Frontline seals multi-year charter deals for VLCC quartet

Lars H. Barstad-led tanker giant Frontline has entered into two one-year time charter-out deals for two VLCC newbuildings delivered on June 22 and July 3, at a rate of $120,000 per day per vessel. The fixtures commenced in late June and early July 2026.

Frontline has also entered into time charter-out agreements for two VLCCs, both built in 2016, for periods of two and three years at average rates of $90,000 and $75,000 per day. The fixtures commenced in early August and late August 2026.  

Frontline reported average daily spot time charter equivalent earnings for VLCCs, suezmax tankers and LR2/aframax tankers in the second quarter of $152,700, $111,500 and $92,400 per day, respectively.

In a statement, the tanker owner also disclosed the sale of two 2017-built VLCCs for a total sales price of $270m. After commission and repayment of existing debt on the vessels, the transactions are expected to generate net cash proceeds of approximately $179m, and the company expects to record a gain in the third quarter of 2026 of approximately $110m.

One of the vessels was delivered to the new owner in early August 2026 and the remaining vessel is expected to be delivered in early September 2026.

Meanwhile, the company in January 2026 announced that it had entered into agreements to acquire nine scrubber-fitted VLCC newbuildings from affiliates of Hemen, for an aggregate purchase price of $1,224.0m. Of these nine vessels, six are from the Hengli shipyard and three from the Dalian shipyard in China. 

The delivery schedule for the vessels is attractive, Frontline said, adding that one vessel delivered on April 30, one on May 20, one on June 22, one on July 3, one on August 18, and one on August 26.

The remaining three vessels are expected to be delivered: two vessels in the fourth quarter of 2026 and the final vessel in the first quarter of 2027. 

Upon delivery of the remaining VLCC newbuildings and sale of two VLCCs, Frontline’s fleet will comprise of 77 vessels, including 40 VLCCs, 19 suezmax tankers and 18 LR2/aframax tankers, with an aggregate capacity of approximately 17.1 million dwt.