Strong 2013 and high 2014 hopes at Golden OceanStrong 2013 and high 2014 hopes at Golden Ocean

The result improves on 2012's $11.5m profit on $227.1m operating revenues.

The company ended the year on a high, with a net income of $18.1m for the fourth quarter, up from $9.3m in the same period in 2012.

The company has received the right to payment for three cancelled vessel order at Jinhai Heavy Industries and is in the midst of arbitration to recover payments on six other cancelled newbuilding contracts at the yard. Total instalments expected to be repaid stand at $175.3m, with $43.2m debt on those instalments.

"There have not been any set backs in the arbitration process for the nine cancelled newbuilding contracts." GOGL noted in its year end results. "The company expects to receive all the refunds by the end of 2014 which will strengthen GOGL's cash position considerably."

In the company's presentation it highlighted a 13.5% growth in cola imports to China, forecasting a further 14% growth in 2014. This compares to a forecast growth of 8.5% in iron ore imports.

Predicting strong demand, coupled with fleet growth falling to around 5% for the next two years, GOGL has formed a spot-heavy medium-term strategy.

"Given most forecasters positive market outlook reflected in forward freight values (FFAs) the company intends to keep high exposure to the spot market until further notice. Presently almost the entire capesize fleet is sailing spot, while 40% of the panamax/kamsarmax fleet has cover averagely in 2014.

GOGL has an owned fleet of 22 capesize and panamax vessels, two ships on bareboat charter and eight supramaxes on order at Chengxi Shipyard and Japan Marine United Shipyard with $195.3m left to pay and no financing on the vessels.