"We are totally opportunistic," Golden Ocean chief executive Herman Billung told Reuters, outlining a determination to grow in the next 12 to 18 months when he thinks shipping spot rates and ship values will fall further and competitors will bail out.
"There could be forced consolidation," he said. "Some ship owners will hit the wall in the next year. In the wake will come some exciting opportunities -- buying opportunities."
Billung was unfazed by weak third-quarter results and a dividend freeze he announced on Nov.18.
Golden Ocean's shares slid 8 percent that day and have since tumbled another 13 percent to trade near a two-year low at 3.64 crowns at 1612 GMT.
Billung said he did not blame investors for their lack of faith and their patience could be tested further.
With a downward hand gesture, he said rates still faced "some downside" while the market value of his Capesize and Panamax bulkers was likely to fall an additional "10, 15, maybe 20 percent" as unneeded new vessels enter the trade.
Tanker companies, container ship operators and firms like Golden Ocean that carry iron ore, coal and other bulk materials have suffered as an armada of new ships ordered before the financial crisis hits the water amid global economic gloom.
Earlier this week tanker company Frontline said it would restructure to stay afloat after rival General Maritime Corp filed for bankruptcy protection and Denmark's Torm said it was trying to reschedule debt.
"Unique" Strength
In January dry-bulk carrier Korea Line sought receivership, casting two vessels chartered from Golden Ocean into a weak spot market. Another client, Grand China Logistics, has stopped paying Golden Ocean's charter bills.
"We can tolerate quite a bit, assuming our counter-parties make good on what they owe," said Billung, adding that solid backing from billionaire shareholder John Fredriksen made Golden Ocean "unique" in the dry-bulk world.
He said the influx of new vessels was already beginning to wane even as surging Chinese imports of ore and coal were boosting demand, boding well for a more balanced market in 2013.
Golden Ocean, he said, had $130 million in cash at the end of the third quarter and will not run out even if falling asset values force it add equity to balance its loan portfolios.
For 2012, he said, he has tied 70 to 80 percent of his fleet to contracts "significantly higher" than current spot rates.
Asked what kind of assets he was looking for, Billung said, "My mind is completely open."
"It would be fantastic if we could buy, let's say, a little fleet of ships," he said. "But it's totally dependent on price. If there is a single ship that looks very cheap, we'll buy that." (Reuters)
