Golden Ocean reports Q1 2013 results
Golden Ocean Group Limited reports profit of $9.3 million and Golden Ocean Group Limited reports profit of $6.8 million and earnings per share of $0.015 for the first quarter of 2013. This compares with profit and earnings per share of $9.3 million and $0.02 respectively for the fourth quarter of 2012. Total operating revenues for the first quarter were $54.4 million, total operating expenses were $44.8 million and other gains/losses net were positive with $1.8 million. Net financial items were negative with $4.7 million, said in the company's press release.
The profit for the period of $6.8 million is a decrease of $2.5 million compared to last quarter. The operating revenues decreased by $1.5 million, and the operating expenses increased by $3.5 million. Total other gains/ (losses) net increased by $2.3 million. This leads to a decrease in operating income of $2.7 million. The decline in operating income was expected as some charter parties expired at the end of 2012 and the earnings in the spot market have been lower than the vessels earned on their previous contracts. The spot market for Capesize vessels was also lower in the first quarter of 2013 than the fourth quarter of 2012, giving lower earnings for the two Capesize vessels trading in the spot market. Lastly, the prepayment of hire received during 2012 also gave a small reduction in revenue for the involved vessels.
Cash and cash equivalents decreased by $21.2 million during the quarter. The company generated cash from operating activities of $6.3 million during the quarter and the change in restricted cash was positive with $2.1 million. The Company paid $5.3 million in installments and other predelivery costs in the quarter. Financing activities were negative with $24.6 million in the quarter. Ordinary and extraordinary repayments of long term debt amounted to $20.6 million.
