Golden Ocean Group
oslo : GOGL

May 23, 2011 02:02 ET

Interim Result for the Quarter ended March 31, 2011

HAMILTON, NORWAY--(Marketwire - May 23, 2011) -



Highlights

  * Golden Ocean reports a loss of $19.5 million for the first quarter of
    2011 after an impairment loss of $38.7 million related to five vessels
  * Golden Ocean announces dividends of US $0.04 per share for the first
    quarter of 2011
  * The Company has taken delivery of two newbuildings during the first
    quarter
  * Korea Line Corporation terminated the charters on Golden Eminence and
    Golden Empress in March 2011. The Company will do the utmost to protect
    the claim and make a recovery against KLC.


First Quarter 2011 Results

Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports a loss of $19.5 million and loss per share of -$0.04 for the first quarter of 2011. This compares with profit and earnings per share of $20.9 million and $0.05 respectively for the first quarter of 2010. Total operating revenues for the first quarter were $82.6 million, total operating expenses were $102.4 million and net other gain was $4.2 million. Net financial items were negative with $3.9 million.

The profit for the period dropped by $43.5 million compared to the fourth quarter in 2010. The operating revenues increased with $12.7 million from the preceding quarter, and the operating expenses increased by $58.0 million in the same period. Total other gain/(losses) increased by $4.5 million. The net operating result therefore declined by a total of $40.9 million to a loss of $15.6 million. The Company has taken an impairment related to five vessels of $38.7 million, and this is the main reason for the decline in the operating result. In addition, the operating result is down due to lower market rates for the vessels in the spot market, provisions for losses on ongoing voyages and open contracts of $3.3 million and no hire payments from KLC in the period from mid January to mid March. The increase in other gain/(losses) is explained by profit related gain on bunker derivatives of $2.6 million and gain on the FFA put option of $1.6 million. Net financial items declined by $2.6 million since the fourth quarter 2010. The net financial items this quarter is more in line with what is expected going forward, as there was a gain from increased fair value of the interest rate swaps in the fourth quarter. The Company has booked dividends received from Knightsbridge Tankers Limited (KTL) of $1.2 million in net financial items, the same as in the fourth quarter of 2010.

Cash and cash equivalents decreased by $20.9 million during the quarter. The Company generated cash from operating activities of $33.4 million. The company paid $31.4 million in installments in the quarter. The Company used $23.0 million net on financing activities during the quarter. The main item includes drawdown of long term debt related to the newbuildings of $17.2 million, interest paid of $6.5 million, repayment of long term debt of $8.0 million and dividend payment of $22.9 million.


The full report is available in the link below.

May 23, 2011
The Board of Directors
Golden Ocean Group Limited
Hamilton, Bermuda

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


Q1 2011 Results: http://hugin.info/135378/R/1517774/454327.pdf


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(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Golden Ocean Group via Thomson Reuters ONE

[HUG#1517774]

Contact Information

  • 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