John Fredriksen’s Golden Ocean Group is ready to spend $100m on its own stock after steep price falls this year. The bulker company’s board has authorized a share buyback program of up to 10m shares on the Oslo and Nasdaq exchanges. The price can be no more than $10 each over the next year. The stock closed at $8.16, up 5%, in New York on Tuesday. The share price started the year at $9.80 but has fallen nearly 17% from this level, and 30% in the last six months. The peak came in June at $16.06 before vessel rates started to slide.

Chief executive Ulrik Andersen said the uncertainty in the global economy has hit capital markets and near-term dry bulk freight sentiment. But he added: “Following the recent share price development, we find it in our shareholders’ interest that the company has the authorization to repurchase our common stock as part of its capital allocation strategy.” Andersen continued: “Given the strength of our balance sheet and our constructive long-term market outlook, the board has decided to add the opportunity to allocate part of our financial resources to pursue such share buyback.” He said the plan reflects the owner’s confidence in the market and its strategy to invest for long-term shareholder return.

Last month, the shares received a boost after US investment giant BlackRock become the second-biggest shareholder. A filing to the Oslo Stock Exchange revealed the New York group had passed the 5% threshold with 5.07% — a slice worth $93m at that time. Analyst Anders Redigh Karlsen at Kepler Cheuvreux said: “We do not foresee any major share price movements following the announcement but having access to this option may end up being a positive for shareholders.”

Fearnley Securities said in a note it assessed Golden Ocean’s net asset value at $11 per share based on second-quarter numbers. The Baltic Exchange’s capesize index was up 10% at $18,600 per day on Tuesday. Golden Ocean last went on a major buyback spree in 2019, while Fredriksen’s LNG carrier company Flex LNG carried out a $31m share repurchase plan last year. But earlier in 2022, Fredriksen’s VLGC operation Avance Gas said the prospect of buybacks was limited by the tycoon’s 77% holding.