GOGL reports its 2Q20 results

Highlights

• Net loss of US$41.3 million and loss per share of US$0.29 for 2Q20 compared with net loss of US$160.8 million and loss per share of US$1.12 for 1Q20.
• Adjusted EBITDA1 of US$4.2 million for 2Q20, compared with US$12.3 million for 1Q20.
• Completed final eight of 23 planned installations of exhaust gas cleaning systems (scrubbers), and the company had no material capital expenditure requirements as of the date of this report.
• Utilised market strength at the end of 2Q20 and beginning of 3Q20 to secure additional charter coverage. As of the date of this report, of the remaining trading days in 2020:
  • 38% of the days for Capesize vessels are covered at a rate of US$18 810 per day.
  • 56% of the days for Panamax vessels are covered at a rate of US$14 920 per day.
• Estimated TCE rate for 3Q20 to be US$17 960 for 74% of owned fleet available days for Capesize vessels, and US$12 980 for 92% of owned fleet available days for Panamax vessels. These numbers are based on current fixtures and on the discharge-to-discharge basis.
• As part of the company’s continuous focus on ESG initiatives, it has joined the Getting to Zero Coalition, a powerful alliance within the maritime and other sectors, committed to accelerating maritime shipping’s decarbonisation.

CEO comments

Ulrik Andersen, Chief Executive Officer, commented:

“While we believe that the recent improvement in rates reflects the diminishing impact of COVID-19 on the underlying demand for dry bulk commodities, uncertainty persists in the near term. We have therefore increased our charter coverage for the balance of 2020, although we maintain enough spot exposure to meaningfully participate in the strong rate environment expected for the remainder of the year. This balanced commercial approach will ensure healthy continued cash flows and a corresponding increase in our liquidity. Additionally, the significant one-off capital expenditures related to scrubber installations and the non-cash impairments that impacted our results in the first half of the year are behind us. It means the recent market strength will directly benefit our second-half cashflow and results.”

Read the article online at: https://www.drybulkmagazine.com/shipping/18082020/gogl-reports-its-2q20-results/