Frontline canceling ship building for close to 3 billion

Ship Owner John FredriksenOslo.Ship owner John Fredriksen.Photo: Håkon Mosvold Larsen / NTB scanpix

Shipowner Frontline takes a loss of about 16 million NOK and cancels the order of four new vessels with a total value of 3 billion NOK.

The company has signed an agreement with STX Offshore Shipbuilding to terminate the contracts.

The contract price for the new tankers were $ 364.3 million NOK, just below 3 billion NOK, which Frontline has paid around 370 million to terminate the contract, wrote E24.

Frontline has been repaid installments, minus a cancellation fee of $ 0.5 million – 4 million kroner at the current price – per vessel.

The ships were scheduled to be delivered next year.

Source: NTB scanpix / Norway Today