FRO - Terminates four VLCC newbuilding contracts
October 14 2016 - 7:10AM
Frontline Ltd. (the "Company" or "Frontline")
(NYSE:FRO) today announced that it has entered into an agreement
with STX Offshore & Shipbuilding Co., Ltd. ("STX") to terminate
contracts for four VLCC newbuildings due for delivery in
2017. The contracted price of these vessels was $364.3
million, of which the company has made instalment payments of $45.5
million. Following the contract terminations, the Company has been
released of any and all obligations relating to the contracts, and
received all instalment payments made to STX, less a $0.5 million
cancellation fee per vessel.
The Company believes the market
will continue to present attractive opportunities, and we will
assess on-the-water and resale assets, which are at historically
low prices. Frontline's low cash breakeven levels, and access to
attractively priced capital, gives the Company significant
operating leverage and positions Frontline to take advantage of
price dislocations in the market.
Following the terminations,
Frontline's fleet consists of 73 vessels, including newbuildings,
with an aggregate capacity of approximately 13.5 million dwt.
The Company's fleet is comprised of 25 VLCCs, 22 Suezmax tankers,
22 LR2/aframax tankers and one MR. In addition, we have three MR
tankers chartered in on short term contracts.
October 14th,
2016
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
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
Forward-Looking Statements
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 of the Norwegian Securities
Trading Act.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Frontline Ltd. via Globenewswire
Frontline (NYSE:FRO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Frontline (NYSE:FRO)
Historical Stock Chart
From Sep 2023 to Sep 2024