GOGL - Earnings call 4 2023 | Golden Ocean Group Limited

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Operator

Good day, and thank you for standing by. Welcome to the Q4 2023 Golden Ocean Group Limited Earnings Conference Call and Webcast. [Operator Instructions]

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Lars-Christian Svensen, CEO. ahead. go Please

Lars-Christian Svensen

and welcome outlook. My and CEO Golden QX activities Peder Ocean Golden our you Good numbers, QX is to Lars-Christian Release. recent Simonsen, CFO, our name Today, our the will Svensen, XXXX guide Ocean. through forward day, and the I and of I'm

Here are fourth the for quarter of the highlights XXXX.

of ended the Our of quarter. adjusted third adjusted $XX.X million million in third compared per $X.XX We $XXX.X and share net EBITDA per of the in adjusted compared million income million up the earnings adjusted with share to at and for earnings fourth net an quarter. quarter $XX delivered of $X.XX $XX.X income an

per day, That to for TCE about fleet-wide us rates of respectively. net and combined TCE per were Capesize $XX,XXX day. $XX,XXX $XX,XXX vessels took Our and Panamax per day

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

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

During highly consideration $XX.X of and the X a to agreed aggregate received an commitments attractive at of terms. financial for $XXX million a for million quarter, amount have Panamax we net sell

pleased We $X.XX we're to the continue prioritize dividend of dividends, XXXX. to of fourth a declare and per quarter share for

word pass to Peder. the now over I will

Peder Carl Simonsen

you, Lars-Christian. Thank

We from TCE recorded If you $XX,XXX fleet-wide X. move QX, to QX. a Slide and our of on in $XX,XXX profit rate loss in up

contributing versus in off-hire QX, the had days XXXX to up QX, We in ships TCE QX. X dry for rate full as days XXX docked in about XXX fleet-wide ended year Our QX same $XX,XXX.

resulted vessel for QX. QX $XXX.X net ships of in million to of X This in revenues has today. have this year, dry which $XXX.X in compared of dock dry as million completed X scheduled We dock

quarter. Our operating million in at previous $XX.X $XX.X expenses versus the in came million

from reclassified QX. $X this the largely quarter-by-quarter, million lower were The running charter unchanged quarter, hire $X.X while OpEx expenses than million was

up Our general G&A million and of administrative QX. in expenses $XXX of million, QX. translates up cost daily day. recharge companies, came This at in day per per Net $XXX from $X.X $X.X to affiliated from in into

came hire in from a days in in down $X.X of expense trading $X.X million fewer charter result QX at million, our as portfolio. Our vessel

is in Our income, visits. came compared million due million short-term to realized net lower million offset $XX.X financial and biggest $XX.X in million The unrealized on combined result expenses our change cash a is at rate of under debt down gain QX. QX, to a swap mark-to-market other loss of and mainly million $XX.X portfolio. contributor we million, a $X.X interest derivatives interest by a of gain loss, from average $XX.X swaps, this $X.X rate a return in financial higher loss million recorded to on On which $X.X

investments we recorded of from in and investments QX. associates, This in to compared TFG SwissMarine, our in to $X.X a Results loss million UFC. $XXX,XXX relates a gain

million $XX.X million of of was adjusted in and per recorded profit [indiscernible] QX. or $X.XX and share net $XX.X an net per Our $X.XX profit share

per XXXX year a $XXX.X adjusted at million. Lars-Christian mentioned, as $XXX.X profit net full Our of profit we net came million of and dividend an And $X.XX for in announced QX. share

to companies. Supramax lease of by which provided our $XX.X million, costs in installments to relating $X.X coming from $XX million X associated dividend results. to $XX our vessel, at in million On Moving and lease flow and to the debt in cash investments million We of the finance million. million sale in $XX.X a recorded we dividends $XX.X of cash facilities, received recorded $XX.X which offset relating from to by vessel $X.X revolving under X. was sale million, used credit Kamsarmax operations a and which million in Slide million newbuildings. flow We of over the $XX.X had On QX relating Supramax relating repayment $XX of comprised million payment repayments, in includes financing, flow scheduled cash prepayment

cash total Our $XX.X was million. net increase in

Moving cash cash of which to equivalents end restricted a $XXX.X by Slide quarter X. million, recorded We includes holding. million $X.X and cash

credit The loan-to-value end in was we XX.X% $XX our addition, end. by million quarter, company's under $X.X $XX billion debt liabilities down a Debt quarter-on-quarter. and quarter In by had totaled average available undrawn fleet-wide facilities lease finance approximately facilities year-end. at million

assets a total with And ratio recorded of the billion, we equity XX%. $X.X of book to approximately of equity

newly slide. the established at the financings next on Looking

We financings, a Asian bank have broader and the new lease financing established in market of comprises bank banking an aggregate in a which European group. of financing, in $XXX financing million

The broad margin a the customary global including weighted a markets Asian latter debt a documentation and in financing procedures. strong has points, capital. financing of XXX facility now closing of X.X subject exposure The to tenor Ocean's average which evidences weighted Golden position years and to is basis

with the Lars-Christian. I'll to word And back that, give

Gregory Lewis

Thank you, Peder.

continues Let's Golden the Golden Ocean to have Ocean at current largest on segments, a the Capesize focus exposure. look and Panamax.

exposed from see meaningful left peers this graph, the to compared market our caps, Capesize market. largest with we of our the with XX% can you option to play fleet are As

today. fleet tuned years, we where the we have Over last are the to actively

Bulk we most being cap in this $X.X and further segment dual presentation. favorable Capesize and our holds York where we sector to graph, liquidity sizes. able With right company substantiate New billion, to be around Oslo and in income of to see the smaller offer large can will highest as to the listed the compared in you potential a the in over which described is Dry market the This exposure spikes the capture time,

quarter of and The the XXXX, into rebounded push strong slow the fourth market continued in Capesize has the QX. traditionally

which the the mild slow. in in an volumes. through added have however, holes, Indonesia tonne the exports numbers, longer have addition has Brazil, far, impact year-to-year anything Canal created to has even So on the market Colombia, and Africa limited West scenario XXXX but increased been drastic instant and activity Suez Capesize

market season Coast soybean appetite price ore as to for from The which mile ] year-on-year, from America. orphan $XXX trade, East Also, Panamax iron we're benefited has X.X% much metric ore, iron identify the the an an per watching used around at still well to the up strong agribulk tonne is [ thanks South tonne.

the increase new of about volumes. of trade an become on XXXX, the has almost On all segment given of Guinea is total of the of bauxite the China in the subject end iron Capesize tonne It structural XXXX, exports is move $XXX transparency bauxite totaling miles. in we iron and from with receiving ore million high to ore, The X%. XX.X% a exports. Since this XX% Capesize reached

bauxite If high to draw can whereas left see Brazil is I is XX% Brazil, the [indiscernible] however, seasonal. enters year-on-year. both can volumes This the we graph, route your about traditionally Brazil more year, exports attention active a inversely QX, quarter. season due in exporting have also season seen slow in with driver you same to trade large the The in

million The the XXXX iron Simandou will mine underlying also XX with late on capacity kicker from ore of be coming export West stream an tonnes. Africa in

year-on-year. healthy the the in XX% good look continue relatively forecasted flat steel China at Let's is a level Also, we exports is production and year. XXXX saw level to to steel China, the maintain same have XXXX, from steel at inventories for this production. by the are a a which about predicted steel a increased

least, steel a their picture not paint capacity end XXXX. decade, growth and world until the production. for continued signs after XX.X% a India global positive country rebound, expected the X% the this growth a in the solid of double in and this to mission inflation X years healthy but Last X% The struggling steel of ghost, steel the with continue is of of had increase finally of increase XXXX. by production to in is a forecast a showing QX rest next

forward. focus where in So to dry going

based discussed other holds healthy it segment, the and the close the the Capesize is to segments, is meaning scenario fleet to has tonne place historical most we to have risk the downside segment a visibility dry clear today congestion low, Capesize the closing XX-year been is the mile and the vessel Cape already a to promise addition in positive is low. be. on to that supply. that as the efficiency book Compared It The order Capesize comes the priced. in on space In when to data in

we like remind Ocean. presentation, would the flow you potential to this off cash in round hold of strong To Golden we

proven markets spot not Golden be potential markets near freight the XX%. Ocean protection Golden substance. future, in we continues the again, can in solid if freight $XX,XXX mid-XXs XX%. model Yet reach surprised to the which close on Ocean would As upside would weak the well are market yields yield downside the mark, and in We to with above push

now very to and questions. welcome you much. I would operator, any will the word back pass Thank the

Operator

from Instructions] question And ] the comes from first Jefferies. Hawkins [Operator your Emily of line [

Unknown Analyst

This is Emily Omar. for on

first to how of agreed the The wondering off is are you're if looking in ship market? are sell one to you Panamaxes. maybe sell thinking time. You've for more ask, value, to your the particularly And secondhand the driving this what some about opportunities overturned some at

Lars-Christian Svensen

point We optimize fleet of at are time. any the looking to

not our of fit current Panamaxes vessel some does into older And our stocks.

try we likely as divest those forward to it's will as at that prices well. So we go attractive

Unknown Analyst

in quarter industry the seasonal will both be softness. you that as the behind the particularly the Cape on Capesize drivers segment? strength, XQ a market could details this [indiscernible] And the provide please presentation, causing the but you some then secondly, and touched And guidance strong suggests a despite further within

Lars-Christian Svensen

pockets couple have years ballasting well, more year. But you insecurities they and by Capesize around also China. and had one when the legs we of ago from we Pacific option Africa from bauxite to that have have you That as when you and going now the And now X in stand start option interesting the cargoes go coming the from Coast. really A at year. a go look East have ballasting around be ship No, back, if was year back had Atlantic, West the can the to then the and Suez, of into to Yes. years creates Brazil the the volatility opened forward. last Cape than hope, you especially from up. only also is a U.S. have Colombia also which X, of we lot very good a But a that that on shown will strength, now the previous

forward about we're on freight the and going also volumes. the Capesize see that the So we mile quite optimistic due to the tonne

Operator

There [Operator to Instructions] questions. room are further phone I questions. back call the for will hand the currently no web

Lars-Christian Svensen

here. the us Let's just Give We're questions. reading one second. through see

Peder Carl Simonsen

that know we LTV on a very asset question And volatile. have breakeven very they about I the that our we strategy fleet, where have want has we we relative first levels. think come not really up focus our relates massively, more And leverage and our on although leverage our are it's clear to think breakeven. it's about I to the cash And leverage. surrounding cash absolute values maintain

the any material our in all increased have debt, level of years way for the have debt last facilities We not X reason. but those refinanced we that

to a the sustainable cost I of XX% It So sheet a healthy maintaining leverage. cycles with balance mid-cycle level sort strategy throughout think Yes. our maintaining throughout well cycles. the maintain sustains and

Lars-Christian Svensen

good. Very of surprised were QX? the very strength in surprised the by next one. take will you about We I that. the weren't How market

we from moved the previous presentation, were you quarter. as saw into our quite spot-oriented we As

well. will push a continue this drivers big expected due the mentioned to we as think and earlier, going forward So we

related where As opportunities. in can happy tune means Thank continue into our our we a that bookings pockets look to with at we market for quite market day, into level. fleet strength to that the and see It the spot QX $XX,XXX of you. we're

Peder Carl Simonsen

question Any have? we

Operator

There are phone questions. further no also

Peder Carl Simonsen

and be Then time. I'll All right. call, in this for we X joining thank here back you months' will

Lars-Christian Svensen

Thank very much. you

Operator

you Thank you. call. today's Thank concludes This conference for participating.

disconnect. now may You

Golden Ocean Group Limited (GOGL) 28 Feb 242023 Q4 Earnings call transcript