FRO - Termination of charter-in contract of Front Century
Press release from Frontline Ltd. 07.11.2016
Frontline Ltd. ("Frontline" or the "Company") today announced that it has agreed with Ship Finance International Limited ("Ship Finance") to terminate the long term charter for the 1998 built VLCC Front Century. Ship Finance has simultaneously sold the vessel to an unrelated third party. We expect the vessel to cease operating as a conventional tanker and the charter with Ship Finance will terminate in the first quarter of 2017.
Frontline has agreed a compensation payment to Ship Finance of approximately $4 million for the termination of the current charter.
"Fleet renewal is an important part of Frontline's long-term strategy, due to the fact that older vessels are becoming increasingly difficult to trade" said Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS. "
Following this termination, the number of vessels on charter from Ship Finance will be reduced to 12 vessels, including 10 VLCCs and two Suezmax tankers.
November 7, 2016
The Board of Directors Frontline Ltd. Hamilton, Bermuda
Questions should be directed to: Robert Hvide Macleod: CEO, Frontline Management AS +47 23 11 40 00 Inger M. Klemp: CFO, Frontline Management AS +47 23 11 40 00
Matters discussed in this press release may constitute forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. Words, such as, but not limited to "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Frontline believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the control of Frontline, Frontline cannot assure you that they will achieve or accomplish these expectations, beliefs or projections. The information set forth herein speaks only as of the date hereof, and Frontline disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.