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Friday, January 27, 2023

Frontline (NYSE: FRO) Announces Acquisition of Six VLCCs Under Construction

Frontline Ltd. (NYSE: FRO) disclosed that it has inked an acquisition agreement through the resale of six latest generation ECO-type VLCC newbuilding contracts. It has been disclosed that six VLCCs are still under construction at the Hyundai Heavy Industries (HHI) shipyard in South Korea. The firm will acquire a total buying price of $565.8 million. It comprises a projected $25.7 million in additions and upgrades to the standard provisions.

The vessels are intended to work on different fuels, including Biofuel. These vessels can be transformed or retrofitted to consume fuel like LNG or Ammonia and subsequently, there is an ability to reduce CO2 emissions to zero when technology, logistics, and the regulatory framework enable it.

Shares of Frontline went up 2.15% as it gained +0.17 at $8.08 during the trading session of Tuesday. The shares of the firm fluctuated between the 52-week low and high range of $5.28 and $9.42, respectively. Its share surged 53.03% and plunged -14.23% from its 52-week low and high, respectively. The firm has a total market capitalization of $1.61 billion at the time of writing.

Additionally, the new buildings will also be tailored with Exhaust Gas Scrubber technology, high-end Anti Fouling systems, furnished with Digital Energy Performance solutions as well as compliant with specific Exxon Mobile lightering provisions to enable maximum trading flexibility. The delivery schedule is very attractive with five vessels bringing during 2022 starting in Q1 and the last vessel in Q1 2023.

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