FRO - Terminates four VLCC newbuilding contracts
(Thomson Reuters ONE) -
Frontline Ltd. (the "Company" or "Frontline") (NYSE:FRO) today announced that it
has entered into an agreement with STX Offshore & Shipbuilding Co., Ltd. ("STX")
to terminate contracts for four VLCC newbuildings due for delivery in 2017. The
contracted price of these vessels was $364.3 million, of which the company has
made instalment payments of $45.5 million. Following the contract terminations,
the Company has been released of any and all obligations relating to the
contracts, and received all instalment payments made to STX, less a $0.5 million
cancellation fee per vessel.
The Company believes the market will continue to present attractive
opportunities, and we will assess on-the-water and resale assets, which are at
historically low prices. Frontline's low cash breakeven levels, and access to
attractively priced capital, gives the Company significant operating leverage
and positions Frontline to take advantage of price dislocations in the market.
Following the terminations, Frontline's fleet consists of 73 vessels, including
newbuildings, with an aggregate capacity of approximately 13.5 million dwt. The
Company's fleet is comprised of 25 VLCCs, 22 Suezmax tankers, 22 LR2/aframax
tankers and one MR. In addition, we have three MR tankers chartered in on short
term contracts.
October 14(th), 2016
The Board of Directors
Frontline 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 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
Unternehmensinformation / Kurzprofil:
Datum: 14.10.2016 - 13:10 Uhr
Sprache: Deutsch
News-ID 500574
Anzahl Zeichen: 3802
contact information:
Town:
Hamilton
Kategorie:
Business News
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