On October 1, the Ship Finance International Limited announced its plan to sell the 2001 built VLCC to a third party.
Sale of VLCC
The company has agreed to sell its 2001 built VLCC ‘Front Ariake’ to an unrelated third party. The delivery of the VLCC to its new owner is expected to be completed later this month.
The net value of the vessel is estimated to be around $20.7 million, including an approximate $3.4 million in the form of an interest-bearing loan note from Frontline Ltd. The book value of the vessel is approximately $27.6 million, thus an impairment is expected to be recorded in the third quarter.
Move to diversify fleet
The company is keen on divesting its older vessels to continuously renew and diversify the fleet. Following this transaction, the Company has four VLCCs remaining on charter to a subsidiary of Frontline Ltd.
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Source: Ship Finance International
