John Fredriksen’s SFL Corporation and Frontline have agreed to terminate the charter deal for two 2004-built very large crude carriers (VLCCs) that have been sold to an unrelated third party.
The sale proceeds of the VLCCs Front Energy and Front Force have been estimated to be around $70m, including compensation of $4.5m from Frontline for the early termination of the existing charter.
The charters are expected to terminate in the second quarter of 2022, when delivery of the vessels should take place. A book gain of some $2m is estimated as a result of the sale. SFL said it plans to use the net cash proceeds to reinvest in new assets.
The two ships are the last remaining from the Frontline fleet, acquired in 2004 and 2005. Following the transaction, SFL will not have any vessels on charter to Frontline.