Q3 2023 Golden Ocean Group Ltd Earnings Call
Yeah.
Okay.
Speaker 1: Good day and thank you for standing by. Welcome to the Q3 2023 Golden Ocean Group Limited Earnings Conference call and webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please note that today's conference
Good day, and thank you for standing by and welcome to the Q3 'twenty 'twenty four week or day notion grape Ltd earnings conference call and webcast.
At this time, all participants are in listen only mode.
After the speaker's presentation, there will be a question answer session.
I'll ask a question during the session you will need to press star one and one on your telephone.
We then here ready to meet that message advising you Hendi is raised to withdraw your question. Please press star one and one again.
Please note that today's conference is being recorded.
Speaker 1: I would now like to turn the conference over to your speaker, Lars Christian Svensson, Interim CEO . Please go ahead, Sal.
I would now like to turn the conference over to your Speaker, Lars Christian Spence and interim CEO. Please go ahead Sir.
Speaker 2: Hi there and a very good afternoon from Oslo. My name is Lars Christian Svensson and I'm the interim CEO of GoldenOcean.
Hi, there and a very good afternoon from us. So my name is lost system, Samson and I'm, the interim CEO of Golden Ocean.
Speaker 2: Today CFO Peter Seamonsen and I will guide you through our Q3 numbers and update you on recent activities in Golden Ocean and our forward outlook.
Today, CFO, Peter C malls, and I will guide you through our Q3 numbers and update you on recent activities and Golden Ocean enough or without.
Era highlights for Q3.
Speaker 2: Our adjusted EBITDA in the third quarter of 2023 ended up at 78.9 million compared to 80.4 million in the second quarter.
Our adjusted EBITDA in the third quarter of 2023 ended up at $78 9 million compared to 84 million in the second quarter.
Speaker 2: We deliver the net profit of 28.7 million and earnings per share of 14 cents.
We delivered a net profit of $28 7 million and earnings per share of 14 cents.
Speaker 2: This compared with net profit of 34.9 million and earnings per share of 17 cents for the second quarter.
This compared with net profit of $34 9 million and earnings per share of <unk> 17 for the second quarter.
Speaker 2: Our TCE rates for capesize and panamax vessels with 18,200 per day and 15,400 per day respectively.
Our TCE rates for Capesize, and Panamax vessels with 18200 per day, and 15400 per day, respectively.
Speaker 2: combined a total fleet-wide net TC of 17,100.
Combined total fleet wide net TCE of 17 100.
Speaker 2: For Q4 we have secured an FTC of $23,045 per day for 79% of the cape size stays and $17,250 per day for 83% of the padama.
For Q4, we executed an FTC of $23045 per day for 17, 9% of the Capesize days and 17250 per day for 83% of the Panamax days.
Speaker 2: For Q1 we have secured a net TC of 21,700 per day for 12% of the Cape Scythe days and 15,600 per day for 23% of the Panama.
For Q1, we executed a net TCE of 21700 per day for 12% of the Capesize days and 15600 per day for 23% of the Panamax size.
Speaker 2: During Q3, we have also entered into back-to-back agreements to buy and sell a SuperMaxx vessel, which we held as a purchase option. The company expects to recognize a gain from the sale of approximately 6 million upon delivery of the vessel, and the expected delivery date is before year-end.
During Q3, we have also entered into back to back agreements to buy and sell our Super Max vessels, which we held us a purchase option.
The company expects to recognize a gain from the sale of approximately 6 million upon delivery of the vessel and the expected delivery date is before year end.
Speaker 2: We also completed the sale and delivery of one of our Panamax vessels to new owners, recognising a gain from the sale of about $1 million and net cash proceeds of about $7 million.
We also completed the sale and delivery of one of our Panamax vessels studio owners, recognizing a gain from the sale of about $1 million and net cash proceeds of about $7 million.
Speaker 2: True to the dividend policy, we declare a dividend of 10 cents per share for the third quarter of 2023. With that, I will pass the word over to Petr.
True to the dividend policy, we declared a dividend of <unk> 10 per share for the third quarter of 2023.
I will pass the word over Tibet.
Thank you Jason.
Speaker 2: If we move to our profit and loss, we delivered strong commercial performance with CAPE TCE rates coming in at 18,200.
If we move to the our profit and loss.
We delivered strong commercial performance with the Cape TCE rates are coming in at 18200.
Speaker 2: slightly down from previous quarter and Panamax is coming in at 15,400.
<unk> slightly down from previous quarter, and Panamax is coming in at 15400.
In line with previous quarter.
Speaker 2: Our total fleet-wide time charter equivalent was 17100, which was materially unchanged from Q2.
Our total fleet wide time charter equivalent was 17, 100, which was materially unchanged from Q2.
Speaker 2: We had two ships dry docked in Q3 versus six ships in Q2, resulting in approximately 115 days of fire.
We had two ships dry docked in Q3 versus fixed ships in Q2, resulting in approximately 115 days apart.
Speaker 2: versus 215 days of fire in Q2.
Versus 215.
Days off hire in Q2.
Speaker 2: We have two ships expected to dry docked in Q4, which are expected to be complete by the second half of the
We have two ships expected to dry dock in Q4.
Which are expected to complete be complete by the second half of the quarter.
Speaker 3: We added just below 550 vessel days compared to Q2 through new ship deliveries and net of vessel sales.
We added just below 550 vessel days.
Compared to Q2 to a new ship deliberate.
Neto vessel sales in Q3.
Speaker 3: Our net revenues came in at 156.6 compared to 154 million in Q2.
Our net revenues came in at $156 six compared to 164.
A million in Q2.
Speaker 3: Looking at our operating expenses, we recorded 64.5 million versus the 62.4 million in the previous quarter.
Looking at our operating expenses, we recorded a $64 5 million versus $62 4 million in the previous quarter.
Speaker 3: This was impacted by additional ship days compared to the previous quarter.
This was impacted by our additional ship days compared to the previous quarter.
Speaker 3: In addition, we recorded approximately 3 million expense relating to the change of technical managers on certain of our ships.
In addition, we recorded a three approximately $3 million expense relating to the change of technical managers on certain of our ships.
Speaker 3: This was offset by fewer dry dockings in this quarter compared to the previous quarter and also offset by lower OPEX reclassified from charter hire with fewer ships being chartered in on average during the quarter.
This was offset by fewer dry dockings in this quarter.
Compared to previous quarter and also.
Offset by lower Opex reclassified from charter hire with a fewer ships being chartered in on average during the quarter.
Speaker 3: The reclassified charter hire was 4.9 million in Q3 versus 6.2 million in Q2.
The reclassified.
Charter hire was four.
4.9 million in Q3 versus $6 2 million in Q2.
Speaker 3: Our general and administrative expenses came in at $4.4 million, down from $5.2 million in Q2, which is fairly unchanged when adjusting for non-recurring items in Q2. Our daily G&A ended at $470 per day, net of cost recharged to affiliated companies, down from $560 per day in Q2.
Our general and administrative expenses came in at $4 4 million down from $5 2 million in Q2.
Which is fairly unchanged when adjusting for nonrecurring items in Q2.
Our daily G&A.
And they're at 470 <unk>.
Per day net of cost recharged affiliated companies.
Down from 560 per day in Q2.
Speaker 3: Our charter hire expense were 8.3 million down from 10.2 million due to fewer vessel days in the trading portfolio.
Our charter hire expense were $8 3 million down from $10 2 million to.
Due to fewer vessel days in the trading portfolio.
Speaker 3: and an adjusted DBTA of 78.9 versus 80.4 in Q2.
And an adjusted EBITDA of $78 nine versus <unk> 84 in Q2.
Speaker 3: Looking at the net financial expenses we recorded 28 million in net interest expense versus 23 a million in Q2. A change due to higher reference rates and higher average debt in the quarter.
Looking at the net financial expenses, we recorded 28 million in net interest expense versus 23 million in Q2, a change due to higher reference rates.
The higher average debt in the quarter.
Speaker 3: The increase in interest rates also needs to be seen in relation to the realized portion of the interest rate swap portfolio.
The increase in interest rates also needs to be seen in relation to the realized portion of the interest rate swap portfolio.
Speaker 3: which impacted our derivatives and other financial income in the quarter. We recorded a gain of 11.9 million compared to a gain of 14.3 million.
Which impacted our derivatives and other financial income in the quarter, we recorded the gain.
Out of 11 9 million compared to a gain of $14 3 million.
Speaker 3: of which 10.6 million relates to interest rate swaps.
Of which $10 6 million relates to our interest rate swaps.
Speaker 3: and 1.8 million relate to bunker derivatives and FFA gains.
And $1 8 million relate to.
Bunker derivatives FFA gains.
Speaker 3: And of the 10.6 million, 4.9 million is realized cash gains and 5.8 million is market-to-market gains following an increase in long-term interest rates.
And over the $10 6 million a.
$4 9 million as realized cash gains.
And $5 8 million is mark to market gains following an increase in long term interest rates.
Speaker 3: Results from investments in associates, we recorded a loss of 300,000 compared to a gain of 4.9 million in Q2, which relates to our investments in Swiss Marine, TFG, and US.
Results from investments and associates.
We recorded a loss of 300000 compared to a gain of $4 9 million in Q2, which relates to our investments in Swiss marine.
<unk> and UFC.
Speaker 3: A net profit of $28.7 million and $0.14 per share and a dividend declared of $0.10 for the quarter.
The net profit of 28, 7 million and 14 cents per share and the dividend declared of 10 cents for the quarter.
Moving to the next slide.
Speaker 3: Our cash flow from operations came in at 47.4 million.
Our cash flow from operations came in at $47 4 million.
Speaker 3: which includes 600,000 dividend from associated companies.
Which includes a 600000 dividend from associated companies.
Speaker 3: Our cash flow provided from financing came in at $33.5 million.
Our cash flow provided from financing came in at $33 5 million.
Speaker 3: We recorded 32.4 million drawdowns relating to delivery of one Newcastle master vessel.
We are recorded.
$32 4 million drawdown relating to delivery of one new customer master vessel.
Speaker 3: We drew 40 million relating to deliveries of two Kamsomags new buildings.
Bill.
40 million relating to deliveries of to come some extra new buildings Amit.
Speaker 3: and we drew 25 million under our revolving credit facility.
And we drew $25 million under our revolving credit facility.
Speaker 3: This was offset by 7.6 million pre-payment relating to the sale of a OnePanamax vessel.
This was offset by $7 6 million prepayments relating to the sale of our one panamax vessel.
Speaker 3: and $35.8 million in scheduled debt and lease repayments.
And $35 8 million in scheduled debt and lease repayments.
Speaker 3: We recorded a dividend payment of 19.9 million relating to our Q2 results and a 900 000 payment for share repurchase.
We.
<unk> recorded a dividend payment of $19 9 million relating to our Q2 results.
On a 900000 payment for share repurchases.
Speaker 3: Our cash flow used in investments was $88.5 million, which mainly relates to $45.3 million relating to the delivery of the last Newcastle Maxx vessel.
Our cash flow used in investments was $88 5 million, which mainly relates to $45 3 million.
Relating to the delivery of the last new customer successful.
Speaker 3: 58.1 million in installments and costs relating to our CAMSOMAX new buildings.
$58 1 million in installments in cost relating to come to the Max new buildings.
Speaker 3: and this was offset by 14.8 million in net proceeds from the sale of a Panamax vessel.
And this was offset by $14 8 million in net proceeds from the sale of a panamax vessel.
Speaker 3: total net decrease in cash of 7.8 million during Q3.
Total net decrease in cash of $7 8 million during Q3.
Moving to the balance sheet.
Speaker 3: We had a cash-in-cash equivalence of $99.7 million, including $2.2 million of restricted cash at the end of Q3.
<unk> had a cash and cash equivalents of $99 7 million, including $2 2 million of restricted cash at the end of Q3.
Speaker 3: In addition, we had 50 million in UNDRAWN available credit facilities at Kortered.
In addition, we had 50 million in Undrawn and available credit facilities at quarter end.
Speaker 3: Our debt and lease liabilities total 1.5 billion end of Q3, up by approximately 72 million since Q2.
Our debt and lease liabilities totaled $1 5 billion and Q3.
By approximately 72 million since Q2.
Speaker 3: Our average fleet-wide loan-to-value under the company's debt facilities per quarter end was 45.6%.
Our average fleet wide loan to value under the company's debt facilities per quarter end was 45, 6%.
Speaker 3: With a book equity of 1.9 billion, we have a ratio of equity to total assets of approximately 53% at the end of Q3.
But the book equity of $1 9 billion, we had indirect ratio of equity to total assets of approximately 53% at the end of Q3.
With that I give the word back to the person.
Speaker 2: Thank you, Peter. In Golden Ocean, we like to focus on the larger vessels where we have the most volatility and also potential upside historically.
Thank you Peter and Golden Ocean, we like to focus on the larger vessels, where we have the most volatility and also potential upside historically.
Speaker 2: A young and modern fleet which currently holds an average of 7 years allows us to constantly beat the market over time and with our current vessel count on 95, we offer a large commercial platform.
A young and modern fleet, which currently holds an average of seven years allows us to constantly be to market overtime and with our current vessel count on 95, b or for a large commercial platform.
Speaker 2: A market cap of 1.5 billion in dual listings in New York and Oslo provides solid liquidity for our shareholders.
Our market cap of $1 5 billion and dual listings in New York and also provide solid liquidity for our shareholders.
Speaker 2: all of the above should make Golden Ocean an attractive go-to company for all investors wanting dry bulk exposure.
All of the above should make Golden Ocean and attractive go to company for old investors wanting drybulk exposure.
Speaker 2: As I mentioned in our previous slide, we're proud of a young and modern fleet. However, it's just as important to maintain a low cash break even to float in practically any market.
As I mentioned in a previous slide we're proud of our young and modern fleets. However is just as important to maintain our low cash breakeven to float in practically any market.
Speaker 2: illustrated here with our 60 Cape-sized vessels. Our Cape and Newcastle max cash break even over our entire fleet holds at $14,800 per day.
Illustrated here, but 60 Capesize vessels are keeping your coastal Max cash breakeven over our entire fleet holds at 14800 per day.
Speaker 2: Due to our fleet composition and clinical execution, we have outperformed the market with about $5,000 per day so far this year.
Due to our fleet composition and clinical execution, we have outperformed the market with about $5000 per day, so far this year.
Speaker 2: If you deduct that premium from the $14,800, Golden Ocean's adjusted cash break-even is below $10,000 per day.
If you deduct that premium from the 14 800 Golden Ocean adjusted cash breakeven is below $10000 per day.
Speaker 2: From the bottom left historical graph, you can clearly see the Golden Ocean modern fleet combined with an industry-low cash break-even, much due to excellent financing, will make money in almost any market. We will continue to invest in our vessels to increase our fleet premium towards the market and thus decrease our adjusted cash break-even further.
From the bottom left historical graph you can clearly see the Golden Ocean Modern fleet combined with an industry low cash breakeven much due to excellent financing who make money in almost any market people continue to invest in our vessels to increase our fleet premium towards the market and thus decrease our adjusted cash break even further.
Speaker 2: Not only should we be considered a market-leading company with high liquidity, but a company that has a massive upside potential with downside protection well covered.
Not only should we be considered a market leading company EBIT high liquidity, but a company that has a massive upside potential with downside protection well covered.
Speaker 2: Albeit volatile, Q3 finished on a strong note for both Panamax and CapeSize. China is continuing to import iron ore, bauxite, coal and agri-products surpassing last year's level.
Albeit volatile Q3 finished on a strong note for both Panamax and Capesize, China is continuing to import iron ore bauxite coal and aggregate product surpassing last year's levels.
Speaker 2: Even so, the Chinese iron ore and steel stockpiles are decreasing, much due to a huge steel export program.
Even so the Chinese iron ore and steel stockpiles are decreasing much due to a huge steel export program.
Speaker 2: We have seen increased tonne miles in both segments, and with the seasonality coming to life, the Panama and Cape sectors look to finish 2023 on a strong note.
We have seen increased ton miles in both segments and with the seasonality coming to life, the panamax and Cape sectors look to finish 2023 on a strong note.
Speaker 2: The iron ore trade has come into full bloom so far in 2023, with steady Chinese demand and continuous imports from both Brazil and Australia.
The iron ore trade has come into full bloom, so far in 2023.
Steady Chinese demand continues imports from both Brazil and Australia.
Speaker 2: Brazil will for the first time since the Bramantinho incident deliver around her yearly targets.
Brazil will for the first time since the Vermont and new incident deliver around hey yearly targets.
Speaker 2: The commodity price itself is pushing $130 per tonne, which has led to frustration in the Chinese government and steel mills as their stockpiles continue to diminish.
The commodity price itself, it's pushing $130 per ton, which had led to frustration and the Chinese government in steel mills as their stockpiles continued to diminish.
Speaker 2: India has had a declining iron ore export throughout the third quarter and in addition they have concluded a large iron ore contract from Brazil to India for 5 million tons which can indicate a new trend and trading pattern for dry cargo.
India had a declining iron ore exports throughout the third quarter and in addition, they have concluded the large iron ore contracts from Brazil to India for 5 million tons, which can indicate a new trend and trading pattern for dry cargo.
Speaker 2: For the ton-mile scenario, we would very much welcome more iron ore imports to India from Brazil.
The tonne miles scenario, we would very much welcome more iron ore imports to India from Brazil.
Speaker 2: So where has all the increased landed iron or tons been absorbed? Well, China is the world's largest steel producer, accounting for 56% of global steel output.
So, whereas all the increased landed iron ore tonnes being absorbed well China's diverse largest steel producer accounting for 56% of global steel output.
Contrary to a negative macro news China's steel production is up 2% year on year, but a solid 4.5% increase in Q3.
Speaker 2: Although property investments are down about 9%, we see that the Chinese iron production is down, and rotation to technology-intensive manufacturing and energy transition with infrastructure investment is up 9% year-on-year, and private manufacturing investments are up 6%.
Although property investments are down about 9%, we see that the Chinese auto production is down and rotation to technology intensive manufacturing and energy transition with infrastructure investment is up 9% year on year and private manufacturing investments are up 6%.
Speaker 2: In addition, Chinese car exports are up 62% and steel exports 30% year-on-year, which equates to about 80 million tons of iron.
In addition, Chinese car exports are up 62% SD locks, but exports, 30% year on year, which equates to about 18 million tons of iron ore.
Speaker 2: As we have discussed earlier this year, the bauxite trade from Guinea has developed into a steady long-haul capesize trade, predominantly into China.
As we have discussed earlier this year the bauxite trade from Guinea has developed into a steady long haul capesize trade predominantly into China.
Speaker 2: This bauxite trade has dominated the total global Cape Ton Marl with a staggering 12.5%.
This bauxite trade has dominated the total global Cape Ton-mile staggering 12.5%.
Speaker 2: In addition, it's inversely seasonal to the iron ore trade from Brazil, which makes it tempting to assume that the coming Q1 will be more volatile and interesting than we've seen in many years.
In addition, it's inversely seasonal to the iron ore trade from Brazil, which makes it tempting to assume that the coming Q1 will be more volatile and interesting damascene M idiots.
Speaker 2: We see an upside to this trade into 2024, and we will position large parts of our fleets accordingly. The supply side is still looking.
We see an upside to the straight into 2024, and we will position large parts of our fleets accordingly.
The supply side is still looking lost a compelling enterprise space to total dry order book is around 8% of the total fleet and you've been more alluring as the Cape size segment were about 5% of the total fleet ordered for new buildings.
Speaker 2: The total dry order book is around 8% of the total fleet. And even more alluring is the cape size segment, where we have 5% of the total fleet ordered for newbuild.
Speaker 2: Historically, this remains at an all-time low and combined with unusual low congestion, it still suggests that the downside is priced already.
<unk>. This remains at an all time low and combined with unusual low congestion is still suggests that the downside is priced already.
Speaker 2: To round off this presentation, we would like to show you the significant earnings potential in Golden Ocean as we finish off the volatile dry cargo year for 2020.
To round off this presentation, we would like to show you the significant earnings potential and Golden Ocean as we finish off the volatile dry cargo year or 2023 keys.
Speaker 2: Keeping in mind the premium we achieve on our fleet, the graph on the right shows the substantial cash flow potential and yield at various freight levels.
Keeping in mind, the premium be achieve on our fleet the graph on the right shows the substantial cash flow potential in yield at various play at freight levels.
Speaker 2: As an example, to achieve a 25% yield, you must meet an average Baltic index rate of 20,000 per day if you apply the 2023 year-to-date Performed Golden Ocean Premium of $5,000, while the current spot market suggests a free cash flow yield of approximately 30%.
As an example to achieve a 25% yield you must need an average Baltic index rate of 20000 per day. If you applied to 2023 year to date performed Golden Ocean premium of $5000 while.
While the current spot market, so just a free cash flow yield of approximately 30%.
Speaker 2: With that, thank you very much for listening and I will pass the word back over to Dio.
With that thank you very much for listening and I will pass the word back over to the operator.
Speaker 1: Thank you. As a reminder to ask a question, please press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. Once again, please press star 1 and 1 for any question and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. We are now going to proceed.
Thank you.
Minded to ask a question. Please press star one and one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one and one again once again, please press star one and one for any question and wait for your name to be announced to withdraw. Your question. Please press star one and one again.
We are now going to proceed with our first question.
Speaker 1: And the questions come from the line of Sherif El Maghrabi from BTIG. Please ask a question. Your line is opened. Hi, good afternoon. Thanks for taking
And the question is come from the line of Sherif My Kirby from BT RJ. Please ask your question. Your line is opened.
Hi, good afternoon, thanks for taking my questions.
Okay.
Speaker 4: Hi, I just want to first focus on that Supermax that you sold. It sounds like the purchase option and then subsequent sale was a pretty unique opportunity. But are there any other upcoming options on the eight capes that you've time trotted in, which could present a similar opportunity? Or could you even hang on to that tonnage, given where asset prices are today?
Hi, I just wanted to first focus on the Super Max that you sold it sounds like that the purchase option and then subsequent sale is a pretty unique opportunity.
But are there any other upcoming options on the 8-K that you've time chartered in.
Which could present, a similar opportunity or could you even hang onto that tonnage given where asset prices are today.
Yeah. Thank you for that.
I think first of all when it comes to the Super Max vessels.
That is something that we consider non core business so for us to be able to do at good market transaction.
That was a good idea when it comes to Cape sizes, which we absolutely can see the core business. We are definitely interested in declaring options. If it makes sense in the market.
Speaker 4: Okay, and then turning to scrubbers, the scrubber premium has really widened over the last few months, and so just with that in mind, could we see scrubbers installed on other vessels in the fleet as they come in for dry dock or special survey?
Okay, and then turning to scrubbers, the scrubber premiums really widened over the last few months.
Just with that in mind could we see scrubbers installed on on other vessels in the fleet as they come in for dry dock or special survey.
Speaker 2: Yeah, definitely. If there's a young enough asset that we see potential, then we will upgrade as many of them as possible in the next project cycle.
Yes, definitely if there is a young enough asset that we see potential then we will upgrade as many of them as possible in the next product cycle.
Okay. Thanks for taking my questions. Thank you Joe.
Speaker 1: Thank you. As a reminder, once again, to ask a question, please press star 1 and 1 on your telephone and wait for your name to be announced. Thank you. We are now going to proceed with our next question.
Thank you as a reminder, once again to ask a question. Please press star one and one on your telephone and wait for your name to be announced.
We are now going to proceed with our next question.
Speaker 5: And the questions come from the line of Omar Nocta from Jeffreys. Please ask your question. Hi there.
And the question comes from the line of Omar Doctor from Jefferies. Please ask your question.
Hi, there hi, guys good afternoon.
Speaker 6: I just wanted to ask, obviously you highlighted overall the strong sort of quality of the Golden Ocean fleet.
Okay.
Hi, Yes, I just wanted to ask you know obviously you highlighted the.
Overall, the strong sort of quality of the Golden Ocean Fleet wanted to ask obviously <unk> was supposed to be generally or had been a pretty soft quarter. When we look at just the spot market averages and looking at what companies in the sector have reported but you guys generally kind of came in and sort of flattish or maybe even cash flow generation was a bit better.
Speaker 6: I wanted to ask, obviously, 3Q was supposed to be generally, or had been, a pretty soft quarter when we look at just spot market averages and looking at what companies in this sector have reported. But you guys generally kind of came in sort of flattish, or maybe even cash flow generation was a bit better. So I just wanted to ask kind of what drove that improvement, that sequential sort of modest improvement? Was that sort of well-timed time charters or some spot?
So just wanted to ask kind of what drove that improvement that sequential sort of modest improvement.
Sort of well timed.
Charters are some spot performance.
Speaker 6: That was a bit, you know, beyond expectation. Any color you can give on that.
That was a bit beyond expectation and any color you can give on that.
Speaker 2: Yes, I think entering into the quarter, we were quite covered on the Panamax front. We realised quite quickly that we needed to have some more exposure there to capture the market, so we turned every stone to be able to add on some more spot exposure on the Panamaxes, which yielded well.
Yeah, No I think youre entering into the quarter, we were quite.
Quite covered on the Panamax growth.
We realized quite quickly that we needed to have some more exposure there to capture the market. So we have turned every stone to be able to add on some more spot exposure on the panamaxes with.
Speaker 2: Same thing with the cape sizes, as we discussed in the previous quarter as well, we had fairly high confidence in the second half this year, simply because of the many drivers that we see on the coal and the bauxites, and also Brazil performing the way it should do. So for us going into this quarter, it was quite clear that we wanted quite a bit of spot exposure, and luckily we got this one right.
Yielded well.
Same thing, we became a Cape sizes as we discussed in the previous quarter as well, we had fairly high confidence for the second half this year simply because of the many drivers that we see on the coal and the bulk sites and also Brazil performing the way it should so for us going into this quarter. It was quite clear that we want that quite a bit.
Opex also.
Luckily we got this woman.
Okay got it that makes sense.
Speaker 6: And then maybe just as a follow-up, you highlighted the, you know, looking to further invest in the fleet to capitalize or at least create excess earnings potential. You've got the, your order book program basically is close to wrapping up here with those four Cancer Maxes due in 2024. Recently, we've seen several of your competitors order ships.
And then maybe just as a follow up you highlighted the look.
Looking to further invest in the fleet to capitalize or at least create excess earnings potential.
You've got the your order book program basically is close to wrapping up here with us for cancer Max's due in 2024 Ah recently, we've seen several of your competitors order ships on a dual fuel basis that delivery.
Speaker 6: on a dual fuel basis that deliver, you know, out to 26, 27, I think even we saw 28. How are you guys thinking about the new building order book as it is now in terms of, obviously, you mentioned the fleet size is at 8% is relatively small. But in terms of Golden Ocean and looking forward, how do you think about where you stand with new buildings? Are you comfortable with these four taking delivery of them and then moving on? Or can we expect you to dive deeper into new buildings?
26, 27, and I think even we saw 28, how are you guys thinking about the new building order book as it is now in terms of obviously you mentioned the fleet sizes at 8% is relatively small but in terms of Golden Ocean and looking forward. How do you think about where you stand with new buildings are you comfortable with these for taking delivery of them.
And then moving on or or can we expect you to do.
Dive deeper into new buildings.
Speaker 2: I think for our focus at the moment, we're very happy with the new building programme that we had on and looking to complete next year. We're definitely there to grow in terms of vessels on the water. We can find modern tonnage, two, three, four years old, that fit well into our strategy and fleet. We think that is a better investment at the moment than to go to the yards and place a new building.
I think for our focus at the moment, we're very happy with the New building program that we had.
Looking to complete next year.
They are to grow in terms of vessels on the water, we could fund modern tonnage 234 years old.
Well linked to our strategy and fleet.
I think that is a better investment at the moment than to go to the yards in place a new building.
Speaker 2: And in respect to which fuel to attack, we haven't made up our mind there yet and maybe it's not as clear as the other competitors. So we prefer to invest in our fleet, what we already have that already makes money and grow the fleet that way.
With respect to which fuel to attacks.
Haven't made up our mind, there yet and maybe it's not as clear as the other competitors. So we prefer to invest in our fleet, we already have that already makes money and relatively flat.
Yes.
Speaker 7: Well, thank you. That's it for me. Thank you, Omar. Thanks, Omar.
Yes, very good.
Oh well. Thank you that's it for me.
Thanks, so much.
Thank you once again as a reminder to ask a question. Please press star one and one on your telephone and wait for your name to be announced.
We have no further questions at this time I will now hand back to you for closing remarks.
Thanks, and look for a darwinian.
Now we will see you next quarter. Thank you very much.
Speaker 1: Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect your lines. Thank you.
Yes.
Ladies and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect your lines. Thank you.
Okay.
[music].
Okay.
[music].