Americas News
Frontline to Fund Scrubbers With Share Offer
US-listed tanker operator Frontline [NYSE:FRO] is go to the capital markets to fund the acquisition of emissions abatement equipment more commonly known as scrubbers.
The company will sell up to $100 million of its shares through broker Morgan Stanley.
"The net proceeds of this offering will be used to opportunistically fund growth opportunities, for certain capital expenditures, including to purchase exhaust gas cleaning systems that reduce sulfur emissions to comply with upcoming implementation of new International Maritime Organisation (IMO) standards, and for general corporate purposes," the company said in a statement.
Scrubbing equipment allows ships to continue to use high sulfur fuel oil (HSFO) after the IMO's global 0.5% sulfur cap comes into force at the start of 2020.
Concerns have persisted over the use of scrubbers, their installation costs and HSFO availability post-2020. However, with 18 months to go before the start of the new regime, interest in the technology has been picking up.
Frontline is listed on the New York stock exchange.
