Frontline plc Announces Strategic Fleet Renewal and Expansion
On January 8, 2026, Frontline plc (NYSE: FRO – OSE: FRO) revealed its latest fleet renewal initiative. This strategic approach encompasses both the acquisition of new vessels alongside the sale of older assets, aimed at enhancing the company’s operational efficiency and sustainability in the shipping sector.
Sale of Older VLCCs
Frontline has finalized an agreement to sell eight of its oldest first-generation ECO Very Large Crude Carriers (VLCCs), built between 2015 and 2016. The total sales price for these vessels is approximately $831.5 million, with delivery to the new owner scheduled for the first quarter of 2026.
After the repayment of existing debts associated with these vessels, the transaction is expected to yield net cash proceeds of around $486.0 million. Moreover, Frontline anticipates recognizing a gain for the first quarter of 2026 that ranges from $217.4 million to $226.7 million, contingent on the delivery dates.
Acquisition of New VLCC Contracts
In a parallel move, Frontline has also agreed to acquire nine latest-generation scrubber-fitted ECO VLCC newbuilding contracts from an affiliate of its largest shareholder, Hemen Holding Limited. The total purchase price for this acquisition is set at $1,224.0 million.
Of these nine vessels, six are currently under construction at the Hengli shipyard and three at the Dalian shipyard in China. The delivery schedule is notably favorable, with seven vessels expected to be delivered during 2026 beginning in the third quarter, one vessel anticipated in the first quarter of 2027, and the last vessel projected for delivery in the second quarter of 2027.
The company plans to finance this acquisition through cash and long-term debt financing, with the payment structure heavily weighted towards delivery stages.
Management Insights
Lars H. Barstad, Chief Executive Officer of Frontline Management AS, stated: "These two transactions enable Frontline to renew its fleet by replacing 10-year-old first-generation ECO vessels with latest-generation, scrubber-fitted ECO vessels at very firm pricing. This aligns with our strategy of operating one of the most modern, cost- and fuel-efficient fleets in the market."
Barstad emphasized that this acquisition supports Frontline's goal of increasing its exposure in the VLCC segment without adding to the overall vessel supply. He highlighted the attractive delivery schedule, aligning with a market period typically closed to newbuild orders, and reiterated the company’s commitment to advancing fuel efficiency and reducing carbon emissions.
Fleet Composition After Transactions
Upon completion of these significant transactions, Frontline’s fleet will expand to a total of 81 vessels, which will include:
- 42 VLCCs
- 21 Suezmax tankers
- 18 LR2/Aframax tankers
Contact and Forward-Looking Statements
For more details, please reach out to:
- Lars H. Barstad: Chief Executive Officer, Frontline Management AS, +47 23 11 40 00
- Inger M. Klemp: Chief Financial Officer, Frontline Management AS, +47 23 11 40 00
This announcement also includes forward-looking statements, as defined under the Private Securities Litigation Reform Act of 1995. As such, it is advised that particular care should be taken regarding these projections, which are based on various assumptions and market conditions that may change.