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Thursday, July 30, 2009

Ship finance sells single hull VLCC

JOHN Fredriksen-linked company Ship Finance International is selling its single-hull VLCC Front Duchess to “an unrelated third party” for net sales proceeds of US$18.8m. A statement says that delivery to the new owner is expected to take place in September/October 2009, and Ship Finance will receive a net amount of approximately $16.0mafter compensation of approximately $2.8 million to its charterer Frontline, another Fredriksen-linked company, for the termination of the current charter. At the end of September 2009 there will be approximately $13.8 million in loans outstanding against the vessel, and the net cash effect to Ship Finance from the transaction is estimated to be approximately $2.2 million. The company says: “Following this sale, and excluding two vessels previously announced sold on hire/purchase terms, Ship Finance will have only five single-hull crude oil tankers remaining in the fleet. The reduction of the single-hull tanker exposure is in line with the Company's strategy of focusing on modern assets in various shipping and offshore segments.”