Despite purchasing 16 bulkers over the past 12 monthsthe Oslo-listed owner is flush with cash, analysts note after the company’sfourth quarter report.
Jonas Advocaat Kraft and Eirik Haavaldsen of Pareto Securities say Golden Ocean is set to receive around $150m from cancelled newbuildings,which will add to $200m from a convertible bond sale in January.
“The company has plenty of dry powder to continueits spending spree,” they said in a report.
“Golden Ocean could spend another $300m through 2014and thus acquire another nine modern kamsarmax secondhand vessels withoutadding more debt, we estimate.”
Frode Morkedal and Herman Hildan of RS PlatouMarkets say the Herman Billung-led owner is drowning in cash.
They note it had $99m in cash on its balance sheetat the end of the fourth quarter and anticipate $340m in operating cash flowwill likely be generated between 2014 and 2016.
“Consequently, Golden Ocean could add 24 capesizevessels with average age of five years based on $350m equity investment and 70%debt financing,” they said.
“Alternatively, Golden Ocean could pay around 40% ofits market cap in a one-off dividend.”
Yesterday Golden Ocean showed its confidence for adry cargo market recovery by jacking up its fourth quarter dividend.
The owner, which introduced a symbolic dividend inthe second quarter of 2013, has boosted the payout to $0.025 per share for thefinal three months of the year.
It came as profit for the quarter reached $18.11m,beating the $9.33m of a year ago and the $16.8m forecast.
