John Fredriksen's Frontline has agreed to sell two 2017-built very large crude carriers (VLCCs) for $270m, or $135m per ship, in a third-quarter transaction that SEB analysts said supports recently raised broker valuations across listed tanker owners, according to Splash247.
The sale
The New York- and Oslo-listed owner expects the pair to change hands during the third quarter, Splash247 reported; the specific ships and the buyer were not identified. After repaying debt attached to the vessels, Frontline expects to pocket around $179m and book a gain of about $110m. The company plans to return all net proceeds to shareholders through a one-off dividend of $0.80 per share, subject to the sale closing.
Charter rates and cash position
The sale sits alongside a one-year VLCC charter programme that has progressively strengthened through 2026. Frontline entered into 10 one-year VLCC charters this year at rates ranging from $76,900 to $110,000 per day, according to Splash247. In January, the owner fixed seven VLCCs for one year at $76,900 per day. In the second quarter, it placed two newly delivered ships on one-year deals at $110,000 per day.
| Item | Value |
|---|---|
| Sale price for two 2017-built VLCCs | $270m total; $135m per ship |
| Expected cash after debt repayment | ~$179m |
| Expected gain on disposal | ~$110m |
| One-off dividend | $0.80 per share |
| Seven VLCC one-year charters (January) | $76,900 per day |
| Two newbuild one-year charters (Q2) | $110,000 per day |
| Eight VLCCs sold (2015-2016 builds) | $831.5m |
| Nine scrubber-fitted VLCC newbuildings | $1.224bn |
Fleet overhaul context
The latest disposal follows a wider fleet overhaul launched in January. Splash247 reported that Frontline sold eight VLCCs built in 2015 and 2016 for $831.5m while acquiring nine latest-generation, scrubber-fitted newbuildings for $1.224bn. Six of the new ships are being built at Hengli Heavy Industry and three at Dalian Shipbuilding Industry Co.
Market read-across
Analysts at Scandinavian bank SEB described the $135m-per-ship deal as a market-clearing transaction that supports recently raised broker valuations and net asset values across listed VLCC owners, including DHT Holdings and International Seaways, according to Splash247. SEB said the disposal fits Frontline’s approach throughout 2026: sell ships at strong asset prices, return cash and retain substantial exposure to the spot market.
SEB analysts described the $135m-per-ship deal as a market-clearing transaction supporting recently raised broker valuations and net asset values across listed VLCC owners.
What this means for operators
For freight forwarders, tanker charterers and logistics managers, the deal provides two reference points: asset values for 2017-built VLCCs at $135m per ship, and one-year charter rates for modern scrubber-fitted tonnage at $110,000 per day, both reported by Splash247. Frontline’s expectation of a $110m gain and the planned $0.80 per share payout underline the cash returns currently available to owners of crude tankers. The transaction also signals that listed owners with comparable fleets may face upward revisions to net asset values, per SEB’s framing.
Watch list
- Completion of the sale during the third quarter and the paying of the $0.80 per share dividend.
- Whether Frontline’s next one-year VLCC fixtures hold at or above $110,000 per day for modern scrubber-fitted ships.
- Delivery progress of the nine newbuildings, with six under construction at Hengli Heavy Industry and three at Dalian Shipbuilding Industry Co.
- Broker valuation updates for DHT Holdings and International Seaways following the market-clearing signal flagged by SEB.
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