FRO - Termination of charters for two single hull VLCCs
Press release from Frontline Ltd. 18.02.2011
Frontline Ltd. ("Frontline") has agreed with Ship Finance International Limited ("Ship Finance") to terminate the long term charter parties between the companies for the single-hull VLCCs Front Highness and Front Ace. Ship Finance has simultaneously sold the vessels to unrelated third parties.
The terminations of the charters are expected to take place in March 2011. Ship Finance will make a compensation payment to Frontline of approximately $5.8 million for the early termination of the charters, which is expected to be recorded in the first quarter of 2011.
February 18, 2011 The Board of Directors Frontline Ltd. Hamilton, Bermuda
Questions should be directed to:
Jens Martin Jensen: 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
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.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)