Information  X 
Enter a valid email address

Frontline Ltd. (FRO)

  Print      Mail a friend

Monday 04 April, 2011

Frontline Ltd.

FRO - Termination of charter-in contract for OB...

Frontline  Ltd.  ("Frontline"  or  the  "Company")  has agreed with Ship Finance
International  Limited ("Ship Finance") to terminate the long term charter party
between  the  companies  for  the  OBO  carrier  Front  Leader. Ship Finance has
simultaneously  sold the vessel.  The termination of  the charter is expected to
take  place in  April 2011. Frontline  will make  a compensation payment to Ship
Finance  of approximately $7.7 million for the early termination of the charter.
Furthermore, the transaction will reduce the Company's obligations under capital
leases with approximately $10.2 million.

Front Leader was recently redelivered to Frontline after completing a three year
time  charter agreement. The Company  has evaluated new employment possibilities
for  the vessel but given  the uncertainty and current  low rates in the drybulk
market  combined with an  expensive upcoming drydocking  an early termination of
the charter was determined to be the most sensible alternative.

Frontline  has  seven  remaining  OBO  carriers  on charter in from Ship Finance
expiring  in 2015. The current contract coverage  for these vessels is 79%, 49%
and  26% with  average  rates  of  $47,200,  $53,700  and $63,900 per day in the
remainder of 2011, 2012 and 2013, respectively.

April 4, 2011
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda

Questions should be directed to:

Jens Martin Jensen: Chief Executive Officer, Frontline Management AS
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 00

Cautionary Statement Regarding Forward Looking Statements

This press release may contain 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 presentation 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 acc. to ยง5-12 vphl
(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



a d v e r t i s e m e n t