Frontline To Spend $330M On New Tankers

Norway's Frontline ordered five tankers from Japanese yards for $330 million. "Two Suezmaxes have been ordered with the Sasebo Shipyard in Japan for delivery in August and October 2001, and three VLCCs have been ordered with Hitachi for delivery in April, August and October 2002," Frontline said in a statement. "The total newbuilding project will have a cost of approximately $330 million, and will be paid through a competitive installment plan until delivery," it said. It said that the company assumed that the five contracts in total will need less than $100 million in equity, and Frontline was not likely to need new equity to fund these acquisitions. Frontline said that the contract price of the Suezmaxes was approximately $6 million per ship lower than what has recently been paid for 2001 resale tonnage. "Frontline's board has currently no further plans to increase the size of the company's newbuilding commitment," it said.