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Golden Ocean converts bulker order to tankers, delays more deliveries

Golden Ocean converts bulker order to tankers, delays more deliveries
Golden Ocean is delaying newbuilding deliveries and converting orders to tankers as losses continue in the third quarter.

The John Fredriksen backed shipowner reported a net loss of $40.68m in the third quarter of 2015 compared to a $6.17m loss in the same period a year earlier. Revenues in Q3 were $65.69m, up sharply from $19.37m a year earlier following its merger with Knightsbridge.

As difficult conditions continue in the dry bulk shipping market Golden Ocean said that in October it delayed three newbuildings due to be delivered in 2015 to February, March and April next year.

On Monday the shipowner entered into an agreement with China’s New Times Shipbuilding to convert two capesize newbuilds due to delivery in Q1 2017, to suezmax tanker newbuilding contracts, which were then sold to sister company Frontline. The deal reduces Golden Ocean’s newbuilding commitments by $95m and the company said it was, “pleased to see that the good cooperation with New Times and Frontline enables this transaction, which should be in the best interest of all parties involved”.

There is little sign of good news on the horizon and the company said: “Golden Ocean expects the market to be challenging also for the next six to twelve months. Rates at the current low levels are dramatic for the owners of dry bulk tonnage and there is a probability that the over supply will adjust in the prevailing market conditions.”