Golden Ocean Group

Earnings Release • Aug 15, 2019

GOGL – Second Quarter 2019 Results

GOGL – Second Quarter 2019 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, 2019.

Highlights

* Net loss of $33.1 million and loss per share of $0.23 for the second quarter

of 2019, which includes $13.3 million in mark to market losses on

derivatives, compared with net loss of $7.5 million and loss per share of

$0.05 for the first quarter of 2019

* Adjusted EBITDA of $21.5 million for the second quarter of 2019, compared

with $36.0 million for the first quarter of 2019

* Declared four options for scrubber installations, increasing the total

number to 23 installations

* Completed refinancing of the non-recourse loans for 14 vessels, reducing

interest expense and cash break-even levels

* Invested in Singapore Marine, a dry bulk freight operator

* Entered into a non-binding term sheet together with Trafigura and Frontline

to establish a JV for supply of marine fuels

* Announced a cash dividend of $0.10 per share for the second quarter of 2019

Birgitte Ringstad Vartdal, Chief Executive Officer of Golden Ocean Management

AS, commented:

"Following a weak first half of the year, the third quarter has started off on a

very strong note. Increased iron ore volumes and supply imbalances, combined

with fewer vessels in the market due to scrubber installations have led to a

dramatic turnaround in the market, which we expect will improve our third

quarter results. The upcoming IMO2020 regulations are widely expected to

positively impact the market and create a further competitive advantage for

owners with modern, fuel-efficient fleets. There may also be supply chain issues

that constrain supply of compliant fuels for some owners. We believe the scale

of our fleet will again benefit us and that our joint venture with Trafigura and

Frontline will further strengthen our ability to source competitively priced

bunker fuel of good quality when and where we need it."

Per Heiberg, Chief Financial Officer of Golden Ocean Management AS, commented:

"The weak second quarter results were negatively impacted by losses on our

portfolio of derivatives of  $13.3 million as falling U.S. forward interest

rates affected our interest rate hedges and improvement in freight rates late in

the quarter partially reversed the unrealized gains on our FFA hedges in

previous quarters. These losses coincided with a heavy drydocking schedule

during the second quarter, which increased operating expenses. Excluding these

effects, we managed to limit the influence of the weak market by delivering an

average TCE rate above the market indexes for all of our vessel classes."

The Board of Directors

Hamilton, Bermuda

August 15, 2019

Questions should be directed to:

Birgitte Ringstad Vartdal: 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 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," "anticipate," "intends," "estimate,"

"forecast," "project," "plan," "potential," "may," "will," "should," "expect,"

"pending" and similar expressions identify forward-looking statements. The

forward-looking statements in this report 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

U.S. Securities and Exchange Commission.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.