FRO - Termination of contracts for two OBO carriers
(Thomson Reuters ONE) -
Frontline Ltd. ("Frontline ") has agreed to an early termination of the time
charter out contracts on the two OBO carriers, Front Viewer and Front Guider,
and will receive a compensation payment in December 2012 from the charterers for
loss of hire due to the early termination of approximately 34.5 million net.
Frontline has also agreed with Ship Finance International Limited ("Ship
Finance") to terminate the long term charter parties for these two OBO carriers.
The charter parties for Front Viewer and Front Guider are expected to terminate
in late December 2012 and the first quarter of 2013, respectively. Ship Finance
has sold the Front Viewer and expects to sell the Front Guider at the time the
charter party terminates.
Frontline will pay Ship Finance approximately $23.5 million as compensation for
the early termination of the charters and the estimated loss of future cash
sweep relating to the two vessels.
December 11, 2012
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Questions should be directed to:
Jens Martin Jensen: Chief Executive Officer, Frontline Management AS
+47 23 11 40 00
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 00
FORWARD LOOKING STATEMENTS
Matters discussed in this document may constitute forward-looking statements.
The Private Securities Litigation Reform Act of 1995 provides safe harbor
protections for forward-looking statements in order to encourage companies to
provide prospective information about their business. 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.
Frontline desires to take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The words "believe,"
"anticipate," "intends," "estimate," "forecast," "project," "plan," "potential,"
"will," "may," "should," "expect" "pending" and similar expressions identify
forward-looking statements.
The forward-looking statements in this document are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management's examination of historical operating
trends, data contained in Frontline's records and other data available from
third parties. 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 Frontline's control, you cannot be assured that Frontline
will achieve or accomplish these expectations, beliefs or projections. Frontline
undertakes no duty to update any forward-looking statement to conform the
statement to actual results or changes in expectations.
Important factors that, in Frontline's view, could cause actual results to
differ materially from those discussed in the forward-looking statements
include, without limitation: the strength of world economies and currencies,
general market conditions, including fluctuations in charterhire rates and
vessel values, changes in demand in the tanker market, including but not limited
to changes in OPEC's petroleum production levels and world wide oil consumption
and storage, changes in Frontline's operating expenses, including bunker prices,
drydocking and insurance costs, the market for Frontline's vessels, availability
of financing and refinancing, ability to comply with covenants in such financing
arrangements, failure of counterparties to fully perform their contracts with
us, changes in governmental rules and regulations or actions taken by regulatory
authorities, potential liability from pending or future litigation, general
domestic and international political conditions, potential disruption of
shipping routes due to accidents or political events, vessel breakdowns,
instances of off-hire and other important factors. For a more complete
discussion of these and other risks and uncertainties associated with
Frontline's business, please refer to Frontline's filings with the Securities
and Exchange Commission, including, but not limited to, its annual report on
Form 20-F.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Frontline Ltd. via Thomson Reuters ONE
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