Golden Ocean Group Limited (GOGL) stock surged 9.39% in the pre-market trading session at the price of $8.74 after it announced an earnings report for the third quarter that ended on 30th September 2021.
GOGL Third Quarter 2021 Financial Results
On 24th November 2021, GOGL announced its financial results for the third quarter ended on 30th September 2021. The company has also reported its business updates.
GOGL Financial Highlights
GOGL reported a net income of roughly $195.3 million for the third quarter ended on 30th September 2021. For the second quarter of 2021, net income totaled $104.5 million. The company reported earnings per share of $0.97 for the third quarter of 2021. For the second quarter of 2021, earnings per share were $0.52. The company generated $229.7 million in adjusted EBITDA during the third quarter of 2021. Adjusted EBITDA totaled $130.5 million in the previous quarter of 2021. As of 30th September 2021, the company reported $0.85 per share in cash dividend.
Management Comments
Chief executive officer of GOGL, Ulrik Andersen, remarked that the company had sustained strong freight rate conditions that resulted in significant cash flow generation. He believes that the company is in a position to return value to its stockholders through dividend payments. The company has already refunded over $321 million to its stockholders so far in 2021. The modest fleet growth, global demand growth, and inefficiencies will persist in the upcoming years, which will create a strong dynamic for GOGL. The long-term business outlook and successful execution of its renewal program had positioned the company as an industry leader. The company expects to produce higher operating results for the interest of all stakeholders, he added.
Agreement to Build Four Kamsarmax Vessels
On 11th October 2021, GOGL announced an agreement to build four Kamsarmax vessels. It has also reported the sale of two Panamax vessels, Golden Endurer and Golden Opportunity. The aggregate sale price of the Panamax vessels is roughly $37.2 million. The company expects to receive $22.2 million in net cash proceed during the fourth quarter of 2021. It expects a gain of $5.0 million from sales during the fourth quarter of 2021.
