Golden Ocean Group Limited (NASDAQ:GOGL) Q2 2022 Results Conference Call August 25, 2022 10:00 AM ET
Company Participants
Ulrik Andersen - CEO
Peder Simonsen - CFO
Conference Call Participants
Omar Nokta – Jefferies
Operator
Good day, and thank you for standing by. Welcome to the Q2 2022 Golden Ocean Group Limited Earnings Call and Webcast. [Operator Instructions] Please note that today's conference is being recorded. I would now like to hand over the conference to speaker, Mr. Ulrik Andersen. Please go ahead.
Ulrik Andersen
Good afternoon, everyone. Welcome to Golden Ocean's second release call in 2022, where we will talk you through the key highlights of our Q2 results. My name is Ulrik Andersen, I'm the CEO; and next to me, I have Peder Simonsen, Golden Ocean's CFO.
Today's main message is that Golden Ocean delivered another strong quarter while also having secured forward cover to weather the near-term headwinds. In the next 15 to 20 minutes, we will show you that Golden Ocean has taken fixed paying cover in Q3 and Q4 to manage near-term uncertainty. That, given our belief in the longer-term market fundamentals and our strong balance sheet, we continue to pay out meaningful dividends. And finally, that despite the uncertain macroeconomic context, dry bulk fundamentals are constructive, driven mainly by an attractive supply side.
With that, let's take a look at the main highlights of the quarter. In Q2, we recorded an EBITDA of $192 million, which resulted in a net profit of $164 million or $0.82 per share. We achieved average time charter rate equivalents of $30,600 per day for our Capesize vessels, while the Panamax vessels achieved an average TCE of $27,600 per day. Worth noticing in this respect is that our chief Capesize rates were $9,000 per day or 44% above the benchmark rate.
We have also divested 2 Ultramax vessels from 2015. These were vessels outside our core segment, Panamax and Cape. Including these vessels, we have sold 7 ships in total in the past 10 months, by which we have been releasing cash to continue adding more modern and competitive tonnage to our newbuilding program. We also published our 2021 history report, one of the main highlights being our commitment to decarbonization by introducing emission reduction targets of 30% by 2030 and net-zero emissions by 2050.
Looking at this quarter, Q3, we have so far secured $28,000 per day for 80% of our Cape days, $27,000 per day for 92% of our Panamax days. Looking into the next quarter, Q4, we have secured $29,000 per day for 25% of our Cape days and $22,000 per day for 27% of our Panamax days. In other words, we have taken out fixed paying cover at good rates for the remainder of the year to hedge against near-term uncertainty, something I will discuss later in the presentation.