Golden Ocean Group (GOGL) Pareto Securities' 31st annual Energy Conference Presentation summary

Investment highlights and fleet overview

• Leading owner of large-sized dry bulk vessels with a focus on modern, fuel-efficient ships and industry-low cash breakeven costs.

• Operates a fleet of 93 vessels, primarily Capesize and Kamsarmax, with an average age of 7.7 years and 51% equipped with scrubbers.

• $2.3bn market cap with high trading liquidity on NASDAQ and OSE.

• Well positioned for tightening environmental regulations, with strong CII ratings and compliance with IMO and EU requirements.

• Offers significant exposure to the largest dry bulk segments, capturing market volatility and upside.

Market environment and demand drivers

• Capesize demand supported by long-haul iron ore, coal, and bauxite trades, with 98% of cargo mix in these commodities.

• Capesize trade up 3.4% year-over-year in 1H 2024, driven by Brazilian iron ore (+9%), Guinean bauxite (+13%), and Colombian coal (+45%).

• Continued strong import growth from China (+7%) and India (+9%) across cargo types.

• Global GDP and dry bulk growth remain closely correlated, with emerging economies like China and India leading demand.

• Global steel production forecasted to grow 2% in 2024 and 2.9% in 2025, with India and Europe as key contributors.

Supply side and regulatory landscape

• Dry bulk orderbook remains healthy, with Capesize segment showing the most compelling supply dynamics.

• Only 1.3% fleet growth expected in 2025, with limited yard capacity before 2028.

• 30% of Capesize fleet will be over 15 years old by 2025, and 55% of the fleet is considered non-ECO, facing stricter regulations.

• Stricter environmental regulations are expected to limit supply and support market rates.