Frontline Ltd. (“Frontline” or the “Company”) has agreed to sell its VLCC Front Beijing, which was delivered in 2006, for gross sale proceeds of $141.5 million. Delivery to the buyers is expected to take place in November 2006.
This transaction will give a positive result of approximately USD 59 million, and will generate approximately USD 58 million in additional liquidity. The additional liquidity will partly be used to fund pre delivery installments in Frontline’s newbuilding program, and will in addition strengthen the Company’s dividend capacity going forward. The sale of this recently delivered vessel represent no material change in the overall strategy, but should be seen as an opportunistic transaction where the effect on the overall fleet is compensated by the eleven (two of the Suezmaxes will be offered as an investment to Frontline’s affiliated company, Ship Finance International Limited) vessel newbuilding program Frontline recently has committed to.
September 26, 2006
The Board of Directors