Golden Ocean buys two ice class Panamax newbuilds

MAY 27, 2013 — John Fredriksen controlled dry bulk specialist Golden Ocean Group Limited reports that it has entered into an agreement to buy two ice class Panamax vessel resales built by Indian shipbuilder Pipavav Defence & Offshore Engineering Company.

Golden Ocean will take delivery of the vessels ex shipyard, the first vessel at the start of June and the second vessel during second half of 2013. In connection with the purchase the seller has provided a 30 percent seller’s credit towards Golden Ocean for each vessel. The seller’s credit will be repaid over three years in equal installments every January, but the first installment is at earliest six months after delivery of the vessel. The vessels will be named Golden Pearl and Golden Diamond.

The vessels were not  part of the company’s construction program at the yard and are bought from third parties.

Golden Ocean has at the same time obtained regular bank financing of 65% of the contract price. Thus the initial cash payment for the company in 2013 is limited to 5% of the purchase price for each of the vessels.

Golden Ocean says the price of the vessels “reflects the current market price, bearing in mind the additional requirements for an ice class vessel.”

The company will in have a total of nine fairly identical ice class vessels once these are delivered and sees this as an attractive niche.

“Since the first ice class vessel was delivered to Golden Ocean five years ago,” says the company, “we have been able to achieve a premium compared to the prevailing spot market during the winter season and we are serving some of our most important clients to their satisfaction.”