Frontline Abandons Four VLCC Newbuildings

Image Courtesy: Frontline

Tanker owner and operator Frontline has entered into an agreement to terminate contracts for four Very Large Crude Carrier (VLCC) newbuildings previously ordered from South Korea’s shipbuilder STX Offshore & Shipbuilding.

The contracted price of these vessels, which were due for delivery in 2017, was USD 364.3 million, of which the company has made instalment payments of USD 45.5 million.

Following the contract terminations, Frontline has been released of any and all obligations relating to the contracts, and received all instalment payments made to STX, less a USD 0.5 million cancellation fee per vessel.

The company said that it 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 added that its 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 13.5 million dwt.

The company’s fleet is comprised of 25 VLCCs, 22 Suezmax tankers, 22 LR2/aframax tankers, one MR.

Share this article

Follow World Maritime News

Posted on October 14, 2016 with tags .

In Depth>

Events>

<< Feb 2018 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 1 2 3 4

Shipping 360

This course is ideal for those who have recently joined the maritime sector and those who need to have a better understanding…

read more >

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Shippax Ferry Conference 2018

The two-day onboard ferry conference was first organized in 2003 and grows ever more popular with some 400 delegates from over 40 ferry…

read more >

8th Dredging & Land Reclamation World Summit 2018

The 8th Dredging and Land Reclamation Summit 2018 will gather the decision makers from Authorities and Operators responsible for ports…

read more >