Golden Ocean Group Announces Extension of Share Buy-Back Program
Golden Ocean Group Share Buy-Back Program Extended
In an exciting development for investors, the Board of Directors at Golden Ocean Group Limited (OSE/NASDAQ: GOGL) has announced the renewal of its share buy-back program. This extension, initially established in previous announcements, aims to further enhance shareholder value through strategic repurchases in the market.
Overview of the Share Buy-Back Program
The company has successfully repurchased a total of 1,507,328 shares under the existing program, amounting to a significant investment of approximately $11,629,758. Specifically, 741,900 shares were acquired at an average price of $7.84 on Nasdaq while an additional 765,428 shares were purchased on the Oslo Stock Exchange at an average price of NOK 81.2. This move reflects Golden Ocean’s commitment to optimizing capital allocation and fostering shareholder confidence.
Details of the Extended Program
As of October 2, 2024, the Board has resolved to extend the buy-back program for an additional year, allowing for further purchases of common shares. Here are the key terms:
- The company plans to allocate a maximum of USD 100 million for repurchasing up to 10,000,000 common shares.
- The renewed program will be effective from October 5, 2024, until October 4, 2025.
- Repurchases will be executed on both the Oslo Stock Exchange and Nasdaq, ensuring a smooth transaction process.
Impact on Shareholders
The extension of the share buy-back program is seen as a strategic maneuver in response to the current market conditions and sentiment surrounding the capital markets and dry bulk freight sectors. The recent volatility and uncertainty in global economic outlook have affected the trading price of GOGL shares, at times leading them to trade at a discount compared to their underlying asset values.
CEO's Insights
Peder Simonsen, Interim Chief Executive Officer and Chief Financial Officer, emphasized the significance of this program for shareholders. He stated, "Despite the challenges faced by the market, we believe extending the authorization to repurchase common stock serves the best interest of our shareholders. We are committed to utilizing this buy-back program strategically, complementing our long-term focus on maintaining a robust dividend policy."
Continual Updates and Reporting
The company is committed to keeping its shareholders informed about the progress of the buy-backs, which will be reported routinely, adhering to the disclosure requirements set forth by the Oslo Stock Exchange. It’s important to note that while the program allows for share repurchases, there is no obligation for the company to execute purchases. These decisions will hinge on various factors including market conditions, stock prices, and broader economic indicators.
The Company's Commitment to Shareholders
Golden Ocean Group remains steadfast in its mission to create long-term value for its shareholders. By addressing both current and emerging market dynamics through initiatives like the share buy-back program, the company aims to navigate the fluctuating landscape effectively. Investors can expect diligent monitoring and responsive actions in the interest of sustaining strong shareholder returns and reinforcing capital allocation strategies.
Frequently Asked Questions
What is the duration of the renewed share buy-back program?
The renewed share buy-back program extends for 12 months, from October 5, 2024, to October 4, 2025.
How many shares have been repurchased so far?
So far, a total of 1,507,328 shares have been repurchased as part of the initial share buy-back program.
What is the maximum amount allocated for repurchases?
The company has set a maximum allocation of USD 100 million for purchasing shares in the renewed program.
Where will the share repurchases take place?
Repurchases will occur on both the Oslo Stock Exchange and Nasdaq.
Who can be contacted for more information?
Peder Simonsen, the Interim Chief Executive Officer and Chief Financial Officer, is available for inquiries, reachable at +47 22 01 73 40.
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