Frontline Ltd. : 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.
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. 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 forward-looking statements.
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. 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
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. 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 Form 20-F.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Thomson Reuters on behalf of Thomson
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
information contained therein.
Source: Frontline Ltd. via Thomson Reuters ONE
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