Golden Ocean Group

Earnings Release • May 24, 2016

GOGL - First Quarter 2016 Results

GOGL - First Quarter 2016 Results

Highlights

·         The Company reports a net loss of $68.2 million and a loss per share

of $0.22 for the first quarter of 2016. Excluding impairment, mark to market

loss on interest rate derivatives and other one-off effects, the net loss is

$41.5 million.

·         In January 2016, the Company took delivery of Golden Barnet, Golden

Bexley, Golden Scape and Golden 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, the Front 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 years

and various covenants are amended or waived

·         In February 2016, the Company completed a private placement and in

March 2016 a subsequent repair issue, which generated net proceeds of $205.4

million.

·         In March 2016, the Company entered an agreement to postpone delivery

of two Capesize newbuildings.

Preliminary First Quarter 2016 Results

The Company reports a net loss of $68.2 million and a loss per share of $0.22

for the first quarter compared with a net loss of $69.3 million and a loss per

share of $0.40 for the preceding quarter. 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. The net loss in the preceding

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 the Golden Lyderhorn, a vessel held under capital lease, (v) an

impairment loss of $4.6 million relating to the Company's investment in a joint

venture, and (vi) a mark-to-market gain on derivatives of $1.2 million. If these

items are excluded, the adjusted losses in the first and preceding quarters are

$41.5 million and $29.4 million, respectively. This deterioration in results is

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

revenues) of $13.1 million.

Cash and cash equivalents increased by $151.0 million in the first quarter. The

main cash movements were the payment of $161.7 million in respect of the

Company's newbuilding program, $48.1 million received from the sale the Front

Caribbean and the two newbuilding contracts sold in the prior quarter, the net

draw down of debt of $95.0 million and the net proceeds from the private

placement of $205.4 million. In addition, $21.6 million was used in operations.

The full report is available in the link below.

The Board of Directors

Golden Ocean Group Limited

Hamilton, Bermuda

May 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.

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