John Fredriksen’s oil tanker shipping company Frontline Ltd. has ordered exhaust gas cleaning systems (EGCS) for a further 12 vessels.
The latest scrubber deal, which was agreed with Feen Marine Scrubbers (FMSI), follows the company’s previously announced commitment to order six scrubbers with additional fixed price options from FMSI in June 2018.
At the time, the company said that it entered into a memorandum of agreement to acquire a 20% ownership interest in Feen Marine Scrubbers. Pursuant to the MOA, Frontline agreed to order FMSI exhaust gas cleaning systems for 14 vessels, with options to order an additional 22 systems at fixed prices.
Frontline has so far committed to install 20 scrubbers, including two of these being installed on the newbuilding VLCCs Front Discovery and Front Defender.
Additionally, In the company has extended the terms of its senior unsecured revolving credit facility of up to USD 275 million with an affiliate of Hemen Holding, Frontline’s largest shareholder, by 12 months to November 2020.
“We have taken significant steps to modernize our fleet, decreasing the average age of our owned vessels to 4.7 years. Following the committed installations, over 40% of our owned fleet will be equipped with scrubbers. Notably, the majority of these installations will be performed prior to 2020, when new sulphur emissions compliance requirements go into effect,” Robert Hvide Macleod, CEO of Frontline Management, said:
“Further installations will be considered, and we are uniquely positioned to access scrubber capacity from Feen Marine.”
Furthermore, Frontline informed that 180,000 share options have been awarded to employees in accordance with the terms of the company’s Share Option Scheme. The share options will expire in July 2021 and will vest in July 2019. The exercise price is USD 7.40.