GOGL - Fourth Quarter and Preliminary Year End 2014 Results

Highlights
· Golden Ocean generates fourth quarter 2014 and 2014 EBITDA* of $69.7 and $128.8 million, respectively
· Golden Ocean reports loss of $135.1 million for the fourth quarter of 2014 and loss of $135.6 million for 2014
· While the underlying operation in Q4 has been in line with Q3, the Company has taken a non-cash impairment on owned vessels of $116.6 million due to drop in asset values and non-cash impairment related to leased assets of $66.7 million and reversed lease obligations of $51.5 million 
· The Company announced the agreement to merge with Knightsbridge Shipping Limited in October 2014
· The Company obtained favourable final awards on four appeals in High Court in London in December 2014 and the Company received $72 million in refund of instalments and interest from Jinhaiwan in January and February 2015
· In December 2014 the Company completed a financing of 19 vessels at attractive terms

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

Fourth Quarter and Preliminary Year End 2014 Results
Golden Ocean Group Limited (the "Company" or "Golden Ocean") reports loss of $135.1 million and loss per share of $0.30 for the fourth quarter of 2014. This compares with loss of $11.6 million and loss per share at $0.03 for the third quarter of 2014. Total operating revenues for the fourth quarter were $53.0 million and total operating expenses were $235.4 million including $183.3 million in impairment charges. Other gains/losses net were positive with $56.4 million, including $51.5 million in reversal of lease obligations. Net financial items were negative with $9.0 million.
The loss for the period of $135.1 million is an increase in loss of $123.4 million compared to last quarter. Net operating income is down by $120.6 million and net financial items are down by $2.7 million. The changes are largely explained by the impairment charge and reversal of lease obligation in the quarter. The Company has also booked a gain of $8.8 million in relation to refundable installments of cancelled newbuildings as the Company obtained positive award on interest payments for two contracts in December 2014. When excluding one-off items of impairment, reversal of liability and profit in relation to the receivable from Jinhawan, the net operating income is at the same level in the fourth quarter as in the third quarter. The net financial cost increased in the fourth quarter relative to the third quarter as the interest rate swaps had a negative mark to market change in the quarter.