Unfavourable asset prices are ­hampering Golden Ocean Group’s ambition to focus solely on capesize and panamax bulkers.

The Oslo and Nasdaq-listed shipowner ditched its handysize ­bulkers last quarter and still owns two ultramaxes, but any attempt to reduce its exposure to the segment is on the back burner.

Chief executive Ulrik Andersen told TradeWinds that its Japanese-­built ultramaxes will stay where they are for now.

“We would consider selling the two vessels if we achieve an acceptable return doing so, but asset prices are, generally speaking, under ­pressure, making a trans­action ­difficult,” he said.

“We keep monitoring all possibilities. While they may fall out of our primary vessel classes, they are high-quality, modern vessels that we believe can generate acceptable returns given the market ­outlooks.”

Golden Ocean also has a geared supramax on time charter, but the contract expires next year and “will not be extended unless the optional periods are in the money”, Andersen said.

The 58,068-dwt Golden Hawk (built 2015) has been on long-term charter from Doun Kisen of Japan and operates in the spot market.

The company has two owned ultramaxes, the 60,263-dwt geared vessels Golden Cathrine and Golden Cecilie (both built 2015).

Data from VesselsValue and Mari­time Strategies International (MSI) shows that the current ­market value of a five-year-old supramax is 11% below what it was at this point in 2019.

Both online platforms estimate the fair market value of the Golden Cathrine and Golden Cecilie at $17.1m per vessel.

However, MSI forecasts that this value will fall to $15.6m in the first six months of 2021.

Last year, a five-year-old supramax built to the same specification as the Golden Ocean sisterships would have been valued at $19.9m on average, according to MSI. ­However, comparative vessels are valued 11% lower at $17.7m this year.

VesselsValue estimates that a five-year-old, 60,000-dwt supramax is worth $17.04m, which is 11% lower than a year ago.

Golden Ocean exited commercial management agreements for seven handysize bulkers in the third quarter, to focus on owning and managing larger vessels.

Its exposure to smaller bulker segments today consists of the three ultramaxes, among a 78-vessel fleet that also comprises 46 capesizes and 29 panamaxes.

After turning a profit in the third quarter, Andersen hailed the result as being down to the company’s “strong leverage to an improving rate environment as well as the strategic advantage gained by focusing exclusively on large vessel classes”.

Golden Ocean's third-quarter result
  • Golden Ocean booked net profit of $39.1m and earnings per share of $0.27 for the third quarter.
  • This, however, was not enough to offset the net loss of $202m it recorded during the first six months.
  • Golden Ocean’s board has decided not to declare a dividend for the third consecutive quarter, “due to the uncertain and evolving nature of near-term expectations”.
  • Ebitda of $76m and earnings per share were well ahead of analysts’ expectations. The consensus had expected Ebitda of $58m and earnings per share of $0.03.

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