GOGL - Interim Results for the Third Quarter
and Nine Months ended September 30, 2010

23-11-2010

Highlights

• Golden Ocean reports profit of $41.7 million and earnings per share of $0.09 for the third quarter of 2010
• Golden Ocean reports profit of $92.4 million and earnings per share of $0.20 for the interim nine months result
• Golden Ocean announces dividends of $0.05 per share for the third quarter of 2010
• In September 2010, Golden Ocean entered into a restructuring agreement at Jinhaiwan. The Company agreed to build two new ice class panamaxes, to obtain reduced cost on one Cape and the six vessels earlier structured in single purpose companies.
• In September 2010, Golden Ocean cancelled the newbuilding contract for Golden Changi at Daehan
• In July 2010, Golden Ocean took delivery of the newbuilding Golden Eminence from Jinhaiwan
• In July 2010, Golden Ocean sold and delivered Golden Future to Knightsbridge Tankers Limited
• In September 2010, Golden Ocean took delivery of Golden Zhejiang. The vessel was sold to Knightsbridge with delivery in October 2010

Third Quarter and Interim Nine Months Results

Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports profit of $41.7 million and earnings per share of $0.09 for the third quarter of 2010. This compares with profit and earnings per share of $75.8 million and $0.17 respectively for the third quarter of 2009. Total operating revenues for the third quarter were $86.0 million, total operating expenses were $59.8 million and net other gain was $20.6 million. The Company reports profit of $92.4 million and earnings per share of $0.20 for the interim nine months result. This compares with profit and earnings per share of $193.7 million and $0.49 for the interim nine months result in 2009.

The operating revenues were reduced with $40.5 million from the second quarter 2010, while the operating expenses (including depreciation) were reduced by $33.6 million from the second quarter. The reduction in gross numbers is due to lower trading activity in the quarter. Adjusted for the net gain reported in the second quarter received from Transfield of $6.2 million, the operating result before other gain/loss is at the same level. The trading result for the third quarter was -$2.6 million. After reversal of the provision made in last quarter of $3.7 million, the net contribution from trading in the result for this quarter was $1.1 million. Other net gain of $20.6 million is primarily due to the reversal of impairment recorded in 2008 of $16.8 million, gain on sale of Golden Future of $5.0 million and a provision for loss on sale of Golden Zhejiang of $1.5 million. The net other income/expenses is -$5.1 million compared with -$5.6 million in second quarter 2010. The interest expense net of capitalized interest is at the same level as the second quarter. The Company has booked dividends received from Knightsbridge Tankers Limited of $0.7 million and booked a loss on mark-to-market value of interest rate hedges of -$1.0 million.

Cash and cash equivalents decreased by $2.7 million during the quarter. The Company generated cash from operating activities of $36.7 million and used $19.6 million in investing activities. Investing activities include part payments on new buildings of $74.1 million and net proceeds from sale of vessels of $47.2 million. The Company used $19.9 million on financing activities during the quarter. This includes proceeds from the long term debt of $60.6 million, repayment of debt of $54.7 million (of which $7.6 million was regular installments and $47.1 million on vessel sold) and dividend payment of $22.9 million.

The full report is available at: www.goldenocean.no

Golden Ocean Group Limited