Frontline plc (the “Company” or “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”.
This latest sale follows the large-scale fleet restructuring initiated by Frontline in January 2026. On January 8, the shipowner announced the sale of eight VLCCs—built in 2015 and 2016—for $831.5 million, alongside the acquisition of nine scrubber-fitted, next-generation VLCC newbuilds for $1.224 billion. These new vessels are currently under construction at Hengli Heavy Industries (six vessels) and Dalian Shipbuilding Industry Corporation (DSIC) (three vessels), with full delivery scheduled by the second quarter of 2027.
Commenting on the latest vessel sale, analysts at SEB noted: “Frontline’s sale of two nine-year-old VLCCs at $135 million each—if successfully concluded—would serve as a market benchmark. This transaction validates the recent upward revisions in valuation and net asset value (NAV) estimates made by shipbrokers for listed VLCC owners such as DHT Holdings and International Seaways.”
SEB stated that the sale aligns with Frontline’s strategic approach for 2026: selling vessels when asset prices are high to generate cash while maintaining significant exposure to the spot market. The shipowner also secured ten one-year charters for VLCCs this year, with daily rates showing a strengthening trend, ranging from $76,900 to $110,000.
According to its official website, Frontline is a major player in the maritime transport of crude oil and refined products, owning and operating one of the industry’s largest and most modern fleets. The fleet comprises 74 vessels in total, including 37 VLCCs, 19 Suezmax tankers, and 18 LR2/Aframax tankers.