Golden Ocean (Buy, TP: NOK59.00) - Q2 DPS suggests strong H2
We have updated our forecasts following the Q2 report and recent rate movements and have lifted our 2019e EBITDA by 27%. Q3 rates have been surprisingly strong QTD and seasonality should favour H2, a view underpinned by the company’s Q2 dividend, despite the weakest quarterly result in three years. The summer’s iron ore price rally seems to have cut into Chinese steel margins, but as prices come down in August we would expect the trend to be reversed. We reiterate our BUY and NOK59 target price.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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