John Fredriksen’s Frontline has confirmed a deal reported by Splash earlier in the week, acquiring four VLCCs from Metrostar Management currently under construction at Hyundai Heavy Industries.
The delivery of the first two vessels is set for September and November, and at a price of $84m each. The second two vessels, which were in the form of declared options, will deliver in January and March 2017 and are priced at $85m each.
Robert Macleod, CEO of Frontline Management, 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.”
Metrostar is taking a hit on the sales, having paid $95m each for them when ordered last year.