Golden Ocean(US:GOGL)2023-03-16 21:11Financial Performance - As of December 31, 2022, the company's variable rate borrowings amounted to $1,120.9 million, a decrease from $1,262.3 million as of December 31, 2021[577]. - The company recorded a net gain on interest rate swaps of $40.1 million in 2022, compared to a net gain of $11.5 million in 2021[580]. - The estimated interest expense for 2023 is $76.97 million, which could increase to $88.09 million with a 100 basis point rise in floating rates, representing a sensitivity of $11.12 million[582]. - The company is exposed to interest rate fluctuations primarily due to its floating interest rate long-term debt, which could adversely affect its financial performance and debt servicing ability[574]. Foreign Currency and Commodity Swaps - As of December 31, 2022, the company had contracts to swap USD to NOK for a notional amount of $0.2 million, with a recorded net loss of $0.1 million on foreign currency swaps in 2022[584]. - As of December 31, 2022, the company had outstanding bunker swap agreements for approximately 26.8 thousand metric tonnes, with a total net gain of $0.5 million recorded in 2022[593]. - In 2022, the company recorded a net loss of $0.6 million on its portfolio of Forward Freight Agreements (FFA), a decline from a net gain of $19.0 million in 2021[596]. Operational Costs and Inflation - The company experienced a significant increase in fuel prices in 2022, which negatively affected operations, although improved contract rates partially absorbed this impact[591]. - The company anticipates a 5% to 10% increase in insurance costs in 2023, alongside a projected 6% increase in crew expenses due to a reduced global pool of seafarers[588]. - Inflation has moderately affected the company's expenses, with specific increases in ship operating expenses estimated at $4.2 million for travel and $1.4 million for spares due to inflation in 2022[587].