Frontline reaches time charter contracts for two VLCCs

Frontline said that it has entered into an agreement to time charter out two VLCCs; Front Eminence for a period of five years commencing November 2010 at a gross rate of $43,000 per day and Golden Victory for a period of three years commencing September 2010 at a gross rate of $40,000 per day. The latter has an option for the charterer to extend for a further two years at a premium.

As a result, the company? fixed charter coverage is estimated to be 34% in 2010 and 26% in 2011. The entering into these time charter agreements is supported by the company? wish to increase the fixed charter coverage for the period 2011-2013 to 2010 levels.