OSLO (Reuters) - Bermuda-based bulk shipping company Golden Ocean posted a bigger than expected rise in its underlying third-quarter net profit yesterday, and said it aimed to reduce, postpone or refinance its $1.6 billion shipbuilding programme.

Though profits beat expectations, partly because much of Golden Ocean's fleet is on long-term charter, bulk shipping has been hit hard by the global economic downturn, with daily rates plunging in a market hurt by persistent overcapacity.

"The market is almost non-existent," said chief executive Herman Billung.

Underlying net profit, which excludes one-off items, rose to $64.3 million in the three months from $30 million in the same period of 2007.

The result beat the range of forecasts of $34.6 million to $59.6 million given in a Reuters survey of nine analysts.

But the company said it would not pay a third-quarter dividend. It paid a dividend for the same quarter last year of 50 cents a share gross, 36 cents net, according to Reuters data.

"During the third quarter of 2008 the dry bulk sector witnessed a sharp downward trend," Golden Ocean Group said in a statement.

Net profit, including one-off gains of $54.4 million, rose to $118.7 million in July-September from $52.9 million, beating all forecasts in the survey.

Daily spot market rates for Capesize vessels dropped to $41,159 per day by the end of the quarter from $157,323 per day at the start of the quarter, Golden Ocean said. Rates for Panamax vessels fell to $19,294 from $76,393, it said.

Over-capacity remains a problem for dry-bulk shippers.

"The utilisation of the total dry-bulk fleet is estimated to be around 80-85 percent and it is believed that more than 20 percent of the Capesize fleet is idle and waiting for employment," Golden Ocean said.

"Well into the fourth quarter the effect of the financial crisis has reached the dry bulk industry with full strength."

"We are concerned that the structural overcapacity which is recognised in the dry bulk market today combined with the weak global economic conditions will continue to put pressure on the market in the period to come," it said.

Golden Ocean said it had entered talks with shipyards to alter its vessel building contracts, to reduce, postpone or achieve financing for parts of the programme and improve the company's liquidity position.

The company said it was in a "good dialogue" with banks to achieve a total financing package which could make it less vulnerable to market weakness.

"Such a package will, however, be dependent on cancellation and/or postponement of part of the (30-vessel) newbuilding programme," Golden Ocean said.

Golden Ocean said it had taken a more than five percent stake in US-listed Navios Maritime Holdings.