Golden Ocean Group Limited ("Golden Ocean" or the "Company") is
pleased to announce that the Company has entered into several
agreements concerning its fleet.
Golden Ocean has agreed with Ship Finance International Ltd
("Ship Finance") a sale leaseback transaction of eight Capesize
vessels currently owned by Golden Ocean.
The vessels are named Golden Beijing, Golden
Zhoushan, Golden Magnum, Battersea, Belgravia, Golden Zheijang,
Golden Future and KSL China and were built in Korea and China
between 2009 and 2013. The total acquisition price will be $272
million, or $34 million average per vessel. The vessels are
expected to be delivered to Ship Finance within July 2015, subject
to customary closing conditions.
The vessels will be chartered on time-charter
basis to a subsidiary of Golden Ocean for a period of 10 years. The
daily base charter rate will be $17,600 during the first seven
years, and $14,900 thereafter. In addition, there will be a 33%
profit share for revenues above the base rate, calculated and paid
on a quarterly basis. Golden Ocean will have a purchase option
after year 10 of $112 million enbloc, and if such option is not
exercised, Ship Finance will have the option to extend the charters
by 3 years at $14,900 per day. Golden Ocean has also reached
agreements with several of its yards to delay the construction of
the newbuilding contracts with about 75 months on aggregate basis.
This will postpone capital expenditure and possible cash burn on
sailing vessels as the market is currently below cash break even.
After this it is expected that 6 vessels will be delivered in 2015,
15 vessels in 2016 and 4 vessels in 2017. There is still work
in progress to improve delivery positions further.
Golden Ocean has also agreed to sell four of the Capesize
vessels currently under construction at a Chinese yard to a third
party. The Company will finalize the construction of the vessels
and transfer ownership to the new owner upon delivery from yard.
For three of the vessels Golden Ocean will charter the vessels back
on time charter for 6 to 12 months. The sales price is in line with
the original contract price.
Further, the Company has sold the vessels Channel Alliance and
Channel Navigator to a third party, as part of the Company's fleet
renewal. These vessels will be delivered to new owners within the
end of June 2015.
When these adjustments to the fleet have been completed the
Company will have an owned and long term chartered in fleet of 40
Capesize vessels, in addition to one owned in a JV, 10 ice class
Panamax vessels, 1 Panamax vessel, 9 Kamsarmax vessels and 9
Supramax vessels. Of the total fleet, 17 Capesize vessels and 4
Supramax vessels are newbuildings to be delivered to the Company.
Following these transactions Golden Ocean has secured financing for
all newbuilding contracts except nine vessels with delivery in 2016
and 2017 and none of the existing loan facilities are due for
refinancing before 2018.
These various initiatives are taken in order to strengthen the
cash position and balance sheet of the company in the current weak
market. Golden Ocean is not abandoning its strategy to be a much
needed consolidator within the industry, but is rather positioning
itself for interesting opportunities which are expected to be
available over the coming months.
April 27, 2015
The Board of Directors Golden Ocean Group Limited Hamilton,
Bermuda
Contact Persons: Herman Billung: CEO, Golden Ocean Management AS
+47 22 01 73 41 Birgitte Ringstad Vartdal: CFO, Golden Ocean
Management AS +47 22 01 73 53
Forward-Looking Statements Matters discussed in this
report may constitute forward-looking statements. The Private
Securities Litigation Reform Act of 1995 provides safe harbor
protections for forward-looking statements, which include
statements concerning plans, objectives, goals, strategies, future
events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts.
Golden Ocean Group Limited and its subsidiaries, or the Company,
desires to take advantage of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995 and is including
this cautionary statement in connection with this safe harbor
legislation. This report and any other written or oral statements
made by us or on our behalf may include forward-looking statements,
which reflect our current views with respect to future events and
financial performance. The words "believe," "anticipate," "intend,"
"estimate," "forecast," "project," "plan," "potential," "will,"
"may," "should," "expect" and similar expressions identify
forward-looking statements.
The forward-looking statements in this report are based upon
various assumptions, including, without limitation, management's
examination of historical operating trends, data contained in our
records and data available from third parties. Although we believe
that these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond our control, we cannot assure you that we will achieve or
accomplish these expectations, beliefs or projections. We undertake
no obligation to update any forward-looking statements, whether as
a result of new information, future events or otherwise.
In addition to these important factors and matters discussed
elsewhere herein and in the documents incorporated by reference
herein, important factors that, in our view, could cause actual
results to differ materially from those discussed in the
forward-looking statements include the strength of world economies,
fluctuations in currencies and interest rates, general market
conditions, including fluctuations in charter hire rates and vessel
values, changes in demand in the dry bulk market, changes in the
Company's operating expenses, including bunker prices, drydocking
and insurance costs, the market for the Company's vessels,
availability of financing and refinancing, changes in governmental
rules and regulations or actions taken by regulatory authorities,
potential liability from pending or future litigation, general
domestic and international political conditions, potential
disruption of shipping routes due to accidents, political events or
acts by terrorists, and other important factors described from time
to time in the reports filed by the Company with the Securities and
Exchange Commission, or the Commission.
This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
HUG#1915091
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