Long term time charter contracts

Golden Ocean Group Limited has fixed out on time charter the Capesize vessel M/V Channel Navigator (172,000 dwt, built 1997). The vessel will be delivered to the Charterer by the end of April 2009 for a five years time charter contract.

The agreed daily time charter hire is $53,500 less 3.75% total commission.   The cash break even for the vessel is $16,000 per day. 

The company has also fixed out on time charter one of the Jinhaiwan Capesize newbuildings. 

The vessel will be delivered to the Charterer during the second half of 2009 for a 10 years time charter contract.   

The agreed daily time charter hire is $40,500 less 3,75% total commission. The cash generated from this charter is expected to write down the investment to zero in less than seven years.  The Charterer has been granted an option to purchase the vessel for $92 million on completion of the charter party.

These transactions will further strengthen the Company's long term commitment to deliver a high return to their shareholders including a solid dividend. 

Source:Transportweekly