GOGL - First Quarter 2014 Results

Highlights

·           Golden Ocean generates first quarter 2014 EBITDA* of $28.7 million
·           Golden Ocean reports profit of $10.1 million for the first quarter of 2014
·           Golden Ocean announces dividends of $ 0.025 per share for the first quarter of 2014
·           Golden Ocean issued a $200 million Convertible Bond in January 2014
·           The Company acquired three 2012-built Kamsarmax vessels in February 2014
·           The Company bought out the JV partner from the investment in Golden Magnum in March 2014
·           The Company bought the ice class Panamax vessel Golden Ruby in April 2014

*EBITDA is equal to operating profit plus depreciations (including impairment related to vessels) and amortisation.

First quarter 2014 Results

Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports profit of $10.1 million and earnings per share of $0.02 for the first quarter of 2014. This compares with profit and earnings per share of $18.1 million and $0.04 respectively for the fourth quarter of 2013. Total operating revenues for the first quarter were $74.2 million; total operating expenses were $65.1 million and other gains/losses net were positive with $9.4 million. Net financial items were negative with $8.3 million.

The profit for the period of $10.1 million is a decrease of $8.0 million compared to last quarter. Net operating income is down by $3.5 million while net financial items are down by $4.6 million. In total the earnings on the vessels are down for the quarter. This is a result of a weaker spot market, some profitable charter contracts on Capesize vessels that have expired and off-hire for vessels being in dock. To some extent this is compensated by higher earnings on our ice-class vessels, which achieve a premium during the winter season. In addition a profit related to the transaction on Golden Magnum contributes positively. The net financial items are more negative compared to last quarter due to the interest allocated to the convertible bond as well as negative mark-to-market development on the Company's interest rate swaps.

Cash and cash equivalents increased by $155.4 million during the quarter. The Company generated cash from operating activities of $9.2 million during the quarter. Restricted cash increased with $10.5 million. The Company paid $10.2 million in installments and other predelivery cost. Financing activities contributed positive with $166.6 million in the quarter. Proceeds from the Convertible Bond was $200 million, repayment of debt, interest and financing charges amounted to $17.1 million, while dividends declared both for third and fourth quarter 2013 results were paid in the first quarter, in total $16.2 million.

The full report is available in the link below.

May 23rd, 2014

The Board of Directors
Golden Ocean Group Limited
Hamilton, Bermuda

Questions should be directed to: 
Herman Billung: CEO Golden Ocean Management AS
+47 22 01 73 41

Birgitte Ringstad Vartdal: CFO Golden Ocean Management AS
+47 22 01 73 53

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.