Golden Ocean(US:GOGL)2023-11-21 15:28Financial Data and Key Metrics Changes - The total fleet-wide time charter equivalent (TCE) was $17,100, which remained materially unchanged from Q2 [3] - Net revenues increased to $156.6 million from $154 million in Q2 [3] - Adjusted EBITDA for Q3 was $78.9 million, down from $80.4 million in Q2 [27] - Net profit decreased to $28.7 million with earnings per share of $0.14, compared to a net profit of $34.9 million and earnings per share of $0.17 in Q2 [27] - Operating expenses rose to $64.5 million from $62.4 million in the previous quarter [28] - Net financial expenses increased to $28 million from $23 million in Q2 due to higher reference rates and average debt [33] - Cash flow from operations was $47.4 million, including $600,000 dividend from associated companies [54] Business Line Data and Key Metrics Changes - Cape TCE rates were $18,200, slightly down from the previous quarter, while Panamax rates were $15,400, in line with the previous quarter [32] - The company recorded a loss of $300,000 from investments in associates, compared to a gain of $4.9 million in Q2 [29] Market Data and Key Metrics Changes - China continued to import iron ore, bauxite, coal, and agricultural products, surpassing last year's levels [9] - Chinese steel production increased by 2% year-on-year, with a solid 4.5% increase in Q3 [10] - The bauxite trade accounted for 12.5% of total global Cape tonne miles, indicating a shift in trading patterns [11] - The total dry order book is around 8% of the total fleet, with Capesize segment orders at 5%, historically low levels [60] Company Strategy and Development Direction - The company focuses on larger vessels to capitalize on market volatility and potential upside [7] - The fleet's average age is seven years, allowing the company to outperform the market [7] - The company plans to invest in modern tonnage rather than placing newbuilding orders, indicating a strategic shift towards acquiring existing vessels [19] Management's Comments on Operating Environment and Future Outlook - The company expects strong performance in the Panamax and Cape sectors to continue into 2023 [9] - There is optimism regarding the iron ore trade due to steady demand from China and continuous imports from Brazil and Australia [58] - The company anticipates positioning a large part of its fleet to capitalize on the expected upside in 2024 [60] Other Important Information - The company declared a dividend of $0.10 per share for Q3 [31] - Cash and cash equivalents at the end of Q3 were $99.7 million, including $2.2 million of restricted cash [55] - The company has $50 million in undrawn available credit facilities at quarter end [55] Q&A Session Summary Question: Regarding the Supramax vessel sale and future options - Management indicated that the Supramax vessel was considered non-core, and they are open to similar opportunities if they arise [15][63] Question: On fleet investment and newbuilding orders - Management expressed satisfaction with the current newbuilding program and indicated a preference for investing in modern tonnage rather than newbuilding orders [19][67]