Frontline sells off medium range tankers and buys VLCCs
Frontline has entered into an agreement to sell its six medium range tankers for US$172.5 million to an unaffiliated third party.
The vessels will be delivered by Frontline during September and October 2016.
“[The transaction] leaves Frontline with a focused crude oil tanker fleet comprised of VLCCs, Suezmax tankers and LR2 tankers,” Robert Hvide Macleod, Chief Executive Officer of Frontline Management commented.
“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.”
Earlier this month the company purchased two VLCC newbuildings under construction at Hyundai Heavy Industries at a purchase price of $84 million each. The vessels are due for delivery in September and November 2016.
The company has also secured options for two additional sister vessels with delivery in January and March 2017 at a purchase price of US$85 million each.