Golden Ocean Group

Earnings Release • Aug 27, 2014

GOGL - Second Quarter and First Half Year 2014 Results

GOGL - Second Quarter and First Half Year 2014 Results

Highlights

·           Golden Ocean generates second quarter 2014 EBITDA* of $23.2 million

·           Golden Ocean reports profit of $1.0 million for the second quarter

of 2014

·           Golden Ocean announces dividends of $ 0.025 per share for the second

quarter of 2014

·           The Company took delivery of three 2012-built Kamsarmax vessels in

the second quarter of 2014

·           The Company took delivery of the ice class Panamax vessel Golden

Ruby in May 2014

·           The Company received in second quarter $5.3 million on a claim for

default of a charter contract

-           The Company received refund of instalments and interest from

Jinhaiwan of $56.2 million in the second quarter of 2014

-           The Company received additional $47.4 million in refund of

instalments and interest from Jinhaiwan in July 2014

*EBITDA is equal to operating profit plus depreciations (including impairment

related to vessels) and amortisation.

Second Quarter and First Half Year 2014 Results

Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports profit of

$1.0 million and earnings per share at par for the second quarter of 2014. This

compares with profit and earnings per share of $10.1 million and $0.02

respectively for the first quarter of 2014. Total operating revenues for the

second quarter were $72.8 million; total operating expenses were $64.3 million

and other gains/losses net were positive with $2.5 million. Net financial items

were negative with $10.0 million.

The profit for the period of $1.0 million is a decrease of $9.1 million compared

to last quarter. Net operating income is down by $7.4 million while net

financial items are down by $1.7 million. When excluding one-off items the

earnings on the fleet is down by $5.5 million. This is mainly related to lower

earnings in the spot market during the second quarter of 2014, compared to the

earnings in the first quarter. A few vessels finished profitable charters during

the quarter but at the same time the recently purchased second hand vessels

contributed positively to the quarter. The net financial cost is higher compared

to last quarter due to the interest allocated to the convertible bond for a full

quarter as well as negative mark-to-market development on the Company's interest

rate swaps.

Changes in one-off items relative to last quarter are negative with approximate

$1.8 million. These one-offs includes revaluation of refundable installments on

newbuildings (+$10.5 million), negative mark-to-market on FFAs (-$8.5 million)

and compensation for default of a charter contract (+$5.3 million).

Cash and cash equivalents decreased by $122.1 million during the quarter. The

Company generated cash from operating activities of $5.0 million during the

quarter. Restricted cash decreased with $9.3 million. The Company purchased four

vessels with a total cost of $128 million in the quarter and settled the payment

of the 50% shares of Golden Magnum Inc. The Company paid $6.6 million in the

quarter for dry-dock expenses related to four vessels. The Company received

$56.2 million from Jinhaiwan. Financing activities were negative with $46.5

million in the quarter. Repayment of debt, interest and financing charges

amounted to $29.9 million, including $20.2 million related to the Jinhaiwan

refunds, and dividends declared for first quarter of 2014 results were paid with

a total of $11.2 million.

The full report is available in the link below.

August 27th, 2014

The Board of Directors

Golden Ocean Group Limited

Hamilton, Bermuda

Questions should be directed to:

Herman Billung: CEO Golden Ocean Management AS

+47 22 01 73 41

Birgitte Ringstad Vartdal: CFO Golden Ocean Management AS

+47 22 01 73 53

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1851353]