Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What is driving the recent improvement in the capesize market sentiment and freight rates? A: Peder Simonsen, CFO of Golden Ocean Group Ltd, explained that the improvement is due to better weather conditions in Australia, which has allowed for increased volumes. Additionally, some coal volumes have shifted to capesize vessels, creating a squeeze in the Pacific. However, Brazilian volumes remain muted, and the market is responsive to these changes.
Q: What are the expected dry docking costs for the first half of 2025, and what upgrades are being made? A: Simonsen noted that costs depend on the type of dry dock (5-year, 10-year, or 15-year). The company is investing in upgrades such as better paints and fins to improve vessel performance. The average cost in Q4 was higher due to several 5-year and 15-year dry dockings, and costs have generally increased due to regulatory requirements.
Q: How is Golden Ocean Group approaching fleet management and potential vessel sales or acquisitions? A: Simonsen stated that the company is more inclined to sell rather than buy vessels at the current point in the cycle. They are focused on maintaining capacity in the capesize and Newcastle Max segments and are open to selling older vessels as part of their fleet renewal strategy.
Q: What is the potential impact of proposed US port fees on Chinese-built vessels? A: Simonsen mentioned that the proposed policies are still in the early stages and lack detail. The US is not a major player in dry bulk, and any increased costs could be offset by sourcing volumes from other regions. The impact on trading patterns is uncertain, but it is expected that any additional costs would be passed on to end users.
Q: Could there be an increase in M&A activity in the dry bulk sector? A: Simonsen acknowledged that M&A is challenging in the shipping space due to the generic nature of assets. However, transactions using shares as collateral are possible if pricing is favorable. The right combination of ownership and fleet composition could facilitate M&A, but it remains a complex process.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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