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Golden Ocean Group declares record profits

Golden Ocean Group Limited, a leading international dry bulk shipping company based in Bermuda, has declared its most successful fourth quarter and full year results in its quarter-of-a-century history.

GOGL reported net income of $203.8 million and earnings per share of $1.02 for the fourth quarter of 2021.

Adjusted EBITDA of $243.5 million for the fourth quarter of 2021, compared with $229.7 million for the third quarter of 2021.

Net profit for the year was $527.2 million compared with a net loss of $137.7 million for the year ended December 31, 2020.

Net operating income was $513.6 million compared with a net operating loss of $61.7 million in the prior year.

The company said the increase was driven by fleet expansion and substantially improved market rates.

In addition, there were no impairment charges recorded in 2021 compared with impairment charges of $95.0 million in 2020.

Total other income of $14.0 million in 2021 increased by $89.9 million from other expenses of $75.9 million in 2020, primarily due to an increase in mark-to-market gains from financial instruments of $47.9 million; an increase in gain from investments in associated companies of $28.2 million; and an increase in change of the fair value of marketable securities of $8.2 million.

Ulrik Andersen, chief executive officer, commented: “The record result has been made possible through attractive market conditions, timely acquisitions and strong chartering performance.

“Staying true to our strategy of returning cash to our shareholders, we are paying out $0.90 per share in dividends for the quarter, taking the dividends relating to 2021 to more than $500 million.

“Looking into 2022, we have a considerable amount of fixed profitable charter cover for the first quarter, which will protect our dividend capacity and build a bridge into what we expect to be a much more attractive second half of the year.

“Despite the recent weakening in freight rates, which we mainly attribute to seasonality, we believe the outlook for 2022 and beyond is positive due to a combination of steady demand growth and fleet supply that is at generationally low levels.”

The company announced a cash dividend of $0.90 per share in respect of the fourth quarter of 2021, payable on or about March 10, 2022 to shareholders of record on March 3.

Golden Ocean was founded in 1996 and is mainly operating in the Capesize, Panamax and Supramax segments.

Listed on Nasdaq and the Oslo Stock Exchange, the company owns and controls a fleet of 92 vessels, including vessels chartered in on long-term time charter contracts.

It was originally incorporated as Knightsbridge Tankers Limited in Bermuda as an exempted company under the Bermuda Companies Act of 1981 in September 1996.

It was established for the purpose of owning and operating five very large crude carriers.

It expanded into the dry bulk segment from 2009 and sold the VLCCs and subsequently discontinued crude oil tanker operations, making significant expansion in the dry bulk segment in 2014 by acquiring 29 SPCs from Frontline.

Golden Frost: a Panamax Class Marshall island flagged ship built in 2020, one of 92 ships owned by Golden Ocean Group Limited, a Bermuda company

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Published February 17, 2022 at 11:40 am (Updated February 17, 2022 at 9:08 pm)

Golden Ocean Group declares record profits

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