Dry bulk shipper Golden Ocean warns on profit over coronavirus (updated)
18/02/2020 07:47
(Adds dividend, earnings, background)
OSLO, Feb 18 (Reuters) - Dry bulk shipping firm Golden Ocean
GOGL.O GOGLT.OL said on Tuesday its profit would be hit by a
slowdown in demand due to the coronavirus outbreak in China.
The world's second biggest economy has curtailed business
activity in recent weeks to combat the spread of the virus,
pushing down shipping rates for commodities such as coal and
iron ore used in Chinese factories. urn:newsml:reuters.com:*:nL4N2A53MM
"The market is currently presenting a challenging scenario
that will impact our results in the near term," Golden Ocean
Chairman and interim Chief Executive Ola Lorentzon said.
The Oslo and New York-listed firm said: "It is too early to
forecast the potential impact of the coronavirus beyond the
short term and information being released from China does not
provide a complete view of its current impact."
In the final three months of 2019, Golden Ocean earned a net
profit of $41 million, an 11.7% rise year on year that beat a
$37 million profit forecast in a Refinitiv poll of analysts.
The company cut its fourth-quarter dividend to $0.05 per
share from $0.15 in the third quarter, missing an average
analyst forecast of $0.14.
"As the current market dynamic continues to unfold, our
focus remains on maintaining efficient operations and a strong
balance sheet and liquidity position," Lorentzon said.
(Reporting by Terje Solsvik; Editing by David Evans and Edmund
Blair)
((terje.solsvik@thomsonreuters.com; +47 918 666 70))