Stocks that Float: TANKERS & DRY BULK SHIPPERS

[xanadu90]

Hello Milner. As to GOGL, relax! Herman Billung, the CEO came out today and informed that there is no trouble with the 6 Panamax-vessels. If DWT cancels the contract, GOGL will keep the already paid $72 mill, which reduces the costs of building to $24 million per ship (dirty cheap!) for GOGL. Billung said that financing the building period will be no problem for them (I guess SFL will help), and they will sell the ships if a good buyer appears, if not they will keep the ships because the break even costs for these ships will be very low (ca $11.000).

The average price for Panamaxes in the market has been $51 million lately, and Billung did not believe the prices in the end of 2009 and in 2010 will be much lower.

He even stated that the present squeeze in the market would effect the dividends not before than in second half of 2009, so we can expect a dividend of $0.30 for a couple of quarters :)