Golden Ocean Group Q2 net income halved to $101m
Second quarter net income for Oslo-listed bulk operator Golden Ocean Group has halved compared to the same period last year, to $101m.
Total operating revenues for the second quarter were $85.2m and operating profit at $27.6m.
But the company predicted a steady third quarter with Chinese imports continuing to drive demand for dry bulk shipping.
“China has more or less been the sole contributor to the positive development experienced in the demand for dry bulk transportation,” Golden Ocean said in a statement.
It added that the prices of steel, alumina and iron ore “started to rebound in May and the positive development has continued into the third quarter.
“After the improved operating results in the second quarter, the board anticipates that operating results will remain more or less at the same level for the third quarter,” Golden Ocean said.
It said that the large number of newbuildings on order had continued to pull down the freight rates forward curve.
The global crisis had forced Golden Ocean to raise $108m in new equity in April, and cancel or delay ship construction contracts.
The company said only four vessels out of the 18 vessels on order were currently unfinanced. “Most of these vessels have strong charter arrangements and the Board does not envisage any significant problems in order to finance these vessels,” the company said.
Earlier this year Golden Ocean also agreed with Hemen Holdings, owned by Norwegian shipping billionaire John Fredriksen, to buy back $165.3m in convertible bonds.
Total operating revenues for the second quarter were $85.2m and operating profit at $27.6m.
But the company predicted a steady third quarter with Chinese imports continuing to drive demand for dry bulk shipping.
“China has more or less been the sole contributor to the positive development experienced in the demand for dry bulk transportation,” Golden Ocean said in a statement.
It added that the prices of steel, alumina and iron ore “started to rebound in May and the positive development has continued into the third quarter.
“After the improved operating results in the second quarter, the board anticipates that operating results will remain more or less at the same level for the third quarter,” Golden Ocean said.
It said that the large number of newbuildings on order had continued to pull down the freight rates forward curve.
The global crisis had forced Golden Ocean to raise $108m in new equity in April, and cancel or delay ship construction contracts.
The company said only four vessels out of the 18 vessels on order were currently unfinanced. “Most of these vessels have strong charter arrangements and the Board does not envisage any significant problems in order to finance these vessels,” the company said.
Earlier this year Golden Ocean also agreed with Hemen Holdings, owned by Norwegian shipping billionaire John Fredriksen, to buy back $165.3m in convertible bonds.
