Frontline offloads suezmax for $44.5m

John Frederiksen’s Frontline has sold its 2010-built suezmax tanker,
Front Njord to an unnamed buyer for $44.5m.

The 156,000 dwt vessel, online pricing platform VesselsValue lists as worth $40.7m, is expected to change hands in the second quarter of 2023. 

Cyprus-based Frontline, which logged its highest first-quarter profit since 2008 of $199.6m, said the deal should generate net cash proceeds of about $28.2m after repayment of existing debt, with a $9.4m gain on sale to be recorded in the second quarter of this year.

The New York- and Oslo-listed company recently secured $129.4m “at attractive terms” to refinance an existing loan maturing in August with a total balloon payment of $80.1m. The expected net cash proceeds from the refinancing and from the sale of Front Njord should be used to partially repay Frontline’s $275m senior unsecured revolving credit.

In January, Frontline also sold the 2009-built suezmax Front Balder for $39.5m. As of the end of March, it had a fleet of 69 ships, of which 26 suezmaxes.