Golden Ocean(GOGL) - 2023 Q4 - Annual Report

Financial Performance - Net income for Q4 2023 was $57.5 million, with earnings per share of$0.29, compared to $28.7 million and$0.14 in Q3 2023[5] - Adjusted EBITDA for Q4 2023 was $123.2 million, up from$78.9 million in Q3 2023[5] - Total operating revenues for Q4 2023 were $254.205 million, compared to$221.663 million in Q3 2023 and $249.558 million in Q4 2022[65] - Net income for Q4 2023 was$57.471 million, a significant increase from $28.734 million in Q3 2023 but a decrease from$68.208 million in Q4 2022[65] - Earnings per share (basic) for Q4 2023 were $0.29, compared to$0.14 in Q3 2023 and $0.34 in Q4 2022[65] - Net operating income for Q4 2023 was$91.117 million, a significant increase from $44.888 million in Q3 2023 and$75.178 million in Q4 2022[65] - Interest expense for Q4 2023 was $28.663 million, slightly down from$28.803 million in Q3 2023 but up from $18.963 million in Q4 2022[65] - Net income for the three months ended December 31, 2023, was$57.471 million, compared to $28.734 million in the previous quarter and$68.208 million in the same period last year[69] - The company reported a net income of $57.5 million for the three months ended December 31, 2023, and$112.3 million for the twelve months ended December 31, 2023[115] - Adjusted EBITDA for the twelve months ended December 31, 2023, was $337.2 million, compared to$571.6 million for the same period in 2022[115] - Total operating revenues for Q4 2023 were $254.2 million, compared to$221.7 million in Q3 2023 and $249.6 million in Q4 2022[123] - Net time and voyage charter revenues for Q4 2023 were$251.3 million, up from $220.7 million in Q3 2023 and$249.4 million in Q4 2022[123] - Time charter equivalent (TCE) income for Q4 2023 was $193.8 million, compared to$155.6 million in Q3 2023 and $180.2 million in Q4 2022[123] Fleet and Operations - TCE rates for Capesize and Panamax vessels in Q4 2023 were$25,176/day and $16,738/day, respectively, with an overall fleet average of$21,958/day[5] - Estimated TCE rates for Q1 2024 are $25,000/day for 74$15,400/day for 84% of Panamax available days[5] - The company's fleet consists of 94 vessels, including three newbuildings, with an aggregate capacity of approximately 14.1 million dwt[9] - Global dry bulk fleet utilization reached 91.1% in Q4 2023, up from 85.7% in Q3 2023, with total seaborne transportation of dry bulk goods increasing by 2.8% to 1,252 mt compared to Q3 2023 and by 8.7% compared to Q4 2022[38] - The global fleet of dry bulk vessels increased by 6.4 million dwt in Q4 2023, with newbuilding orders totaling 10.9 million dwt, including 20 Capesize vessels and 48 Panamax vessels[45] - The Capesize orderbook as a percentage of the operating fleet was 5.7% as of January 31, 2024, the lowest among all vessel segments and a decrease from 6.5% at the start of 2023[50] - The company increased its fleet size by 30% based on dwt since 2020, reducing the fleet's average age by approximately 2%, and maintains an industry-leading daily cash breakeven level of $14,000 per day[52] - Total fleet onhire days for Q4 2023 were 8,827, down from 9,113 in Q3 2023 but up from 8,825 in Q4 2022[127] - TCE rate per day for Capesize vessels in Q4 2023 was$25,176, up from $18,173 in Q3 2023 and$21,399 in Q4 2022[127] - TCE rate per day for Panamax vessels in Q4 2023 was $16,738, up from$15,389 in Q3 2023 but down from $18,992 in Q4 2022[127] - Total TCE rate per day for Q4 2023 was$21,958, up from $17,076 in Q3 2023 and$20,421 in Q4 2022[127] Financing and Debt - The company secured $625 million in financings, fully funding its remaining capex obligations and refinancing all debt maturities until 2026[5] - In December 2023, the company signed an$85.0 million sale-and-leaseback agreement to partially finance four Kamsarmax newbuildings[15] - In February 2024, the company signed a $360 million sustainability-linked credit facility to refinance a fleet of 20 vessels[17] - As of December 31, 2023, the company had cash and cash equivalents of$118.6 million, including restricted cash balances of $2.3 million[34] - Net cash used in financing activities was$92.7 million in Q4 2023, including $27.3 million in scheduled debt repayment,$25.0 million in revolving credit facility repayment, $20.4 million in finance lease repayment, and$20.0 million in dividend payments[36] - As of December 31, 2023, the company's long-term debt was $1,370.1 million, with$109.3 million as the current portion, and finance lease obligations were $87.6 million, with$19.6 million as the current portion[37] - Total assets as of December 31, 2023, were $3,489.018 million, slightly down from$3,543.447 million as of September 30, 2023[67] - Cash and cash equivalents as of December 31, 2023, were $116.382 million, up from$97.517 million as of September 30, 2023[67] - Long-term debt as of December 31, 2023, was $1,260.758 million, down from$1,312.083 million as of September 30, 2023[67] - The company's book value of finance lease obligations was $87.6 million as of December 31, 2023, including the current portion of$19.6 million[88] - The company's long-term debt as of December 31, 2023, had a book value of $1,370.1 million and an outstanding principal of$1,380.7 million, with a current portion of $109.3 million[92] - In March 2023, the company entered into a$233.0 million two-year credit facility to partially finance the acquisition of six Newcastlemax vessels, with an interest rate of SOFR plus 190 basis points per annum[95] - The company entered into an $80.0 million facility in April 2023 to partially finance four Kamsarmax newbuildings, with a seven-year tenor and an interest rate of SOFR plus 180 basis points, fully drawn as of December 31, 2023[96] - A$40.0 million credit facility was secured in July 2023 for two Kamsarmax newbuildings, with a seven-year tenor and an interest rate of SOFR plus 175 basis points, fully drawn by December 31, 2023[97] - The company drew down $50.0 million and repaid$25 million on its revolving credit facilities in 2023, resulting in an undrawn balance of $75 million at year-end[98] - A sale-and-leaseback agreement for$85.0 million was signed in December 2023 to finance four Kamsarmax newbuildings, with a ten-year tenor and an interest rate of SOFR plus 185 basis points, no amounts drawn as of December 31, 2023[99] - A $360 million sustainability-linked credit facility was signed in February 2024 to refinance a fleet of 20 vessels, with a five-year tenor and an interest rate of SOFR plus 175 basis points[108] - Credit approvals for a$180 million credit facility were received in February 2024 to refinance six Newcastlemax vessels, with a five-year tenor and an interest rate of SOFR plus 160 basis points[109] Dividends and Share Buybacks - The company announced a cash dividend of $0.30 per share for Q4 2023, payable on or about March 25, 2024[5] - A cash dividend of$0.30 per share was announced for the fourth quarter of 2023, payable on or about March 25, 2024[107] - The company acquired 1,107,328 shares at an aggregate purchase price of $8.5 million under its share buy-back program in 2023[100] Market and Demand Trends - Global coal imports increased by 4.7$5.8 million from the sale of a Supramax vessel in the fourth quarter of 2023[87] - In 2023, the company acquired six modern 208,000 dwt vessels for a total consideration of $291.0 million, which are chartered back to their former owner for approximately 30 months at an average net TCE rate of just above$21,000 per day[78] - The company sold two vessels, Golden Feng and Golden Shui, for an aggregate net sale price of $43.6 million, recording an impairment loss of$11.8 million[80] - During the twelve months of 2023, the company installed scrubbers on three vessels in its existing fleet at a total cost of $6.2 million[83] - The company delivered six out of ten Kamsarmax newbuildings in 2023, with total costs of$219.5 million, and had capitalized costs of $54.8 million for the remaining four newbuildings as of December 31, 2023[84] - The company received$7.8 million in dividends from its 15.92% equity investment in SwissMarine Pte. Ltd. during the twelve months ended December 31, 2023[89] TCE Income by Vessel Type - TCE income for Capesize vessels in Q4 2023 was $137.5 million, up from$100.4 million in Q3 2023 and $112.1 million in Q4 2022[127] - TCE income for Panamax vessels in Q4 2023 was$56.3 million, compared to $55.2 million in Q3 2023 and$68.1 million in Q4 2022[127]