Golden Ocean Group Limited (NASDAQ:GOGL) Q2 2024 Earnings Conference Call August 28, 2024 9:00 AM ET

Company Participants

Peder Simonsen - Interim CEO & CFO

Conference Call Participants

Omar Nokta - Jefferies

Operator

Good day, and thank you for standing by. Welcome to the Second Quarter 2024 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.

I would now like to hand the conference over to your first speaker today, Peder Simonsen. Please go ahead.

Peder Simonsen

Good afternoon and welcome to the Golden Ocean Q2 2024 release. My name is Peder Simonsen and I am the Interim CEO and CFO for Golden Ocean. Today, I will guide you through the Q2 numbers and forward outlook.

In the second quarter of 2024, we have the following main highlights. On our adjusted EBITDA in the second quarter of 2024 ended up at $120.3 million compared to $114.3 million in the first quarter. We delivered a net income of $62.5 million and earnings per share of $0.31. This compares to a net income of $65.4 million and earnings per share of $0.33 for the first quarter.

Our adjusted net profit was $63.4 million and adjusted earnings per share of $0.32, up from $58.4 million, and earnings per share of $0.29 in Q1. Our TCE rates for Capesize and Panamax vessels were about $28,000 per day and about $15,700 per day, respectively, and a fleet-wide net TCE of about $23,500 for the quarter. We have continued to execute on our fleet renewal strategy by selling one older Panamax vessel at an attractive price.

For Q3, we have secured a net TCE of about $26,200 per day for 83% of our Capesize days and about $17,200 per day for 94% of our Panamax days. For Q4, we have locked in a net TCE of about $25,800 per day for 29% of our Capesize days and about $17,900 per day for 18% of our Panamax days. And with a strong result in Q2, we are pleased to declare a dividend of $0.30 per share for the second quarter of 2024.

Let's look a little deeper into the numbers. We achieved a total fleet-wide TCE rate of $23,500 in Q2, up from $22,600 in Q1. We had four ships drydocked in Q2 compared to two ships in Q1, contributing to approximately 193 days offhire in Q2 versus 97 days in Q1. Six ships are scheduled for drydock in Q3 2024, of which, one vessel has completed drydock as of today. This results in net revenues of $196.7 million, largely unchanged quarter-on-quarter as stronger TCE performance was offset by fewer vessel days.