Golden Ocean Group

Earnings Release • Aug 18, 2020

GOGL - Second Quarter 2020 Results

GOGL - Second 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 June 30, 2020.

Highlights

?       Net loss of $41.3 million and loss per share of $0.29 for the second

quarter of 2020 compared with net loss of $160.8 million and loss per share of

$1.12 for the first quarter of 2020.

?       Adjusted EBITDA(1 )of $4.2 million for the second quarter of 2020,

compared with $12.3 million for the first quarter of 2020.

?       Completed final eight of 23 planned installations of exhaust gas

cleaning systems ("scrubbers"), and the Company had no material capital

expenditure requirements as of the date of this report.

?       Utilized market strength in the end of the second and beginning of the

third quarter of 2020 to secure additional charter coverage. As of the date of

this report, of the remaining trading days in 2020:

?       38% of the days for Capesize vessels are covered at a rate of $18,810

per day; and

?       56% of the days for Panamax vessels are covered at a rate of $14,920 per

day

?       Estimated TCE rate for the third quarter of 2020 to be $17,960 for 74%

of owned fleet available days for Capesize vessels and $12,980 for 92% of owned

fleet available days for Panamax vessels. The numbers are based on current

fixtures and on the discharge-to-discharge basis.

?       As part of the Company's continuous focus on ESG initiatives, joined the

Getting to Zero Coalition, a powerful alliance within the maritime and other

sectors, committed to accelerating maritime shipping's decarbonization.

Ulrik Andersen, Chief Executive Officer, commented:

"While we believe that the recent improvement in rates reflects the diminishing

impact of COVID-19 on the underlying demand for dry bulk commodities,

uncertainty persists in the near term.  We have therefore increased our charter

coverage for the balance of 2020, although we maintain enough spot exposure to

meaningfully participate in the strong rate environment expected for the

remainder of the year. This balanced commercial approach will ensure healthy

continued cash flows and a corresponding increase in our liquidity.

Additionally, the significant one-off capital expenditures related to scrubber

installations and the non-cash impairments that impacted our results in the

first half of the year are behind us. It means the recent market strength will

directly benefit our second-half cashflow and results."

The Board of Directors

Hamilton, Bermuda

August 18, 2020

Questions should be directed to:

Ulrik Andersen: Chief Executive Officer, Golden Ocean Management AS

+47 22 01 73 53

Per Heiberg: 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 our records and other data

available from third parties. 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, 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 our

operating expenses, including bunker prices, drydocking and insurance costs, the

market for our vessels, availability of financing and refinancing, the impact of

the expected discontinuance of LIBOR after 2021 on interest rates of our 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 our 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.