Results Q2 - 2013
23 August 2013
Agenda
Highlights
Financials
Operations
Macro Update
Q&A
Highlights
GOGL results Q2 2013
EBITDA: $49.5 million
Profit: $43.5 million
Earnings per share: $0.10
GOGL declares a divi...
Financials
Birgitte Vartdal, CFO Golden Ocean Management AS
Profit & Loss
• Revenues up on higher activity
short term and $30 million
settlement
• Costs up on higher activity short
t...
(in thousands of $) 2013 2012
Jun 30 Dec 31
ASSETS
Vessels and equipment, net 654 448 611 517
Vessels held under finance l...
Operations
Birgitte Vartdal, CFO Golden Ocean Management AS
Vessels: Deliveries and charters
The Company bought in May 2013 a 2009 built Cape in JV
together with a cargo owner
Delive...
Open positions on sailing vessels
* Capesize: MV Golden Magnum included with 50% as from Q3-13
** Panamax: Golden Diamond ...
Overview of newbuilding program Jinhaiwan
Cancelled Remaining
Capesize 1 0
Kamsarmax 4 0
Iceclass Panamax 3 1
MUSD
Install...
Yard Vessels Contracted out Open Delivery
JMU (Japan) 2 0 2 Q1-15
Chengxi (China) 3 0 3 Q1-Q2/15
Chengxi, options (China)*...
Corporate transactions and covenants
In May 2013 the Company entered into an agreement to settle a dispute
in relation to ...
Based on 15 Panamax/Kamsarmax and 6 Capesize vessels
Vessel operating expenses
4 950
5 650
5 300
5 200
5 500 5 450
5 375
5...
Macro Update
Herman Billung, CEO Golden Ocean Management AS
Bulk Carrier fleet trend...
Source: RS Platou Economic Research
Still strong underlying fleet growth, but slowing
Source: RS Platou Economic Research
China the driving force …
Source: RS Platou Economic Research
Housing starts vs housing sales
Source: NCA
Chinese domestic steel prices
Source: NCA
China – the major growth market in dry bulk …
Source: RS Platou Economic Research
Existing fleet and order book by year of delivery
Source: RS Platou Economic Research
India – an increasing growth factor in dry bulk...
Source: RS Platou Economic Research
Brazilan iron ore exports…
Source: RS Platou Economic Research
The world grain market – trade set to increase from q4-13
Source: RS Platou Economic Research
Bulk carriers: existing fleet and order book by year of delivery
Source: RS Platou Economic Research
Demand catching up with supply
Source: Pareto Shipping
Vessel capacity utilization expected to firm up
Source: Pareto Shipping
Q & A
Thank you for your attention !
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Golden Ocean Q2 2013 results presentation

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Golden Ocean Q2 2013 results presentation

  1. 1. Results Q2 - 2013 23 August 2013
  2. 2. Agenda Highlights Financials Operations Macro Update Q&A
  3. 3. Highlights GOGL results Q2 2013 EBITDA: $49.5 million Profit: $43.5 million Earnings per share: $0.10 GOGL declares a dividend of $0.01 for Q2 2013 Three firm + three optional supramax newbuilding contracts concluded with Chengxi Received $30 million as a settlement for a dispute in relation to a ten year charter
  4. 4. Financials Birgitte Vartdal, CFO Golden Ocean Management AS
  5. 5. Profit & Loss • Revenues up on higher activity short term and $30 million settlement • Costs up on higher activity short term trading • Positive MtM on interest rate swaps Key figures: (in thousands of $) 2013 2013 Apr-Jun Jan-Mar Operating revenue 104 707 54 432 Vessel voyage expenses -21 758 -12 817 Vessel operating expenses -10 734 -11 136 Charter hire expenses -17 755 -8 599 Administrative expenses -3 561 -3 055 Depreciation and amortisation -9 643 -9 176 Other gain/ (losses net) -1 442 1 809 Operating profit 39 813 11 458 Interest income 231 284 Interest expense -4 691 -4 662 Interest swap 8 193 -238 Other financial items -52 -75 Taxation 0 0 Profit for the period 43 494 6 767 Other comprehensive income Available for sale financial assets 1 191 0 Total comprehensive income 44 685 6 767
  6. 6. (in thousands of $) 2013 2012 Jun 30 Dec 31 ASSETS Vessels and equipment, net 654 448 611 517 Vessels held under finance leases, net 135 544 140 217 Vessels under construction 21 933 116 082 Investment in Joint Venture 20 081 1 248 Other assets 10 237 8 026 Total non-current assets 842 244 877 090 Cash and cash equivalents 89 619 112 537 Trade receivables and other current assets 44 772 20 427 Refundable installements for cancelled newbuildings 178 187 100 325 Total current assets 312 578 233 289 Total assets 1 154 822 1 110 379 EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Share capital 44 726 44 726 Additional paid in capital 99 156 99 156 Other reserves 17 826 16 635 Retained earnings 428 455 377 288 Non-controlling interest 270 491 Total Equity 590 432 538 296 Long term debt 240 431 324 432 Obligations under finance leases 114 612 118 055 Other long term liabilities 2 055 2 205 Deferred income - - Total non-current liabilities 357 098 444 693 Current Liabilities Long-term debt - current portion 150 259 68 733 Obligations under finance leases – current portion 7 077 6 837 Other current liabilities 49 955 51 820 Total current liabilities 207 292 127 390 Total liabilities and shareholders’ equity 1 154 822 1 110 379 Balance Sheet Equity ratio ~ 51,1 % 4. Debt on cancelled vessels classified as short term. Refinancing on the loan facility currently classified as short term ($82.5 million) in progress. 1. Delivery of Golden Pearl in Q2 2. Reclassification of two iceclass Panamaxes 3. Joint Venture investment in Golden Magnum – loan to be drawn within next months 2) 2) 4) 4) 3)
  7. 7. Operations Birgitte Vartdal, CFO Golden Ocean Management AS
  8. 8. Vessels: Deliveries and charters The Company bought in May 2013 a 2009 built Cape in JV together with a cargo owner Delivery took place in second half of June Obtained commited financing (70%) which will be drawn within the next months The Company agreed in May 2013 to buy two ice class panamax vessels built at Pipavav Delivery of first vessel took place in June Delivery of second vessel will take place in the second half of 2013 The seller has provided a 30% sellers credit and the Company has bank financing of 65% of the purchase price. Financing in relation to Golden Pearl is drawn.
  9. 9. Open positions on sailing vessels * Capesize: MV Golden Magnum included with 50% as from Q3-13 ** Panamax: Golden Diamond included from Q4-13 Capesize exposure - Sailing vessels Core Fleet * Rest of 2013 2014 2015 Total vessel days 857 2 284 2 284 Open vessel days 289 1 820 2 290 Open position (%) 34 % 80 % 100 % Average net rate on fixed days 27 445 23 510 na No of vessels 7 7 7 Panamax exposure - Sailing vessels Core Fleet ** Rest of 2013 2014 2015 Total vessel days 2 617 6 938 5 994 Open vessel days 751 4 111 3 717 Open position (%) 29 % 59 % 62 % Average net rate on fixed days 14 970 19 109 20 819 No of vessels 20 20 20
  10. 10. Overview of newbuilding program Jinhaiwan Cancelled Remaining Capesize 1 0 Kamsarmax 4 0 Iceclass Panamax 3 1 MUSD Installments paid 168.6 6.7 Remaining Capex 0 26.8 Loan drawn 43.2 0 As per 23 August 2013 Vessel under construction at Pipavav
  11. 11. Yard Vessels Contracted out Open Delivery JMU (Japan) 2 0 2 Q1-15 Chengxi (China) 3 0 3 Q1-Q2/15 Chengxi, options (China)* 3 - - 2015 Newbuildings: Delivery schedule supramax vessels * Not declared yet. Deadline to declare options is October 2013.
  12. 12. Corporate transactions and covenants In May 2013 the Company entered into an agreement to settle a dispute in relation to non-performance of a ten year charter contract Cash settlement of $30 million was received at the same time The Company has obtained commitment from the current lenders to refinance the facility which falls due in January 2014 The full amount to be refinanced Refinancing will take place within the next months Korea Line Corporation has been through a second restructuring. The Company has record a profit as other comprehensive income in relation to the freely tradeable shares (20k shares) end Q2. Shares from the second restructuring will be released in November 2013
  13. 13. Based on 15 Panamax/Kamsarmax and 6 Capesize vessels Vessel operating expenses 4 950 5 650 5 300 5 200 5 500 5 450 5 375 5 650 3 000 3 500 4 000 4 500 5 000 5 500 6 000 Q2-13 Q1-13 2012 2011 Panamax Cape
  14. 14. Macro Update Herman Billung, CEO Golden Ocean Management AS
  15. 15. Bulk Carrier fleet trend... Source: RS Platou Economic Research
  16. 16. Still strong underlying fleet growth, but slowing Source: RS Platou Economic Research
  17. 17. China the driving force … Source: RS Platou Economic Research
  18. 18. Housing starts vs housing sales Source: NCA
  19. 19. Chinese domestic steel prices Source: NCA
  20. 20. China – the major growth market in dry bulk … Source: RS Platou Economic Research
  21. 21. Existing fleet and order book by year of delivery Source: RS Platou Economic Research
  22. 22. India – an increasing growth factor in dry bulk... Source: RS Platou Economic Research
  23. 23. Brazilan iron ore exports… Source: RS Platou Economic Research
  24. 24. The world grain market – trade set to increase from q4-13 Source: RS Platou Economic Research
  25. 25. Bulk carriers: existing fleet and order book by year of delivery Source: RS Platou Economic Research
  26. 26. Demand catching up with supply Source: Pareto Shipping
  27. 27. Vessel capacity utilization expected to firm up Source: Pareto Shipping
  28. 28. Q & A
  29. 29. Thank you for your attention !

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