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2016-02-18

Golden Ocean Group Limited: GOGL - Preliminary Fourth Quarter 2015 and Full Year Results

Highlights

· The Company reports a net loss of $69.3 million and a loss per share
of $0.40 for the fourth quarter of 2015.
· The Company reports a net loss of $220.8 million and a loss per
share of $1.46 for the year ended December 31, 2015.
· Excluding one-off items, the adjusted losses in the fourth and third
quarters are $27.6 million and $25.5, respectively.
· The Company completed the sale of two converted Capesize newbuilding
contracts to Frontline Ltd on December 31, 2015.
· In November 2015, the Company took delivery of, and simultaneously
sold, theKSL Baltic,
and chartered the vessel in for a period of twelve months.

· In December 2015, the lenders of the $425.0 million term loan
facility agreed to certain amendments to the loan, as increasing the loan to
value test, reducing the profile and adjusting the margin on the loan.
· In January 2016, the Company took delivery ofGolden Barnet
,Golden Bexley, Golden Scape
andGolden Swift
, two Capesize and two Newcastlemax dry bulk newbuildings.

· In January 2016, the Company entered into a Capesize revenue sharing
agreement with three other owners of Capesize vessels.
· In February 2016, the Company took delivery of, and simultaneously
sold, theKSL Caribbean,
and chartered the vessel in for a period of twelve months.

· In February 2016, the Company agreed amendments to its bank
facilities, whereby there are no repayments for the next two and a half year
and various covenants are amended or waived, subject to the Company raising
$200 million in equity.

Preliminary Fourth Quarter 2015 and Full Year Results

The Company reports a net loss of $69.3 million and a loss per share of $0.40
for the fourth quarter compared with a loss of $40.7 million and a loss per
share of $0.24 for the preceding quarter. The net loss in the fourth quarter
includes (i) a loss on sale of newbuildings and amortization of deferred gain
of $8.5 million (which includes a loss of $8.9 million on the sale of two
converted Capesize newbuilding contracts to Frontline Ltd.), (ii) an
impairment loss on securities of $23.3 million, (iii) a loss provision of
$4.7 million against uncollectible receivables, (iv) an impairment loss of
$4.5 million relating to theGolden Lyderhorn
, a vessel held under capital lease, (v) an impairment loss of $4.6 million
relating to the Company's investment in Golden Opus Inc., and (vi) a
mark-to-market gain on derivatives of $3.9 million. The net loss in the third
quarter includes (i) a loss of $2.3 million on the sale of the Capesize
newbuilding,KSL Atlantic
, (ii) a vessel impairment loss of $7.1 million, and (iii) a mark-to-market
loss on derivatives of $5.8 million. If these items are excluded, the
adjusted losses in the fourth and third quarters are $27.6 million and $25.5,
respectively.

Vessel earnings fell in the fourth quarter compared to the preceding quarter
and time charter equivalent (or TCE) revenues decreased by $7.9 million due
to a fall in TCE rates partially offset by an increase in trading days. This
decrease was offset by a fall in operating costs of $1.1 million, which was
primarily attributable to a decrease in dry docking costs - three vessels dry
docked in the third quarter compared with one vessel in the fourth quarter.

Cash and cash equivalents decreased by $36.6 million in the fourth quarter.
The main cash movements were the payment of $65.3 million in respect of the
Company's newbuilding program, $46.2 million received from the sale theKSL
Baltic
and the repayment of debt of $11.4 million. In addition, $6.2 million was used
in operations.

Agreement on amended financing terms

Over the last 12 months, Golden Ocean has taken several measures to preserve
its liquidity position, including postponement of newbuilding deliveries,
sale of vessels, sale of newbuildings and sale and leaseback agreements. In
light of the continued weak freight markets, the Company has been exploring
additional measures to further preserve and improve its liquidity position to
better position the Company through the current market cycle.

The Company is, therefore announcing further proactive measures to strengthen
its balance sheet, including amendment of all debt facilities, positive
discussions with yards about further postponements of newbuilding deliveries,
and a new equity issue. The refinancing would create a comfortable liquidity
position while preserving an attractive and leveraged exposure to the dry
bulk market. The agreement with the banks is conditional upon the company
raising USD 200 million in new equity.

The agreement with the Company's lenders clearly demonstrates the strong
support the Company has from its bank relationships. This, together with the
support from the main shareholder, who have indicated support for subscribing
at least to its pro rata share in the private placement, puts the Company in
a strong position to manage the current down turn in the dry bulk market.

The full report is available in the link below.

February 18, 2016

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 41

Birgitte Ringstad Vartdal: CFO Golden Ocean Management AS
+47 22 01 73 53

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking
statements. The Private Securities Litigation Reform Act of 1995 provides
safe harbor protections for forward-looking statements, which include
statements concerning plans, objectives, goals, strategies, future events or
performance, and underlying assumptions and other statements, which are other
than statements of historical facts. Words such as "believe," "anticipate,"
"intends," "estimate," "forecast," "project," "plan," "potential," "may,"
"should," "expect," "pending" and similar expressions identify
forward-looking statements. The forward-looking statements in this press
release are based upon various assumptions. Although we believe that these
assumptions were reasonable when made, because these assumptions are
inherently subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, we cannot
assure you that we will achieve or accomplish these expectations, beliefs or
projections. The information set forth herein speaks only as of the date
hereof, and we disclaim any intention or obligation to update any
forward-looking statements as a result of developments occurring after the
date of this communication.

In addition to these important factors and matters discussed elsewhere herein,
important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include the
strength of world economies, fluctuations in currencies and interest rates,
general market conditions, including fluctuations in charter hire rates and
vessel values, changes in demand in the dry bulk market, changes in our
operating expenses, including bunker prices, drydocking and insurance costs,
the market for our vessels, availability of financing and refinancing,
changes in governmental rules and regulations or actions taken by regulatory
authorities, potential liability from pending or future litigation, general
domestic and international political conditions, potential disruption of
shipping routes due to accidents, political events or acts by terrorists, and
other important factors described from time to time in the reports filed by
the Company with the Securities and Exchange Commission.

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

4th Quarter and FY 2015 results
http://hugin.info/132879/R/1987158/729282.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Golden Ocean Group Limited via Globenewswire

HUG#1987158

Författare WKR

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