Golden Ocean(GOGL) - 2021 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported an EBITDA of $130 million and a net income of $104.5 million for Q2 2021, a significant increase from $23.6 million in the previous quarter [5][13] - Net revenues rose to $215.7 million from $119.5 million in Q1, driven by higher time charter equivalent (TCE) rates [8] - TCE rates for Capesize and Panamax vessels were reported at $29,000 and $19,000 per day, respectively [5] Business Line Data and Key Metrics Changes - The company completed the acquisition of 18 modern Kamsarmax and Newcastlemax vessels, which will contribute additional vessel days in Q3 [5] - Fixed paying days increased by converting floating rates on 380 deadweight ton nonscrubber tonnage to fixed rates averaging $33,000 per day [6] Market Data and Key Metrics Changes - The Capesize rates climbed to well above $40,000 per day, with current trends indicating around $50,000 per day [22][23] - The order book as a percentage of the operating fleet is at a 30-year low, indicating limited newbuilding orders [24] Company Strategy and Development Direction - The company is exiting the CCL Capesize Chartering joint venture to enhance commercial flexibility and control over its fleet [30][31] - The focus is on strengthening direct relationships with customers and improving service delivery [32] Management's Comments on Operating Environment and Future Outlook - The management remains bullish about future demand growth for dry bulk commodities, driven by global GDP growth and stimulus packages [23] - The effective fleet supply is expected to tighten further due to port congestion and inefficiencies caused by COVID-19 [26] Other Important Information - The company announced a dividend of $0.50 per share, reflecting its commitment to returning earnings to shareholders [6] - Cash flow from operations increased significantly to $134.2 million compared to $6.6 million in Q1 [14] Q&A Session Summary - The Q&A session did not contain any recorded questions or answers, as the conference call concluded without further inquiries [38]