Frontline has entered into an agreement to sell two VLCCs built in 2017 for an aggregate sale price of $270 million.
Delivery of the vessels to the new owner is expected by the company to take place during the third quarter of 2026, subject to customary closing conditions.
After repaying existing debt on the vessels, the transaction is expected to generate net cash proceeds of approximately $179 million. Frontline also anticipates recording a gain of approximately $110 million in the third quarter of 2026, depending on the delivery date of each vessel.
Following the completion of the sale, the board of directors determined to return the net cash proceeds to shareholders.
“In these extraordinary markets, and in line with Frontline’s core strategy of returning cash to our shareholders, the board of directors of the company has, subject to completion of the sale, determined to return the cash proceeds, a total of approximately $179 million, to its shareholders through a payment of a one-time special dividend of $0.80 per share,” said Chief Executive Officer of Frontline Management AS Lars H. Barstad.