Frontline takes VLCC resale brace at ‘historically low’ $77.5m per unit

Frontline takes VLCC resale brace at ‘historically low’ $77.5m per unit

John Fredriksen’s Frontline has revealed via its latest quarterly results that the tanker firm has picked up two VLCC resales for what it claims are “historically low prices”. Frontline did not reveal who they bought the pair of Daewoo Shipbuilding & Marine Engineering tankers from, but did state they are costing $77.5m each and will deliver in the third quarter of this year.

Robert Hvide Macleod, ceo of Frontline Management, commented in the quarterly results: “We remain of the opinion that 2017 will see pressure on freight rates as further newbuildings are delivered.”

Macleod also took aim once again at takeover target DHT Holdings which has repeatedly rebuffed offers from the Fredriksen firm this year.

“As DHT’s largest shareholder we are surprised that DHT’s Board has declined our repeated attempts to discuss a business combination that we believe is clearly in the best interest of all shareholders,” Macleod said.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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