Golden Ocean Group

Earnings Release • Aug 24, 2016

GOGL - Second Quarter 2016 Results

GOGL - Second Quarter 2016 Results

Highlights

* The Company reports a net loss of $39.2 million and a loss per share

(adjusted for the 1-for-5 reverse share split) of $0.37 for the second

quarter of 2016.

* The Company reports a net loss of $107.5 million and a loss per share of

$1.27 for six months ended June 30, 2016.

* In May 2016, the Company took delivery of one Capesize newbuilding.

* In May 2016, the owner of Golden Lyderhorn exercised their option to sell

the vessel to the Company.

* In June 2016, the Company agreed to postpone delivery of six newbuildings by

seven to nine months per newbuilding.

* In July 2016, the Company agreed to sell Golden Lyderhorn to an unrelated

third party with delivery in August.

* In August 2016, the Company effected a 1-for-5 reverse share split.

Second Quarter 2016 Results

The Company reports a net loss of $39.2 million and a loss per share of $0.37

for the second quarter compared with a net loss of $68.2 million and a loss per

share of $1.10 for the first quarter. The net loss in the second quarter

includes (i) a gain on sale of newbuildings and amortization of deferred gain of

$0.1 million, (ii) an impairment loss on a vessel held under capital lease of

$1.0 million, and (iii) a loss on derivatives of $4.9 million, mainly related to

unrealized losses on interest rate hedges. The net loss in the first quarter

includes (i) a gain on sale of newbuildings and amortization of deferred gain of

$0.1 million, (ii) an impairment loss on securities of $10.0 million, (iii) a

loss on derivatives of $12.9 million, mainly related to unrealized losses on

interest rate hedges, (iv) a loss provision of $1.8 million against

uncollectible receivables, and (v) an impairment loss of $2.1 million relating

to the Company's investment in a joint venture. If these items are excluded, the

Company reports a net loss of $33.4 million for the second quarter compared with

a net loss of $41.5 million for the first quarter. The decrease in this loss is

primarily due to the increase in vessel earnings (or time charter equivalent

revenues) of $16.2 million attributable to the improved market in the second

quarter, partially offset by an increase in charter hire expenses and an

increase in interest expense.

Cash and cash equivalents decreased by $42.8 million in the second quarter. The

main cash movements were the payment of $41.3 million in respect of the

Company's newbuilding program, proceeds from the draw down of debt of $25.0

million. In addition, $14.9 million was used in operations.

The Company reports a net loss of $107.5 million and a loss per share of $1.27

for the six months ended June 30, 2016 compared with a net loss of $110.9

million and a loss per share of $4.30 for the six months ended June 30, 2015.

The net loss in the first half of 2016 includes (i) a gain on sale of

newbuildings and amortization of deferred gain of $0.2 million, (ii) an

impairment loss on a vessel held under capital lease of $1.0 million, (iii) an

impairment loss on securities of $10.0 million, (iv) a loss on derivatives of

$17.8 million, mainly related to unrealized losses on interest rate hedges, (v)

a loss provision of $1.8 million against uncollectible receivables, and (vi) an

impairment loss of $2.1 million relating to the Company's investment in a joint

venture. The net loss in the first half of 2015 includes (i) an impairment loss

on vessels and newbuildings of $141.0 million, (iii) a loss on derivatives of

$0.5 million, and (iii) a bargain purchase gain of $78.9 million. If these items

are excluded, the Company reports a net loss of $74.8 million for the first half

of 2016 compared with a net loss of $48.3 million for the first half of 2015.

The increase in this loss is primarily due to the decrease in vessel earnings of

$29.1 million attributable to the full impact in the first half of 2016 of the

merger with the Former Golden Ocean compared with only three months in the first

half of 2015 and poor market conditions.

The full report is available in the link below.

The Board of Directors

Golden Ocean Group Limited

Hamilton, Bermuda

August 24, 2016

Questions should be directed to:

Birgitte Ringstad Vartdal: CEO, Golden Ocean Management AS

+47 22 01 73 53

Per Heiberg: CFO, Golden Ocean Management AS

+47 22 01 73 45

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. 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 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

Securities and Exchange Commission.

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.