FRO Announces Acquisition of Two VLCCs
Frontline Ltd. announced that it has entered into an agreement to acquire two scrubber fitted, latest generation ECO-type VLCCs built in 2019 at Hyundai Heavy Industries (“HHI”) shipyard in South Korea for a total of $180.0 million.
The vessels are scheduled to deliver during fourth quarter of 2021. Frontline intends to meet the financing of this acquisition with existing borrowing facilities and establish long term financing closer to delivery of the vessels.
Lars H. Barstad, Interim CEO of Frontline Management AS said:
“Frontline continues to execute on our strategy to position the Company towards what we believe will be a firm recovery as oil demand, and subsequently oil supply returns to pre pandemic levels. We have over the last periods seen the benefits of running a modern fuel-efficient fleet. These VLCCs are well-maintained high-quality additions, delivered at what we believe is a favorable timing.”