SOURCE: Golden Ocean Group

February 26, 2009 02:16 ET

GOGL - Preliminary Fourth Quarter and Financial Year 2008 Results

HAMILTON, BERMUDA--(Marketwire - February 26, 2009) - Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports net income of $26.7 million and earnings per share of $0.10 for the fourth quarter of 2008. This compares with net income and earnings per share of $118.7 million and $0.43 for the third quarter of 2008. The market showed a strong negative development in the quarter. Total operating revenues for the fourth quarter were $170.6 million, total operating expenses were $139.3 million and net other expenses were $13.4 million. Included in operating revenues is $39.0 million resulting from the cancellation and settlement of existing charters for three of the Company's vessels as discussed further below.

Based on the "value in use" principle the Company has evaluated the carrying value of its assets and has not booked any impairment losses. However, a total loss of $28 million has been recognised in charterhire expenses in the fourth quarter relating to existing and future loss making charter arrangements. The Company has also recorded an impairment loss of $8.5 million relating to its holding of 5,275,145 shares of Navios Maritime Holdings Inc. ("Navios"). As discussed in our third quarter 2008 report, the Company has a total investment in Navios of $48.1 million. The market value of this investment at December 31, 2008 was $16.7 million and as of February 25, 2009 it was $13.2 million. The Company generated net operating income of $40.2 million compared to $121.8 million in the third quarter.

Cash and cash equivalents decreased by $13.2 million during the quarter. The Company generated cash from operating activities of $61.3 million, and used $41.7 million and $32.7 for investing and financing activities. The investing amount includes part payments on newbuilding instalments of $86.6 million and proceeds from sale of assets of $44.7 million. During the fourth quarter the Company repaid $108.4 million in debt and borrowed an additional $77.8 million.

For the year ended December 31, 2008 the Company reports a net income of $400.1 million and earnings per share of $1.44. Total operating revenues were $947.5 million, total operating expenses were $723.8 million and net other expenses were $32.7 million.

At December 31, 2008 the total number of shares outstanding in Golden Ocean was 276,990,107 of $0.10 par value each.

The full report is available in the link below.

Q4 2008 Results PDF:

February 26, 2008
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

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