX.X trading $X.X in days EBITDA $XX.X an expense from the were adjusted and million, million, vessel

rates and recorded the The We change a net versus Looking in to debt quarter. higher QX, $XX net due at the financial $XX and expense in expenses. reference million in interest average million higher impacted needs our rates swap in derivatives portfolio, the to increase other interest which also in relation portion in interest the quarter. to income financial the of seen realized rate be

realized which $XX.X interest in bunker of $XX.X relate and cash increase gain is FFA the derivatives long-term mark-to-market interest million And rates. $X.X an $XX.X million relates gains million, We following million to $XX.X and to gains. to and is $X.X compared gains of gain recorded a swaps of rate million of a million, million $X.X

of a a and in SwissMarine, Results to recorded compared TFG quarter. profit $XXX,XXX investments $X.XX $XX.X a $X.XX relates and to for We dividend investments net gain of and of in associates. the UFC, per our million from a declared in loss share QX, $X.X which of million

Moving to the next slide.

operations at from flow cash Our $XXX,XXX $XX.X came associated includes million, which from companies. in dividend

at $XX facility. was $XX.X repayments. of deliveries Kamsarmax Newcastlemax flow financing offset and provided debt cash Panamax recorded drew and vessel. sale newbuildings, our of million relating to X lease We from million by the vessel in million $XX.X million to scheduled we million We This drew credit Our X in to delivery and of under came $X.X revolving X $XX.X relating prepayment drawdown $XX million. relating

a We of a our relating QX $XXX,XXX share and million payment for payment results to recorded dividend repurchases. $XX.X

to offset Total cash was cash to of investments and delivery last million of the vessel. in sale our And million QX. newbuildings. decrease flow $X.X Our $XX.X Panamax net in the was used the which vessel, in mainly million, by relating to proceeds relating a relates net $XX.X this million Kamsarmax installments $XX.X in during from $XX.X costs of Newcastlemax million

of the had a cash million QX. sheet. We and $X.X including balance cash restricted at of $XX.X cash million, to the equivalents Moving of end

we end. credit had million quarter available facilities at addition, $XX In undrawn in

billion, since end Our by $XX approximately of QX. QX, million lease liabilities $X.X and debt totaled up

a per fleet-wide book loan-to-value equity to of average end facilities assets $X.X XX% approximately had the at we With total of of company's equity under debt XX.X%. ratio end quarter QX. was of billion, the a Our

that, I to give Lars-Christian. With word back the

Lars-Christian Svensen

larger us also vessels upside And modern fleet, have young focus and large over commercial XX, offer A to of X Thank a they years volatility historically. potential you, an which vessel Peder. with average platform. currently we count holds In on allows the current we'd beat and to Golden market the most our on where Ocean, constantly the time. like

cap market solid shareholders. in New our in provide York Oslo for $X.X of Our billion listings dual and liquidity

an go-to Ocean attractive exposure. dry Golden company make for wanting should investors above the of all All bulk

young slide, a of previous fleet. mentioned we're and proud in modern As I our

cash vessels, to entire as just Cape our clinical it's composition cash illustrated practically fleet fleet breakeven market However, and per day with outperformed XX have per holds $X,XXX execution, we about with to a and in our low float $XX,XXX far day. at over year. important our breakeven Capesize the to our Due any Newcastlemax market, here maintain this so

that deduct Golden you Ocean's premium the $XX,XXX cash below $XX,XXX, is If from per breakeven day. adjusted

see Golden make combined From industry left financing the modern can money fleet an any historical cash much you low due graph, market. breakeven, to clearly will the excellent almost bottom with in Ocean

our thus breakeven to adjusted further. to vessels our continue cash will towards fleet our invest increase market premium and in We decrease the

steel considered on is Chinese China Even liquidity, high to and iron levels. upside company ore Albeit a iron much be so, Panamax a has strong year's are we Capesize. and for program. both due should market-leading ore, protection import a bauxite, QX finished that potential continuing last only export to downside with huge company the and decreasing, volatile, note a surpassing coal covered. products stockpiles Not with agri well but massive a steel

Cape to on in the the We have Panamax miles and XXXX strong look segments to coming seasonality seen note. increased finish tonne and with life, sectors a both

imports frustration far in iron has $XXX Australia. as will, tonne, per targets. diminish. and full bloom the continuous Brazil the from around first the high time and Brumadinho with XXXX, which commodity both yearly demand to trade and ore for The into Brazil so Chinese pushing itself steel since stockpiles continue Chinese price steady is delivered in led to The their has incident government mills come

to And third iron had iron new indicate export a declining quarter. pattern for the India tonnes, India ore a in from million throughout trading concluded Brazil which large trend a contract and cargo. X dry has they have addition, for can ore

iron imports very to India scenario, the welcome much we For from ore tonne more mile would Brazil.

all producer global is iron world's absorbed? increased macro So solid tonnes in ore the output. has X% is X.X% negative with of to Well, been news, accounting up where China's Contrary QX. steel production for the increase a largest steel Steel landed year-on-year China XX%

down energy property infrastructure and year-on-year, up transition we about technology-intensive manufacturing are X%, is with ore to down investment the iron and manufacturing see X%. Although up were that rotation and production is investments investments private Chinese X%

year-on-year, are about iron exports to Chinese car deluxe equates addition, In as XX% million ore. of exports up tonnes [indiscernible] XX XX% which

the As Guinea from a global dominated have a developed Capesize long-haul discussed tonne total trade steady XX.X%. this a bauxite trade trade predominantly with into has mile has we early This bauxite year, Cape China. into staggering

seasonal be more the In tempting coming iron addition, and to makes ore years. in it's we've interesting to will many which QX inversely seen that than from assume it volatile Brazil, the trade

is we the an downside priced at total book to ordered space. fleet X% unusual have in still an XXXX, upside more X% of that where trade large remains accordingly. all-time The combined already. suggests still and looking The this even position of Capesize fleet this congestion, compelling We with will parts and dry and we the of the it into low dry the supply total side order as [indiscernible] newbuildings. is our vastly is the fleet total low Historically, segment see around for

to flow various finish cargo To the volatile off would earnings we mind yield on on the levels. like cash the fleet, as round graph off freight We the potential this you right presentation. show Golden year at and the premium XXXX. dry we for substantial Ocean shows achieved in in Keeping the our significant potential

you XX%. cash yield, need an a of spot per free As Baltic Golden apply an year-to-date of day, premium a market Ocean to while XX% Rate performed average $XX,XXX must approximately you of XXXX the the example, current achieve yield Index suggests flow if $X,XXX,

much pass listening, the over that, for With very word and will to you operator. back thank I the

Operator

from our of the going BTIG. We Instructions] the to now Sherif Elmaghrabi And are with questions question. come from first proceed line [Operator

Sherif Elmaghrabi

But hang on could today? any I It the a you've time just where opportunity? chartered options you sounds a pretty asset are the subsequent there you could like Capes upcoming that sold. present option even first on Or sale focus unique then that that prices to which are and the on to opportunity. given tonnage purchase similar want was other Supramax in, X

Lars-Christian Svensen

Yes. Thank you that. for

comes all, vessel, that of Supramax the is consider we to first think, business. we that noncore I something -- when it

So in makes options, was we absolutely to When transaction, at it consider able a core we interested sense Cape good which business, to it we for market us the to if market sizes, the comes time. definitely that do good clearing the on are a be thought idea.

Sherif Elmaghrabi

few The to Okay. widened turning the really premiums And over then scrubber scrubbers. last months.

in in come with survey? vessels -- that mind, just dock dry scrubbers could on installed see they special so we the or as for fleet other And in

Lars-Christian Svensen

there's the a next asset that dry of many we enough potential, possible cycle. as young as Yes, them we upgrade definitely. and If will in see dock

Operator

questions with now proceed next of And are question. line to Jefferies. our going Omar the We Instructions] from [Operator from the Nokta come

Omar Nokta

the at at companies -- of flow pretty quality cash Wanted the sort generation fleet. generally highlighted to spot you a averages, we wanted been what kind this generally be obviously, just overall, market strong sector obviously, I Golden of Ocean to maybe guys quarter flattish to XQ when look But ask, and ask, or you just or of have better. a the sort even supposed looking was soft came in was bit reported. of had in

that So spot expectations? drove was that that bit charters give what can I just you Any some that? time improvement? on performance wanted or Was modest sort of beyond to sequential sort of ask color of well-timed kind that a improvement,

Peder Carl Simonsen

more we think needed the that on covered quite quite the there quarter. to front. We realized I the some Panamax No, entering you're We into to capture have market. quickly were exposure Yes.

add every some Capesizes. which turned to the we yielded the Same more spot to exposure Panamaxes, be on with on thing able So stone well.

do. the simply previous we second as and in As Brazil well, many the confidence the coal and the also the bauxites half we performing year, drivers it because quarter way should in fairly that had this on we discussed the of high see

was So a it quite that spot exposure. quite wanted this of one for up. us, going we into clear this we bit got And luckily quarter,

Omar Nokta

potential. Got That in or, highlighted to create makes the Okay. least, invest as looking capitalize sense. it. the you fleet excess to just further a at follow-up, And maybe earnings then

that close order XXXX. we've in in your saw Kamsarmaxes here deliver 'XX. to competitors X 'XX, ships out -- basically even the book dual a due with those on order program 'XX, got several of You've wrapping basis is up I we fuel your seen think Recently,

But order you about a fleet How in obviously, -- it This is are small. in you Ocean newbuilding thinking terms sizes the of guys X%? Golden of mentioned and at is the now terms deeper relatively can into how do we then of you you dive expect comfortable Are looking Or stand with where think to new with about forward, X, these taking you you on? them moving newbuildings? buildings? and because delivery

Lars-Christian Svensen

our and at happy that think definitely our had modern on the into old. We tonnage we That We're on the moment, program think define of that to terms up there next well very vessels to not fit go a a to newbuilding strategy the than yet in I which year. years to there X investment made and respect and the X, attack, and grow complete our fleet. for as as place moment maybe [indiscernible]. newbuilding focus to looking order. competitors. we're the with We X, other mind In as haven't the better at to we clear yards fuel

So the fleet, and fleet way. have that that our what already to in money, grow we invest already prefer we makes

Operator

will [Operator like back no time. Instructions] to at to this We you hand have further closing I for remarks. questions

Peder Carl Simonsen

and you quarter. in, dialing we'll Thanks see a lot next for

Lars-Christian Svensen

you much. Thank very

Operator

conference for call. you concludes Ladies Thank and today's this participating. gentlemen,

Thank You your may lines. disconnect you. now

Golden Ocean Group Limited (GOGL) 21 Nov 232023 Q3 Earnings call transcript