Golden Ocean Group Limited (NASDAQ:GOGL) Q1 2022 Earnings Conference Call May 19, 2022 9:00 AM ET
Company Participants
Ulrik Andersen - Chief Executive Officer
Peder Simonsen - Chief Financial Officer
Conference Call Participants
Climent Molins - Value Investor's Edge
Operator
Good day and thank you for standing by. Welcome to the Q1 2022 Golden Ocean Group Limited Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised, that today's conference is being recorded. [Operator Instructions]
I would now like to hand the conference over to your speaker today, Ulrik Andersen. Please go ahead, sir.
Ulrik Andersen
Good afternoon, everyone. Welcome to Golden Ocean's first quarter release call. My name is Ulrik Anderson, and I'm the CEO; and next to me, I have Peder Simonsen, our CFO. Today is about looking back and ahead. We will give you insight and information on the key numbers from the first quarter, but also talk about how the outlook for dry bulk looks.
Today's overall message is that we deliver another strong and solid financial performance, courtesy of a firm Panamax market and a high degree of Cape contract coverage secured at attractive levels last year.
In the next 15 to 20 minutes, we will show that we have refinanced debt, lowering our already industry low cash breakeven, that we continue to pay out a significant portion of our net profit in dividend and that despite worldwide economic headwinds, the fundamentals remain in place for a sustained period of profitable markets.
With that, let's take a look at the main highlights for the quarter. In Q1, we recorded an EBITDA of $149 million, which resulted in a net profit of $125 million, or $0.63 per share. We achieved average time charter equivalent rates of $24,800 per day for the Capes and 23,600 for the Panamaxes.
Worth noticing is that the average rate for Capesize vessel in Q1 was 14,700. In other words, our strategy of hedging Q1 with fixed paying Cape contracts last year paid dividends. Our average Cape earnings were 10,000 per day better than the market.
Looking at this quarter, Q2, we have so far secured $28,000 per day for 78% of our Cape days, $27,000 per day for 77% of our Panamax days. Looking ahead and into Q3, we have secured $38,000 per day for 15% of our Cape days and $35,000 per day for 33% of our Panamax days.