John Fredriksen’s Frontline has boosted its tanker fleet with an acquisition of a VLCC resale and an order for two LR2 ships.
The VLCC has been acquired at a purchase price of $92.5m, and the LR2s have been ordered at a price of $46.7m per vessel, putting Frontline’s total investment at $185.90m.
The scrubber-equipped VLCC is currently under construction at South Korea’s Hyundai Samho Heavy Industries, with delivery expected in May 2020. The pair of LR2 newbuildings are to be built at China’s Shanghai Waigaoqiao Shipbuilding (SWS) with deliveries scheduled in January and March of 2021.
The latest additions are on top of the company’s recent acquisition of a scrubber-equipped suezmax resale under construction at Hyundai Heavy Industries (HHI) due for delivery in May 2020.
Robert Hvide Macleod, ceo of Frontline Management, commented: “These transactions reflect Frontline's focus on increasing our exposure to the tanker market and are also part of a continuous effort to renew and modernize the company's fleet.
“The latter has provided us with one of the most modern fleets in the industry with an average age of less than five years. As new opportunities arise, we will continue to execute our growth strategy as we position the company to generate significant cash flow over the long term.”
Copyright © 2021. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.