Norwegian bulk shipper Golden Ocean (GOGL.OL) said on Monday its second quarter results would show an improvement from the first after it reported a smaller-than-expected drop in first-quarter operating profit.
The company said that although recent freight rate levels had regained some strength, it was too early to say long-term profitability had been restored.
Golden Ocean's operating profit fell to $20 million in January-March from a comparable $62 million in the year-ago quarter, above the average $14 million forecast in a Reuters survey of nine analysts.
"Based on the trading so far in the second quarter, the board anticipates that the operating results for the second quarter will show an improvement compared to the first quarter of 2009," Golden Ocean said in a statement.
The company, along with other shipping groups, saw profits take a hit in 2008 during the global economic downturn as freight rates plunged.
But rates have improved so far this year, with the Baltic Exchange's main sea freight index .BADI rising to 2,786 points last week -- the highest since early October 2008 -- driven by renewed Chinese demand of iron ore, coal and grains.
"We have been through some very dramatic quarters, but we came through the crisis somehow," Chief Executive Herman Billung told a news conference.
Golden Ocean, controlled by shipping tycoon John Fredriksen, announced in April that it had raised $110 million in new equity and delayed or cancelled ship orders to fix its finances.
Shares in Golden Ocean, which lost 87 percent last year when the bulk shipping market collapsed, grew 3.9 percent to 6.69 crowns by 0742 GMT against a 1.0 percent drop in the main index on the Oslo bourse .OSEBX.Golden Ocean said the freight and asset market was dependent on a continued strong growth -- in particularly in the Chinese economy -- to regain stability.
"The stimulus packages put together by governments in order to help the financial situation are likely to generate substantial additional demand for bulk products like iron ore," Golden Ocean said.
"China is now driving this market on its own," Billung said.
Golden Ocean said the recent strengthening of the dry bulk market -- with capesize rates approaching $50,000 per day -- was encouraging, but could not be seen as a confirmation that market has regained long term profitability.
The company said it was confident that with its financing and charter coverage was well positioned to meet a positive as well as a negative market environment going forward, as well as having the flexibility to "take use of opportunities."
The group also said that except for four vessels, the entire newbuilding program was financed. Its remaining newbuilding program consists of totally 24 ships.
Golden Ocean said it has, after drawdown on the loan facilities, a cash position of about $110 million.
The company said that although recent freight rate levels had regained some strength, it was too early to say long-term profitability had been restored.
Golden Ocean's operating profit fell to $20 million in January-March from a comparable $62 million in the year-ago quarter, above the average $14 million forecast in a Reuters survey of nine analysts.
"Based on the trading so far in the second quarter, the board anticipates that the operating results for the second quarter will show an improvement compared to the first quarter of 2009," Golden Ocean said in a statement.
The company, along with other shipping groups, saw profits take a hit in 2008 during the global economic downturn as freight rates plunged.
But rates have improved so far this year, with the Baltic Exchange's main sea freight index .BADI rising to 2,786 points last week -- the highest since early October 2008 -- driven by renewed Chinese demand of iron ore, coal and grains.
"We have been through some very dramatic quarters, but we came through the crisis somehow," Chief Executive Herman Billung told a news conference.
Golden Ocean, controlled by shipping tycoon John Fredriksen, announced in April that it had raised $110 million in new equity and delayed or cancelled ship orders to fix its finances.
Shares in Golden Ocean, which lost 87 percent last year when the bulk shipping market collapsed, grew 3.9 percent to 6.69 crowns by 0742 GMT against a 1.0 percent drop in the main index on the Oslo bourse .OSEBX.Golden Ocean said the freight and asset market was dependent on a continued strong growth -- in particularly in the Chinese economy -- to regain stability.
"The stimulus packages put together by governments in order to help the financial situation are likely to generate substantial additional demand for bulk products like iron ore," Golden Ocean said.
"China is now driving this market on its own," Billung said.
Golden Ocean said the recent strengthening of the dry bulk market -- with capesize rates approaching $50,000 per day -- was encouraging, but could not be seen as a confirmation that market has regained long term profitability.
The company said it was confident that with its financing and charter coverage was well positioned to meet a positive as well as a negative market environment going forward, as well as having the flexibility to "take use of opportunities."
The group also said that except for four vessels, the entire newbuilding program was financed. Its remaining newbuilding program consists of totally 24 ships.
Golden Ocean said it has, after drawdown on the loan facilities, a cash position of about $110 million.