SOURCE: Golden Ocean Group

February 18, 2011 02:20 ET

Interim Results for the Quarter and Year ended December 31, 2010

HAMILTON, BERMUDA--(Marketwire - February 18, 2011) -


Highlights

· Golden Ocean reports profit of $24.0 million and earnings per share of $0.05 for the fourth quarter of 2010

· Golden Ocean reports profit of $108.1 million and earnings per share of $0.24 for the year ended December 31, 2010

· Golden Ocean announces dividends of US $0.05 per share for the fourth quarter of 2010

· The Company has taken delivery of a total of four newbuildings in December 2010 and January 2011

· Golden Ocean fixed out three ice class Panamax newbuildings for 5 years and fixed out Golden Heiwa for 2 years during Q4 2010

· The vessel Golden Shadow was sold in Q4 and delivered to new owners in December 2010

· The Company has made a retrospective adjustment to the accounting for two financial leases, reducing accumulated earnings for the nine-month period ended September 30, 2010 by $8.3 million. The effect on retained earnings at December 31, 2008 and December 31, 2009 was $11.2 million. All adjustments are non-cash items.

Fourth Quarter and Preliminary Year end 2010 Results

Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports profit of $24.0 million and earnings per share of $0.05 for the fourth quarter of 2010. This compares with profit and earnings per share of $24.3 million and $0.05 respectively for the fourth quarter of 2009. Total operating revenues for the fourth quarter were $70.0 million, total operating expenses were $44.3 million and net other loss was $0.2 million. The Company reports profit of $108.1 million and earnings per share of $0.24 for the year ended December 31, 2010. This compares with profit and earnings per share of $218.0 million and $0.53 for the year ended December 31, 2009.

The operating revenues were reduced with $16.1 million from the third quarter 2010, while the operating expenses (including depreciation) were reduced by $16.6 million from the third quarter. The operating result is therefore in line with the result from the third quarter. The reduction in gross numbers is due to lower trading activity in the quarter. The trading result for the fourth quarter was $0.8 million.Other gain/losses net were negative with $0.2 million in the quarter. This is a reversal of the positive value of the FX swap of $0.25 million booked in Q3. The sale of Golden Shadow had a net effect of zero, but a positive contribution to the Company and negative contribution on the minority interest. Net other income/expenses are -$1.3 million compared with -$6.9 million in the third quarter 2010. In addition to adjustments to the financial lease (foreign currency exchange effect of -$0.9 million) the Company has booked dividends received from Knightsbridge Tankers Limited (KTL) of $1.2 million and booked a profit on mark-to-market value of interest rate hedges of $4.1 millions.

The underlying operating result for the fourth quarter was in line with the result from the third quarter. However, the Company has revisited the accounting for the financial leases for the vessels Golden Heiwa and Ocean Minerva. These vessels were part of the Dreyfus deal conducted in 2005. The vessels have purchase options in JPY with the last exercise date in 2017 and 2018 respectively. The Company has changed the accounting to take into account that the purchase option price is in JPY and as a result, the JPY lease creditor should be retranslated at each balance sheet date. In addition the Company has adjusted the time charter lease calculations, by deducting operating expenses which previously had been included in the minimum lease payments. As a result, the retained earnings at December 31, 2008 have been restated to $127.8 million, a reduction of $11.2 million. Profit for the nine-month period ended September 30, 2010 has been restated to $84.1 million, a reduction of $8.3 million. The main effects are increased vessel operating expenses of $2.9 million, increased financial lease interest of $1.9 million, increased depreciation on financial lease of $1.0 million and foreign currency translation losses of $2.5 million. See note 21 in the Unaudited Interim financial information for the 4(th) quarter 2010 for further information.

Cash and cash equivalents increased by $42.6 million during the quarter. The Company generated cash from operating activities of $21.1 million and received net $85.2 million from sale of assets. This covers the sale of Golden Zhejiang and Golden Shadow as well as the refund received for the cancellation of Golden Changi. In addition the company paid $23.5 million in installments in the quarter. The Company used $63.8 million on financing activities during the quarter. This includes proceeds from the long term debt of $34.3 million, repayment of debt of $72.8 million (of which $5.3 million was regular installments, $46.4 million on vessel sold and $21 million on repayment on the loan related to Golden Changi) and dividend payment of $22.8 million.

The full report is available in the link below.

February 18, 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.

Q4 2010 Results: http://hugin.info/135378/R/1490403/426044.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (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#1490403]

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