Golden Ocean(US:GOGL)2024-08-28 14:32Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2024 was $120.3 million, up from $114.3 million in Q1 2024 [2] - Net income for Q2 2024 was $62.5 million, down from $65.4 million in Q1 2024, with earnings per share of $0.31 compared to $0.33 in Q1 2024 [2] - Adjusted net profit increased to $63.4 million with adjusted earnings per share of $0.32, up from $58.4 million and $0.29 in Q1 2024 [3] - Total fleet-wide TCE rate rose to $23,500 in Q2 2024 from $22,600 in Q1 2024 [4] - Operating expenses increased to $66.3 million from $62.6 million in Q1 2024 [4] Business Line Data and Key Metrics Changes - TCE rates for Capesize vessels were approximately $28,000 per day, while Panamax vessels were about $15,700 per day [3] - For Q3 2024, net TCE secured was about $26,200 per day for 83% of Capesize days and $17,200 per day for 94% of Panamax days [3] - In Q4 2024, net TCE locked in was about $25,800 per day for 29% of Capesize days and $17,900 per day for 18% of Panamax days [3] Market Data and Key Metrics Changes - Global Capesize trade saw a year-on-year growth of 3% for the first half of 2024, with Brazilian iron ore volumes growing by 9% [10] - Colombian coal exports to Asia increased by 45% year-on-year in the first half of 2024 [11] - Iron ore inventories have risen to 2022 levels, impacting prices, which are currently in the mid to high-90s [12] Company Strategy and Development Direction - The company has focused on fleet renewal, selling older vessels and maintaining a modern, fuel-efficient fleet [3][9] - The strategy includes maintaining conservative leverage with a current loan-to-value ratio of around 34% [9] - The company aims to capitalize on the expected seasonal strength in the second half of the year, particularly in the Capesize segment [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the underlying fundamentals in the market, despite negative macroeconomic news [20] - The company anticipates a seasonal upswing in volumes, particularly in coal and bauxite exports, which will support the Panamax segment [22] - There is a positive outlook for the second half of the year, with expectations of increased industrial activity and steel production in China [14] Other Important Information - The company declared a dividend of $0.30 per share for Q2 2024, continuing a trend of high dividend payouts [3][18] - Cash flow from operations was $76.9 million, with a net decrease in cash of $44.4 million for the quarter [7][8] - The company has $150 million in undrawn available credit facilities and a total debt of $1.4 billion at quarter end [8] Q&A Session Summary Question: What is supporting Capesize rates despite soft Chinese steel markets? - Management noted that the market is fundamentally strong with healthy volumes flowing, and seasonal patterns are expected to ramp up [19][20] Question: How does the company view the Panamax segment amidst pressure? - Management acknowledged depressed sentiment in the Panamax segment but expects support from coal volumes and other commodities as seasonal changes occur [21][22]