Golden Ocean Group Ltd (NASDAQ:GOGL) beats analysts estimations

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Golden Ocean Group Ltd (NASDAQ:GOGL) stock rose 2.11% (As on Nov 25, 4:25:13 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 21. The company has reported Net income of $195.3 million for the third quarter of 2021 compared with net income of $104.5 million for the second quarter of 2021. The company delivered Adjusted EBITDA of $229.7 million for the third quarter of 2021, compared with $130.5 million for the second quarter of 2021. The company has reported TCE rates for Capesize and Panamax/Ultramax vessels of $38,142 per day and $24,733 per day, respectively, in the third quarter of 2021. The company has reported TCE rate for the whole fleet of $32,262 per day. The company has estimated TCE rates inclusive of charter coverage and calculated on a load-to-discharge basis, are approximately $41,900 per day contracted for 83% of the available days for Capesize vessels and $27,300 per day contracted for 87% of the available days for Panamax vessels for the fourth quarter of 2021; and approximately $33,200 per day contracted for 30% of the available days for Capesize vessels and $24,150 per day contracted for 36% of the available days for Panamax vessels for the first quarter of 2022. Golden Ocean has maintained significant exposure to the strong freight rate environment throughout the year, resulting in significant cash flow generation. The combination of expected global demand growth, modest fleet growth and inefficiencies we believe will persist in the coming years creates a powerful dynamic for Golden Ocean.

GOGL in the third quarter of FY 21 has reported the adjusted earnings per share of 97 cents, beating the analysts’ estimates for the adjusted earnings per share of 70 cents. The company had reported the adjusted revenue of $306 million in the third quarter of FY 21, beating the analysts’ estimates for revenue of $275 million.

Meanwhile, the company’s decision to raise the third-quarter dividend 70% to $0.85 per share from $0.50 motivated dividend-minded investors to pick up shares. The dividend raise represents the third consecutive quarter in which the company is returning cash to shareholders, an encouraging sign considering the company suspended its dividend after the fourth quarter of 2019.

Additionally, the company has entered into agreements to construct seven latest generation ECO-type Kamsarmax vessels. The company had also sold two older Panamax vessels at attractive prices, as part of the fleet renewal strategy. The company has completed refinancing of $413.6 million facility provided by Sterna Finance, and secured $435 million of long-term financing.

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