FRO - Frontline buys two latest generation VLCCs for $180M

Frontline (FRO) +0.7% pre-market after agreeing to acquire two scrubber-fitted very large crude carriers built in 2019 at Hyundai Heavy Industries for $180M.The deal was concluded on a charter-free basis and is anticipated to be completed during Q4 2021.Frontline says it will finance the deal with existing borrowing facilities and establish long-term financing closer to delivery of the vessels.Frontline is "unprepared to handle [its] long-term future," as it fights rivals for a shrinking market for oil tankers as peak oil demand approaches, Daniel Thurecht writes in an analysis published on Seeking Alpha.

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Frontline buys two latest generation VLCCs for $180M