GOGL Acquires Kamsarmax Newbuilding, Long-Term Charter Contracts

Golden Ocean Group Limited reported that the Company has acquired two option two newbuilding contracts at Zhoushan Jinhaiwan Shipyard (Jinhaiwan) in China.

The vessels of 80,000 dwt will be delivered during 2011 and are "sister vessels" of the series ordered in October 2007.

The delivered cost for the vessels is estimated to be about $52 million per vessel.

Golden Ocean has already ordered 13 vessels at Jinhaiwan. The experience gained so far indicates that this yard is likely to become one of the leading yards in China going forward.

The Company has also fixed out on time charter four of the Kamsarmax vessels with delivery in 2010 and 2011 for a period of 10 years. The time charter rate is $24,500 per day on the 2010 deliveries and $24,000 per day on the 2011 deliveries, both less 5 % total commission. These contracts will write the vessels down to zero over the charter party period.

Golden Ocean does still have four of its ten firm Kamsarmax vessels open, with an option to declare two additional units from the yard.

The combination of the competitive price on the newbuildings and the long term charters will secure Golden Ocean's continued growth and at the same time able the Company to deliver long term high return to their shareholders including solid dividends.