SOURCE: Golden Ocean Group

November 14, 2007 02:15 ET

GOGL - INTERIM RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2007

HAMILTON, BERMUDA--(Marketwire - November 14, 2007) -


Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports net income of $52.9 million and earnings per share of $0.20 for the third quarter of 2007. This compares with net income and earnings per share of $25.6 million and $0.09 respectively for the second quarter of 2007. Total operating revenues for the third quarter were $181.2 million, total operating expenses were $135.5 million and net other expenses were $15.6 million.

Due to the continued strong freight market during the quarter and the gain on sale of two vessels the Company increased net operating income to $68.5 million compared to $44.1 million in the second quarter.

Cash and cash equivalents increased by $52.5 million during the quarter. The Company generated cash from operating activities of $52.8 million and had a net negative cash generation from financing activities of $8.0 million and received a net of $7.7 million from investing activities. The latter amount includes part payments on newbuilding instalments of $54.6 million and proceeds from sale of assets of $62.3 million. During the third quarter the Company repaid $39.2 million in debt and borrowed an additional $74.2 million.

Golden Ocean reports net income and earnings per share of $103.8 million and $0.38 for the first nine months of 2007. Total operating revenues were $427.1 million, total operating expenses were $325.9 million and net other expense was $40.5 million.

On November 14, 2007 the Board has declared a dividend of $0.50 per share. The record date for the dividend is December 3, 2007 ex. dividend date is November 28, 2007 and the dividend will be paid on or about December 12, 2007.

At September 30, 2007 the total number of shares outstanding in Golden Ocean was 271,377,607 of $0.10 par value each.

Corporate and Finance

In July 2007, the Company exercised its option for two additional ice class Panamax vessels at Pipavav Shipyard in India. The vessels of 75,000 dwt will be delivered during the first half of 2010. The agreed purchase price is $36 million per vessel.

In August 2007, the Company agreed to sell the vessel "M/V Shinyo Brilliance". The vessel is a Panamax bulker and is one of the long term time charter vessels previously acquired from Louis Dreyfus with an option to purchase attached to the time charter. The vessel will be delivered to the Buyers within the end of December 2007 and the agreed purchase price is $72 million net. The strike price for the option is $20 million net and the transaction will thereby generate approximately $52 million in cash liquidity.

In August 2007, the Company acquired one additional newbuilding contract at Zhoushan Jinhaiwan Shipyard in China. The vessel of 176,000 dwt will be delivered in September 2010 and the agreed purchase price is $79 million.

In October 2007, the Company agreed to sell one of its Capesize newbuildings for net sale proceeds of $145 million. Delivery to the buyers is expected to take place in May 2008. This transaction will give a gain of approximately $70 million.

In October 2007, the Company agreed to an arrangement to terminate the bare boat agreements for the two 1994 built Panamax vessels "M/V Golden Jade" and "M/V Golden Jasmine" against purchasing the vessels for $14.5 million per vessel. Simultaneously the Company agreed to sell the two vessels for net sale proceeds of $124.1 million in total. Delivery to the buyers is expected to take place in May 2008. This transaction will give a positive addition to net income of approximately $77.9 million, and is estimated to release approximately $88 million in additional liquidity.

In October 2007, the Company acquired eight newbuilding contracts at Zhoushan Jinhaiwan Shipyard (Jinhaiwan) in China. The vessels of 80.000 dwt will be delivered quarterly from September 2009. The delivered cost for the eight vessels is approximately $410 million in total.

In November 2007, the Company agreed to sell the six Panamax newbuildings contracted in March 2007 at Pipavav Shipyard in India. The vessels are sold for net sale proceeds of $352.8 million, and delivery to the buyers is expected to take place between March 2009 and July 2010. The transaction will give a gain of approximately $127 million, and this will be recorded at delivery of the vessels.

The full report is available in the enclosed attachment.

November 14, 2007
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 40

Geir Karlsen: CFO Golden Ocean Management AS
+47 22 01 73 53

Q3 2007 Results: http://hugin.info/135378/R/1168279/229493.pdf


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