FRO - Acquisition of VLCC Resale and Two LR2 Newbuildings
Frontline Ltd. (the "Company" or "Frontline") (NYSE:FRO) is pleased to announce that it has acquired a scrubber-equipped VLCC resale under construction at Hyundai Samho Heavy Industries ("HSHI") expected to be delivered in May 2020 and has ordered two LR2 newbuildings from SWS, China, expected to be delivered in January 2021 and March 2021. This is in addition to the Company's recent acquisition of a scrubber-equipped Suezmax resale under construction at HHI due for delivery in May 2020.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS commented:
"These transactions reflect Frontline's focus on increasing our exposure to the tanker market and are also part of a continuous effort to renew and modernize the Company's fleet. The latter has provided us with one of the most modern fleets in the industry with an average age of less than 5 years. As new opportunities arise, we will continue to execute our growth strategy as we position the Company to generate significant cash flow over the long term."
The VLCC has been acquired at a purchase price of $92.5 million, and the LR2s have been ordered at a price of $46.7 million per vessel.
June 19, 2019
The Board of Directors
Questions should be directed to:
Robert Hvide Macleod: 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