John Fredriksen has strengthened Frontline’s war chest with a $275m loan at the same time as the tanker owner netted funding for eight newbuildings.

Fredriksen’s Hemen Holding came up with the cash alongside a $328.4m cheque from China Exim Bank covering eight newbuildings.

The tycoon has made no secret of his ambitions to consolidate the tanker sector with Frontline, following its merger with Frontline 2012 last year.

Inger Klemp, chief financial officer of Frontline Management, said in a statement the loan from Fredriksen would be used to “part finance the company's current newbuilding programme and potential acquisitions”.

She added: “Based on cash on hand, committed and assumed debt financing we are confident that the current newbuilding program will be fully funded, as well as leaving flexibility for further growth."

Frontline has six newbuildings for delivery in 2016, with 17 vessels set to hit the water in 2017.

Robert Hvide Macleod, chief executive of Frontline Management, pointed to the nine LR2s in the orderbook, noting the increasingly diversified fleet provides leverage to create value in refined product trades and helps to maximize our chartering strategy.

The loans unfolded as Frontline reported a profit of $78.9m in the first three months of 2016 and paid a $0.40 per share dividend.

Its bottom line beat the $58.5m consensus, with what Erik Nikolai Stavseth of Arctic Securities called a “super-performance”.

Its dividend was short of the 100% payout model previously guided. Stavseth notes the company is saving some cash for growth.

“Significantly, this was Frontline's first full quarter following its merger with Frontline 2012. Our performance, particularly in the VLCC segment was strong, despite some market weakness in February and March,” Macleod said.

While Frontline notes a substantial number of newbuildings on order, it believes the tanker market will remain healthy with only a modest decrease in utilization in the near term.

“Frontline is in a unique position to take advantage of a strong tanker market,” it said.

“Due to the size and diversity of our fleet, as well as our very low cash breakeven rates, we believe we will continue to generate solid high returns for our shareholders.

"We have a long track record of doing so, and we seek to carry on that tradition as we increase our leadership role in the market.”