Golden Ocean Group Ltd. (GOGL), a shipping company, has seen a decline of 11.78% in the premarket trading session. As a consequence, GOGL stock is changing hands at $9.89 at the time of this writing. On Friday, GOGL stock closed the day $11.21 after declining some 4.02%. There appears to be no specific reason for this decrease in GOGL stock, so let’s discuss some recent developments related to GOGL.
Exercise of options
On 9th of September, GOGL announced that an option holder had exercised options to acquire 20,000 shares in company in accordance with the terms disclosed earlier. The company said that the option exercise would be settled in full with treasury shares held by the company. After the delivery of shares, Golden Ocean Group would hold total of 755,000 treasury shares.
GOGL entered in partmership
On same day, i.e. 9th of September, GOGL announced to have entered into an agreement for the construction of three Kamsarmax vessels. The vessels would be highly specified latest generation 85,000 dwt ECO-type. The company said that the vessels would be constructed at the first-class Chinese yard. The vessels were to be equipped with latest and most efficient propulsion system. The system would significantly contribute in improving fuel consumption and would result in more efficient performance. The vessels are dual-fuel ready. That would give company the time to evaluate the alternatives with the improvement in optimal tech and future regulations. The vessels were expected to be delivered from 3rd quarter of 2023 to 1st quarter of 2024. The company said that it intended to finance the acquisition with operating cash flow and cash on hand. Also, the company aimed to establish the long term debt financing as it gets closer to delivery. Ulrik Andersen, CEO of Golden Ocean Management, stated that with the transition, the company continues its strategy to renew its fleet.
Q2 2021 financial results
On 26th of August, GOGL reported the quarterly results for second quarter of fiscal year 2021, ended 30th June. According to the details, the company generated net income of $104.5 million during the quarter. The earnings per share during e quarter were $0.52. The total operating revenue was $275.7 million during the quarter. The total operating expenses during the quarter stood at $181.24 million. On 30th of June, the company had cash and cash equivalents of $154.65 million. The total assets at the end of quarter were $3.38 billion. The total liabilities at the end of quarter stood at $1.68 billion.
What’s next for GOGL stock?
With the effects of pandemic subsiding, the recent past performance of GOGL stock was excellent. The stock has grown by 10% during last one quarter. During last nine months, GOGL stock has grown by a tremendous 142%. As the economies around the world are healing after the pandemic, it is expected that GOGL would further bring improvements in its financial performance.
