Golden Ocean Group report $41.3m loss – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

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Golden Ocean Group report $41.3m loss

Bermudian-based dry bulk shipping company Golden Ocean Group Limited has reported a net loss of $41.3 million, or 29 cents per share, for the second quarter.

That compares to a $160 million loss in the first quarter of the year. During the three-month period it completed the final eight of 23 planned installations of exhaust gas cleaning systems, also known as scrubbers, to comply with International Maritime Organisation rules to curb the release of sulphur oxides.

The installation of scrubbers caused significant one-off capital expenditure for the company.

Ulrik Andersen, Golden Ocean's chief executive officer, said: “While we believe that the recent improvement in rates reflects the diminishing impact of Covid-19 on the underlying demand for dry bulk commodities, uncertainty persists in the near term. “We have therefore increased our charter coverage for the balance of 2020, although we maintain enough spot exposure to meaningfully participate in the strong rate environment expected for the remainder of the year. This balanced commercial approach will ensure healthy continued cash flows and a corresponding increase in our liquidity.”

Mr Anderson added: “Additionally, the significant one-off capital expenditures related to scrubber installations and the non-cash impairments that impacted our results in the first half of the year are behind us. It means the recent market strength will directly benefit our second-half cashflow and results.”

Cleaner air: Golden Ocean Group has completed the final eight of 23 planned installations of exhaust gas cleaning systems to its fleet

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Published August 19, 2020 at 9:00 am (Updated August 19, 2020 at 8:10 am)

Golden Ocean Group report $41.3m loss

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