Golden Ocean Group Limited (NASDAQ:GOGL) Q3 2024 Earnings Conference Call November 27, 2024 8:30 AM ET

Company Participants

Conference Call Participants

Operator

Good day, and thank you for standing by. Welcome to the Q3 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 speaker today, Peder Simonsen, Interim CEO and CFO. Please go ahead.

Peder Simonsen

Good afternoon, and welcome to the Golden Ocean Q3 2024 release. My name is Peder Simonsen, and I am the Interim CEO and CFO of Golden Ocean.

Today I will present our Q3 numbers and forward outlook. In the third quarter of 2024, we have the following main highlights: our adjusted EBITDA in the third quarter ended up at $124.4 million compared to $120.3 million in the second quarter; we delivered a net income of $56.3 million and earnings per share of $0.28, compared to a net income of $62.5 million and earnings per share of $0.31 in the second quarter; our adjusted net profit was $66.7 million; and adjusted earnings per share of $0.33, up from $63.4 million and earnings per share of $0.32 in Q2.

Our TCE rates were about $28,300 per day for Capesizes and about $16,400 per day for Panamax vessels and fleet wide net TCE of around $23,700 per day for the quarter. We have continued to execute on our fleet renewal strategy by selling one older Panamax and an older Newcastlemax vessel at attractive prices. Further, we continue to secure attractive financings supporting our industry low cash breakeven rates.

For Q4, we have secured a net TCE of about $26,300 per day for 82% of Capesize days and about $14,600 per day for 83% of Panamax days. For Q1, we have locked in a net TCE of about $21,100 per day for 27% of Capesize days and about $17,500 per day for 15% of Panamax days. And with a strong result, we are pleased to declare a dividend of $0.30 per share for the third quarter of 2024.

Let's look a little deeper into the numbers. As mentioned, we achieved a total fleet wide TCE rate of $23,700, slightly up from Q2. We had five ships drydocked in Q3 compared to four ships in Q2, contributing to about 253 days offhire in Q3 versus 193 days in Q2. We are entering into a period with frequent drydockings. We have 13 ships scheduled for drydock in Q4 2024, of which, four vessels have completed drydock as of today and seven ships are expected to drydock in Q1 2025.