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GOLDEN OCEAN GROUP LTD.
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By: /s/ Peder Simonsen
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Date: May 20, 2022
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Name: Peder Simonsen
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Title: Principal Financial Officer
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▪
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Net income of $125.3 million and earnings per share of $0.63 (basic) for the first quarter of 2022 compared with net income of $203.8 million and earnings per
share (basic) of $1.02 for the fourth quarter of 2021.
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▪
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Adjusted EBITDA1 of $149.4 million for the first quarter of 2022, compared with $243.5
million for the fourth quarter of 2021.
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▪
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Reported TCE2 rates for Capesize and Panamax/Ultramax vessels of $24,778 per day and $23,693 per day, respectively, and $24,330 per day for the
whole fleet in the first quarter of 2022.
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▪
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Estimated TCE rates inclusive of charter coverage calculated on a load-to-discharge basis, are approximately:
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•
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$28,300 per day for 78% of Capesize available days and $27,500 per day for 77% of Panamax available days for the second quarter of 2022; and
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•
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$38,200 per day for 15% of Capesize days and $34,900 per day for 33% of Panamax days for the third quarter of 2022.
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▪
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Signed loan agreement for a $275 million facility refinancing 14 Capesize vessels. The new facility
will improve cash break even rates for these vessels by approximately $1,500 per day.
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▪
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Announced a cash dividend of $0.50 per share for the first quarter of 2022, payable on or about June 8, 2022 to shareholders of record on June 1, 2022.
Shareholders holding the Company’s shares through Euronext VPS may receive this cash dividend later, on or about June 10, 2022.
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a.
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78 vessels owned by the Company (48 Capesize, 28 Panamax and two Ultramax vessels);
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b.
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Eight Capesize vessels chartered in on long-term leases with profit-sharing arrangements;
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c.
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One Ultramax vessel chartered in; and
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d.
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Seven 85,000 dwt Kamsarmax vessels on order.
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Unaudited Interim Condensed Consolidated Statements of Operations
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Unaudited Interim Condensed Consolidated Balance Sheets
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Unaudited Interim Condensed Consolidated Cash Flow Statements
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Unaudited Interim Condensed Consolidated Statements of Changes in Equity
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Selected Notes to the Unaudited Interim Condensed Consolidated Financial Statements
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(in thousands of $, except per share data)
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Three months
ended
March 31,
2022
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Three months
ended
December 31,
2021
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Three months
ended
March 31,
2021
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Operating revenues
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Time charter revenues
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161,848
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209,677
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78,320
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Voyage charter revenues
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103,173
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171,971
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79,176
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Other revenues
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163
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160
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557
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Total operating revenues
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265,184
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381,808
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158,053
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Gain from disposal of vessels
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—
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4,928
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—
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Other operating income (expenses)
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(413
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)
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(6,358
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)
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649
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Operating expenses
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Voyage expenses and commissions
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56,273
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68,942
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39,233
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Ship operating expenses
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58,165
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57,622
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48,617
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Charter hire expenses
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10,303
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11,247
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13,920
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Administrative expenses
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5,127
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4,827
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4,115
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Impairment loss on vessels
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—
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—
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4,187
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Depreciation
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32,434
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33,354
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26,798
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Total operating expenses
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162,302
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175,992
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136,870
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Net operating income
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102,469
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204,386
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21,832
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Other income (expenses)
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Interest income
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54
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154
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175
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Interest expense
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(10,041
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)
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(10,509
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(8,889
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)
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Gain on derivatives
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18,750
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1,211
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9,024
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Equity results of associated companies
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14,454
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9,875
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667
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Other financial items
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(328
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)
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(990
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)
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790
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Net other income (expenses)
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22,889
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(259
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)
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1,767
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Net income (loss) before income taxes
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125,358
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204,127
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23,599
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Income tax expense
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35
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309
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20
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Net income
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125,323
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203,818
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23,579
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Per share information:
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Earnings per share: basic
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$
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0.63
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$
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1.02
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$
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0.14
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Earnings per share: diluted
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$
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0.62
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$
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1.01
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$
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0.14
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(in thousands of $)
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As of
March 31, 2022 |
As of
December 31,
2021
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ASSETS
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Current assets
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Cash and cash equivalents
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107,356
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197,032
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Restricted cash
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8,365
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12,985
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Other current assets
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182,846
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159,373
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Total current assets
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298,567
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369,390
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Vessels and equipment, net
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2,813,459
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2,880,321
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Vessels held for sale
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41,916
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—
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Newbuildings
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35,890
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35,678
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Finance leases, right of use assets, net
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94,849
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98,535
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Operating leases, right of use assets, net
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26,804
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19,965
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Other long term assets
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49,956
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50,288
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Total assets
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3,361,441
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3,454,177
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LIABILITIES AND EQUITY
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Current liabilities
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Current portion of long-term debt
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104,355
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105,864
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Current portion of finance lease obligations
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20,147
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21,755
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Current portion of operating lease obligations
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19,240
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13,860
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Other current liabilities
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102,635
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106,594
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Total current liabilities
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246,377
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248,073
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Long-term debt
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1,125,567
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1,156,481
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Non-current portion of finance lease obligations
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101,400
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105,975
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Non-current portion of operating lease obligations
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14,277
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14,907
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Total liabilities
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1,487,621
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1,525,436
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Equity
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1,873,820
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1,928,741
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Total liabilities and equity
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3,361,441
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3,454,177
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(in thousands of $)
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Three months
ended
March 31,
2022
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Three months
ended
December 31,
2021
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Three months
ended
March 31,
2021
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Net income
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125,323
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203,818
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23,579
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Adjustments to reconcile net income (loss) to net cash provided by operating activities;
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Depreciation
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32,434
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33,354
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26,798
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Impairment loss on vessels
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—
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—
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4,187
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Gain from sale of vessels
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—
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(4,928
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)
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—
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Dividends from associated companies
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6,552
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—
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—
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Equity results from associated companies
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(14,454
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)
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(9,875
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(667
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Amortization of time charter party out contracts
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—
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804
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1,078
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Mark to market value on derivatives
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(18,930
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(6,230
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(10,546
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Other, net
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(1,032
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(1,115
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(2,533
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Change in operating assets and liabilities
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(6,269
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3,328
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(35,318
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Net cash provided by operating activities
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123,624
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219,156
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6,578
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Investing activities
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Additions to vessels and right of use assets
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(1,394
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(2,795
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(65,300
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Additions to newbuildings
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—
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(36,015
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(43,602
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Repayments of loans receivable from related parties
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5,350
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—
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—
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Proceeds from sale of vessels
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—
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36,360
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9,504
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Other investing activities, net
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2
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2
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11
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Net cash provided by (used in) investing activities
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3,958
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(2,448
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(99,387
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Financing activities
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Repayment of long-term debt
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(33,230
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(90,727
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(82,041
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Net proceeds from share distributions
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—
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574
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Debt fees paid
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—
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(34
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—
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Net proceeds from share issuance
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—
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—
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335,340
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Dividends paid
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(180,392
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)
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(170,370
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)
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—
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Repayment of finance leases
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(8,256
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)
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(8,022
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(7,621
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)
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Net cash provided by (used in) financing activities
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(221,878
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)
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(269,153
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)
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246,252
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Net change
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(94,296
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)
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(52,445
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)
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153,443
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Cash, cash equivalents and restricted cash at start of period
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210,017
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262,462
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175,102
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Cash, cash equivalents and restricted cash at end of period
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115,721
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210,017
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328,545
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(in thousands of $, except for share data)
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Three months
ended
March 31,
2022
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Three months
ended
March 31,
2021
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Number of shares outstanding
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Balance at beginning of period
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200,435,621
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143,327,697
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Shares issued
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—
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54,207,547
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Distribution of treasury shares
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—
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170,000
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Balance at end of period
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200,435,621
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197,705,244
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Share capital
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Balance at beginning of period
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10,061
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7,215
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Shares issued
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—
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2,710
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Balance at end of period
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10,061
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9,925
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Treasury shares
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Balance at beginning of period
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(4,309
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)
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(5,386
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)
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Share distribution
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—
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964
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Balance at end of period
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(4,309
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)
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(4,422
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)
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Additional paid in capital
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Balance at beginning of period
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285
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979
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Shares issued
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—
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332,630
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Stock option expense
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148
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154
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Balance at end of period
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433
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333,763
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Contributed capital surplus
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||||||||
Balance at beginning of period
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1,762,649
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1,732,670
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Distributions to shareholders
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(180,392
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)
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—
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Balance at end of period
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1,582,257
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1,732,670
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Accumulated earnings (deficit)
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Balance at beginning of period
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160,055
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(366,722
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)
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Distribution treasury shares
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—
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(390
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)
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Net income
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125,323
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23,579
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Balance at end of period
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285,378
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(343,533
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)
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Total equity
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1,873,820
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1,728,403
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(in thousands of $)
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Three months
ended
March 31,
2022
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Three months
ended
December 31,
2021
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Three months
ended
March 31,
2021
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Net income
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125,323
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203,818
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23,579
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Interest income
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(54
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)
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(154
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)
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(175
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)
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Interest expense
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10,041
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10,509
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8,889
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Income tax expense
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35
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309
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20
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Depreciation
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32,434
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33,354
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26,798
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Amortization of time charter party out contracts
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—
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804
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1,078
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Earnings before Interest Taxes Depreciation and Amortization
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167,779
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248,640
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60,189
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Impairment loss on vessels
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—
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—
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4,187
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Gain from sale of vessels
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—
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(4,928
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)
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—
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Gain on derivatives
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(18,750
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)
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(1,211
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)
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(9,024
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)
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Other financial items
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330
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1,043
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(762
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)
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Adjusted Earnings before Interest Taxes Depreciation and Amortization
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149,359
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243,544
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54,590
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(in thousands of $)
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Three months
ended
March 31,
2022
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Three months
ended
December 31,
2021
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Three months
ended
March 31,
2021
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|||||||||
Total operating revenues
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265,184
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381,808
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158,053
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|||||||||
Add: Amortization of time charter party out contracts
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—
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804
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1,078
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Add: Other operating income (expenses)
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(413
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)
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(6,358
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)
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649
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Less: Other revenues*
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163
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160
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557
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Net time and voyage charter revenues
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264,608
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376,094
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159,223
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Less: Voyage expenses & commission
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56,273
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68,942
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39,233
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Time charter equivalent income
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208,335
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307,152
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119,990
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(in thousands of $, except for TCE rate and days)
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Three months
ended
March 31,
2022
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Three months
ended
December 31,
2021
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Three months
ended
March 31,
2021
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|||||||||
TCE Income Capesize vessels
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124,509
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199,073
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75,895
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|||||||||
TCE Income Panamax vessels and Ultramax vessels
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83,826
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108,079
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44,095
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|||||||||
Total Time charter equivalent income
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208,335
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307,152
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119,990
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in days
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Fleet onhire days Capesize vessels
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5,025
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5,065
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4,569
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|||||||||
Fleet onhire days Panamax and Ultramax vessels
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3,538
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3,647
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2,984
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|||||||||
Total Fleet onhire days
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8,563
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8,712
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7,553
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|||||||||
in $ per day
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||||||||||||
TCE per day Capesize vessels
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24,778
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39,304
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16,611
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|||||||||
TCE per day Panamax and Ultramax vessels
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23,693
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29,635
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14,777
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|||||||||
Time charter equivalent rate
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24,330
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35,256
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15,886
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