Golden Ocean Group Limited demerged from Frontline Ltd. ("Frontline") in the end of 2004 and was listed on the Oslo Stock Exchange 15 December, 2004.
In February 2005, Golden Ocean Group established a wholly owned subsidiary, Golden Ocean Management AS, which conducts all operation activities on behalf of the Company. Mr. Herman Billung was employed as the Managing Director.
During the spring of 2005 Golden Ocean Management AS built up its own commercial team with considerable experience from dry cargo chartering (physical and financial) and management.
In the fall of 2005 Golden Ocean Group Limited opened up an office in Singapore in order to have a foothold in the vital Far Eastern market place. To head up the office, Golden Ocean employed Mr. Anders Zorn. Golden Ocean Management Asia Pte. Ltd. is a fully integrated part of Golden Ocean’s commercial activities with a focus on local business development.
In August 2006 Golden Ocean completed a private placement of 24.500.000 shares placed at subscription price of NOK 5,25 per share. The proceeds from the offering were used to fund several strategic investments.
In December 2007 Golden Ocean completed a USD 200 million convertible bond offering. The proceeds from the bonds were used as part-financing of the company’s new building program.
From 2005 onwards Golden Ocean Group Limited entered into various contracts of long- and short-term timecharters, contracts of new buildings and financial instruments. The company grew rapidly and established a position as a major player in the Capesize and Panamax markets.
During the fall of 2008 and into 2009 the freight rates drops significantly and Golden Ocean Group Limited experience that several of its counterparts were not willing or financially able to honor agreements. The non-performance of contracts put constraints on the company’s liquidity position and accelerated the need to seek further risk capital. A restructuring took place, where Hemen Holding Ltd purchased 2/3 of the outstanding bond issue, the company entered into restructuring agreements with the shipyards to postpone and reduce the commitment and the banks agreed to amended covenants in the loan agreements. On April 2nd 2009 a placement of 180 million shares at a subscription price of NOK 4,10 per share was completed. The placement was significantly over-subscribed.
The equity infusion combined with various agreements reached with yards and lenders to Golden Ocean Group, the existing book of long term charter out agreements and the modern fleet created a solid financial fundament for the future operation of the company. The restructured balance sheet of Golden Ocean Group Limited also puts the company in a position where it can benefit from new opportunities in the dry-bulk market.
In March 2010 the company obtained a secondary listing at the Singapore Stock Exchange. The company has already substantial operational presence in Asia and a listing in Singapore is seen as a natural next step in the corporate development.
In July and October 2010 the Company sold two Capesize vessels to Knightsbridge Tankers Limited (“KTL”). The Company received payment part in cash and part in shares in KTL. The Company obtained a share holding of 10 % of KTL.
The Company has an extensive newbuilding program and has already taken delivery of many vessels both in the Capesize and Panamax segment. As most of the vessels in the fleet are the companies own newbuildings the average age of the fleet is, and will continue to be, low.
