Frontline Ltd. (“Frontline”) is pleased to announce that it has agreed to sell its 1988-built single hull Suezmax tanker Front Horizon for net sale proceeds of $28 million. Delivery to buyers is expected to take place in the period July to August 2007. The buyer of the vessel is a joint venture where Frontline’s Chairman John Fredriksen has an indirect interest in one of the Joint Venture partners. The vessel will stop active trading and is intended to be used for other purposes.
The sale will generate approximately $17 million in liquidity and a gain of approximately $6 million.
The sale of the vessel should be seen as part of Frontline’s strategy to reduce its single hull tanker exposure. After this sale 87 % of Frontline’s fleet is double hull or double sided. Seven out of the eight single hull vessels in the fleet are fixed out on long term charter to 2009-2010, reducing the spot trading single hull tonnage to only one Suezmax.
June 14, 2007
The Board of Directors
Questions should be directed to:
Bjørn Sjaastad: Chief Executive Officer, Frontline Management AS
+47 23 11 40 99
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76