SOURCE: Golden Ocean Group

April 22, 2008 02:58 ET

GOGL - Acquisition of Kamsarmax Newbuilding contracts, sale of vessel and long term time charter contract

HAMILTON, BERMUDA--(Marketwire - April 22, 2008) -

Golden Ocean Group Limited ("Golden Ocean" or "the Company") is pleased to advise that the Company has declared the options to purchase two Kamsarmax vessels at Zhoushan Jinhaiwan Shipyard (Jinhaiwan) in China.

The vessels of 80,000 dwt will be delivered during 2011 and are "sister vessels" of the series ordered in October 2007. The delivered cost for the vessels is estimated to be about $52 million per vessel.

The Company has agreed to sell the Panamax vessel "M/V Bellflower". The vessel is one of the long term time charter vessels previously acquired from Louis Dreyfus with a purchase option attached to the time charter contract. The vessel will be delivered to the Buyers within the end of February 2009 and the agreed purchase price is about $76 million net. The strike price for the option is about $22 million net and the transaction will thereby free up approximately $54 million in cash liquidity. The transaction will give a positive result of approximately $31 million, and this will be recorded at delivery of the vessel.

The company has also fixed out on time charter one of the Jinhaiwan Capesize newbuildings. The vessel will be delivered to the Charterer during the second half of 2009 for a 5 years time charter contract. The agreed daily time charter hire is $51,000 less 5% total commission. The cash generated from this time charter contract is expected to "write down" the investment to zero during the charter period.

These transactions show the Company's long term commitment to the dry bulk industry and further strengthen Golden Ocean's ability to deliver a high return to their shareholders including a solid dividend.

Hamilton, Bermuda
April 22, 2008

Contact Persons:
Herman Billung: CEO, Golden Ocean Management AS
+47 22 01 73 40

Geir Karlsen: CFO, Golden Ocean Management AS
+47 22 01 73 53

Copyright © Hugin AS 2008. All rights reserved.

Contact Information