Golden Ocean Group sails higher on earnings beat, bullish forecast

May 19, 2022 12:07 PM ETGolden Ocean Group Limited (GOGL)By: Kevin P. Curran, SA News Editor3 Comments

Bulk Carrier

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Golden Ocean Group (NASDAQ:GOGL +10.0%) stock surged on Thursday after reporting solid earnings and strong forecast for the quarters ahead.

The Bermuda-based dry bulk shipping company reported GAAP EPS of $0.62, beating analyst estimates by $0.26. Meanwhile, a 67.8% surge in revenue from 2021 to $265.18 million, surpassing expectations by $78.55 million. Moving forward, management offered a bullish outlook for the upcoming quarters, indicating “highly profitable charter coverage for most of its available days in the second quarter of 2022” and more than one-fifth of the third quarter.

“The world may be facing headwinds in terms of inflation and slowing economies, but it is not enough to offset the outlook for dry bulk, we believe,” CEO Ulrik Andersen told analysts on Thursday. “As we have shown today, demand will continue to grow.”

He added that a lack of historically low levels of shipbuilding and inefficient allocation of coal and grain should support a strong freight environment for the full year and even years to come. That, combined with strong execution, should accelerate strong returns for investors, per Andersen.

“Golden Ocean (GOGL +10.0%) has refinanced part of the debt and lowered our already industry low cash breakeven,” he concluded. “Despite a slowdown in economies around the world, the 30-year low order book means that fundamentals remain in place for continued strong freight environment.”

Shares of the shipping company soared over 10% higher on Thursday after reporting the earnings.

Read the earnings call transcript.

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