Golden Ocean Group (VLCCF) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $6.48 million, or $ 0.06 a share in the quarter, against a net loss of $69.27 million, or $2.01 a share in the last year period.
Revenue during the quarter surged 50.93 percent to $86.22 million from $57.13 million in the previous year period. Operating margin for the quarter period stood at positive 1.62 percent as compared to a negative 64.08 percent for the previous year period.
Operating income for the quarter was $1.40 million, compared with an operating loss of $36.61 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $24.21 million compared to negative $4.78 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 28.08 percent for the quarter compared to negative 8.36 percent in the last year period.
Birgitte Ringstad Vartdal, chief executive officer of Golden Ocean Management AS commented: "Freight rates improved during the fourth quarter as the dry bulk shipping market saw increased demand, combined with port congestion and a tight Atlantic market. The quarter was also characterized by rate volatility, which could be an early sign of a recovering market. Our results improved in the fourth quarter, and better rates will also have a positive impact on our results for the first quarter of 2017. Against this market backdrop, we continued to execute on our strategic plan by achieving further deferrals of vessel deliveries and securing price reductions related to the deferred newbuildings."
Operating cash flow remains negative
Golden Ocean Group has spent $23.05 million cash to meet operating activities during the year as against cash outgo of $14.83 million in the last year.
The company has spent $175.31 million cash to meet investing activities during the year as against cash inflow of $112.57 million in the last year. It has incurred net capital expenditure of $169.70 million on net basis during the year, up 23.61 percent or $32.41 million from year ago.
Cash flow from financing activities was $308.69 million for the year as against cash outgo of $37.34 million in the last year period.
Cash and cash equivalents stood at $212.94 million as on Dec. 31, 2016, up 107.51 percent or $110.32 million from $102.62 million on Dec. 31, 2015.
Debt moves up
Golden Ocean Group has witnessed an increase in total debt over the last one year. It stood at $1,075.95 million as on Dec. 31, 2016, up 11.87 percent or $114.17 million from $961.78 million on Dec. 31, 2015.
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