Frontline Announces Sale of Five VLCCs and Fleet Expansion – Latest News and Updates

2024-01-16 07:00:35

By Redacción PortalPortuario

@PortalPortuario

Frontline entered into an agreement whereby the company will sell its five oldest VLCCs, built in 2009 and 2010, for an aggregate net sales price of $290 million.

The vessels are expected to be delivered to the new owner during the first quarter of 2024. After repayment of existing debt on the vessels, the transaction is expected to generate net cash proceeds of approximately USD 207 million, and the company expects to record a profit in the first quarter of 2024 in the range of approximately USD 68 million to USD 76 million, depending on the delivery date of each ship to the new owner.

Lars H. Barstad, executive director of Frontline Management AScommented that “we are very satisfied with this transaction, which achieves firm prices for 14 to 15 year old boats. “Frontline has significantly increased its position in the VLCC segment during 2023 and this divestment of our remaining non-green VLCCs is in line with our strategy of operating the most modern and fuel-efficient fleet on the market.”

Following this transaction and the completion of the delivery of the 24 VLCCs acquired from Euronav NV, Frontline’s fleet will be composed of 84 vessels divided into 41 VLCCs, 25 Suezmax tankers and 18 LR2/Aframax tankers with an aggregate capacity of approximately 18.2 million dwt and an average age of only 5.9 years.

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