GOGL - Earnings call transcript Q1 2024 | Golden Ocean Group Limited

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Operator

Good day, and thank you for standing by. Welcome to the First Quarter 2024 Golden Ocean Group Limited Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Lars-Christian. Please go ahead.

Lars-Christian Svensen

Good day, and welcome to the Golden Ocean Q1 2024 Release. outlook Svensen, Peder the guide Simonsen, our numbers Lars-Christian Ocean. Today, of you is the QX CFO, within our and forward name and Group. CEO I'm Golden through Golden My Ocean activities and I will

for Here of XXXX. first are the quarter the highlights

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

rates $XX,XXX day fleet the the TCE about combined Capesize $XX,XXX per were quarter. net In vessels $XX,XXX and of TCE day conclusion, Our wide per for about and per for Panamax about day, respectively.

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

pleased net QX, for XX% for and With day we locked per For were QX, we Capesize $XX,XXX in the about TCE in Panamax result of of the a XX% days. of per where days day $XX,XXX about strategy quarter share on strong a to Peder. to capitalize we numbers detail. now our $X.XX in XXXX. Peder able to declare Over guide you, of in will for full, dividend our of commercial a first are per this you through

Peder Carl Simonsen

unusually and freight Slide at strong the to you, P&L season. X performance we look commercial the market Lars-Christian. If healthy move we an Thank achieved quarter, our for in for

QX, rate $XX,XXX, QX, X to XXX dry the approximately in quarter, days QX versus days in $XX,XXX achieved and up in offhire total for from came XX contributing same which docked which fleet-wide rates Our $XX,XXX QX. a $XX,XXX Capes in the as in TCE Panamaxes at resulted offhire is ships of in TCE XXXX. We in

as been X days. of resulted in of TCE was for million, fewer have net dock We performance this 'XX, $XXX.X have stronger revenues X in This dry vessels by as QX of completed offset which ships Scheduled quarter-on-quarter report. unchanged vessel

our reclassified Looking $XX.X million $X.X lower achieved QX. was ex OpEx Running million unchanged And from operating is OpEx of than $XX.X at in which expenses million, per expenses from charterhire ship was OPEX, unchanged were in quarter-on-quarter. million drydock $X.X $X,XXX QX. versus we largely QX. day, total per

Looking we expenses, in at ended personnel million at and is our administrative mainly to million, expenses. increase up from The $X.X up which relates nonrecurring $X.X general QX.

day, of Our affiliated daily expenses, G&A per net came last quarter. to day adjusted cost when companies with ship and recharge $XXX in in per per nonrecurring at $XXX line the for

counterpart $X.X which leasing was payments Our Corp. came profit up to fewer million, offset our from days in charterhire QX our in expense at with split trading slightly by portfolio was vessel SFL

versus $XX.X of Our a derivatives, recorded net we $X.X in million income, loss $XX.X million financial On derivatives a QX. million, rate interest $X.X bunker versus financial of loss in which the $X.X derivatives million includes of again $X.X which gains $X.X million $XX cash of of million. gains were a we of compares expenses to gains swaps is gain On other which result a QX. recorded and FFA our and million in $X.X of on million, million, and gain realized

our million and net TFG and dividend profit million $X.X relates gain to in a per per of we of of $X.XX an in share, a share investments results SwissMarine, a quarter. in $XX.X $X.XX $X.XX or declared for profit UFC. In recorded of or million, net sum, $XX.X the QX. loss This investments a million recorded For to compared from we associates, $X.X adjusted

costs were under payments, This million. investments offset revolving associated relating And Panamax in which sale million comprises $XX recorded $XXX.X and million debt including newbuildings. Cash $XX.X million, scheduled million totaled vessel, used was in dividends and of facilities. which which of includes received $XX.X $XX.X refinancings X flow our X. to from in net usual proceeds used sale million, $XX previous flow, relates the cash vessel, in to to to in $XX.X X in Moving flow $XX.X mainly relating in by credit prepayments Kamsarmax $X.X million the Cash the financing announced our operations relating in we Panamax to from of and million Slide quarter cash million from of mainly flow the companies. installments repayment

net million. results we Lastly, in QX payment dividend $XX.X QX. cash relating Total increase the to during had a of million of $XX.X

Moving to X. Slide

Our cash sheet, million $XXX.X we in $X.X includes which million, recorded cash. of balance and equivalents cash restricted

credit per have and we undrawn available Debt to total facilities Average quarter $XX end liabilities addition, of a give quarter billion down quarter-on-quarter. finance lines that, I approximately by under debt totaled fleet-wide was equity $XXX of million back Lars-Christian. $X.X end ratio approximately equity to company's the of end. in QX, assets at the loan-to-value book led to million word billion lease of XX.X%. In XX%. With And $X.X

Lars-Christian Svensen

Peder. you, Thank

continue especially market and trend still volatility QX. Ocean to a in platform larger solid the The lies the up space. just We the Ocean financial the first composition. with in spot market Large Peder tilt in likely believe outlook, the will gives ability segments, described when fleet then Golden the fleet great in illustrating we we Golden equally Capesize upside in see monetary done the

where cap most our with to a with more and year-on-year, trade flows $X Capesize iron illustrates, exports graph an of come, to only Capesize the massive believe we where company ore XX% and staggering West interestingly, XX% received exports, York a a driven up tonne-mile The reached dry we're were Oslo the Capesizes. we liquidity trajectory which absorber. dry saw With compared increase offer year-on-year first of listing But mostly Pacific volumes the increase from Colombian was billion, in significant close of the trade from coal global X% a year-on-year. large high with XX% XXXX. increase our exposure. what still market bulk to around and Atlantic a years year-on-year New Panamax the and This favorable the peers Brazil, its XX% noted year-on-year. record the caps dual in increase Africa, we the will be segments and trade growth of continued to positive to import we for increase an most exposure QX. X% of and quarter bauxite the with in the XX% India volumes China meaningful market As and and almost by

are 'XX. The dry seaborne vessel 'XX Canal QX QX reduction down with the to addition volumes, produced same trade XX% versus in mentioned the In high time XX% fewer Panama over period. transits through even transit Suez a

production a a your throughout increase we 'XX. increase with the X% to increased which ore, the flat vessels we The the sector. I from in QX world the mile a rest inflation over the to has property can increased the attention to yards high their we to Simandou Atlantic Chinese of book a XXXX. In steel volumes is either further the a China the and and the pace million modified current seen of Shaking and act additional previous the forecasted have as expect by as in X% has steel will X steel quarter, inventories convinced related XX Capesize X%. imports And fleet mining iron handle continuing increase mine in at that we year-on-year. steel in to more country able as years. strengthen operational, off iron its is the further emphasized sector towards quarter, at remains Capesize on the year-on-year also compared Capesize will for the we're note a The book stand-alone consumption far production had its the the perspective, which low order last environmental XXXX. year As as and the and like of that remind has plus previously most presentation. the XX% age production. solid tonnes continue export shipping about XXXX age sector to believe look to same be pace XX decade. fleet X% X% ore XXXX, in into tonne contributor, the the be will will we XX% to would are with hit to Capesize space. in basis. it new regulations look Capesize from in by China in I thesis. to sector to plus country to XX-year is energy attractive the consumption north we XX%, be or put Golden Ocean the Capesizes. place this The even first the went the just import the has mentioned a will dry ore scrap forecast from on so interestingly, and the enter The in the of the a down, about to you remained has at Guinea Simandou goes, X% the scenario, draw Albeit the increased exports Based In of on industry solid the a fully infrastructure, first the average Guinea new to boost would handled capacity, years the order of absorb related like of steel start mile to auto mostly quarter. increase iron which More

of last as be a new our when this the further reach it composition bulk. illustrating to solid congestion The fleet navigate off well to is downside the reap for continue Ocean to the been cash pass potential. dry outlook comment XXXX. I back what As welcome word flow has Golden the large-sized market and any into to now and as rewards to excited Thank be yield to we fleet situated slide, the and shareholders year we this operator low our positive We we questions. will the value and comes create We're normally priced to will milestones you. do, segment. ran the is optimization to Capesize the and presentation, believe continues already for

Operator

[Operator the line comes the of first from question from Elmaghrabi And Instructions] Sherif BTIG.

Sherif Elmaghrabi

first, being So by is Panamaxes felt on there Brazil, is classes? grain recent vessel the smaller all, at impact it to isolated exports in on the or flooding

Lars-Christian Svensen

question. the for Thanks

impact Panamaxes on massive we the the now, on don't incident. this see For

much observe business pretty it's can as so for what usual far. So we

Sherif Elmaghrabi

tonnage size of I Okay. stronger SFL a of the spot ahead current that strength handful year, on chartering And the bulkers, smaller part are thoughts flex given spot. trading fleet, example, seasonally market of a in has then any believe, for more the to of

Lars-Christian Svensen

and optimize to, need. a the all, to see look always first do, it's we in to in well before as we the take we sometimes, if Panamax believe half we see strength the We in But the the and fleet of definitely charters going we Yes, space, like time first time where year. second to of in. trend the charter be Capesize lie the

Operator

from comes question next the line the Nokta of And from Omar Jefferies.

Omar Nokta

a give in right figures that, do you detail force just insight can if you and recently. you kind the had think has for is something on could I you you of strong one driving maybe perspective some despite or provided would the of presentation. market coming the in market. you of market And your wanted Chinese last steel did market. Is We've of that now? -- say off Just resilient, big part good to picture identify your questions that And couple driving been on? the seen just the what identify ask what yet you any some for broader very -- production perspective, Cape

Lars-Christian Svensen

to again, speak Omar. to you nice Yes,

be market, this X able there's to to Canal the avoid is the think we're Panama and in things Canal. and I not that Suez that going

And we In flowing get addition and moving. to anymore. through are way to been possible to that, The find very Good not iron bauxite of Hope. only canals be This lot from strong. tonne-mile ore coal is intensive. going of ships it's have to via The any the these has them Colombia a very Cape

as still we as India see can volumes and So as on far strong from instead the Brazil to import the their especially side, this Chinese preferring we year a being are importer observe of cold appetite, Australia.

that flow, from macro headlines still and et and a but steady cetera, So back record bit been and news volumes we sector, the last good a see shipped year every where saw being me little to takes China the on we it property it's continues. week,

Omar Nokta

think well. Okay. tremendously and guess, there Yes. for were best as it. last being And that, you Chinese And do mentioned the assuming could in become the could eat interesting. don't a is develop be strong into exports up you as bullish were dry XX% steel a up exports -- That's also, something year, they you Is think there's well, do Is there segment that for first steel year-over-year I I to that quarter. think story would that bulk -- thesis and that be it and positioned? remain tariffs if those Chinese what

Lars-Christian Svensen

it period smaller if enough has seems export of interesting been of off steel, China more coming more market Panamaxes the for the out we Supramaxes been steel backhaul to of cargoes good sold lifted But to trends i.e, on sizes No, China, a the that on most which might business. steel from as there's be can kick we -- been properly. in that see and [Indiscernible], it over Yes. obviously, really the time, and and hasn't has well,

Omar Nokta

Yes.

And maybe Capes, just have and advantage positioned this focus larger -- past, and though even say, take vessels, generally, on with order you that you But the it's nicely your X market the the heavy final you book percentage. the is And book discussed as positioned me. the on for market you XX, to for you're months, you for to to shining mentioned, very top where continue of Okay. the one has X the Panamaxes. Slide X order the lowest Capes it be one tight --

do just are in into of capacity, go about the I [ the thinking ], adding take you flex from Given and general, your know fleet. low was terms new you you to newbuildings that advantage new how How about asking here? about there in the opportunity, just building need, think, the an chartering is feel to market side? or ships history in of

Peder Carl Simonsen

and X done acquiring Newcastle the bought this year. we last active quite we for ready Over that tightness see X last $XX those of The the tonnage Omar, on last to cycle $XX million demand years, we've be and Max on was now. for sisters million, the been

So to for that with and for we the always [Indiscernible]. the anything balance quite at obviously have the accretive deals we us, will to do the happy we don't we to have sheet We're moment. have, but look fleet, position

Operator

I [Operator there questions, for to would Instructions] As are you this like now participating. no Thank call. further conference conclude

now You may Speakers, please disconnect. stand by.

Golden Ocean Group Limited (GOGL) 22 May 242024 Q1 Earnings call transcript