FRO - Termination of charter-in contract of Front Century
November 07 2016 - 8:00AM
Frontline Ltd. ("Frontline" or the "Company")
today announced that it has agreed with Ship Finance International
Limited ("Ship Finance") to terminate the long term charter for the
1998 built VLCC Front Century. Ship Finance has simultaneously sold
the vessel to an unrelated third party. We expect the vessel to
cease operating as a conventional tanker and the charter with Ship
Finance will terminate in the first quarter of 2017.
Frontline has agreed a
compensation payment to Ship Finance of approximately $4 million
for the termination of the current charter.
"Fleet renewal is an important
part of Frontline's long-term strategy, due to the fact that older
vessels are becoming increasingly difficult to trade" said Robert
Hvide Macleod, Chief Executive Officer of Frontline Management AS.
"
Following this termination, the
number of vessels on charter from Ship Finance will be reduced to
12 vessels, including 10 VLCCs and two Suezmax tankers.
November 7, 2016
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Questions should be directed to:
Robert Hvide Macleod: CEO, Frontline Management AS
+47 23 11 40 00
Inger M. Klemp: CFO, Frontline Management AS
+47 23 11 40 00
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
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