Investment analysts yesterday voiced surprise at the sudden retirement of the head of Bermuda-based shipping company Frontline.

In a Press statement, Frontline said that both its board and CEO Ola Lorentzon were in mutual agreement that Mr. Lorentzon should retire.

"Mr. Lorentzon shall retire from his current position as Frontline Management AS's managing director, effective from 1 October 2003," the release read, although it added that Mr. Lorentzon would remain available until year's end to finalise work on current projects.

The decision prompted analysts to react with surprise as it followed closely on the heels of a recent announcement that Frontline could be considering a restructuring.

UK publication Lloyd's List reported that Oslo-based analysts said the retirement was unexpected, and some speculated that it was linked to moves by owner and multi-billionaire shipping magnate John Fredriksen and his vice-president, Tor Olav Troim, to review the structure of the group.

Other analysts suggested, according to the report, that Mr. Lorentzon had decided it was "too much hassle" to become involved in the new structure, which would be highly-geared and risk-laden.

"It's surprising that he is leaving the company so soon, and when you look what Frontline is working towards," said DnB Markets analyst Henrik With.

The Bermuda-based board a fortnight ago presented a scheme to its US investors to split the firm into Frontline Shipping, responsible for assets and associated debt, and Frontline Ltd. that would long-term charter company tankers and re-let them in the freight market.

Frontline, which is reported to be the world's largest oil tanker company, was recently close to wind-up in Bermuda courts but its making good at the eleventh hour on an outstanding judgement award kept a liquidation order from being enforced.

Meanwhile, Oscar Spieler, 42, who has served as technical director of Frontline Management since 1999, has been named to take over as managing director of the company.

Mr. Spieler served as fleet manager for Norwegian tanker rival Bergesen for almost a decade, and previously worked with the Norwegian classification society DNV.

Mr. Lorentzon will, as a consequence of his retirement relocate to his native Sweden where he will focus on directorships, including his position as chairman of Knightsbridge Tankers Ltd. and personal interests. Frontline said it regretted Mr. Lorentzon's decision "as he has contributed to the success of Frontline Ltd. over the years of his association with the Group".