Golden Ocean Group Reports Second Quarter 2024 Financial Results
Intellectia.AI2024-08-28
Golden Ocean Group Reports Second Quarter 2024 Financial Results
Hamilton, Bermuda — August 28, 2024 — Golden Ocean Group Limited (NASDAQ/OSE: GOGL), the world’s largest listed owner of large-size dry bulk vessels, announced its unaudited financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | Year-over-Year | Quarter-over-Quarter | Consensus Estimates |
|---|---|---|---|---|---|---|
| Revenue | $198.4M | $194.3M | $183.5M | +8.1% | +2.1% | $194.29M |
| Net Income | $62.5M | $65.4M | $60.2M | +3.8% | -4.4% | N/A |
| Earnings Per Share (EPS) | $0.31 | $0.33 | $0.30 | +3.3% | -6.1% | $0.3 |
| Adjusted EBITDA | $120.3M | $114.3M | $109.2M | +10.2% | +5.2% | N/A |
| Adjusted Net Income | $63.4M | $58.4M | $57.1M | +11.0% | +8.6% | N/A |
Golden Ocean's financial performance in Q2 2024 showed steady growth and maintained strong metrics. The company outperformed Wall Street consensus on revenue ($198.4M vs. $194.29M) and EPS ($0.31 vs. $0.3). While net income and EPS saw a slight decline quarter-over-quarter, year-over-year metrics remained positive, indicating continued resilience of its business operations.
Revenue Performance by Segment
| Segment | Revenue Q2 2024 | Revenue Q1 2024 | Revenue Q2 2023 | Previous Guidance |
|---|---|---|---|---|
| Capesize | $140.03M | $135.9M | $128.6M | $130-135M |
| Panamax | $58.37M | $58.4M | $55.7M | $55-60M |
Interpretation of the company's segment performance: - Capesize Vessels : The Capesize segment reported $140.03M in revenue, exceeding guidance and showing a strong market position. - Panamax Vessels : The Panamax segment revenue remained flat at $58.37M compared to the previous quarter but slightly above the previous year.
Key Developments and Operational Highlights
- Net income : $62.5 million for the second quarter of 2024.
- Adjusted EBITDA : $120.3 million for Q2 2024.
- TCE rates : Capesize vessels = $28,005 per day; Panamax vessels = $15,721 per day; Entire fleet = $23,535 per day in Q2 2024.
- Sale : Agreement to sell one Panamax vessel for $20.8 million.
- ESG Report : Published ESG report for 2023, showing a 13.3% improvement in Carbon Intensity Indicator.
- Estimated TCE rates : Q3 2024 - Capesize = $26,200 per day for 83% of available days, Panamax = $17,200 per day for 94% of available days. Q4 2024 - Capesize = $25,800 per day for 29% of available days, Panamax = $17,900 per day for 18% of available days.
Executive Commentary
Interim CEO and CFO Peder Simonsen stated: "Despite a volatile macro and geopolitical backdrop, the dry bulk shipping market remains healthy, and Golden Ocean continues to deliver above-market performance. This is attributable to the quality of our modern, fuel-efficient fleet and strong commercial capabilities. We are optimistic that market conditions will strengthen as the year progresses, driven by Chinese demand and new iron ore projects."
Dividends and Share Repurchase Programs
- Dividend : Announced a $0.30 per share cash dividend for Q2 2024, payable on or about September 20, 2024, to shareholders of record on September 11, 2024.
Forward Guidance
Golden Ocean expects to continue delivering strong returns based on positive market supply and demand dynamics. Further specifics on forward guidance were not provided in this report.
Stock Price Movement
Following the earnings release, Golden Ocean’s stock saw a slight decline of 1.91%.
This report underscores Golden Ocean’s robust financial health, strategic planning, and positive future outlook, reflecting its firm position in the dry bulk shipping market.
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