Although it was a shorter trading market, I had been more focused on tanker companies reporting (three of them), than the odd dry bulk company, Golden Ocean (GOGL), that also reported in the shortened window.
GOGL reported on 11/27, and results included,
- Rev of $260.6M
- Net Income of $56.3M
- Avg TCE daily of $23,726 (Cape $28,295 Panamax $16,361)
- One Panamax vessel sold for $4.2M gain
- Declared Q3 dividend of 30c/sh
GOGL usually has some type of strategy deployed during Q3s. This year, the strategy seems somewhat mixed into a broader game-plan. But, it seems GOGL opted for more charter coverage than spot trading. At least, the revenue numbers suggest this for both Q2 and Q3.
Subsequent to Q3 end, GOGL also refinanced a group of Newcastlemax vessels. GOGL also segregated a pair of vessels (one Newcastlemax, one Panamax) as vessels held for sale. Those vessels have since been delivered, and GOGL will book a decent gain on the sales.
GOGL also renewed its share buyback program another year. It isn’t a very aggressive buyback program. My guess is, it is more of a back-stop type program. If GOGL shares traded below $8.50/sh, the company would likely execute on it. But around $10, not so much.
On another thread, I commented on the Dry bulk index. As one can see, rates for each vessel category for GOGL Q4-to-date are significantly higher. At least for Q4, GOGL can more safely ride it out.