Frontline plc, a leading player in the global tanker shipping sector, has rolled out a strategic fleet renewal initiative that combines the divestiture of older vessels and the acquisition of state-of-the-art newbuilds, marking a major step to optimize its fleet structure and enhance market competitiveness.
According to public information released by the company, Frontline has signed an agreement to sell eight of its oldest first-generation ECO Very Large Crude Carriers (VLCCs). Built between 2015 and 2016, these vessels are being offloaded for a total consideration of $831.5 million, with delivery to the new owner slated for the first quarter of 2026.
Depending on the specific delivery dates of each vessel, the company is projected to book a gain ranging from $217.4 million to $226.7 million in the first quarter of 2026. As is standard practice in the shipping industry, the completion of this sale is subject to the fulfillment of certain closing conditions.
In a parallel move, Frontline has inked a deal to acquire nine latest-generation ECO VLCC newbuilding contracts equipped with scrubbers. The seller is an affiliate of Hemen Holding Limited, Frontline’s largest shareholder, with the aggregate purchase price set at $1,224.0 million.
Details show that among these nine newbuilds, six are currently under construction at Hengli shipyard and three at Dalian shipyard in China. The delivery timeline is highly favorable: seven vessels are scheduled for contract delivery starting from the third quarter of 2026, one in the first quarter of 2027, and the last one in the second quarter of 2027. The payment plan for the acquisition is weighted toward delivery, with the bulk of the instalments to be paid upon the handover of each vessel.
Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented on these transactions: “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.
The acquisition also supports our objective of increasing exposure to the VLCC segment without adding to overall vessel supply. The delivery schedule is particularly attractive, falling within a period that is generally considered closed to newbuild orders. Through this transaction, Frontline is making tangible progress toward improved fuel efficiency and reduced carbon emissions.”
Post-transaction fleet data shows that upon the completion of these two sets of deals, Frontline’s fleet will consist of 81 vessels in total, including 42 VLCCs, 21 Suezmax tankers and 18 LR2/Aframax tankers. This optimized fleet structure is expected to bolster Frontline’s ability to navigate market fluctuations and capture growth opportunities in the evolving energy transportation landscape.