Golden Ocean Q3 2022

Golden Ocean (GOGL) announced Q3 2022 results in the middle of last week (11/16/22)

  • Rev of $282M
  • Gain from sale of two Ultramax vessels
  • Net income of $104.5M
  • Q3 Div of 35c/sh
  • Announced a share buy-back of upto $100M
  • Overall, reasonable results given the less spectacular Cape rates in Q3 2022.
  • I don’t think GOGL will rush to utilize the $100M on buy-backs. I think GOGL mgmt just made the announcement to draw a line on support for the share price.
  • GOGL have a relatively young fleet with only 1 of 76 owned vessels (excluding the 10 newbuilds) reaching the 15-year mark in 2023.
  • Current debt financing on relatively low rates. But at some point GOGL will need to finance the newbuilds (6 of them deliver in 2023)
  • Like other dry bulk peers, GOGL make reference to a low order book as being a reason for optimism. The lower orderbook, coupled with likely lower operating speeds in 2023 could be a positive for certain shipping sectors.

GOGL spent a large slice of time as my largest shipping position. At the present time, still a position, Just not as prominent a stake.