Golden Ocean Group Limited (NASDAQ: GOGL) reported Q3 EPS of $0.27, $0.11 better than the analyst estimate of $0.16.

Highlights

• Net income of $39.1 million and earnings per share of $0.27 for the third quarter of 2020 compared with net loss of $41.3 million and loss per share of $0.29 for the second quarter of 2020.
• Adjusted EBITDA of $76.7 million for the third quarter of 2020, compared with $4.2 million for the second quarter of 2020.
• Signed loan agreement in November 2020 to refinance the $425.0 million credit facility which is secured by 14 Capesize vessels at attractive terms, lowering the daily cash break even rate for the financed vessels by more than $1,000 per financed ship.
• Strengthened balance sheet with cash and equivalents of $130.8 million and no debt maturities until 2023 following the aforementioned refinancing.
• Divested our 22.19% ownership interest in ship management company SeaTeam Management Pte Ltd and exited commercial management agreement for seven Handysize vessels to further focus on the Company’s core activities.
• Appointed Lars-Christian Svensen to the position of Chief Commercial Officer of Golden Ocean Management AS effective from December 1, 2020.
• Estimated TCE rates for the fourth quarter of 2020, inclusive of charter coverage and calculated on a load-to-discharge basis, are:
• Approximately $21,750 per day contracted for 73% of the available days for Capesize vessels;
• Approximately $12,750 per day contracted for 82% of the available days for Panamax vessels

We expect the spot TCEs for the full fourth quarter of 2020 to be lower than the TCEs currently contracted, due to the impact of ballast days at the end of the third quarter as well as current weaker rates.

Ulrik Andersen, Chief Executive Officer, commented:

"The Company’s results for the third quarter of 2020 demonstrate both its strong leverage to an improving rate environment as well as the strategic advantage gained by focusing exclusively on large vessel classes. Due to scale, fleet composition and strong chartering capabilities, the Company was well positioned to capture strength in both the charter and spot markets. The Company generated a significant amount of cash flow, bolstering its balance sheet in the third quarter of 2020. The Company also completed the expected refinancing of its largest debt facility that was due to mature in early 2021, pushing its nearest debt maturity to 2023. As the Company looks to 2021, it has very limited capital expenditure requirements and significant spot market exposure, which should allow for the continued generation of healthy cash flow.”

For earnings history and earnings-related data on Golden Ocean Group Limited (GOGL) click here.