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Frontline 2012 ups newbuild orders to $2.6bn

Frontline 2012 ups newbuild orders to $2.6bn
Oslo: John Fredriksen’s Frontline 2012 scraped its way to a $0.7m profit in the fourth quarter, bringing its full year profit to $8.1m, as it nearly doubles its newbuilding programme.

Frontline 2012 currently operates six VLCCs and four suezmaxes on the spot and period markets.  The average time charter equivalent rates earned by its VLCCs and suezmaxes in the fourth quarter were $25,700 and $12,400, respectively, compared with $25,100 and $10,400, respectively, in the previous quarter.

Frontline 2012 is firmly focused on the future and was founded at the end of 2011 with 28 newbuilding contracts a number that has now increased 53 vessels across the crude oil, petroleum product, dry bulk and LPG markets. The value of Frontline 2012's newbuilding programme is a whopping $2.6bn of which it has so far only paid down $315m.

And it is not stopping there it has what it describes as "significant number" of fixed price options it can declare in coming months. On top of that it said: "The company has in addition entered into specific discussions with existing and new yard relations with the target to increase the newbuilding orderbook further." It is looking for 2014 and 2015 deliveries.

“Frontline 2012's target is to position the company for an anticipated recovery of the shipping markets in the next 2-3 years. In order to achieve this, the company follows the strategy of aggressive growth through placing large orders for new efficient tonnage at historically low prices with the main focus on crude tankers and dry bulk,” Frontline 2012 said.

The company is 51% owned by Fredriksen’s Hemen Holdings.