Frontline Ltd. (“Frontline” or the “Company”) has declared its option to acquire the 2002-built VLCC Front Eagle, currently chartered in from a German KG. The vessel has simultaneously been sold to an unrelated third party for $67 million. Frontline has in connection with the sale agreed to charter back the vessel from the new owner. The duration of the time charter is about two years at a rate of $32,500 per day. Re-delivery from the German KG, delivery to the new owners and commencement of the time charter is expected to take place concurrently in the second quarter of 2011. The transaction will generate about $10 million in cash for Frontline and will reduce the Company’s obligations under capital leases with approximately $37.3 million.
March 23, 2011
The Board of Directors
Questions should be directed to:
Jens Martin Jensen, Chief Executive Officer, Frontline Management AS or
Inger M. Klemp, Chief Financial Officer, Frontline Management AS
+47 23 11 40 00
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
Forward Looking Statements
This press release contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Frontline management’s examination of historical operating trends. Although Frontline believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Frontline cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in this press release include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC’s petroleum production levels and world wide oil consumption and storage, changes in the Company’s operating expenses including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.