The contract for the eco vessels is thought to be split between Shanghai Waigaoqiao and STX Dalian.
Erik Nikolai Stavseth, Arctic’s shipping analyst, said: “While 2013 may not offer attractive returns, we see asset investments in 2013 with a three-five year time frame as highly likely to have a solid return on equity.”
He added: “One of shipping’s most savvy investors putting cash into newbuilds is a positive sign which should be a clear signal to other investors.”
Fredriksen is thought to be paying $46m for each of the vessels, with some suggesting the price tag is smaller.
Stavseth says the order has only a limited impact on his valuation of Frontline 2012, but he believes the eco element of the capes will have a substantial impact on earnings.
“Based on our assumed engine configuration, we estimate 15% fuel-savings or some 8-9 tons per day – equal to $4,800-6,300/day,” he said.
“We estimate Capesize rates for 2014/2015 to be $6,000/day and $20,000/day, respectively, and thus the fuel savings will improve FRNTs earnings on the vessels by ~30%.”
Frontline 2012 is expected to firm up the order in the first quarter of this year.
After establishing Frontline 2012, Fredriksen ordered a slew of oil and gas tankers and declared that the new company will be the group’s vehicle for tanker growth.
Newbuildings booked include four 115,000-dwt aframax tankers at Guangzhou Longxue Shipyard, four 84,000-cbm very large gas carriers (VLGCs) at Jiangnan Changxin and the MR tankers at STX Dalian, plus six 50,000-dwt tankers at STX Offshore & Shipbuilding in Korea.
Frontline 2012 holds options for six more MR tankers, two more aframaxes and two more VLGCs.
The company is set to decide on the options in the first quarter of 2013.
In December, Frontline 2012 disclosed that it had cancelled a second VLCC newbuilding at Jinhai Heavy Industry.
The company had five units on order at Jinhai but axed the first two vessels due to excessive delays.
