FRO - Investment in Feen Marine Scrubbers Inc.
June 28 2018 - 6:58AM
Frontline Ltd. (the "Company" or "Frontline")
(NYSE:FRO) today announced that it has entered into memorandum of
agreement ("MOA") to acquire a 20% ownership interest in Feen
Marine Scrubbers Inc., a leading manufacturer of exhaust gas
cleaning systems ("FMSI"). Pursuant to the MOA, Frontline and
certain entities affiliated with Hemen Holding Ltd, Frontline's
largest shareholder, have agreed to order FMSI exhaust gas cleaning
systems for 14 vessels, with options to order an additional 22
systems at fixed prices.
Robert Hvide Macleod, CEO of Frontline Management said: "The
economic case to install scrubbers is very compelling, particularly
for larger vessels. Scrubbers installed on existing vessels provide
the same benefit as those delivered from the yard on newbuildings
and our solution comes at a much cheaper cost. Additionally,
this transaction allows Frontline to secure the capacity to source
a large volume of scrubbers, which we believe will present a
challenge to many owners as the deadline for sulphur emissions
compliance approaches. Our relationship with Feen Marine has
been structured in a manner that will be beneficial to both parties
and would not have been possible absent our significant commercial
scale and long-standing industry relationships."
Bjørnar Feen, Founder of Feen Marine Scrubbers Inc.
(www.FeenMarineEGCS.com), said: "We are extremely pleased to
establish a partnership with Frontline, one of the world's most
prominent shipping companies. We believe that this memorandum
of agreement is indicative of both Frontline's industry-leading
approach to managing its fleet as well as the high quality EGCS
systems Feen Marine produces. We are proud that some of the
world's largest shipping and trading companies, including
Frontline, Navig8 Group and Trafigura have chosen Feen Marine as
their main provider of EGCS systems."
June 28, 2018The Board of DirectorsFrontline 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
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Words, such as, but not limited to "believe," "anticipate,"
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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.
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