Ship Finance International sells old suezmax tanker

Ship Finance International sells old suezmax tanker

Fredriksen-led Ship Finance International (SFI) is to sell a 20-year-old suezmax tanker to an unnamed buyer for around $16m.

The Japan-built Front Glory (149,800 dwt, built 1995) has been on charter to a subsidiary of Frontline, but this contract will be terminated when the vessel is sold. Until now, the ship has operated as part of the six-suezmax Alliance Chartering Pool.

Frontline will receive compensation of $2.2m for the early termination of its timecharter, leaving SFI with a net amount of around $13.8m.

“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 commented today.

SFI’s VLCC and suezmax fleets have an average age of 13 years and 14 year respectively.

After the sale is completed, SFI will have 16 vessels on charter to Frontline, of which 12 are VLCCs and four are suezmaxes.

 

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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