GOGL - Golden Ocean Group Limited announces vessel transactions and adjustments to newbuilding program
(Thomson Reuters ONE) -
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.
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Golden Ocean Group Limited via GlobeNewswire
[HUG#1915091]
Datum: 27.04.2015 - 08:51 Uhr
Sprache: Deutsch
News-ID 388527
Anzahl Zeichen: 8009
contact information:
Town:
Hamilton
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 123 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"GOGL - Golden Ocean Group Limited announces vessel transactions and adjustments to newbuilding program"
steht unter der journalistisch-redaktionellen Verantwortung von
Golden Ocean Group Limited (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
