OSLO, Feb 18 (Reuters) – Dry bulk transport agency Golden Ocean plans to boost $200 million in recent fairness, backed by its important proprietor billionaire John Fredriksen, because it continues to face weak markets for its vessels.

The share problem is a situation for refinancing whole debt obligations of round $1 billion.

Below are feedback from CEO Herman Billung throughout a fourth-quarter presentation:

ABOUT THE WEAK MARKET

“We are in a very serious situation.”

“These market circumstances usually are not sustainable for anyone however we imagine market will restore quicker than any analysts expects.

“Under present market circumstances, yards are close to break even, and retail values are much lower. I don’t think people are able to order more vessels and we expect a record low order book in 2016.”

ABOUT ORDER BOOK, SCRAPPING AND MARKET BALANCE

“The order guide was at 126 million lifeless weight tonnes (dwt) at the beginning of the yr.

“I believe there shall be large delays. I believe it’s a honest assumption that the order guide now could be 90 million dwt and it is going to be unfold out extra in time.

“25 vessels are scrapped for the yr.

“20 % of present fleet is scrapping candidates over subsequent 2-3 years.

“We all agree the market is oversupplied, utilisation is round 75 %.

“Market will stay smooth, and with earnings beneath opex (working bills) you could possibly see adverse fleet development in 2016.

ABOUT IDLING VESSELS

“We are severely contemplating this, could also be vessels on the age of 3-5 years outdated.

“I believe you will note extra of this.

“For older vessels I’m assured you will note large scrapping. (Reporting by Ole Petter Skonnord, modifying by Gwladys Fouche)

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