Golden Ocean Group has signed agreements to build four more dual-fuel-ready kamsarmaxes and sell two of its older panamax bulkers.
The Fredriksen-backed bulker owner said it is selling two panamaxes for $37.2m in total.
The China-built ships are the 75,500-dwt Golden Opportunity (built 2008) and 79,474-dwt Golden Endurer (built 2011). The buyer was not disclosed.
The sales will generate around $22.2m in net cash proceeds during the fourth quarter, Golden Ocean said on Monday.
This cash will fund "close to" half of the estimated required equity for the kamsarmax newbuildings, which will be delivered in the second half of 2023, the company added.
"The balance will be funded through cash on hand and long-term debt financing to be secured closer to delivery."
Dalian
The four 85,000-dwt Eco-type kamsarmaxes will be constructed at a "leading Chinese shipyard" where Golden Ocean already has three vessels being built to the same design.
The price of the first three newbuildings was not disclosed, but brokers last month said US and Oslo-listed Golden Ocean is paying close to $34m per ship.
The shipowner said building all seven kamsarmaxes at the same yard gives "added benefits in terms of building supervision and subsequently operating efficiency for sister vessels".
The kamsarmaxes are understood to have been designed by Shanghai Merchant Ship Design & Research Institute.
What comes next
Chief executive Ulrik Andersen said the transactions, part of Golden Ocean's fleet renewal and expansion programme, position the company for "a fundamentally strong dry bulk market outlook".
"These transactions not only expand our fleet size, but they also continue to improve the fuel efficiency of the fleet, ensuring best-in-class performance at a reduced carbon footprint," he said.
"Importantly, the newbuild vessels are dual-fuel ready, which provides the company with the flexibility to evaluate alternatives as the visibility of future emissions-related regulations and technology improves."
Speaking to TradeWinds on Monday, Andersen said the time is right for Golden Ocean to up its exposure to the kamsarmax segment.
"The order book is record low, while the outlooks remain solid. In addition, adding modern future-proof tonnage allows us to sell more old tonnage without compromising our leadership in large dry bulk shipping," he said.
"The main elements of the deal were negotiated over the summer, which allowed early delivery and attractive pricing."
When the first three kamsarmaxes were ordered last month, Andersen told TradeWinds that Golden Ocean did not yet know what kind of alternative fuel would be the best option and was buying time to decide.
The shipowner saved between $10m and $12m by opting not for dual-fuel engines for the initial three newbuildings, but for vessels that can be easily retrofitted to run on other energy sources.
He said that the shipowner was able to exclusivity on the "attractive" deal because of the backing of John Fredriksen, who is Golden Ocean's largest shareholder.
Time to sell
Meanwhile, it seems Golden Ocean's selling streak is not yet over and nor is its ambition to keep paying dividends to shareholders.
"The company will continue to assess opportunities to divest older tonnage at currently attractive levels," Andersen said on Monday.
"Golden Ocean will thereby be able to continue to improve its fleet composition without impacting its dividend capacity."
He told TradeWinds that Golden Ocean thinks asset prices will continue to firm, both for newbuildings and second-hand tonnage, but his company still needs to renew and adjust its fleet.
"This year, we have purchased or ordered 25 modern vessels at reasonable average prices. Therefore, it now makes sense to divest older tonnage, which may be less attractive as the decarbonisation gathers pace," he explained.
"We will continue to improve our carbon footprint through divesting of older tonnage, and, of course, other initiatives such as digitalisation and new technologies."
He said that there is "still a lot of activity in the S&P [sale and purchase] market" and that worries surrounding China's economic situation are not having any impact on dry-cargo markets.
After the two panamaxes are delivered to their buyers, Golden Ocean's owned fleet will comprise 81 vessels on the water, comprising 48 capesizes and newcastlemax bulkers; 33 panamax and kamsarmaxes and two ultramaxes.
Including chartered-in vessels, the fleet numbers more than 100 vessels plus the seven newbuildings.
