Photo: Image credit Golden Ocean Group Limited

Golden Ocean Sinks Deeper into the Red

Norwegian dry bulk shipping company Golden Ocean Group Limited (GOGL) has widened its net loss during the second quarter of 2019.

The company recorded a net loss of USD 33.1 million during the quarter, compared with net loss of USD 7.5 million reported in the first quarter of 2019.

Adjusted EBITDA of USD 21.5 million for the second quarter of 2019, compared with USD 36 million for the first quarter of 2019.

“Following a weak first half of the year, the third quarter has started off on a very strong note. Increased iron ore volumes and supply imbalances, combined with fewer vessels in the market due to scrubber installations have led to a dramatic turnaround in the market, which we expect will improve our third quarter results,” Birgitte Ringstad Vartdal, Chief Executive Officer of Golden Ocean Management AS, said.

During the quarter, the company also declared four options for scrubber installations, increasing the total number to 23 installations, and completed refinancing of the non-recourse loans for 14 vessels, reducing interest expense and cash break-even levels.

“The upcoming IMO2020 regulations are widely expected to positively impact the market and create a further competitive advantage for owners with modern, fuel-efficient fleets. There may also be supply chain issues that constrain supply of compliant fuels for some owners.”

Earlier this week, Golden Ocean revealed that it teamed up with Frontline and Trafigura Group to establish a global supplier of marine fuels. Subject to agreement on final terms, the JV is expected to start operations in the third quarter of 2019.

“We believe the scale of our fleet will again benefit us and that our joint venture with Trafigura and Frontline will further strengthen our ability to source competitively priced bunker fuel of good quality when and where we need it,” Vartdal added.