OSLO, Sept 19 (Reuters) - Norway’s Frontline has cancelled plans to buy another four Suezmax oil tankers from Trafigura and instead aims to add even larger supertankers to its fleet, the shipping company said late on Wednesday.
Frontline last month bought 10 Suezmax vessels in a $675 million deal with the Geneva-based commodity trader and got options to buy a further four vessels. However, it decided not to exercise those options.
“We added significant scale through our acquisition of 10 Suezmax tankers from Trafigura, and we are satisfied with our exposure to this asset class,” Frontline Chief Executive Robert Hvide Macleod said in a statement.
Billionaire investor John Fredriksen, Frontline’s top shareholder, said last month the company was in talks to buy a fleet of Very Large Crude Carriers (VLCCs), a bigger vessel type.
“We are pleased to see that the tanker market is tightening and earnings increasing in all our segments. Our market view remains positive and supports further fleet growth, but our main focus will be on VLCCs, where we will seek to add exposure,” Hvide Macleod said. (Reporting by Terje Solsvik; Editing by Aditya Soni)