Frontline Launches $2 Billion VLCC Fleet Renewal to Boost Efficiency and Capacity
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Frontline ( (FRO) ) has issued an announcement.
Frontline has launched a substantial fleet renewal program, agreeing to sell eight of its oldest first-generation ECO VLCCs, built between 2015 and 2016, for $831.5 million with delivery to the buyer slated for the first quarter of 2026, a move expected to generate about $486 million in net cash and a significant accounting gain. In parallel, the tanker owner will acquire nine latest-generation, scrubber-fitted ECO VLCC newbuilding contracts from an affiliate of its largest shareholder, Hemen Holding, for $1.224 billion, with deliveries concentrated in 2026 and extending into mid-2027, financed through cash and long-term debt; management says the transactions will refresh the fleet, increase VLCC exposure without adding to net global supply, improve fuel efficiency and emissions performance, and leave Frontline with a fleet of 81 vessels, including 42 VLCCs, reinforcing its competitive position in the crude tanker market.
The most recent analyst rating on (FRO) stock is a Sell with a $145.00 price target. To see the full list of analyst forecasts on Frontline stock, see the FRO Stock Forecast page.
More about Frontline
Frontline plc is an international crude oil tanker owner and operator, focused on the VLCC, Suezmax and LR2/Aframax segments. Listed in New York and Oslo, the company aims to run a modern, fuel-efficient fleet to maintain cost leadership and meet increasingly stringent environmental standards in global seaborne oil transportation.
Average Trading Volume: 2,917,806
Technical Sentiment Signal: Buy
Current Market Cap: $4.81B
See more insights into FRO stock on TipRanks’ Stock Analysis page.
