Golden Ocean posts Q2 and H1 2014 results
Golden Ocean Group Limited 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 company said in its press release.
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.