Golden Ocean Group Limited [NASDAQ: GOGL] disclosed that it has decided to sell two of its older Panamax vessels. The two vessels which the firm is going to sell are Golden Opportunity and Golden Endurer. GOGL also revealed that it has inked an agreement to build four Kamsarmax vessels.
Golden Ocean pledged to retain one of the largest and most advanced fleets in the industry through its fleet restoration and development program. The step of the firm will allow the firm to make substantial cash flows in what it contemplates is an essentially strong dry bulk market outlook. These two transactions which the firm disclosed not only grow its fleet size but also continue to enhance the fuel efficiency of the fleet. It will guarantee best-in-class performance at a decreased carbon footprint.
Construction of Four Kamsarmax Vessels
The four Kamsarmax vessels are 85,000 dwt ECO-type and are being built at the foremost Chinese shipyard where the firm presently owns three vessels under construction with the same design. It offers the firm extra benefits in terms of strengthening surveillance and afterward operating efficiency for sister’s vessels. The vessels will be shipped to the firm in Q3 and Q4 of 2023.
Sale of Two Panamax Vessels
It has been revealed that the total sale price of the vessels is $37.2 million. GOGL anticipates recording gain from sales of about $4.9 million in Q3 2021 and $5.0 million in Q4 2021 and obtains a net cash profit of nearly $22.2 million in Q4. The net cash profit will fund close to half of the predicted mandatory equity for the Kamsarmax vessels.
Furthermore, Golden Ocean will be balancing a portion of the cost to build the new vessels with the net profit of the sale of two older less efficient vessels done at attractive prices. The firm will continue to evaluate opportunities to divest older tonnage at currently attractive levels.