PARETO ENERGY CONFERENCE - SEPTEMBER 2021
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PARETO ENERGY CONFERENCE
SEPTEMBER 2021FORWARD LOOKING STATEMENTS
Matters discussed in this presentation may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995
provides safe harbor protections for forward-looking statements, which include statements concerning plans, objectives, goals, strategies,
future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. Words
such as "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar
expressions identify forward-looking statements. The forward-looking statements in this presentation are based upon various assumptions.
Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will
achieve or accomplish these expectations, beliefs or projections. The information set forth herein speaks only as of the date hereof, and we
disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this
communication.
In addition to these important factors and matters discussed elsewhere herein, important factors that, in our view, could cause actual results
to differ materially from those discussed in the forward-looking statements include the strength of world economies, fluctuations in
currencies and interest rates, general market conditions, including fluctuations in charter hire rates and vessel values, changes in demand
in the dry bulk market, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our
vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping
routes due to accidents, political events or acts by terrorists, and other important factors described from time to time in the reports filed by
the Company with the Securities and Exchange Commission.
Certain shipping, steel, Chinese and global industry information, statistics and charts contained herein have been derived from several
sources. You are hereby advised that such industry data, charts and statistics have not been prepared specifically for inclusion in these
materials and Golden Ocean has not undertaken any independent investigation to confirm the accuracy or completeness of such
information
2GOLDEN OCEAN – LEADERSHIP IN LARGE SIZE DRY BULK
- The world’s largest owner of Capesize vessels
- Low average fleet age with superior fuel economy and low operational costs
- Leading player in the premium ice-classed business
- Focused on costs and operational efficiencies. Large economics of scale and low G&A
- Industry-low cash breakeven
- Bunker procurement through TFG Marine – one of the world’s largest purchasers
- Commitment to ESG to enhance transparency and lowering environmental footprint
- Proven ability to source accretive transactions and access the capital markets
- Highly levered towards the current strong market conditions
- ~$150mn returned to shareholders through dividends year-to-date
- No material CAPEX and no debt maturities until 2023
~$150mn
94 + 3 vessels ~6.5 years ~$2.3bn
returned to shareholders
large commercial scale average age of fleet market capitalization
in 2021
3DEMAND TO OUTPACE SUPPLY THROUGH 2023
Fleet utilization is forecast to increase, supporting continued strong freight rate environment
SUPPLY / DEMAND MARKET BALANCE
18% 86%
16%
84%
14%
82%
12%
10%
80%
8% 7.2%
78%
6%
5.1%
4% 3.5%
76%
2.7%
1.9%
2% 1.6%
74%
0%
-2% 72%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021e 2022e 2023e
Demand Supply Utilisation
SOURCE: ARCTIC SECURITIES RESEARCH 4CONGESTION AND EEXI TO IMPACT FLEET EFFICIENCY
Inefficiencies set to reduce effective fleet supply during a period where demand growth will exceed
supply growth
FLEET CONGESTION EEXI IMPLEMENTATION TIMELINE
100 10%
90 9%
CII (operational)
80 8% EXXI
(design)
70 7%
Existing Fleet
60 6%
50 5%
40 4%
30 3%
2020 2023 2030
20 2%
10 1%
- EEXI is a one-time certification, while CII is annual
0 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 - An estimated 84% of the bulk fleet is non-compliant
Total Congestion, Mdwt % of dry bulk fleet - Compliance through “engine power limitation” or upgrades of
vessels’ performance (or both)
SOURCE: VIAMAR, ABS, GALBRAITHS 5INDUSTRY LOW CASH BREAK-EVEN SUPPORTS
CASH GENERATION
Achieved through well-timed acquisitions, economies of scale and access to competitive financing
CASH BREAK-EVEN CAPESIZE RATES
$50,000
USD/day
CAPESIZE
13,000
NEWCASTLEMAX 12,800
12,000 11,700 $40,000
11,000
10,000 PANAMAX
9,000 8,400 $30,000
USD/day
8,000
7,000
$20,000
6,000
5,000
4,000 $10,000
3,000
2,000
1,000 $0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51
0
2017 - 2020 MIN/MAX CAPE INDEX 2021
Interest Amortization Leases G&A Opex
GOGL CAPE CBE
6STRONG CASH FLOW POTENTIAL
Significant earnings potential with 94-vessel fleet on water comprising almost exclusively of Capesize
and Panamax vessels
ANNUALIZED FREE CASH FLOW ABOVE CBE AT ACHIEVED AVERAGE RATES
$1,800 Blended avg BDI 110%
Cape/Pmax 14 September
$1,600 65%
90%
$1,400 57% $1,510
Free cash flow ($millions)
51% $1,338
$1,200 70%
$1,189
Cash yield (%)
43%
$1,000
35% $995 50%
$800
$823
$600 30%
$400
10%
$200
$- -10%
$35,000 $40,000 $45,652 $50,000 $55,000
Cash flow Yield
SOURCE: COMPANY
7DECARBONISATION IMPACTS OUR BUSINESS MODEL ON ALL
LEVELS
We must change from a “high-carbon model” to a low (and eventually zero) carbon model in a short time
Banks/finance
(Poseidon Principles)
Asset Values Customers
(Sea Cargo Charter)
Business
Model
Investors Employees
8THANK YOU FOR YOUR ATTENTION!
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