Golden Ocean(US:GOGL)2025-03-20 21:03Financial Performance - A net gain on interest rate swaps of $14.8 million was recorded in 2024, compared to a net gain of $10.8 million in 2023[590] - The company recorded a total net gain on bunker swaps of $0.3 million in 2024, down from $1.6 million in 2023, with no outstanding bunker swap agreements as of December 31, 2024[601] - A net gain of $0.3 million was recorded on the portfolio of Forward Freight Agreements (FFA) in 2024, compared to a net loss of $1.1 million in 2023[604] Borrowings and Interest Rates - As of December 31, 2024, variable rate borrowings amounted to $1,302.5 million, a decrease from $1,370.1 million as of December 31, 2023[587] - The company had interest rate swaps with a notional principal amount of $550 million as of December 31, 2024, with a weighted average fixed interest rate of 2.20%, compared to 2.07% for $650 million as of December 31, 2023[589] - Estimated interest expense for 2025 is projected at $78.81 million, which could increase to $91.70 million with a 100 basis point rise in floating rates, indicating a sensitivity of $12.89 million[592] Currency and Contracts - The company had contracts to swap USD to NOK for a notional amount of $1.8 million as of December 31, 2024, down from $2.1 million in 2023, with a recorded net loss of $0.2 million in 2024[594] Cost Projections - Inflation is expected to increase crew expenses by up to 2.5% annually and spares by up to 4.5%, with additional drydock costs per vessel projected to rise by approximately 10% in 2025[597]