Norway: Frontline Concludes VLGC Newbuilding Contracts

Frontline 2012 Ltd.  announced that it has concluded newbuilding contracts for two 83,000 CBM Gas Carriers (“VLGCs”) at a total contractual value of USD 127 million.

The deliveries of the vessels are expected to take place in 2014. Furthermore, the Company has secured four fixed price optional contracts at a total contractual value of USD 254 million. The deliveries of the optional vessels are expected to take place in 2014 and 2015.

Hemen Holding Ltd. will be responsible for the performance guarantees towards the yard on the abovementioned contracts.

Chairman John Fredriksen says in a comment: “We are excited about the prospect for Frontline 2012 to develop a profitable business within the LPG market. The high growth in LPG production, combined with a low newbuilding orderbook and historic low new building prices for fuel efficient tonnage creates a unique opportunity to enter this market. We are hopeful that Frontline 2012 within three years can be one of the major players in this market. “Following this transaction Frontline 2012’s activities are expanded to include the commodity shipping segments crude, product and LPG. Frontline 2012 is currently in discussions regarding a further increase of the newbuilding program and will continue to pursue its target to within three years create the global leading commodity shipping company based on modern, high quality, environmental friendly and fuel efficient tonnage.

[mappress]

Source: Frontline, August 21, 2012

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