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GOGL - Second Quarter 2015 Results

HAMILTON, Bermuda, Aug. 27, 2015 (GLOBE NEWSWIRE) -- Highlights

  • The Company reports a net loss of $33.5 million and a loss per share of $0.19, excluding bargain purchase gain, for the second quarter of 2015.
  • The Company reports a net loss of $48.8 million and a loss per share of $0.38, excluding vessel impairment loss and bargain purchase gain, for the six months ended June 30, 2015.
  • In April 2015, the Company received $40.1 million in relation to the cancellation of newbuilding contracts at Jinhaiwan.
  • In April 2015, the Company sold two Capesize vessels to an unrelated third party
  • In April 2015, the Company agreed to the sale of four newbuilding Capesize vessels to an unrelated third party
  • In April 2015, the Company agreed to a sale and leaseback transaction with Ship Finance for eight Capesize vessels.
  • In April 2015, the Company agreed to postpone delivery of several of its newbuilding contracts by 79 months in aggregate.
  • In May 2015, the Company took delivery of one Supramax newbuilding.
  • In June 2015, the Company took delivery of one Capesize newbuilding.

Second Quarter 2015 and Six Months Results

The Company reports a net loss of $33.5 million and a loss per share of $0.19, excluding bargain purchase gain, for the second quarter compared with a loss of $15.3 million and a loss per share of $0.18, excluding bargain purchase gain and vessel impairment loss, for the preceding quarter. The fall in earnings is primarily attributable to the continued poor market combined with an increase in the size of the fleet following the merger of Knightsbridge and the Former Golden Ocean on March 31, 2015. Operating revenues in the three months ended June 30, 2015 have been reduced by $9.2 million as a result of the amortization of favourable time charter (out) contracts, which were acquired as a result of the said merger and were valued at $127.1 million. Charter hire expense in the same period has been reduced by $1.1 million as a result of the amortization of unfavourable time charter (in) contracts, which were acquired as a result of the merger and were valued at $7.6 million. The net effect was a $8.1 million reduction in net income in the three months ended June 30, 2015.

Cash and cash equivalents decreased by $102.1 million in the second quarter. The main cash movements were the payment of $117.0 million in respect of its newbuilding program, $16.7 million received from the sale of vessels, $40.1 million received from Jinhaiwan as the final repayment for cancelled newbuilding contracts and the payment of $19.9 million for investments. The Company increased bank borrowings by $13.8 million (net of debt fees paid) and repaid debt of $30.2 million.

The full report is available in the link below.

August 27, 2015

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

Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements, which include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. Words such as "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. The information set forth herein speaks only as of the date hereof, and we disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.

In addition to these important factors and matters discussed elsewhere herein, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter hire rates and vessel values, changes in demand in the dry bulk market, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents, political events or acts by terrorists, and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission.

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

2nd Quarter 2015 results http://hugin.info/132879/R/1947838/707386.pdf

HUG#1947838

Source:Golden Ocean Group Limited