Frontline Ltd. (the “Company” or “Frontline”) (NYSE: FRO – OSE: FRO) today announced that it has entered into an agreement whereby the Company will sell four of its scrubber fitted LR2 tankers built in 2014 and 2015 for an aggregate sale price of $160.0 million to SFL Tanker Holding Ltd., a related party. The vessels are expected to be delivered to the new owners during the fourth quarter of 2021 and the first quarter of 2022. After repayment of existing debt on the vessels, the transaction is expected to generate net cash proceeds of approximately $67.0 million, and the Company expects to record a total gain divided between the fourth quarter of 2021 and the first quarter of 2022 of approximately $11.2 million.
Lars H. Barstad, Chief Executive Officer of Frontline Management AS commented:
“We are very pleased with this transaction. LR2 asset prices have appreciated firmly this year, and although we believe the tanker market in general looks promising going forward, we found it compelling to capture value at this point in the curve. Frontline has increased its position significantly in the VLCC segment during 2021 and this divestment from our LR2 fleet will in part finance our growth ambitions for the larger crude carriers.”
Following this transaction, Frontline’s fleet, including newbuildings, consists of 74 vessels with an aggregate capacity of approximately 14.3 million dwt. The Company’s fleet is comprised of 25 VLCCs, 27 Suezmax tankers, 18 LR2 / Aframax product tankers and four vessels that are under the Company’s commercial management (two Suezmax tankers and two Aframax tankers).
November 22, 2021
The Board of Directors
Questions should be directed to:
Lars H. Barstad: Chief Executive Officer, Frontline Management AS
+47 23 11 40 84
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76
Matters discussed in this press release may constitute forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. Words, such as, but not limited to “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Frontline believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the control of Frontline, Frontline cannot assure you that they will achieve or accomplish these expectations, beliefs or projections. The information set forth herein speaks only as of the date hereof, and Frontline disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.