• Company Facts
  • Strategy
  • History
  • Operations

History

Golden Ocean Group Limited. ("the Company" or "Golden Ocean") is a Bermuda based dry bulk shipping company. Golden Ocean demerged from Frontline Ltd. ("Frontline") in the end of 2004 and was listed on the Oslo Stock Exchange 15 December, 2004.

Golden Ocean will focus its activities on the Capesize and Panamax markets and the Company's strategy is to become one of the leading companies within the market for transportation of dry bulk.

• In August 2006, the Company entered into an agreement with Clipper Bulk Shipping Ltd to take over the bareboat agreements for a fleet of 5 Panamax bulkers. Golden Ocean will pay USD 38.0 million in cash to take over the bareboat agreements, and will pay a daily bareboat rate for the five vessels of USD 28,000.
• In July 2006, the Company exercised its option to purchase a fourth Panamax Ice Class with delivery in Q1 2009. The agreed purchase price was USD 34,5 million.
• In July 2006, the Company purchased the Panamax M/V Rainshadow for USD 28.4 million. The vessel was simultaneously sold on back to back terms to Ship Finance International Limited with a 10 years lease back at USD 10,000 per day on bareboat for the first five years and USD 8,250 per day for the remaining five years. The vessel is expected to be delivered in August 2006.
• In June 2006, the Company purchased the 1999 built Panamax M/V Kingston Trader and simultaneously sold the vessel on back to back terms to Navigation Finance Corp (NFC) with a 10 years lease back at USD 9,300 per day on bareboat. The vessel is expected to be delivered in September 2006.
• On June 6, 2006, the Company exercised its option to purchase a third Panamax Ice Class for delivery in Q4 2008. The agreed purchase price was USD 34.5 million.
• In February 2006, Golden Ocean has signed two additional newbuilding contracts and has an option on a third Ice Class Panamax bulker from Jiangsu Rong Sheng Heavy Industries. The two signed vessels have a cost of USD 35.0 million each and the company expects delivery in Q1 and Q2 2008.
• In September 2005, Golden Ocean acquired two Capesize newbuilding contracts on vessels of 175.000 dead weight tons, to be delivered by the end of 2006 and the first half of 2007. The agreement was made at Shanghai Waigaoqiao Shipbuilding Co Ltd. in China. The agreed price was USD 59.0 million per unit. In March 2006, Golden Ocean decided to sell their two Capesize newbuilding contracts at Shanghai Waigaoqiao Shipbuilding Co Ltd. to CMB's subsidiaryBocimar International. The sale generated a net profit of approximately USD 4 million.
• On May 3, 2005, Golden Ocean announced it had entered into an agreement with Louis Dreyfus Corporation to take over the time charter commitment for a fleet of ten modern Panamax bulk carriers. Six of the vessels are to be delivered in June 2005, while the remaining four are newbuildings to be delivered during 2007. Golden Ocean is paying a lump sum of USD 143.0 million as consideration for taking over the commitments on June 1, 2005.
• In February 2005, Golden Ocean established a wholly owned subsidiary, Golden Ocean Management AS, which will have the overall responsibility of management of Golden Ocean. Mr. Herman Billung was employed as the managing director.
• In December 2004, Frontline, the Company`s former parent company, acquired newbuilding contracts for two Panamax bulk carriers of 74,500 dead weight tons, each to be delivered from the Hudong Zhonghua Shipbuilding (Group) Co. Ltd. in China in the second half of 2005. The contract price for each vessel is USD 42.0 million. Golden Ocean has an option to acquire Frontline`s interest in these newbuildings at Frontline`s cost plus Frontline`s funding expenses. Golden Ocean, in connection with the delivery of the first vessel in June 2005, exercised the purchase option for the first vessel in May 2005. The second option was declared in August 2006, and delivered in September 2006.
• In 2000, Frontline acquired a number of dry bulk vessels and related assets. A number of these assets have been divested by Frontline in the period since 2000. As of the third quarter of 2004, four pure dry bulk vessels remained in Frontline's ownership and/or control. Three of these, Channel Alliance, Channel Navigator and Irfon, are Capesize vessels while the fourth is a handymax vessel (i.e. a smaller vessel). To allow Frontline to focus on the oil tanker sector, and to best realise the value of the pure dry bulk vessels for the benefit of its shareholders, Frontline decided to organise the three Capesize vessels in a new subsidiary, Golden Ocean (incorporated 8 November, 2004) and to spin off this new subsidiary to its shareholders. On 1 December, 2004 the Board of Frontline resolved to distribute all its shares in Golden Ocean to its shareholders in the proportion to their ownership in Frontline in ratio of three (3) shares in Golden Ocean per Frontline share. Please look at the prospectus; if you need further information about the demerger.