Golden Ocean Group Limited, one of the world’s largest listed dry bulk shipowners announces the sale of two older Panamax vessels, Golden Opportunity and Golden Endurer, and an agreement to construct four Kamsarmax vessels.
Sale price
The aggregate sale price of the vessels is $37.2 million, and the Company expects to record a gain from sale of approximately $4.9 million in Q3 2021 and $5.0 million in Q4 2021 and receive net cash proceed of approximately $22.2 million in Q4.
The net cash proceeds will fund close to half of the estimated required equity for the Kamsarmax vessels. The balance will be funded through cash on hand and long-term debt financing to be secured closer to delivery.
Vessel construction
Kamsarmax vessels are being constructed at the leading Chinese shipyard with the same design, giving added benefits
The four Kamsarmax vessels are 85,000 dwt ECO-type. They are being constructed at the leading Chinese shipyard where the Company currently has three vessels under construction with the same design, giving added benefits in terms of building supervision and subsequently operating efficiency for sister's vessels.
The vessels will be delivered to the Company in the third and fourth quarters of 2023.
Fleet renewal and expansion
Ulrik Andersen, CEO of Golden Ocean Management AS commented, “Golden Ocean is committed to maintaining one of the industry's largest and most modern fleets through our fleet renewal and expansion programme and positioning the Company to generate significant cash flows in what we believe is a fundamentally strong dry bulk market outlook.”
“These transactions not only expand our fleet size, but they also continue to improve the fleet's fuel efficiency, ensuring best-in-class performance at a reduced carbon footprint. Importantly, the newbuild vessels are dual-fuel ready, which allows the Company to evaluate alternatives as the visibility of future emissions-related regulations and technology improves.”
Efficiency
“Golden Ocean will offset a portion of the cost to construct the new vessels with the net proceeds of selling two older less efficient vessels at attractive prices.”
“The Company will continue to assess opportunities to divest older tonnage at currently attractive levels. Golden Ocean will thereby be able to continue to improve its fleet composition without impacting its dividend capacity.”