SOURCE: Golden Ocean Group

November 09, 2010 01:10 ET

GOGL - Sale of Golden Shadow and Long term time charter contracts

HAMILTON, BERMUDA--(Marketwire - November 9, 2010) -

Golden Ocean Group Limited ("Golden Ocean" or the "Company") is pleased to advise that the Company has entered into an agreement to sell the panamax vessel "Golden Shadow" with delivery in December 2010. The Company has also fixed out three of its ice class Panamax newbuildings on long term time charter contracts to industrial counterparties. Golden Ocean has in addition fixed out the Panamax vessel "Golden Heiwa" for two years.

Golden Ocean has entered into an agreement to sell the 1997-built Panamax vessel "Golden Shadow" at MUSD 26.7 less 2 % commission with delivery in December 2010. The vessel is currently on bareboat charter from Ship Finance International Limited ("Ship Finance") with purchase option, and the Company has agreed to buy the vessel from Ship Finance at a cost of MUSD 21.5.

The vessel was bought in 2006 for 28 MUSD and has been contributing positively to Golden Oceans result since then. The vessel is sold now as part of our effort to renew the fleet and the Company utilizes the momentum now where second hand prices are favorable to the newbuilding prices.

Golden Ocean will report a gain on sale of assets of 2.1 million on this transaction. Due to IFRS requirements the figures from Golden Shadow Inc. has been consolidated into the Company's accounts and the amount of MUSD 4.8 reported under minority interest in Equity will be reversed, and recognized as a loss on other financial items at the time of delivery of the vessel.

Two ice class Panamax vessels from Jinhaiwan (74,500 dwt) have been fixed for five years at a daily time charter rate of $ 16,988 /day net. The contract also includes two optional years, where year one has a rate of $ 17,469 /day net and year two has a rate of $ 18,047 /day net.

One ice class Panamax vessel from Pipavav (74,500 dwt) has been fixed out for five years at a daily time charter rate of $ 16,787 /day net. In addition the charterer has one optional year at a daily time charter rate of $ 17,281 /day net.

"Golden Heiwa" is fixed out for two years at a daily time charter rate of $ 20,900 /day net.

These fixtures reflect the current chartering strategy and further strengthen the Company's cash position going forward. With more or less the entire new building fleet fixed out on long term time charter contracts, Golden Ocean has a solid basis for further growth should market opportunities arise.

November 9, 2010

The Board of Directors

Golden Ocean Group Limited

Hamilton, Bermuda

This information is subject of the disclosure requirements acc. to §5- 12 vphl (Norwegian Securities Trading Act)


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Source: Golden Ocean Group via Thomson Reuters ONE

Contact Information

  • Contact Persons:
    Herman Billung:
    Golden Ocean Management AS
    +47 22 01 73 41

    Birgitte Ringstad Vartdal:
    Golden Ocean Management AS
    +47 22 01 73 53