FRO - Acquisition of VLCC newbuilding contracts
(Thomson Reuters ONE) -
Frontline Ltd. (the "Company" or "Frontline") (NYSE:FRO) is pleased to announce
the acquisition of two VLCC newbuildings under construction at Hyundai Heavy
Industries at a purchase price of $84 million each. The vessels are due for
delivery in September and November 2016.
The Company has also secured options for two additional sister vessels with
delivery in January and March 2017 at a purchase price of $85 million each.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS
commented:
"We have been consistently looking for ways to increase Frontline's exposure to
the tanker market as current resale prices do not accurately reflect the
earnings power of vessels on the water. This acquisition will be accretive in
the near term given historically low pricing and the low cash breakeven rates on
these vessels and across our fleet. It is also a reflection of our long term
market outlook and our focus on generating significant cash flow to provide long
term value to our shareholders."
June 9, 2016
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Questions should be directed to:
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 GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#2019029]
Unternehmensinformation / Kurzprofil:
Datum: 09.06.2016 - 23:01 Uhr
Sprache: Deutsch
News-ID 476932
Anzahl Zeichen: 3752
contact information:
Town:
Hamilton
Kategorie:
Business News
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