May 24, 2016 / 6:56 AM / a year ago

RPT-BRIEF-Golden Ocean Q1 operating loss as expected, sees better Q2

(RPT)

May 24 (Reuters) - Golden Ocean

* Q1 net loss $68.2 million (Reuters poll loss $44 million) vs loss $75 mln in Q1 2015

* Q1 operating loss $32.5 mln (Reuters poll loss 35.8 mln) vs loss $154 mln in Q1 2015

* Excluding impairment, mark to market loss on interest rate derivatives and other one-off effects, the net loss is $41.5 million

* Golden ocean sees improved operating result in the second quarter of 2016

* Golden Ocean says the market has shown some improvement so far in the second quarter relative to the extremely low levels observed in the first quarter

* Rates are still below the Company's current cash break even rates of $10,500 per day for Capesize vessels and less than $7,000 per day for the smaller sizes

* Therefore Golden Ocean says it is consistently working to further postpone delivery of the remaining newbuildings

* As of March 31, 2016, the Company had thirteen vessels under construction, of which one has been sold and will be delivered to the new owners on delivery from the yard in 2016. The Company will receive net sales proceeds of $46.2 million at time of delivery

* The Company's outstanding commitments for its thirteen newbuildings amount to $413.8 million with expected payments of $346.5 million in 2016 and $67.3 million in 2017 for expected delivery of eleven vessels in 2016 and two vessels in 2017

* Cash and cash equivalents increased by $151.0 million in the first quarter

* Utilization during the first quarter of 2016 was estimated to be around 78 pct for the dry bulk fleet overall, with Capesize utilization lower during the worst periods of the quarter

* Should the current market environment continue and demand growing at the slow pace as most analysts believe, at the same time as deliveries are postponed or canceled and scrapping keeps up, utilization will improve slowly over the coming years Source text for Eikon: Further company coverage: (Reporting By Ole Petter Skonnord)

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