NYSE-listed Ship Finance International Limited has agreed to sell its 1995-built Suezmax Front Glory to an unrelated third party for approximately USD 16 million, which will be used to finance the company’s fleet renewal project.
Ship Finance has simultaneously agreed to terminate the corresponding charter party for the 149,834 dwt crude oil carrier with a subsidiary of Frontline Ltd.
The Marshal Islands-flagged vessel is expected to be delivered to its new owner at the end of the third quarter of 2015.
Ship Finance will receive a net amount of approximately USD 13.8 million, after compensation of approximately USD 2.2 million to Frontline for the termination of the current charter. The vessel is currently debt free.
Following this sale, the number of vessels the company has on charter to Frontline will be reduced to 16 vessels, including 12 VLCCs and four Suezmax crude oil carriers.