Golden Ocean fixes capesize vessels
John Fredriksen-controlled bulk carrier operator Golden Ocean Group says its has fixed out two out of four capesize vessels ordered last December from Daehan Shipbuilding, south Korea. A statement says: “At this stage Golden Ocean intends to keep the two first units for opportunistic trading.” The company says that the vessels have fixed for a period of 5 years at a net rate of US$36,800 per day to Goldbeam, guaranteed by Jinhui Shipping and Transportation Golden Ocean CEO Herman Billung says: "We are very pleased with this deal. The combination of the lease and the charter gives us the opportunity to build fleet and create value for our shareholders with a limited financial risk. The deal will also strengthen our company's short and medium term cash position."
Simultaneously, Golden Ocean has sold the two vessels to Ship Finance International, also controlled by John Fredriksen, based on a total delivered price of US$80 million. Upon delivery from the shipyard, the vessels will commence 15 year bareboat contracts to Golden Ocean with charter rates payable on a diminishing scale: years 1-5: US$27,450 per day, years 6-10: US$22,600 per day and years 11-15: US$19.750 per day. Including operating expenses, Golden Ocean says that it expects an average break-even rate of around USD 31.750 per day during the initial five years period. It has fixed price purchase options for each of the vessels after 5, 10 and 15 years at US$61m, US$44m and US$24m respectively. The company says: “The deal will boost Golden Ocean's cash position with US$5.5m per vessel as of delivery. The charter out deal will further secure a free positive cash generation of approximately US$1.8m per vessel per year.”
