Frontline Rolls Out $2 Billion Fleet Overhaul With Strategic Vessel Swap

Oslo-listed tanker giant Frontline plc has unveiled a major fleet renewal plan that will see it trade out eight older VLCCs for nine newbuildings in a package deal worth more than $2 billion.

The company said Thursday that it will sell eight first-generation ECO VLCCs built in 2015–2016 for $831.5 million, while simultaneously buying nine latest-generation, scrubber-fitted ECO VLCC newbuilding contracts from an affiliate of Hemen Holding—the John Fredriksen family’s investment vehicle and Frontline’s largest shareholder—for $1.224 billion.

After repaying associated debt, the sale is expected to generate about $486 million in net cash, with Frontline forecasting a first-quarter 2026 gain of roughly $217 million to $227 million. Delivery of the eight sold vessels to their new owner is set for the first quarter of this year.

The timing of the incoming ships is a key part of the strategy. Seven of the nine newbuildings are scheduled for delivery during 2026 beginning in the third quarter, followed by one in the first quarter of 2027 and the final vessel in the second quarter of 2027. The ships are under construction at China’s Hengli and Dalian shipyards — six at Hengli and three at Dalian.

“These two transactions enable Frontline to renew its fleet by replacing 10-year-old first-generation ECO vessels with latest-generation, scrubber-fitted ECO vessels at very firm pricing,” said Lars H. Barstad, CEO of Frontline Management. “This aligns with our strategy of operating one of the most modern, cost- and fuel-efficient fleets in the market.”

Barstad added that the delivery window is especially attractive because it falls within a period widely viewed as effectively closed to newbuild orders, allowing Frontline to increase its exposure to the VLCC segment without adding near-term supply to the market.

Most of the purchase price will be paid on delivery, with Frontline planning to fund the acquisition through a mix of cash and long-term debt.

Once the transactions close, Frontline’s fleet will total 81 vessels — 42 VLCCs, 21 Suezmaxes, and 18 LR2/Aframax tankers — further advancing the company’s push toward improved fuel efficiency and lower emissions.

DNB Carnegie, part of DNB Bank ASA, acted as financial adviser to Frontline and provided a fairness opinion. The deals remain subject to customary closing conditions.

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