World News
Golden Ocean Buys More Scrubbers, Expects Per-Vessel Bunker Savings of $5,700 per Day
Golden Ocean Group Limited [NASDAQ:GOGL] (GOGL) today said it was exercising options to fit four more of its vessels with scrubbers, predicting its Capesize vessels fitted with the technology will give a significant boost the dry bulk firm's cash generation from 2020 and onwards.
"We believe we will derive significant economic benefit from the scrubber installations, specifically using fuel spreads based on the current forward curve," Chief Financial Officer Per Heiberg said during today's Q3 2018 earnings call.
"A modern vessel with scrubber is expected to consume approximately $5,700 less of fuel on a daily basis compared to a vessel without a scrubber."
GOGL said in August it had placed an order for 16 scrubbers plus options for nine more; todays news bring that to 20 firm orders and options for 5 others.
https://shipandbunker.com/news/world/199797-golden-ocean-16-scrubbers-ordered-options-for-9-more
Thirteen of those will be installed prior to the January 1, 2020 start date for the new global sulfur cap, six in Q1 2020, and the last unit in Q2 2020.
Of the five options, one would occur in Q4 2019, two in Q1 2020, one in Q3 2020, and one in Q1 20201.
* Earnings call transcript provided in part by Seeking Alpha
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.00 | 8.50 | 779.00 | 29.50 |
| Rotterdam | 608.00 | 11.00 | 764.50 | 24.50 |
| Houston | 636.50 | 8.00 | 807.50 | 5.00 |
| Fujairah | 649.50 | 4.00 | 888.50 | 11.50 |
| Global 20 Ports Average | 665.50 | 6.50 | 870.50 | 14.50 |
| Global 4 Ports Average | 635.50 | 3.50 | 810.00 | 17.50 |
| Global Average Bunker Price | 725.00 | 2.50 | 925.50 | 8.00 |
Popular Now More
-
Apr 18Singapore's authorities are in the process of developing a regulatory framework for a methanol bunkering licence, and plan to call for applications for the licence by the end of this year. -
Apr 16The firm will acquire majority ownership of the Spanish firm for an undisclosed sum, subject to closing conditions and regulatory approvals. -
Apr 18The company is looking for candidates with at least seven years of experience, both as a trader and a manager.