Third Quarter and Interim Nine Months 2013 Results

Hamilton, Bermuda, 26.11.2013

Highlights
• Golden Ocean generates third quarter 2013 EBITDA* of $31.9 million
• Golden Ocean reports profit of $16.1 million for the third quarter of 2013
• Golden Ocean announces dividends of $0.01 per share for the third quarter of 2013
• JVs owned 50% by the Company took delivery of the Capesize vessel Golden Opus and the Handysize vessel Golden Azalea in September 2013
• The Company has cancelled two newbuilding contracts in the third quarter
• The Company took delivery of the ice class Panamax vessel Golden Diamond in October 2013
• Golden Ocean declared the options for three further Supramax newbuildings from Chengxi in October 2013
• The Company invested $10 million in Greenship Bulk Trust in October 2013
• The Handysize vessel Golden Azalea owned 50% by the Company was sold in November 2013

Third Quarter and Interim Nine Months 2013 Results
Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports profit of $16.1 million and earnings per share of $0.04 for the third quarter of 2013. This compares with profit and earnings per share of $43.5 million and $0.10 respectively for the second quarter of 2013. Total operating revenues for the third quarter were $78.8 million; total operating expenses were $62.2 million and other gains/losses net were positive with $5.5 million. Net financial items were negative with $5.9 million.

The profit for the period of $16.1 million is a decrease of $27.4 million compared to last quarter. Excluding the one off gain of $30 million in second quarter related to a settlement of a dispute, the profit is up by $2.6 million. The operating revenues decreased by $25.9 million, and the operating expenses decreased by $1.2 million. Excluding the mentioned settlement the net operating result is $5.3 million higher than previous quarter. This is mainly explained by a reversal of earlier provisions for onerous contracts, higher margin and increased volume on short term trading in the quarter. Total other gains/(losses) net increased by $6.9 million mainly due to change in profit on FFA positions of $5.5 million and bunkers hedges of $1.1 million and the remaining is due to increased contribution from Joint Ventures. Net operating income is $22.0 million, which is $17.8 million lower than previous quarter. Net financial items of $5.9 million are $9.6 million lower than in second quarter. This is mainly related to changes in fair value of the Company's interest rate hedges.

Cash and cash equivalents decreased by $7.0 million during the quarter. The Company generated cash from operating activities of $16.7 million during the quarter and the change in restricted cash was positive with $2.2 million. The Company paid $9.1 million in installments, other predelivery costs and capitalized dry-dock expenses on Golden Opportunity. The Company invested $24.5 million in Joint Ventures for the purchase of the Capesize vessel Golden Opus and the Handysize vessel Golden Azalea, while the financing of Golden Magnum reduced investment in JV's with $11.9 million. Golden Opus was financed by a short term loan in third quarter which will be replaced by a long term loan in the JV. Financing activities were negative with $5.0 million in the quarter of which $4.5 million relates to payment of the second quarter dividend. Ordinary repayments of long term debt amounted to $6.1 million.

*EBITDA is equal to operating profit plus depreciations (including impairment related to vessels) and amortisation.

The full report is available at www.goldenocean.no

Golden Ocean Group Limited press release