Strong bulk market boosts Golden Ocean

JOHN-Fredriksen-controlled dry bulk operator Golden Ocean Group made a Q2 net profit of US$25.6m, only slightly up on last year's equivalent figure of $25.2m, on total operating revenues of $124.7m. However net operating income increased to $44.1 million compared to $31.6 million in the first quarter. In April 2007, the company acquired two newbuilding contracts at Daehan Shipbuilding Co., Ltd., South Korea and two newbuilding contracts at Zhoushan Jinhaiwan Shipyard in China. The vessels of 170,000 dwt and 176,000 dwt respectively will be delivered between December 2008 and October 2009. The total purchase price for the four units is $296m. In May 2007, the Company declared options for two newbuilding contracts at Zhoushan Jinhaiwan Shipyard in China. The vessels of 176,000 dwt are expected to be delivered in the middle of 2010. The delivered cost of the two vessels will be around $145m en bloc.