FRO asset sales - Aug 2026

Wow! Our Norwegians-based -n-Cyprus can still surprise. FRO announced a sale of two VLCCs -2017 builds, which are amongst their older VLCCs. $270M for the pair, or $135M each. That’s more than they paid for their VLCC newbuilds.

I will note that FRO own 5 VLCCs built in 2017, and each of them has a common characteristic. Each of the 5 VLCCs do not have a scrubber, so it means those vessels are utilizing the more expensive, low sulfur fuel. Reading a little deeper into the Press release, it sounds like FRO is laying the groundwork for an enhancement to the Q3 div

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This was definitely good business. The VLCCs sold in Jan 2026 were about a year older and sold for over $104M each. This VLCC pair probably had decent earnings during 2026. At least from the scarce reports I have seen, rates have cooled off a little. Sure, rates could get better in Q4 2026. Or not. In the interim, FRO received a very nice offer for a pair of vessels that have more expensive fuel requirements.

Pure speculation on my part - seems reasonable to wonder if JF has any transactions on the newbuild side? With Sinokor around, I suspect FRO will have additional challenges in the 2nd hand VLCC market. For that matter, probably also the case in the resale market