Golden Ocean drags down shipping stocks after soft Q3 results

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Golden Ocean (NASDAQ:GOGL) -12.4% in Wednesday's trading after reporting lackluster Q3 results including a 27% Y/Y decline in revenues due to weak freight markets.

Q3 net income of $104.6M, or $0.52/share, fell from $163.7M, or $0.82/share in the year-earlier quarter, and adjusted EBITDA fell to $118.2M from $191.6M.

The company also declared a $0.35/share cash dividend for the quarter.

Results appear to be weighing on shares of shipping peers, including Diana Shipping (DSX) -4.1%, Genco Shipping & Trading (GNK) -3.4%, Star Bulk Carriers (SBLK) -3%, Eagle Bulk Shipping (EGLE) -2.9%, Safe Bulkers (SB) -2.7%.

DNB analysts said Q3 adjusted EBITDA was 15% below consensus, with the soft results only partially offset by the dividend payout.

Golden Ocean's (GOGL) stock price return shows a 13% YTD loss but an 8% increase during the past year.