Golden Ocean Group

Earnings Release • Nov 24, 2015

GOGL - Third Quarter 2015 Results

GOGL - Third Quarter 2015 Results

Highlights

·         The Company reports negative EBITDA of $3.6 million for the third

quarter of 2015

·         The Company reports a net loss of $40.7 million and a loss per share

of $0.24 for the third quarter of 2015.

·         The Company reports a net loss of $151.6 million and a loss per share

of $1.05 for the nine months ended September 30, 2015.

·         In August 2015, the Company took delivery of, and sold, one Capesize

newbuilding further to an agreement entered into in April 2015.

·         In September 2015, the Company took delivery of one Capesize

newbuilding.

·         During the quarter; the Company completed the sale and lease back

transaction with Ship Finance for eight Capesize vessels and repaid related bank

debt of $188.9 million.

·         During October, the Company and the yards have agreed to postpone the

delivery of three newbuildings from 2015 to 2016, with a total delay of 14

months.

·         In November, the Company has entered into an agreement to convert two

Capesize newbuilding contracts to Suezmax newbuilding contracts, and on November

23, 2015, agreed to sell these newbuilding contracts to Frontline Ltd.

Third Quarter 2015 and Nine Months Results

The Company reports a net loss of $40.7 million and a loss per share of $0.24

for the third quarter compared with a loss of $35.5 million and a loss per share

of $0.21 for the preceding quarter. The net loss in the third quarter includes

(i) a loss of $2.3 million on sale of the Capesize newbuilding, Front Atlantic,

and (ii) a vessel impairment loss of $7.1 million. If these two items are

excluded, the adjusted loss in the third quarter is $31.3 million. The net loss

in the second quarter includes a loss adjustment to the bargain purchase gain of

$2.1 million. If this item is excluded, the adjusted loss in the second quarter

is $33.5 million.

Vessel earnings improved in the third quarter compared to the preceding quarter

and time charter equivalent (or TCE) revenues increased by $13.4 million due to

an improvement in TCE rates partially offset by a decrease in trading days. This

increase, however, was offset by (i) increased mark to market losses on interest

rate hedges of $5.0 million, (ii) increased operating costs of $2.6 million (of

which $1.8 million is attributable to an increase in dry docking costs - three

vessels dry docked in the third quarter compared with one vessel in the

preceding quarter) and, (iii)  increased charter hire expense of $7.4 million

(of which $4.6 million is attributable to the eight vessels sold to, and leased

back from, Ship Finance International Limited, or Ship Finance, and $1.9 million

is attributable to a loss provision for onerous time charter contracts).

Administrative expenses and net interest expense decreased by $1.7 million and

$1.9 million, respectively, compared to the preceding quarter.

The Company has recorded a vessel impairment loss of $7.1 million in the third

quarter. This loss relates to three of the four Capesize newbuildings, which the

Company agreed to sell to in April 2015. The Company completed the sale of one

of these newbuildings, Front Atlantic, in August and recorded a loss on disposal

of $2.3 million.

Cash and cash equivalents increased by $56.0 million in the third quarter. The

main cash movements were the payment of $114.1 million in respect of the

Company's newbuilding program, $318.8 million received from the sale of vessels

and the payment of $12.3 million for investments. The Company increased bank

borrowings by $53.6 million (net of debt fees paid) and repaid debt of $199.7

million.

The full report is available in the link below.

November 24, 2015

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

Forward-Looking Statements

Matters discussed in this press release 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 press release 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.

[HUG#1968927]