FRO - Purchase of Suezmax Newbuildings and Fleet Update
(Thomson Reuters ONE) -
Frontline Ltd. (the "Company" or "Frontline") has entered into a contract with
Jiangsu Rongsheng Heavy Industries Co., Ltd. for the delivery of two 156,900 dwt
Suezmax newbuildings. The vessels are expected to be delivered in February and
May 2013. Frontline has also secured options for two similar Suezmax
newbuildings. The contract price for the newbuildings is 15-20 percent lower
than indicated price levels for 2010 delivered tonnage. These contracts help to
renew the fleet and provide an opportunistic investment approach with great
flexibility.
In June 2010, Frontline received notices from the owners of the two chartered-in
2001-built Suezmax tankers, Front Melody and Front Symphony, and the two
chartered-in 2000-built VLCCs, Front Tina and Front Commodore, to exercise their
option to extend the charter period for two years to the end of 2013 from the
expiry of the mandatory lease period at the end of 2011. The Company believes
the charter-in rates are attractive compared to current time charter rates. The
owners have the option to further extend the charter periods until the end 2015.
With reference to the press release from the Company dated April 19, 2010, we
are pleased to announce that we have successfully taken delivery of the two
2009-built VLCCs, Front Eminence and Front Endurance, in June 2010. In addition,
the third VLCC newbuilding from Shanghai Waigaoqiao Shipbuilding Co., Ltd.,
Front Cecilie, was delivered according to schedule on June 10, 2010.
July 1, 2010
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 99
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76
Forward Looking Statements
This press release contains forward looking statements. These statements are
based upon various assumptions, many of which are based, in turn, upon further
assumptions, including Frontline management's examination of historical
operating trends. Although Frontline believes that these assumptions were
reasonable when made, because assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond its control, Frontline cannot give assurance that it will achieve or
accomplish these expectations, beliefs or intentions.
Important factors that, in the Company's view, could cause actual results to
differ materially from those discussed in this press release include the
strength of world economies and currencies, general market conditions including
fluctuations in charter hire rates and vessel values, changes in demand in the
tanker market as a result of changes in OPEC's petroleum production levels and
world wide oil consumption and storage, changes in the Company's operating
expenses including bunker prices, dry-docking and insurance costs, 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, and other important factors described from
time to time in the reports filed by the Company with the United States
Securities and Exchange Commission.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1428849]
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.
All reproduction for further distribution is prohibited.
Source: Frontline Ltd. via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 01.07.2010 - 08:56 Uhr
Sprache: Deutsch
News-ID 23323
Anzahl Zeichen: 0
contact information:
Town:
Hamilton
Kategorie:
Business News
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"FRO - Purchase of Suezmax Newbuildings and Fleet Update"
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