Frontline Ltd. (Frontline) has announced the acquisition of two VLCC newbuildings under construction at Hyundai Heavy Industries at a purchase price of $84 million each. The vessels are due for delivery in September and November 2016.
The Company has also secured options for two additional sister vessels with delivery in January and March 2017 at a purchase price of $85 million each.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS commented:
"We have been consistently looking for ways to increase Frontline's exposure to the tanker market as current resale prices do not accurately reflect the earnings power of vessels on the water. This acquisition will be accretive in the near term given historically low pricing and the low cash breakeven rates on these vessels and across our fleet. It is also a reflection of our long term market outlook and our focus on generating significant cash flow to provide long term value to our shareholders."