The profitable third quarter brought nine month profits for Frontline 2012 to $210.6m. The company gained $31.1m from newbuilding cancellations with $28.9m from the cancellation of a fourth newbuilding at Jinhaiwan and $2.2m for the cancellation of a second newbuilding at Dalian. The company has cancelled all five newbuildings it had at Jinhaiwan and three at Dalian.
Meanwhile Frontline 2012 has ordered four suezmax newbuildings at an undisclosed yard bringing its orderbook to 17 vessels with 13 LR newbuildings already on order. It has a further four suezmax options.
Looking ahead the merger of Knightsbridge and Golden Ocean, which sees Frontline 2012 exchanging 13 bulker newbuildings in exchange for 31m shares in Knightsbridge is proceeding.
Frontline 2012 said it was giving its full attention to developing its crude and product tanker fleets and sees opportunities in the market. “The board believes there will be several interesting growth opportunities going forward. On this basis the board has decided to invest in its crude fleet rather than to pay a cash dividend in the third quarter,” it said.
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