Frontline Cancels Orders For Building New Tankers

NEW YORK (AP) — Frontline Ltd., which owns and operates one of the world's largest fleet of crude oil tankers, said Thursday it canceled contracts to construct new tankers, representing a third of the company's tanker building program and a contractual cost of $556 million.

The company said it canceled contracts to build four Suezmaxes and two Very Large Crude Carriers (VLCC).

Shares of Bermuda-based company climbed $1.06, or 4.7 percent, to $23.88 in morning trading.

After the cancellations, the company's total new-tanker building program amounts to about $1.1 billion, including seven VLCCs and four Suezmax tankers.

The company also reported first-quarter earnings above analyst expectations.