GOGL - First Quarter 2016 Results
In January 2016, the Company took delivery of Golden Barnet, Golden Bexley, Golden Scape and Golden Swift, two Capesize and two Newcastlemax dry bulk newbuildings. In January 2016, the Company entered into a Capesize revenue sharing agreement with three other owners of Capesize vessels.
In February 2016, the Company took delivery of, and simultaneously sold, the Front Caribbean, and chartered the vessel in for a period of twelve months. In February 2016, the Company agreed amendments to its bank facilities, whereby there are no repayments for the next two and a half years and various covenants are amended or waived. In February 2016, the Company completed a private placement and in March 2016 a subsequent repair issue, which generated net proceeds of $205.4 million.
In March 2016, the Company entered an agreement to postpone delivery of two Capesize newbuildings.
Preliminary First Quarter 2016 Results
The Company reports a net loss of $68.2 million and a loss per share of $0.22 for the first quarter compared with a net loss of $69.3 million and a loss per share of $0.40 for the preceding quarter. The net loss in the first quarter includes (i) a gain on sale of newbuildings and amortization of deferred gain of $0.1 million, (ii) an impairment loss on securities of $10.0 million, (iii) a loss on derivatives of $12.9 million, mainly related to unrealized losses on interest rate hedges, (iv) a loss provision of $1.8 million against uncollectible receivables, and (v) an impairment loss of $2.1 million relating to the Company's investment in a joint venture. The net loss in the preceding quarter includes (i) a loss on sale of newbuildings and amortization of deferred gain of $8.5 million (which includes a loss of $8.9 million on the sale of two converted Capesize newbuilding contracts to Frontline Ltd.), (ii) an impairment loss on securities of $23.3 million, (iii) a loss provision of $4.7 million against uncollectible receivables, (iv) an impairment loss of $4.5 million relating to the Golden Lyderhorn, a vessel held under capital lease, (v) an impairment loss of $4.6 million relating to the Company's investment in a joint venture, and (vi) a mark-to-market gain on derivatives of $1.2 million. If these items are excluded, the adjusted losses in the first and preceding quarters are $41.5 million and $29.4 million, respectively. This deterioration in results is primarily due to the decrease in vessel earnings (or time charter equivalent revenues) of $13.1 million.
Cash and cash equivalents increased by $151.0 million in the first quarter. The main cash movements were the payment of $161.7 million in respect of the Company's newbuilding program, $48.1 million received from the sale the Front Caribbean and the two newbuilding contracts sold in the prior quarter, the net draw down of debt of $95.0 million and the net proceeds from the private placement of $205.4 million. In addition, $21.6 million was used in operations.