Frontline Acquires VLCC Resale, Orders LR2 Duo
- Business & Finance
John Fredriksen’s oil tanker shipping company Frontline has reached agreements related to the acquisition of three new tankers.
Under the deals, the company acquired a scrubber-fitted very large crude carrier (VLCC) resale under construction at Hyundai Samho Heavy Industries (HSHI) that is expected to be delivered in May 2020.
Additionally, Frontline ordered two LR2 newbuildings from Shanghai Waigaoqiao Shipbuilding, China, scheduled for delivery in January 2021 and March 2021.
The VLCC has been purchased for USD 92.5 million, while the LR2s have been ordered at a price of USD 46.7 million per unit.
The company’s latest vessel additions come on the back of a recent acquisition of a scrubber-fitted Suezmax resale under construction at Hyundai Heavy Industries due for delivery in May 2020.
“These transactions reflect Frontline’s focus on increasing our exposure to the tanker market and are also part of a continuous effort to renew and modernize the Company’s fleet,” Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS, said.
“As new opportunities arise, we will continue to execute our growth strategy as we position the company to generate significant cash flow over the long term.”