Golden Ocean Group (GOGL) Q2 2024 earnings summary

Executive summary

• Adjusted EBITDA for Q2 2024 was $120.3 million, up from $114.3 million in Q1 2024.

• Net income was $62.5 million with EPS of $0.31, compared to $65.4 million and $0.33 in Q1.

• Adjusted net profit rose to $63.4 million and adjusted EPS to $0.32, up from $58.4 million and $0.29 in Q1.

• Declared a dividend of $0.30 per share for Q2 2024, payable in September.

• Entered agreement to sell a 2014 Panamax vessel for $20.8 million; gain of $4.3 million to be recorded in Q3.

Financial highlights

• Operating revenues were $250.1 million in Q2 2024, up from $246.7 million in Q1 2024.

• TCE rate for the fleet was $23,535 per day in Q2 2024, up from $22,628 in Q1 2024.

• Operating cash flow was $76.9 million in Q2 2024, down from $115.8 million in Q1 2024.

• Cash and cash equivalents at quarter end were $103.1 million, with $150 million undrawn credit facilities.

• Dividend of $0.30 per share declared for Q2 2024.

Outlook and guidance

• For Q3, 83% of Capesize days secured at $26,200/day and 94% of Panamax days at $17,200/day.

• For Q4, 29% of Capesize days locked at $25,800/day and 18% of Panamax days at $17,900/day.

• Demand fundamentals remain strong, especially for large vessel segments; Chinese bauxite and new iron ore projects expected to drive long-term growth.

• Fleet growth is moderating; environmental regulations expected to constrain effective capacity.

• Spot TCE rates for full Q3 and Q4 2024 expected to be lower than contracted rates due to ballast days.