Frontline Exits Medium Range Tanker Segment
John Fredriksen-controlled oil tanker shipping company Frontline Ltd. has decided to exit the medium range tanker segment as it confirmed the sale of its six medium range tankers.
The vessels were sold for a price of USD 172.5 million to New York-listed Ardmore Shipping Corporation (Ardmore).
Scheduled to be delivered to their new owner during September and October 2016, the vessels have an average age of 2.4 years.
Following the completion of this transaction, Frontline said that its crude oil tanker fleet will be comprised of VLCCs, Suezmax tankers and LR2 tankers.
“Our primary exposure and growth focus is towards the crude tanker market, and our LR2 tankers can be deployed in both the crude oil and refined product trades, leaving us with attractive optionality,” Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS, said.
Frontline’s fleet, including newbuildings, now consists of 79 vessels with an aggregate capacity of approximately 15.3 million dwt.
Earlier in June, the company decided to buy four 308,000 dwt Very Large Crude Carrier (VLCC) newbuilds from Greek Metrostar Management Corporation, according to data provided by VesselsValue.
The vessels, currently under construction at South Korean shipbuilder Hyundai Heavy Industries, were priced at USD 84.75 million each.
The ships in question, said to be bought on June 2, are Crude Hope, Crude Horn, Crude Med and Crude Progress.