Golden Ocean’s stronger Q3
John Fredriksen-controlled bulk carrier operator Golden Ocean Group made a Q3 net profit of US$15.3m, US$0.06, compared to US$10.0m and US$0.04 respectively in Q2. Total operating revenues for Q3 were US$68.5m total operating expenses were US$55.9m and net other income was US$2.5m.
The company says: “The dry bulk market experienced one of its strongest third quarters in history during 2006. In contrast to the usual seasonal pattern, where freight rates usually either stall or fall in the third quarter, this year the market showed a positive development. Capesize rates soared to their highest levels in more than a year and the average capesize TC Index for the quarter ended at US$54,000 per day. A similar development was experienced for the panamax segment where the average panamax Index for the quarter ended at US$28,500 per day. The main reason for the strong performance within the dry bulk segment was the robust trade demand. We estimate the growth relative to the previous quarter to be more than 3 % higher and in excess of 8 % relative to a year ago. From a tonne-mile perspective growth was up by more than 10 % compared to same quarter last year.” Golden Ocean says revised its cautious strategy during second quarter 2006 by adding 7 Panamaxes to its fleet. In addition some short to medium term time charter vessels were booked in as a hedge against cargo contracts taken during first quarter 2006.
Golden Ocean says it intends to: secure forward cashflow and reduce the financial risk by placing part of the existing tonnage out on time charters; operate part of the tonnage in what is expected to be a positive spot market and seek opportunistic attractive investment opportunities, which can increase the companies fleet exposure on short to medium term basis.