Frontline Ltd. (the “Company” or “Frontline”) (NYSE:FRO) is pleased to announce the acquisition of 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 $85 million each.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS commented:
“We have been consistently looking for ways to increase Frontline’s exposure to the tanker market as current resale prices do not accurately reflect the earnings power of vessels on the water. This acquisition will be accretive in the near term given historically low pricing and the low cash breakeven rates on these vessels and across our fleet. It is also a reflection of our long term market outlook and our focus on generating significant cash flow to provide long term value to our shareholders.”
June 9, 2016
The Board of Directors
Questions should be directed to:
Robert Hvide Macleod: Chief Executive Officer, Frontline Management AS
+47 23 11 40 84
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76
Matters discussed in this press release may constitute forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. Words, such as, but not limited to “believe,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Frontline believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the control of Frontline, Frontline cannot assure you that they will achieve or accomplish these expectations, beliefs or projections. The information set forth herein speaks only as of the date hereof, and Frontline disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.