by Daniel Webster, dWeb.News Publisher
Frontline Ltd. (“Company” or the “Frontline”) today announced that it has reached an agreement in which the Company will sell four of their scrubber-equipped LR2 tankers, built in 2014 as well as 2015 to SFL Tanker Holding Ltd. for an overall sale price of $160.0 millions. This is a related party. The new owners are expected to receive the vessels in the fourth quarter 2021, and the first quarter 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 (CEO of Frontline Management AS) commented:
” We are extremely pleased with this transaction. The LR2 asset values have appreciated strongly this year and, although the tanker market looks promising moving forward, we felt it compelling to capture value. 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 are statements about plans, objectives and goals, strategies and future events, as well as other statements that may be made. Forward-looking statements can be identified by words such as “believe”, “anticipate,” and “intends,” and “estimate,” forecast,” project,” plan,” potential,” may,” should,” expect,” pending, and similar expressions. Forward-looking statements contained in this press release are based on various assumptions. Many of these assumptions are also based on further assumptions. Frontline believes these assumptions were reasonable at the time. However, these assumptions are subject to significant uncertainties, contingencies, and other factors that are impossible or impossible to predict. Frontline cannot guarantee that these expectations, beliefs, or projections will be realized or achieved. Frontline does not intend to or have any obligation to revise any forward-looking statements based on developments after the date of this communication.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
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