Benzinga | Oct 11, 2021 06:39AM EDT

Golden Ocean Sells Two Panamax Vessels For $37.2M; Inks Agreement To Construct Four Kamsarmax Vessels

* Golden Ocean Group Ltd (NASDAQ:GOGL) sold two older Panamax vessels, Golden Opportunity and Golden Endurer, for $37.2 million and agreed to construct four Kamsarmax vessels.

* The company expects to record gain from the sale of ~$4.9 million in 3Q21 and $5 million in 4Q21 and receive net cash proceed of ~$22.2 million in Q4.

* The net cash proceeds will fund close to half of the required equity for the Kamsarmax vessels. The balance will be financed by cash on hand and long-term debt financing to be secured closer to delivery.

* Golden Ocean held cash and equivalents of $174.8 million as of June 30, 2021.

* The four Kamsarmax vessels are 85,000 dwt ECO-type and are being constructed at a Chinese shipyard. The company expects delivery in the third and fourth quarters of 2023.

* Price Action: GOGL shares are trading lower by 1.94% at $10.13 during the pre-market session on Monday.