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Frontline set for secondhand VLCC buys, STX newbuilds future uncertain

Frontline is eyeing the acquisition of secondhand VLCCs, but could cancel four newbuildings on order from bankrupt yard STX Offshore & Shipbuilding.

With $275m in new financing from John Fredriksen’s Heman Holding Frontline is on the expansion trail believing that asset prices are close to the bottom.

Speaking during an earnings Frontline ceo Robert Hvide Macleod said that they were looking at vessels on the water, with the VLCC segment the most attractive.

“We will announce something pretty soon here, we find the current pricing “pretty attractive”.

However, four VLCC newbuildings on order at STX in Korea could be axed now that the yard has applied for court receivership

“Frontline has refund guarantees in place from first class banks and the remaining commitments total $319m. The company is following the situation carefully and has commenced discussions with STX,” it said.

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