Peter Hogan's questions to Golden Ocean Group Ltd (GOGL) leadership • Q1 2025
Question
Peter Hogan inquired about the specific timing for the contemplated merger with CMB Tech, the market's apparent discount to the agreed exchange ratio, and potential near-term market catalysts before the Simandou project volumes arrive. He also questioned the disconnect between strong asset prices and the current weaker freight rate environment, asking if something would have to give.
Answer
CEO and CFO Peder Carl Simonsen stated that it is difficult to be more specific on the merger timeline beyond what has been announced. Regarding the stock price, he deferred interpretation to the market but suggested liquidity could be a factor. Simonsen attributed recent market weakness to sentiment driven by temporary disruptions in Guinea and Peru, but reiterated a positive outlook for the second half, noting that major miners must ramp up exports to meet full-year guidance. He explained that high asset values are supported by high newbuilding prices, limited shipyard capacity, and strong long-term demand fundamentals, and he does not expect them to decline.