Golden Ocean Group Limited reports profit of $43.5 million and earnings per share of $0.10 for the second quarter of 2013. This compares with profit and earnings per share of $6.8 million and $0.015 respectively for the first quarter of 2013. Total operating revenues for the second quarter were $104.7 million, total operating expenses were $63.5 million and other gains/losses net were negative with $1.4 million. Net financial items were positive with $3.7 million, said in the company's press release.
The profit for the period of $43.5 million is an increase of $36.7 million compared to last quarter. This increase is mainly related to the settlement of $30 million received for an old non-performing ten year charter contract and the increased value of interest rate swaps. The operating revenues increased by $50.3 million, and the operating expenses increased by $18.7 million. In addition to the settlement, higher activity on short term contracts increased both revenues and costs for the quarter. Total other gains/ (losses) net decreased by $3.2 million. This leads to an increase in operating income of $28.4 million. Except for the settlement and the interest rate swaps the results are more or less in line with the first quarter 2013.
Cash and cash equivalents decreased by $2.0 million during the quarter. The Company generated cash from operating activities of $40.2 million during the quarter and the change in restricted cash was negative with $2.4 million. The Company paid $35.2 million in installments and other predelivery costs and investments in new assets in the quarter. The Company invested $18.3 million in a Joint Venture for the purchase of the Capesize vessel Golden Magnum (financing is expected to take place within the next three months, which will reduce the investment by $11.8 million). Financing activities were positive with $13.4 million in the quarter. Ordinary repayments of long term debt amounted to $6.1 million while the Company obtained new bank financing and seller's credit related to delivery of Golden Pearl of $24.0 million.