Golden Ocean Group Limited (NASDAQ: GOGL) reported Q1 EPS of $0.14, $0.07 better than the analyst estimate of $0.07. Revenue for the quarter came in at $119.47 million versus the consensus estimate of $115.91 million.

Link to 1Q Earnings Presentation

Highlights

• Net income of $23.6 million and earnings per share of $0.14 for the first quarter of 2021, the best first quarter result in the history of the Company, compared with net income of $25.4 million and earnings per share of $0.18 for the fourth quarter of 2020.
• Adjusted EBITDA of $54.6 million for the first quarter of 2021, compared with $59.3 million for the fourth quarter of 2020.
• Reported TCE rates for Capesize and Panamax/Ultramax vessels of $16,611 per day and $14,777 per day, respectively, in the first quarter of 2021. Reported TCE rate for the whole fleet of $15,886 per day.
• Entered into a Heads of Agreement with affiliates of Hemen Holding Ltd (“Hemen”), a related party, to acquire 15 modern dry bulk vessels and three newbuildings for a total consideration of $752 million.
• Successfully completed a $338.0 million private placement at NOK 53.00 per share (approximately $6.24 per share based on the prevailing exchange rate at the time), to part finance the above-referenced vessel acquisition.
• Completed subsequent offering following the private placement and issued 2,710,377 new shares at NOK 53.00 per share, raising gross proceeds of NOK 143.6 million (or approximately $16.9 million).
• Capitalised on the spot market strength and converted from a floating to a fixed rate until second quarter of 2022 in the time charters relating to three Capesize vessels: Golden Fulham at $28,500, Golden Incus at $32,250 and Golden Bexley at $31,000.
• Took delivery of three Capesize vessels and five Panamax vessels as of the date of this report.
• Estimated TCE rates for the second quarter of 2021, inclusive of charter coverage and calculated on a load-to-discharge basis, are:
  • approximately $29,000 per day contracted for 64% of the available days for Capesize vessels;
  • approximately $18,800 per day contracted for 84% of the available days for Panamax vessels.We expect the spot TCEs for the full second quarter of 2021 to be lower than the TCEs currently contracted, due to the impact of ballast days at the end of the second quarter of 2021 as well as fluctuations in freight rates.
• Published our third annual ESG report for 2020, which can be found on the Company’s website.
• Announces a cash dividend of $0.25 per share for the first quarter of 2021.

Ulrik Andersen, Chief Executive Officer, commented:

“As pleased as we are to have generated the best first quarter result in the history of the Company, we are more excited for what lies ahead. The combination of counter-seasonal strength and the volatility in rates is indicative of a tightening market balance, and we have grown increasingly optimistic about the potential for a prolonged period of higher rates. Golden Ocean is well-positioned for this market, particularly following our recent acquisition of 18 vessels, including three newbuildings. Our focus on larger vessel classes that have the greatest leverage to improving markets and our ability to maintain extremely competitive cash breakeven levels will result in significant cash flow generation. Golden Ocean has historically returned value created to its shareholders, and the resumption of our dividend payment is a strong reflection of our expectation that the market will remain strong for the foreseeable future."

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