OSLO, June 3 (Reuters) - Oil tanker company Frontline will raise up to $100 million in an equity offering to fund potential growth opportunities and general corporate needs, it said on Wednesday.
Morgan Stanley will act as the Oslo and New York-listed shipping firm’s sales agent, Frontline said.
The company has repeatedly said it is looking to add to its fleet of Very Large Crude Carriers (VLCCs) as well as smaller vessels but has yet to announce a deal.
Frontline said on May 20 it currently has five tankers on order - one VLCC expected to be delivered this month, and four LR2 tankers, which are to be delivered over the coming 19 months.
Frontline’s Oslo-listed shares have fallen by 31% this year as global crude producers seek to reduce output amid the COVID-19 pandemic.
Its January-March net profit rose fourfold from a year-ago, its strongest first quarter in twelve years, on the back of high freight rates amid an oversupplied oil market where many vessels were used for storage. (Reporting by Victoria Klesty, editing by Terje Solsvik)