Frontline announces fleet renewal deals involving purchase of nine new VLCCs

Tanker giant Frontline plc has embarked on a strategic fleet renewal initiative, involving the acquisition of nine new Very Large Crude Carriers and the sale of eight older vessels. 

The Company has entered into an agreement to sell eight of its oldest 1st generation ECO VLCCs, built between 2015 and 2016. Total sales price is around $830 million, with delivery to the new owner scheduled during the first quarter of 2026.

After repayment of existing debt on the vessels, the transaction is expected to generate net cash proceeds of approximately $480 million with the Company recording a gain in the first quarter of 2026 of approximately $220 million, depending on the delivery date of each vessel. The sale remains subject to certain closing conditions, in line with industry standards.

In parallel, the Company has entered into an agreement to acquire nine latest generation scrubber-fitted ECO VLCC newbuilding contracts from an affiliate of Hemen Holding Limited, the Company’s largest shareholder, for an aggregate purchase price of $1.22 billion.

Of these nine new vessels, six are currently under construction at the Hengli shipyard and three at the Dalian shipyard in China. Seven vessels are due for contract delivery during the second half 2026, two in first half 2027.

Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented: “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.”

Upon completion of these transactions, Frontline’s fleet will comprise of 81 vessels, including 42 VLCCs, 21 Suezmaxes and 18 LR2/Aframax tankers.