Golden Ocean Group Limited (GOGL, Financial) reported a significant decline in its first-quarter net revenue, recording $114.7 million. This figure marks a decrease from the $174.9 million reported in the previous quarter. The reduction highlights the company's recent financial challenges as it navigates market conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Golden Ocean Group Ltd (GOGL, Financial) is $10.15 with a high estimate of $13.90 and a low estimate of $8.00. The average target implies an upside of 30.30% from the current price of $7.79. More detailed estimate data can be found on the Golden Ocean Group Ltd (GOGL) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Golden Ocean Group Ltd's (GOGL, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Golden Ocean Group Ltd (GOGL, Financial) in one year is $7.40, suggesting a downside of 5.01% from the current price of $7.79. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Golden Ocean Group Ltd (GOGL) Summary page.
GOGL Key Business Developments
Release Date: February 26, 2025
- Adjusted EBITDA: $69.9 million in Q4 2024, down from $124.4 million in Q3.
- Net Income: $39 million in Q4 2024, compared to $56.3 million in Q3.
- Earnings Per Share (EPS): $0.20 in Q4 2024, down from $0.28 in Q3.
- Full Year Net Profit: $223.2 million for 2024, up from $112.3 million in 2023.
- Net TCE Rates: $20,800 per day fleet-wide in Q4 2024.
- Dry Docking Costs: $34.3 million in Q4 2024 for 13 vessels.
- Net Revenues: $174.9 million in Q4 2024, down from $206.6 million in Q3.
- Operating Expenses (OpEx): $95.6 million in Q4 2024, up from $69.4 million in Q3.
- Cash Flow from Operations: $71.7 million in Q4 2024, down from $100.8 million in Q3.
- Cash and Cash Equivalents: $131.7 million at the end of Q4 2024.
- Debt and Finance Lease Liabilities: $1.4 billion at the end of Q4 2024, down by $23 million from Q3.
- Dividend Declared: $0.15 per share for Q4 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Golden Ocean Group Ltd (GOGL, Financial) reported a full year 2024 net profit of $223.2 million, nearly doubling from $112.3 million in 2023.
- The company declared a dividend of $0.15 per share for the fourth quarter of 2024.
- Golden Ocean Group Ltd (GOGL) has secured a net TCE of about $15,100 per day for 77% of capesize days in Q1 2025, indicating strong forward bookings.
- The company successfully declared a purchase option for 8 capesize vessels, reducing cash break-even by approximately $1000 per day.
- Golden Ocean Group Ltd (GOGL) maintains a strong position as the largest listed owner in the capesize and Newcastle Max segment, providing significant market capitalization and trading liquidity.
Negative Points
- Adjusted EBITDA for Q4 2024 was $69.9 million, a significant decrease from $124.4 million in Q3.
- Net revenues decreased to $174.9 million in Q4 from $206.6 million in Q3.
- The company recorded dry docking costs of $34.3 million in Q4, significantly higher than $9.7 million in Q3, impacting operational expenses.
- OpEx increased by $26 million quarter on quarter, primarily due to dry docking and related expenses.
- The company faces ongoing geopolitical uncertainties and potential impacts from trade tariffs, which could affect market sentiment and demand.
