UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of February , 2001
Frontline Ltd.
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(Translation of registrant's name into English)
Mercury House, 101 Front Street, Hamilton, HM 12, Bermuda
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F
Form 20-F X Form 40-F __________
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.
Yes __________ No X
If "Yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): 82-_______
Item 1. INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Attached as Exhibit I is a copy of an announcement of Frontline
Ltd. (the "Company"), dated February 5, 2001.
Attached as Exhibit II is a copy of an announcement of the
Company dated February 6, 2001.
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Exhibit I
FRO: NEWBUILDING PROGRAM
Frontline has during the last year discussed a variety of
newbuilding options with Korean and Japanese yards. Frontline has
now concluded these discussions by signing a total of five
newbuilding contracts. Two Suezmaxes have been ordered with the
Sasebo Shipyard in Japan for delivery in August and October 2001,
and three VLCCs have been ordered with Hitachi for delivery in
April, August and October 2002. The total newbuilding project
will have a cost of approximately USD 330 million, and will be
paid through a competitive installment plan until delivery.
It is assumed that the five contracts in total will need less
than USD 100 million in equity. This amount, plus the equity need
for financing of the 51 % of the two Golar VLCCs, is likely to be
more than covered through Frontline's free cash flow in the first
quarter of 2001. It is not likely that any additional new equity
or any additional cash will be needed to fund the newbuildings.
The three VLCC contracts were negotiated and entered into by
Seatankers Management Co. Ltd., an affiliated party of Hemen
Holdings. Seatankers has through historic ties a very close
relationship with Hitachi. The contracts have been transferred to
Frontline based on a contract price of USD 72.5 million per
vessel plus technical extras of approximately USD 1.2 million.
Frontline has in connection with the transfer asked three
shipbrokers to give their appraisals of the contracts. The
average valuation indicates that the three contracts already have
an instant excess value of USD 15 - 20 million.
The contract price of the Suezmaxes is approximately USD 6
million per ship lower than what has recently been paid for 2001
resale tonnage.
The Board of Frontline considers that the instant excess value in
the contracts compensates the fact that the equity, which will be
tied up in the project, could have been used to buy back shares
at a discount to Net Asset Value.
The ordering of the five ships confirms Frontline's strategy to
keep one of the youngest fleets in the industry. Frontline has in
the negotiation process considered alternative opportunities to
take over existing newbuilding projects or to buy recently
delivered ships. It has been the Board's preference not to add
additional capacity to the market. However, the five contracts
stand out as favorable to any alternative project based on an
evaluation of price and delivery window.
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Frontline's Board has currently no further plans to increase the
size of the company's newbuilding commitment.
February 5, 2001
Hamilton, Bermuda
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Exhibit II
FRO: Mandatory notification of trade
Frontline has through market purchases executed 6 February 2001
bought back 200,000 of the Company's common shares. The shares
have been bought back at a price of NOK 107.18.
Further, holders of Frontline warrants have exercised 142
warrants. Frontline has in exchange for proceeds equal to USD222
issued 14 shares.
Total number of outstanding shares after this is 76,901,525. The
shares have been acquired in accordance with the Board
authorization to buy back shares. Including the mentioned
transaction 2,887,145 shares have been acquired within a total of
3,500,000 authorized.
Hamilton, Bermuda
6 February, 2001
Contact person: Tom E. Jebsen, +47 23 11 40 00
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorised.
Frontline Ltd.
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(Registrant)
Date February 7, 2001 By /s/ Kate Blankenship
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Kate Blankenship
Secretary
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02089009.AD6