SOURCE: Golden Ocean Group

August 21, 2007 02:20 ET

GOGL - Interim Results for the Quarter ended June 30, 2007

HAMILTON, BERMUDA--(Marketwire - August 21, 2007) -


Golden Ocean Group Limited (the "Company" or "Golden Ocean") is pleased to report net income of $25.6 million and earnings per share of $0.09 for the second quarter of 2007. This compares with net income and earnings per share of $25.2 million and $0.09 for the first quarter of 2007. Total operating revenues for the second quarter were $124.7 million, total operating expenses were $91.3 million and net other expenses were $18.5 million.

Due to the strong freight market during the quarter the Company increased Net operating income to $44.1 million compared to $31.6 million in the first quarter.

Net other expenses for the second quarter were $18.5 million compared with $6.2 million in the first quarter of 2007. This decrease is primarily due to the loss on freight future contracts of $15.4 million taken in the quarter.

Cash and cash equivalents increased by $5.0 million during the quarter. The Company generated cash from operating activities and financing activities of $26.0 million and $42.5 million, respectively and used $63.5 million for investing activities. The latter amount includes part payments on newbuilding instalments of $116.1 million and proceeds from sale of assets of $49.9 million. During the second quarter the Company repaid $34.3 million in debt and borrowed an additional $88.6 million.

Golden Ocean reports net income and earnings per share of $50.8 million and $0.19 for the first six months of 2007. Total operating revenues were $245.9 million, total operating expenses were $190.4 million and net other expense was $24.9 million.

On August 21, 2007 the Board has declared a dividend of $0.05 per share. The record date for the dividend is September 6, 2007, ex. dividend date is September 3, 2007 and the dividend will be paid on or about September 12, 2007.

At June 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 April 2007, the Company acquired two newbuilding contracts at Daehan Shipbuilding Co., Ltd., South Korea and two newbuilding contracts at Zhoushan Jinhaiwan Shipyard in China. The vessels of 170,000 dwt and 176,000 dwt respectively will be delivered between December 2008 and October 2009. The total purchase price for the four units is $296 million.

In May 2007, the Company declared options for two newbuilding contracts at Zhoushan Jinhaiwan Shipyard in China. The vessels of 176,000 dwt are expected to be delivered in the middle of 2010. The delivered cost of the two vessels will be around $145 million en bloc.

In May 2007, the Company declared and subsequently nominated two newbuilding contract options at Daehan Shipbuilding Co., Ltd., South Korea at $ 81 million per vessel to Knightsbridge Tankers Limited. These vessels will be delivered in June and September 2009 respectively. Golden Ocean will earn $3.2 million for arranging the deal and will act as commercial manager through Golden Ocean Management AS, a subsidiary of Golden Ocean Group Limited.

In May 2007, the Company fixed out on time charter three Capesize Bulkers from Daehan Shipbuilding Co., Ltd., South Korea. Each vessel is committed for a period of five years and will be delivered to their respective Charterer's between August 2008 and March 2009. The time charter rates are $48,000 per day net for the first vessel, $46,000 per day net for the second vessel and $43,800 per day net for the third vessel. The vessels will commence their charter immediately after delivery from the yard in August 2008, December 2008 and March 2009 respectively. In addition Golden Ocean has committed the fifth ice class Panamax from Rongsheng, China, for a five years time charter. The vessel will be delivered to the Charter during the third quarter of 2008 at a rate of $23,700 net per day.

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 about $20 million net and the transaction will thereby free up approximately $52 million in cash liquidity.

The full report is available in the enclosed attachment.

August 21, 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

Q2 2007 Results: http://hugin.info/135378/R/1148013/219138.pdf

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