Frontline has terminated its long-term timecharter of the suezmax tanker Front Splendour (149,700 dwt, built 1995), which owner Ship Finance International (SFI) is to sell to an unnamed third party.
SFI said net cash proceeds from the sale will be approximately $13m, after Frontline has received $1.3m in compensation for the early termination of the charter.
The vessel is expected to be delivered to its new owner in the fourth quarter this year. The Japan-built ship has its special survey due by November 5.
“Divesting of older vessels is a part of the company’s strategy to renew and diversify the fleet, and the proceeds are expected to be reinvested in new assets,” SFI said in an exchange filing today.
In early August, SFI sold its Japan-built suezmax Front Glory (149,800 dwt, built 1995) to India’s Doehle Danautic for $16m.
Frontline now has 15 SFI vessels on timecharter, comprising 12 VLCCs and three suezmax tankers.