Golden Ocean Group Stock

Golden Ocean Group Limited operates as an international shipping company that owns and operates a fleet of dry bulk vessels.

The company’s fleet consists of Newcastlemax, Capesize, Panamax and Ultramax vessels. Its vessels transport a range of major and minor bulk commodities, including ores, coal, grains and fertilizers, along worldwide shipping routes. Its vessels operate in the spot and time charter markets.

As of March 16, 2023, the company owned 74 dry bulk vessels and had construction contracts for ten newbuildings. Each vessel is owned and operated by one of its subsidiaries and is flagged either in the Marshall Islands, Hong Kong or Panama. In addition, the comopany had nine vessels chartered-in (of which seven and one are chartered in on finance leases and operating leases, respectively, from SFL Corporation Ltd. (SFL) and one chartered in on an operating lease from an unrelated third party). Five of the comopany’s vessels are chartered-out on fixed rate time charters, 37 of its vessels are chartered out on index linked rate time charters and the remaining 41 vessels operate in the spot market.

The company owns various vessel owning and operating subsidiaries. The company’s operations take place substantially outside of the United States. The company’s subsidiaries, therefore, own and operate vessels that may be affected by changes in foreign governments and other economic and political conditions.

Environment

The company’s Management System is ISO-compliant and in accordance with the ISM Code. The company’s Ship Energy Efficiency Management Plans (SEEMP) allows for a granular risk assessment for each individual vessel's performance, as well as providing a thorough system for reporting. Together with companies, such as Avance Gas, Flex LNG, Frontline and SFL, Golden Ocean established the ESG forum.

Business Strategy

The company’s business strategy centers around the largest sizes of dry bulk carriers (Capesize and Panamax). The company decides its fixed-paying versus spot market ratio depending on market expectations, charter rates, newbuilding costs, vessels’ resale and scrap values, and vessel operating expenses.

The company adjusts its market exposure through time charters, voyage charters, bareboat charters, sale and leasebacks, sales and purchases of vessels, and acquisitions. The company’s business strategy includes three main pillars (Simplification, Risk Management, and Decarbonization) on which it is focusing its efforts: simplification relates to the increased focus on its core business and its capabilities as a shipowner in large-size dry bulk shipping; risk management relates to its decision making on fixed-paying income versus spot exposure, as well as on enhancing transparency and accountability through clearly defined risk parameters; and decarbonization and digitalization refers to its focus on positioning the company for a low-carbon future by exploring new technologies and optimization tools.

Technical Supervision Services

The company receives technical supervision services from Frontline Management (Bermuda) Limited (Frontline Management). Pursuant to the terms of the agreement, Frontline Management receives a management fee per vessel per year. This fee is subject to annual review. Technical operations and crewing of all owned vessels are outsourced to several leading ship management companies.

Environmental and Other Regulations in the Shipping Industry

A variety of government and private entities subject the company’s vessels to both scheduled and unscheduled inspections. These entities include the local port authorities (applicable national authorities such as the USCG, harbor master or equivalent), classification societies, flag state administrations (countries of registry) and charterers, particularly terminal operators. Certain of these entities require it to obtain permits, licenses, certificates and other authorizations for the operation of its vessels.

Under Chapter IX of the SOLAS Convention, or the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention (the ISM Code), the company’s operations are also subject to environmental standards and requirements. The ISM Code requires the party with operational control of a vessel to develop an extensive safety management system that includes, among other things, the adoption of a safety and environmental protection policy setting forth instructions and procedures for operating its vessels safely and describing procedures for responding to emergencies. The company relies upon the safety management system that its managers have developed for compliance with the ISM Code. Its managers have obtained applicable documents of compliance for their offices and safety management certificates for all of its vessels for which the certificates are required by the United Nations agency for maritime safety and the prevention of pollution by vessels (IMO).

Both the U.S. Oil Pollution Act (OPA) of 1990 and the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) impact the company’s operations. The U.S. Environmental Protection Agency (EPA) and the USCG have also enacted rules relating to ballast water discharge, compliance with which requires the installation of equipment on the company’s vessels to treat ballast water before it is discharged or the implementation of other port facility disposal arrangements or procedures at potentially substantial costs, and/or otherwise restrict its vessels from entering the U.S. Waters.