FRO - Termination of charter-in contracts of VLCCs
24 July 2014 - 9:01PM
Frontline Ltd. ("Frontline" or the
"Company") has agreed with Ship Finance International Limited
("Ship Finance") to terminate the long term charter parties for the
1999 built VLCCs Front Opalia, Front Comanche and Front Commerce
and Ship Finance has simultaneously sold the vessels to unrelated
third parties. The charter parties are expected to terminate in the
fourth quarter of 2014.
The decision to terminate the long term charter parties was taken
in view of the required investment to take the vessels through the
15 year special survey.
Frontline has agreed an aggregate
compensation payment to Ship Finance of approximately $58.8 million
for the early termination of the charter parties, of which
approximately $10.5 million will be paid upon termination and the
balance will be recorded as notes payable, with similar
amortisation profiles to the current lease obligations, with
reduced rates until December 2015 and full rates from 2016.
As of June 30, 2014, the Company has capital lease
obligations to Ship Finance of $101.5 million and $608.3 million
for these three vessels and the remaining 12 VLCCs and five Suezmax
tankers, respectively.
July 24, 2014
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 00
Inger M. Klemp: Chief Financial Officer, Frontline Management
AS
+47 23 11 40 00
Forward Looking Statements
This press release contains 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 press release 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 ยง5-12 vphl (Norwegian
Securities Trading Act)
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Frontline Ltd. via Globenewswire
HUG#1836819
Frontline (LSE:FRO)
Historical Stock Chart
From Apr 2024 to May 2024
Frontline (LSE:FRO)
Historical Stock Chart
From May 2023 to May 2024