GOGL Cuts Loss amid Improved Dry Bulk Market
- Business & Finance
Nasdaq-listed dry bulk shipping company Golden Ocean Group Limited managed to cut its net loss for the second quarter of 2017 as dry bulk shipping rates continued to improve in the beginning of the period.
The company reported a net loss of USD 12 million for the second quarter of 2017, compared with a net loss of USD 39.2 million seen in the same period a year earlier. Operating revenues amounted to USD 99.7 million in the three months, up from USD 54.5 million reported in the second quarter of 2016.
After the Capesize rates increased to USD 11,170 per day in the first quarter of 2017, they continued rising to USD 12,043 per day in the second quarter of the year. Panamax rates were up at USD 8,800 per day in the quarter, while Supramax rates increased to USD 8,602 per day.
“Our second quarter results were positively impacted by the improved freight rate environment going into the quarter and by a small increase in our fleet operating days,” Birgitte Ringstad Vartdal, Chief Executive Officer of Golden Ocean Management AS, said.
For the first six months of 2016, the company’s net loss stood at USD 29.8 million, against a net loss of USD 107.4 million recorded in the first half of 2016, while operating revenues for the period stood at USD 181.6 million, up from USD 100.2 million seen a year earlier.
Compared to the first half of 2016, rates more than doubled for most vessel types in the first half of 2017. Capesize rates were at USD 11,596 per day in the first half of 2017, up from USD 4,717 per day reported a year earlier. Panamax rates increased to USD 8,536 from USD 3,991, while Supramax rates stood at USD 8,381, compared to USD 4,806 per day earned in the first half of 2016.
In the first quarter the company entered into agreements to acquire 16 modern dry bulk vessels from Quintana and from Hemen, the company’s largest shareholder. All of the vessels have been delivered and “we view the acquisition as timely based on the developments both in freight rates and asset values.”
“Our large fleet of young, modern vessels with the majority trading in the spot market gives us strong leverage to further improvements in the dry bulk market and positions the company to create significant value for our shareholders,” Vartdal added.