John Fredriksen’s Frontline has added three vessels to its fleet moving in on a Korean-built VLCC resale and ordering a pair of LR2s in China.
The Norwegian company has acquired a scrubber-equipped VLCC resale under construction at Hyundai Samho Heavy Industries for $92.5m, with delivery expected in May 2020. Frontline did not reveal the seller, and VesselsValue shows the original orderer of the vessel as “undisclosed”.
In a deal reported by Splash last month, Frontline has now confirmed with China’s Shanghai Waigaoqiao Shipbuilding an order for a pair of LR2 new buildings for $46.7m each. The vessels are due for delivery in January 2021 and March 2021, and the deal is understood to include two further options.
Robert Macleod, chief executive officer of Frontline Management, commented: “These transactions reflect Frontline’s focus on increasing our exposure to the tanker market and are also part of a continuous effort to renew and modernize the Company’s fleet. The latter has provided us with one of the most modern fleets in the industry with an average age of less than 5 years. As new opportunities arise, we will continue to execute our growth strategy as we position the Company to generate significant cash flow over the long term.”
Fredriksen and Frontline are said to be planning a massive tanker newbuild spree in China, which could see the company spend up to $564m.