GOGL Q4 2022 results

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Announced on 2/16/23

  • Revenue of $249.6M
  • Adjusted EBITDA of $112.4M
  • Net Income of $68.2M
  • Announced deal to acquire 6 Newcastlemax vessels (2020-2021 builds) for under $300M
  • TCE avg daily: Cape $21.5K, Panamax $19K
  • New refinancing deal for 20 vessels
  • Dividend of $0.20/sh
    PowerPoint Presentation (goldenocean.bm)

Overall, reasonable figures given market conditions. Somewhat timely decision to acquire 6 Newcastlemax vessels. Leaseback deal with seller (wonder if that’s the reason for what seems like a good price point).

Though I have trimmed my GOGL stake by > 50% in Jan 2023, GOGL is well set in the event of a dry bulk market recovery. The debt load is < $20M/vessel and the company has few owned vessels > 10 yo. Will have to verify this stat, but I believe GOGL has scrubbers on a majority of its Cape category vessels (owned and/or leased) and has plans to fit scrubbers on additional Cape category vessels.

Share buyback program is still in place, and of course, the company has already spent some financial resources to acquire shares in the buyback window.

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With multiple thoughts going on, the next-to-last paragraph is slightly confusing. Let’s try that one again.

  1. I trimmed my GOGL stake in Jan 2023 because I wasn’t as confident about the near term outlook.
  2. A vast majority of GOGL’s owned fleet is < 10 years old (more than 75%)
  3. GOGL has a debt load of < $20M/vessel. Combine that with #2, puts GOGL in a great position in event of a recovery
  4. GOGL has scrubbers on many of its Cape vessels. The company is in the process of adding scrubbers on additional vessels.
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The scrubber status of the Panamax category vessels (Panamax, Kamsarmax) are not as well defined as the Cape size category. However, I do know the 10 Kamsarmax vessels acquired in 2021 and the 10 Kamsarmax newbuilds have an ECO or fuel efficiency advantage. So going forward, more of the GOGL’s Panamax category vessels will have an edge.