Golden Ocean Group

Earnings Release • Nov 19, 2020

GOGL - Third Quarter 2020 Results

GOGL - Third Quarter 2020 Results

Golden Ocean Group Limited (NASDAQ: GOGL / OSE: GOGL) (the "Company" or "Golden

Ocean"), a leading dry bulk shipping company, today announced its results for

the quarter ended September 30, 2020.

Highlights

?           Net income of $39.1 million and earnings per share of $0.27 for the

third quarter of 2020 compared with net loss of $41.3 million and loss per share

of $0.29 for the second quarter of 2020.

?           Adjusted EBITDA of $76.7 million for the third quarter of 2020,

compared with $4.2 million for the second quarter of 2020.

?           Signed loan agreement in November 2020 to refinance the $425.0

million credit facility which is secured by 14 Capesize vessels at attractive

terms, lowering the daily cash break even rate for the financed vessels by more

than $1,000 per financed ship.

?           Strengthened balance sheet with cash and equivalents of $130.8

million and no debt maturities until 2023 following the aforementioned

refinancing.

?           Divested our 22.19% ownership interest in ship management company

SeaTeam Management Pte Ltd and exited commercial management agreement for seven

Handysize vessels to further focus on the Company's core activities.

?           Appointed Lars-Christian Svensen to the position of Chief Commercial

Officer of Golden Ocean Management AS effective from December 1, 2020.

?           Estimated TCE rates for the fourth quarter of 2020, inclusive of

charter coverage and calculated on a load-to-discharge basis, are:

· approximately $21,750 per day contracted for 73% of the available

days for Capesize vessels;

· approximately $12,750 per day contracted for 82% of the available

days for Panamax vessels

We expect the spot TCEs for the full fourth quarter of 2020 to be lower than the

TCEs currently contracted, due to the impact of ballast days at the end of the

third quarter as well as current weaker rates.

Ulrik Andersen, Chief Executive Officer, commented:

"The Company's results for the third quarter of 2020 demonstrate both its strong

leverage to an improving rate environment as well as the strategic advantage

gained by focusing exclusively on large vessel classes. Due to scale, fleet

composition and strong chartering capabilities, the Company was well positioned

to capture strength in both the charter and spot markets. The Company generated

a significant amount of cash flow, bolstering its balance sheet in the third

quarter of 2020. The Company also completed the expected refinancing of its

largest debt facility that was due to mature in early 2021, pushing its nearest

debt maturity to 2023. As the Company looks to 2021, it has very limited capital

expenditure requirements and significant spot market exposure, which should

allow for the continued generation of healthy cash flow."

The Board of Directors

Hamilton, Bermuda

November 19, 2020

Questions should be directed to:

Ulrik Andersen: Chief Executive Officer, Golden Ocean Management AS

+47 22 01 73 53

Peder Simonsen: Chief Financial Officer, Golden Ocean Management AS

+47 22 01 73 45

The full report is available in the link below.

Forward Looking Statements

Matters discussed in this earnings report 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. The Company desires to take advantage of the safe harbor

provisions of the Private Securities Litigation Reform Act of 1995 and is

including this cautionary statement in connection with this safe harbor

legislation. Words such as "believe," "expect," "anticipate," "estimate,"

"intend," "plan," "targets," "projects," "likely," "will," "would," "could,"

"seeks," "potential," "continue," "contemplate," "possible," "might,"

"forecasts," "may," "should" and similar expressions or phrases may identify

forward-looking statements. The forward-looking statements in this report are

based upon various assumptions. many of which are based, in turn, upon further

assumptions, including without limitation, management's examination of

historical operating trends, data contained in the Company's records and other

data available from third parties. Although the Company believes 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 the Company's control, the Company cannot

assure you that it will achieve or accomplish these expectations, beliefs or

projections. The information set forth herein speaks only as of the date hereof,

and the Company disclaims 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 the Company's view, could cause actual results to

differ materially from those discussed in the forward-looking statements

include, among other things, 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, the length and severity of the COVID-19 outbreak, the impact of public

health threats and outbreaks of other highly communicable diseases, changes in

the Company's operating expenses, including bunker prices, drydocking and

insurance costs, the market for the Company's vessels, availability of financing

and refinancing, the impact of the expected discontinuance of LIBOR after 2021

on interest rates of the Company's debt that reference LIBOR, 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

U.S. Securities and Exchange Commission, including the Company's most recently

filed Annual Report on Form 20-F for the year ended December 31, 2019.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.