Golden Ocean restructures newbuilding charter.
GOLDEN Ocean Group has taken steps to reduce counterparty risk for its capesize newbuilding programme by restructuring one of its long term time charters, following the shock failure of a 10-year contract last month.
The Oslo-listed company has agreed for the charterer of one of its capesizes under construction at Jinhaiwan Shipyard to pay $6m upfront to secure cash flow, and in return Golden Ocean has reduced the time charter rate by 25% to $33,050 per day.
The vessel in question is due to leave the yard this week and will then be delivered to the charterer to fulfil the five year contract.
The John Fredriksen-owned dry bulk company has today reported a 43% drop in full-year 2009 profits to $217m, compared with $380m in 2008.
Total revenue dropped by two thirds last year to $349.6m, a severe fall from $947.5m during 2008.
In contrast to the full year drop in profit, for the three months October-December 2009, total profit was four times greater than in the same period of 2008.
Total profit for the fourth quarter climbed to $24.1m, compared with $6.7m in the last three months of 2008, when the dry bulk market experienced the most severe crash in spot rates in history, with capesize hire prices dropping to just $5,000 per day.
As well as news of restructuring long term time charters, Golden Ocean has gained approval to list on the Singapore Stock Exchange in a bid to tap into the growing Asian investor market.
Although the date of the listing is not yet known, Golden Ocean anticipates it will take place in the near future.
Added to the legal proceedings of securing damage claims from the failed time charter contract of its Golden Future newbuilding capesize, the company is pursuing all claims from non performing counterparts, which represents around $60m.