Press Releases

 
26.11.2013 at 07:52CET

Third Quarter and Interim Nine Months 2013 Results

Highlights

·           Golden Ocean generates third quarter 2013 EBITDA* of $31.9 million
·           Golden Ocean reports profit of $16.1 million for the third quarter of 2013
·           Golden Ocean announces dividends of $0.01 per share for the third quarter of 2013
·           JVs owned 50% by the Company took delivery of the Capesize vessel Golden Opus and the Handysize vessel Golden Azalea in September 2013
·           The Company has cancelled two newbuilding contracts in the third quarter
·           The Company took delivery of the ice class Panamax vessel Golden Diamond in October 2013
·           Golden Ocean declared the options for three further Supramax newbuildings from Chengxi in October 2013
·           The Company invested $10 million in Greenship Bulk Trust in October 2013
·           The Handysize vessel Golden Azalea owned 50% by the Company was sold in November 2013

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

Third Quarter and Interim Nine Months 2013 Results

Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports profit of $16.1 million and earnings per share of $0.04 for the third quarter of 2013. This compares with profit and earnings per share of $43.5 million and $0.10 respectively for the second quarter of 2013. Total operating revenues for the third quarter were $78.8 million; total operating expenses were $62.2 million and other gains/losses net were positive with $5.5 million. Net financial items were negative with $5.9 million.

The profit for the period of $16.1 million is a decrease of $27.4 million compared to last quarter. Excluding the one off gain of $30 million in second quarter related to a settlement of a dispute, the profit is up by $2.6 million. The operating revenues decreased by $25.9 million, and the operating expenses decreased by $1.2 million. Excluding the mentioned settlement the net operating result is $5.3 million higher than previous quarter. This is mainly explained by a reversal of earlier provisions for onerous contracts, higher margin and increased volume on short term trading in the quarter. Total other gains/(losses) net increased by $6.9 million mainly due to change in profit on FFA positions of $5.5 million and bunkers hedges of $1.1 million and the remaining is due to increased contribution from Joint Ventures. Net operating income is $22.0 million, which is $17.8 million lower than previous quarter. Net financial items of $5.9 million are $9.6 million lower than in second quarter. This is mainly related to changes in fair value of the Company's interest rate hedges.

Cash and cash equivalents decreased by $7.0 million during the quarter. The Company generated cash from operating activities of $16.7 million during the quarter and the change in restricted cash was positive with $2.2 million. The Company paid $9.1 million in installments, other predelivery costs and capitalized dry-dock expenses on Golden Opportunity. The Company invested $24.5 million in Joint Ventures for the purchase of the Capesize vessel Golden Opus and the Handysize vessel Golden Azalea, while the financing of Golden Magnum reduced investment in JV's with $11.9 million. Golden Opus was financed by a short term loan in third quarter which will be replaced by a long term loan in the JV. Financing activities were negative with $5.0 million in the quarter of which $4.5 million relates to payment of the second quarter dividend. Ordinary repayments of long term debt amounted to $6.1 million.

The full report is available in the link below.

November 26, 2013
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

Per Heiberg: Acting CFO Golden Ocean Management AS
+47 22 01 73 45


 

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

Q3 2013 Results