GOGL - Second Quarter and First Half Year 2014 Results

Highlights

·           Golden Ocean generates second quarter 2014 EBITDA* of $23.2 million
·           Golden Ocean reports profit of $1.0 million for the second quarter of 2014
·           Golden Ocean announces dividends of $ 0.025 per share for the second quarter of 2014
·           The Company took delivery of three 2012-built Kamsarmax vessels in the second quarter of 2014
·           The Company took delivery of the ice class Panamax vessel Golden Ruby in May 2014
·           The Company received in second quarter $5.3 million on a claim for default of a charter contract
-           The Company received refund of instalments and interest from Jinhaiwan of $56.2 million in the second quarter of 2014
-           The Company received additional $47.4 million in refund of instalments and interest from Jinhaiwan in July 2014

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

Second Quarter and First Half Year 2014 Results
Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports profit of $1.0 million and earnings per share at par for the second quarter of 2014. This compares with profit and earnings per share of $10.1 million and $0.02 respectively for the first quarter of 2014. Total operating revenues for the second quarter were $72.8 million; total operating expenses were $64.3 million and other gains/losses net were positive with $2.5 million. Net financial items were negative with $10.0 million.

The profit for the period of $1.0 million is a decrease of $9.1 million compared to last quarter. Net operating income is down by $7.4 million while net financial items are down by $1.7 million. When excluding one-off items the earnings on the fleet is down by $5.5 million. This is mainly related to lower earnings in the spot market during the second quarter of 2014, compared to the earnings in the first quarter. A few vessels finished profitable charters during the quarter but at the same time the recently purchased second hand vessels contributed positively to the quarter. The net financial cost is higher compared to last quarter due to the interest allocated to the convertible bond for a full quarter as well as negative mark-to-market development on the Company's interest rate swaps.

Changes in one-off items relative to last quarter are negative with approximate $1.8 million. These one-offs includes revaluation of refundable installments on newbuildings (+$10.5 million), negative mark-to-market on FFAs (-$8.5 million) and compensation for default of a charter contract (+$5.3 million).

Cash and cash equivalents decreased by $122.1 million during the quarter. The Company generated cash from operating activities of $5.0 million during the quarter. Restricted cash decreased with $9.3 million. The Company purchased four vessels with a total cost of $128 million in the quarter and settled the payment of the 50% shares of Golden Magnum Inc. The Company paid $6.6 million in the quarter for dry-dock expenses related to four vessels. The Company received $56.2 million from Jinhaiwan. Financing activities were negative with $46.5 million in the quarter. Repayment of debt, interest and financing charges amounted to $29.9 million, including $20.2 million related to the Jinhaiwan refunds, and dividends declared for first quarter of 2014 results were paid with a total of $11.2 million.

The full report is available in the link below.

August 27th, 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