Frontline Ltd. (the “Company” or “Frontline”) has agreed with Ship Finance International Limited (“Ship Finance”) to terminate the long term charter parties between the companies for the double sides single bottom Suezmax tankers Front Birch and Front Maple. Ship Finance has simultaneously sold the vessels at a net amount of $40 million per vessel.
Delivery to buyers is expected to take place in December 2007 and January 2008. Upon delivery of the vessel to the buyers the long term charter parties between Frontline and Ship Finance will be terminated. Ship Finance will make a compensation payment to Frontline of approximately $32.8 million for the early termination of the current charter parties on the two vessels, which will be recognized at the time of delivery to the new owners.
December 4, 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
Cautionary Statement Regarding Forward Looking Statements
This press release may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Frontline management’s examination of historical operating trends. Although Frontline believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Frontline cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in this presentation include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC’s petroleum production levels and world wide oil consumption and storage, changes in the Company’s operating expenses including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.