Press Releases

 
21.11.2014 at 08:03CET

Third Quarter and Interim Nine Months 2014 Results

Highlights
· Golden Ocean generates third quarter 2014 EBITDA* of $7.2 million
· Golden Ocean reports loss of $11.6 million for the third quarter of 2014
· Golden Ocean announces dividends of $0.007 per share for the third quarter of 2014
· The Company received $47.4 million in refund of instalments and interest from Jinhaiwan in July 2014
· Two of the applications for leave to appeal were dismissed in High Court in London in November 2014 
· The Company announced the agreement to merge with Knightsbridge Shipping Limited in October 2014

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

Third Quarter and Interim nine months 2014 Results
Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports loss of $11.7 million and loss per share of $0.03 for the third quarter of 2014. This compares with profit of $1.0 million and earnings per share at par for the second quarter of 2014. Total operating revenues for the third quarter were $53.4 million; total operating expenses were $53.4 million and other gains/losses net were negative with $5.4 million. Net financial items were negative with $6.2 million.
The loss for the period of $11.7 million is a decrease of $12.6 million compared to last quarter. Net operating income is down by $16.4 million while net financial items are up by $3.7 million. When excluding one-off items the net operating income is down by $0.7 million. The earnings on the vessels are slightly lower in the third quarter of 2014 relative to the second quarter, however this is offset by a smaller negative mark to market change on the freight forward agreements in the third quarter. The net financial cost is reduced in the third quarter relative to the second quarter as the interest rate swaps had a positive mark to market change in the quarter, as opposed to a negative change in the second quarter.

Changes in one-off items relative to last quarter are negative approximately $15.7 million. These one-offs include revaluation of refundable installments on newbuildings (-$10.4 million) and compensation for default of a charter contract (-$5.3 million).
Cash and cash equivalents increased by $2.0 million during the quarter. Cash from operating activities was neutral in the quarter. The Company received $47.4 million from Jinhaiwan during the quarter and spent $5.5 million on installments and docking costs. Financing activities were negative with $41.7 million in the quarter. Repayment of debt, interest and financing charges amounted to $22.7 million, including $13.2 million related to the Jinhaiwan refunds, and dividends declared for second quarter of 2014 results were paid with a total of $11.2 million.

The full report is available in the link below.

November 21, 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

Important Information For Investors And Shareholders

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.  In connection with the proposed transaction between Golden Ocean Group Limited ("Golden Ocean") and Knightsbridge Shipping Limited ("Knightsbridge"), Knightsbridge will file relevant materials with the Securities and Exchange Commission (the "SEC"), including a registration statement of Knightsbridge on Form F-4 that will include a joint proxy statement of Golden Ocean and Knightsbridge that also constitutes a prospectus of Knightsbridge, and the joint proxy statement/prospectus will be mailed to shareholders of Golden Ocean and Knightsbridge. INVESTORS AND SECURITY HOLDERS OF GOLDEN OCEAN AND KNIGHTSBRIDGE ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.  Investors and security holders will be able to obtain free copies of the registration statement and the joint proxy statement/prospectus (when available) and other documents filed with or furnished to the SEC by Knightsbridge through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with or furnished to the SEC by Knightsbridge will be available free of charge on Knightsbridge's website at http://www.knightsbridgeshipping.com.  Additional information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with or furnished to the SEC when they become available.

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

Q3 2014 Results