Frontline will keep to buying 10 tankers from Trafigura Marine Logistics, declining options to buy four more from the subsidiary of Singaporean trader Trafigura.

John Fredriksen's Frontline last month agreed to buy 10 suezmaxes built this year for 16.1 million common shares at $8 each and a cash amount ranging from $538m to $547m.

Frontline declined an extended option to buy two more suezmaxes by Wednesday, thus ending an option to buy two more by 24 September.

“We added significant scale through our acquisition of 10 Suezmax tankers from Trafigura, and we are satisfied with our exposure to this asset class," Frontline chief executive Robert Hvide Macleod said.

"We are pleased to see that the tanker market is tightening and earnings increasing in all our segments.

"Our market view remains positive and supports further fleet growth, but our main focus will be on VLCCs, where we will seek to add exposure.”

Frontline, which owns 22 VLCCs, 28 suezmaxes and 18 aframaxes, joined forces with Trafigura in August to form what will be one of the world’s largest bunker companies.

Balance tilted

Danske Bank analyst Anders Redigh Karlsen said: "Even if we believe the price was attractive, we believe that the 10 suezmaxes added tilt the balance of Frontline's fleet somewhat away from VLCCs."

He added: "The suezmax bias is likely to change as the company stated that it will be looking to expand its presence in the VLCC segment.

"We believe that we are likely to hear of transactions in this segment over the coming months. It could be single or multiple ship transactions, but potentially also looking at M&A."

Karlsen rates acquisition of vessels on the water or resales of existing orders as likely.