Frontline announced that it has entered into an agreement whereby the Company will sell two VLCCs built in 2017 for an aggregate sale price of $270 million. The vessels are expected to be delivered to the new owner during the third quarter of 2026. The sale is subject to certain closing conditions, in line with industry standards.
After repayment of existing debt on the vessels, the transaction is expected to generate net cash proceeds of approximately $179 million, and the Company expects to record a gain in the third quarter of 2026 of approximately $110 million, depending on the date of delivery of each vessel to the new owner.
Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented:
“In these extraordinary markets, and in line with Frontline’s core strategy of returning cash to our shareholders, the Board of Directors of the Company has, subject to completion of the sale, determined to return the cash proceeds, a total of approximately $179 million, to its shareholders through a payment of a one-time special dividend of $0.80 per share”