Norway-based dry bulk shipping company Golden Ocean Group Limited (GOGL) returned to profit in the third quarter of 2017 as dry bulk freight rates continued to improve in the period.
The company delivered a net income of USD 0.4 million for the three months ended September 30, compared with a net loss of USD 26.7 million reported in the same period a year earlier.
Operating revenues amounted to USD 127 million in the third quarter, up from USD 70.8 million seen in the three month period of 2016, driven by an increase in freight rates.
Dry bulk freight rates continued to improve in the third quarter, with market rates for all vessel classes above those from the previous quarter. Rates for Capesize vessels experienced the highest volatility among the vessel classes the company is exposed to and ended the quarter well above the rates for Panamax and Supramax vessels.
Global fleet utilization also improved during the third quarter. According to Maritime Analytics, fleet utilization ended at 84.5% in the third quarter, up from 81.6% in the third quarter of 2016.
“Thus far in the fourth quarter, rates have continued to improve, which should contribute positively to the company’s earnings in the quarter,” GOGL said.
“The company has taken a series of steps to maximize its market leverage by focusing commercial efforts on the vessel segments we believe provide the greater exposure to a recovery in the dry bulk shipping market,” Birgitte Ringstad Vartdal, Chief Executive Officer of Golden Ocean Management AS, said.