NYSE-listed Ship Finance International Limited has agreed to sell the 1995 built Suezmax tanker Front Splendour to an unrelated third party.
The company has simultaneously agreed to terminate the corresponding charter party for the 20-year old crude oil carrier with a subsidiary of Frontline Ltd.
The charter with Ship Finance is expected to terminate in the fourth quarter of 2015, when the 149,745 dwt vessel is expected to be delivered to its new owner.
Net cash proceeds will be approximately USD 13 million, after a compensation of approximately USD 1.3 million to Frontline for the early termination of the charter.
The company plans to reinvest the proceeds of the sale in new assets.
Following this sale, the number of vessels the company has on charter with Frontline will be reduced to 15, including 12 VLCCs and three Suezmax crude oil carriers.