GOGL orders four dual-fuel bulkers

Bermuda-registered, Norway-based dry bulk shipping company Golden Ocean Group Limited (GOGL) has decided to order four Kamsarmaxes and dispose of two older Panamaxes.

Illustration. Image by GOGL.

As disclosed, the four Kamsarmax vessels are 85,000 dwt eco-type and will be constructed at the unnamed Chinese shipyard where the company currently has three vessels under construction with the same design.

The vessels are expected to be delivered to the company in the third and fourth quarters of 2023.

What is more, GOGL will sell Golden Opportunity and Golden Endurer, built in 2008 and 2011, respectively.

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 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, according to the company.

“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,” Ulrik Andersen, CEO of Golden Ocean Management AS commented.

“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.”

Andersen added that the company will continue to assess opportunities to divest older tonnage at currently attractive levels.

Since 2016, GOGL has significantly expanded and modernised its fleet, most recently with the acquisition of eighteen dry bulk vessels.