Frontline sold its five VLCCs

Frontline announced it has reached a deal to sell its five oldest very large cruse carriers (VLCC) to an undisclosed buyer for an aggregate net sale price of $290 million, MarineLink reported.

The vessels, built in 2009 and 2010, are expected to be delivered to the new owner during the first quarter of 2024.

After repayment of existing debt on the vessels, the transaction is expected to generate net cash proceeds of approximately $207 million, and the Company expects to record a gain in the first quarter of 2024 in the range of approximately $68 million to $76 million, depending on the date of delivery of each vessel to the new owner. The sale is subject to certain closing conditions, in line with industry standards.

Following this transaction and the completion of the delivery of all 24 VLCCs acquired from Euronav NV, Frontline’s fleet will consist of 84 vessels comprised of 41 VLCCs, 25 Suezmax tankers and 18 LR2/Aframax tankers with an aggregate capacity of approximately 18.2 million dwt and average age of only 5.9 years.