GOGL - Agreement for construction of three Kamsarmax vessels
Golden Ocean Group Limited (Nasdaq: GOGL) has announced an agreement to construct three ECO-type Kamsarmax vessels, each with a capacity of 85,000 dwt, at a leading shipyard in China. These vessels will feature advanced propulsion systems aimed at improving fuel efficiency and reducing emissions. Scheduled for delivery between Q3 2023 and Q1 2024, the project will be financed through operating cash flow and cash reserves, with long-term debt options considered nearer to the delivery date. This investment aligns with Golden Ocean's strategy to modernize its fleet while maintaining dividend capacity.
- Acquisition of three ECO-type Kamsarmax vessels to modernize fleet.
- Vessels equipped with advanced propulsion systems for improved fuel efficiency.
- Dual-fuel ready vessels allow flexibility for future technology.
- Financing through operating cash flow preserves dividend capacity.
- None.
Golden Ocean Group Limited (Nasdaq and OSE: GOGL) ("Golden Ocean" or the "Company"), one of the world's largest listed dry bulk shipowners, today announces that it has entered into an agreement for the construction of three high-specification latest generation 85,000 dwt ECO-type Kamsarmax vessels, which will be constructed at a first-class Chinese yard. The vessels will be equipped with the latest and most efficient propulsion system, contributing with significant improvements in fuel consumption and emissions performance. The vessels are dual-fuel ready, giving the Company time to evaluate alternatives while the visibility of future regulations and optimal technology improves.
The vessels are scheduled to deliver from Q3–2023 to Q1-2024. Golden Ocean intends to finance the acquisition with operating cash flow and cash on hand and will establish long-term debt financing closer to delivery.
Ulrik Andersen, CEO of Golden Ocean Management AS commented:
"With this transaction, we continue executing on our strategy of renewing the fleet and improving its operating performance. At the same time, it underlines our belief in the long-term dry bulk fundamentals.
We have secured an attractive price with a tail-heavy payment structure, which means Golden Ocean can absorb the transaction without impacting the Company's dividend capacity, which continues to be a key priority. The vessels benefit from additional cargo intake, and the superior fuel economy will ensure low operating costs and a reduced carbon footprint.
September 9, 2021
The Board of Directors
Golden Ocean Group Ltd.
Hamilton, Bermuda
For further queries, please contact:
Ulrik Andersen: Chief Executive Officer, Golden Ocean Management AS
+47 22 01 73 53
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Forward-looking statements:
This release and any materials distributed in connection with this release may contain certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they reflect the Company's current expectations and assumptions as to future events and circumstances that may not prove accurate. A number of material factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
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