Frontline and Euronav have agreed to sell the joint owned single hull VLCC Golden Fountain. The vessel is sold to Chinese interests, and will be delivered to the new owner in the period December 15-30. The vessel is expected to complete one more voyage before delivery to the new owner.
The sale was decided with special emphasis on the limited trading period left until IMO’s single hull ban comes into effect in 2010.
The sale will be recorded in Frontline’s fourth quarter results. In addition to the vessel’s earnings in the quarter, there will be an accounting gain to Frontline of approximately USD 15.8 million and a release of cash of approximately USD 27 million to Frontline. The liquidity generated from the transaction is likely to lead to an increased dividend payment to shareholders.
Hamilton, Bermuda
22 October 2004