Golden Ocean Group: Momentum Building Ahead Of Earnings

Momentum around Golden Ocean Group Ltd (NASDAQ:GOGL) is building up, as the dry bulk, shipping business continues to recover from multi-year lows. Recovery in benchmark dry bulk rates continues to strengthen investors’ confidence on the stock.

Golden Ocean Group has seen solid activity on earning estimate revision an indications that the company could post impressive third quarter financial results. Over the past four weeks, consensus estimates among analysts has moved up, an indication that the stock could surge. The stock price has already outperformed the overall industry by a margin of 48.1%, over the last 12 weeks.

GOGL is already up by more than 50% for the year, as it continues to trade in an uptrend. However, the stock has pulled back from $10, waiting to see if it is a minor correction on a potential run to the upside. Institutional holdings also suggest that large investors remain confident about the company’s long-term growth prospects.

Institutional Holding

Regulatory filings indicate that Riverstone Carlyle Global Energy & Power owns 10.85 million shares of Golden Ocean Group. The holdings represent an 8.2% stake in the international dry bulk shipping company.

Frontline Ltd is the largest shareholder in Golden Ocean Group with a holding of 48.04 million shares, valued at $322.80 million. Frontline 2012 Ltd comes a close second with a holding of 16.07 million shares. Quintana Shipping Ltd wraps up the top three with a holding of 13.45 million shares.

Ultramax Vessel Sale

Separately, Golden Ocean Group Ltd (NASDAQ:GOGL) has announced the sale of six ultramax vessels for $142.5 million to an unrelated third party. The company expects net proceeds to be in excess of $100 million taking into consideration a repayment of $39.2 million in associated debt.

The six vessels are to be delivered to their new owner in the fourth quarter.

“The sale of these vessels strengthens our commercial focus on Capesize and Panamax vessels, where we have critical mass and that we believe will provide the greatest leverage to a recovery in the dry bulk shipping market," said Golden Ocean Management CEO Birgitte Ringstad Vartdal.