FRO – Sale of its five oldest VLCCs
January 12 2024 - 4:30PM
Frontline plc (the “Company” or “Frontline”)
(NYSE: FRO – OSE: FRO) today announced that it has entered into an
agreement whereby the Company will sell its five oldest VLCCs,
built in 2009 and 2010, for an aggregate net sale price of $290
million. The vessels are expected to be delivered to the new owner
during the first quarter of 2024. After repayment of existing debt
on the vessels, the transaction is expected to generate net cash
proceeds of approximately $207 million, and the Company expects to
record a gain in the first quarter of 2024 in the range of
approximately $68 million to $76 million, depending on the date of
delivery of each vessel to the new owner. The sale is subject to
certain closing conditions, in line with industry standards.
Lars H. Barstad, Chief Executive Officer of
Frontline Management AS commented:“We are very pleased with this
transaction, capturing firm pricing for 14-15 year old vessels.
Frontline has increased its position significantly in the VLCC
segment during 2023 and this divestment of our remaining non-eco
VLCCs is in line with our strategy of running the most modern,
fuel-efficient fleet in the market.”
Following this transaction and the completion of
the delivery of all 24 VLCCs acquired from Euronav NV, Frontline’s
fleet will consist of 84 vessels comprised of 41 VLCCs, 25 Suezmax
tankers and 18 LR2/Aframax tankers with an aggregate capacity of
approximately 18.2 million dwt and average age of only 5.9
years.
January 12, 2024
The Board of DirectorsFrontline plc.Limassol, Cyprus
Questions should be directed to:
Lars H. Barstad: Chief Executive Officer, Frontline Management
AS+47 23 11 40 00Inger M. Klemp: Chief Financial Officer, Frontline
Management AS+47 23 11 40 00
Forward-Looking Statements
Matters discussed in this announcement may
constitute forward-looking statements. The Private Securities
Litigation Reform Act of 1995 provides safe harbor protections for
forward-looking statements, which 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 and its subsidiaries, desire to take
advantage of the safe harbour provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbour legislation. This
announcement and any other written or oral statements made by
Frontline or its behalf may include forward-looking statements,
which reflect its current views with respect to future events and
financial performance and are not intended to give any assurance as
to future results. When used in this document, the words “believe,”
“anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,”
“potential,” “will,” “may,” “should,” “expect” and similar
expressions, terms or phrases may identify forward-looking
statements.
The forward-looking statements in this
announcement are based upon various assumptions, including without
limitation, management’s examination of historical operating
trends, data contained in our records and 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, it cannot assure you that Frontline will achieve or
accomplish these expectations, beliefs or projections. Frontline
undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
In addition to these important factors and matters discussed
elsewhere herein, important factors that, in Frontline’s view,
could cause actual results to differ materially from those
discussed in the forward-looking statements include the parties’
ability to obtain the necessary regulatory approvals and to meet
other closing conditions to complete the transactions referenced
herein, as well as important factors described from time to time in
the reports and other documents, including filings with the U.S.
Securities and Exchange Commission.
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act.
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