Lammetod schreef op 15 oktober 2016 13:19:
FRO - terminates four VLCC newbuilding contracts
Oct 14 2016, 07:31 ET | By: SA Eli Hoffmann, SA News Editor Contact this editor with comments or a news tip
Frontline (NYSE:FRO) today announced that it has entered into an agreement with STX Offshore to terminate contracts for four VLCC newbuildings due for delivery in 2017. The contracted price of these vessels was $364.3M, of which the company has made installment payments of $45.5M.Following the contract terminations, the Company has been released of any and all obligations relating to the contracts, and received all installment payments made to STX, less a $0.5 million cancellation fee per vessel."The Company believes the market will continue to present attractive opportunities, and we will assess on-the-water and resale assets, which are at historically low prices. Frontline's low cash breakeven levels, and access to attractively priced capital, gives the Company significant operating leverage and positions Frontline to take advantage of price dislocations in the market."Following the terminations, Frontline's fleet consists of 73 vessels, including newbuildings, with an aggregate capacity of approximately 13.5 million dwt. The Company's fleet is comprised of 25 VLCCs, 22 Suezmax tankers, 22 LR2/aframax tankers and one MR. In addition, we have three MR tankers chartered in on short term contracts.Source: Press Release