Frontline Ltd.
oslo : FRO

September 13, 2011 08:08 ET

CORRECTION: FRO - Termination of charters for three single hull VLCCs

HAMILTON, BERMUDA--(Marketwire - Sep 13, 2011) - This is a correction of the announcement from 12:29 13.09.2011 CEST. Reason for the correction: The announcement below has been updated with the correct termination date for Ticen Ocean.

Frontline Ltd. ("Frontline") and Ship Finance International Limited ("Ship Finance") have agreed to terminate the long term charter parties for the single- hull VLCCs Titan Orion, Titan Aries and Titan Ocean and Ship Finance has simultaneously sold the vessels to an unrelated third party.

Each charter party will terminate at the time the vessel is delivered to the new owner at which time Ship Finance will make a compensation payment to Frontline for termination of the charter party. Expected compensation amounts and termination dates are $9.4 million and first quarter of 2012 for Titan Orion, $6.5 million and fourth quarter of 2012 for Titan Aries and $10.2 million and third quarter of 2013 for Ticen Ocean.

Frontline will have no single hull vessels in its fleet following these charter party terminations.

September 13, 2011
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda

Forward Looking Statements

This press release contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Frontline management's examination of historical operating trends. Although Frontline believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Frontline cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.

Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this press release include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC's petroleum production levels and world wide oil consumption and storage, changes in the Company's operating expenses including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Frontline Ltd. via Thomson Reuters ONE


Contact Information

  • Questions should be directed to:
    Jens Martin Jensen
    Chief Executive Officer
    Frontline Management AS
    +47 23 11 40 99

    Inger M. Klemp
    Chief Financial Officer
    Frontline Management AS
    +47 23 11 40 76