Frontline announces a strategic fleet renewal initiative, involving both the acquisition of new vessels and the sale of older vessels.

Sale of eight of its oldest 1^st generation ECO VLCCs

The Company has entered into an agreement to sell eight of its oldest 1^st generation ECO Very Large Crude Carriers (VLCCs), built between 2015 and 2016. These vessels are being sold for a total sales price of $831.5 million, with delivery to the new owner scheduled during the first quarter of 2026. After repayment of existing debt on the vessels, the transaction is expected to generate net cash proceeds of approximately $486.0 million and the Company expects to record a gain in the first quarter of 2026 in the range of approximately $217.4 million to $226.7 million, depending on the delivery date of each vessel. The sale remains subject to certain closing conditions, in line with industry standards.

Acquisition of nine latest generation scrubber-fitted ECO VLCC newbuilding contracts

In parallel, the Company has entered into an agreement to acquire nine latest generation scrubber-fitted ECO VLCC newbuilding contracts from an affiliate of Hemen Holding Limited, the Company’s largest shareholder, for an aggregate purchase price of $1,224.0 million. Of these nine vessels, six are currently under construction at the Hengli shipyard and three at the Dalian shipyard in China. The delivery schedule for the vessels is attractive, with seven vessels due for contract delivery during 2026, commencing in the third quarter, one vessel expected in the first quarter of 2027 and the final vessel anticipated in the second quarter of 2027. The payment schedule for these acquisitions is weighted towards delivery, with the largest portion of the instalments due upon delivery of each vessel. The Company intends to finance this acquisition with cash and long-term debt financing. The acquisition remains subject to certain closing conditions, in line with industry standards.

Management Commentary

Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented on these transactions:

“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. This aligns with our strategy of operating one of the most modern, cost- and fuel-efficient fleets in the market.

The acquisition also supports our objective of increasing exposure to the VLCC segment without adding to overall vessel supply. The delivery schedule is particularly attractive, falling within a period that is generally considered closed to newbuild orders. Through this transaction, Frontline is making tangible progress toward improved fuel efficiency and reduced carbon emissions.”

Fleet Composition Post-Transaction

Upon completion of these transactions, Frontline’s fleet will comprise of 81 vessels, including 42 VLCCs, 21 Suezmax tankers and 18 LR2/Aframax tankers.