GOGL - Sale of two Panamax vessels and agreement to construct four Kamsarmax vessels
October 11 2021 - 2:30AM
Golden Ocean Group Limited (Nasdaq and OSE:
GOGL) ("Golden Ocean" or the "Company"), one of the world's largest
listed dry bulk shipowners, today announces the sale of two older
Panamax vessels, Golden Opportunity and Golden Endurer, and an
agreement to construct four Kamsarmax vessels.
The aggregate sale price of the vessels is $37.2
million, and the Company expects to record 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.
The four Kamsarmax vessels are 85,000 dwt
ECO-type and 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
vessels. The vessels will be delivered to the Company in the third
and fourth quarter of 2023.
Ulrik Andersen, CEO of Golden Ocean Management
AS commented:
"Golden Ocean is committed to maintaining one of
the largest and most modern fleet in the industry through our fleet
renewal and expansion program 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 fuel efficiency of the fleet, ensuring best-in-class
performance at a reduced carbon footprint. Importantly, the
newbuild vessels are dual-fuel ready, which provides the Company
with the flexibility to evaluate alternatives as the visibility of
future emissions-related regulations and technology improves.
Golden Ocean will be offsetting a portion of the
cost to construct the new vessels with the net proceeds of the sale
of two older less efficient vessels done 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.“
October 11, 2021
The Board of DirectorsGolden Ocean Group Ltd.
Hamilton, Bermuda
For further queries, please contact:
Ulrik Andersen: Chief Executive Officer, Golden
Ocean Management AS+47 22 01 73 53
This information is subject of the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
Forward-looking statements:
This release and any materials distributed in connection with
this release may contain certain forward-looking statements. By
their nature, forward-looking statements involve risk and
uncertainty because they reflect the Company's current expectations
and assumptions as to future events and circumstances that may not
prove accurate. A number of material factors could cause actual
results and developments to differ materially from those expressed
or implied by these forward-looking statements.
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