FRO - Termination of charter-in contract of Suezmax tanker
Frontline Ltd. ("Frontline" or the "Company") has agreed with Ship Finance
International Limited ("Ship Finance") to terminate the long term charter party
for the Suezmax tanker Front Pride and Ship Finance has simultaneously sold the
vessel. The charter party is expected to terminate in late February 2013.
Frontline will make a compensation payment to Ship Finance of approximately $2.1
million for the early termination of the charter. The transaction will reduce
the Company's obligations under capital leases by approximately $5.1 million and
the Company expects to record a loss of approximately $4.7 million.
February 7, 2013
The Board of Directors
Questions should be directed to:
Jens Martin Jensen: 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
FORWARD LOOKING STATEMENTS
Matters discussed in this document may constitute forward-looking statements.
Â The Private Securities Litigation Reform Act of 1995 provides safe harbor
protections for forward-looking statements in order to encourage companies to
provide prospective information about their business. Â Forward-looking
statements include statements concerning plans, objectives, goals, strategies,
future events or performance, and underlying assumptions and other statements,
which are other than statements of historical facts.
Frontline desires to take advantage of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. The words "believe,"
"anticipate," "intends," "estimate," "forecast," "project," "plan," "potential,"
"will," "may," "should," "expect" "pending" and similar expressions identify
The forward-looking statements in this document are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management's examination of historical operating
trends, data contained in Frontline's records and other data available from
third parties. Â Although Frontline believes that these assumptions were
reasonable when made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or impossible to
predict and are beyond Frontline's control, you cannot be assured that Frontline
will achieve or accomplish these expectations, beliefs or projections. Frontline
undertakes no duty to update any forward-looking statement to conform the
statement to actual results or changes in expectations.
Important factors that, in Frontline's view, could cause actual results to
differ materially from those discussed in the forward-looking statements
include, without limitation: the strength of world economies and currencies,
general market conditions, including fluctuations in charterhire rates and
vessel values, changes in demand in the tanker market, including but not limited
to changes in OPEC's petroleum production levels and world wide oil consumption
and storage, changes in Frontline's operating expenses, including bunker prices,
drydocking and insurance costs, the market for Frontline's vessels, availability
of financing and refinancing, ability to comply with covenants in such financing
arrangements, failure of counterparties to fully perform their contracts with
us, 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, vessel breakdowns,
instances of off-hire and other important factors. Â For a more complete
discussion of these and other risks and uncertainties associated with
Frontline's business, please refer to Frontline's filings with the Securities
and Exchange Commission, including, but not limited to, its annual report on
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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Source: Frontline Ltd. via Thomson Reuters ONE