Frontline Ltd. (the "Company" or "Frontline"), today reported unaudited results for the three and six months ended June 30, 2018:
Highlights
- Net loss attributable to the Company for the second quarter of 2018 of $22.9 million, or $0.13 per share which, when adjusted for certain non-cash items, was $27.7 million, or $0.16 per share.
- Spot TCE of $17,000 for ECO VLCCs and $13,200 for VLCCs less than 15 years in the second quarter.
- Spot TCE of $21,700 booked for 82% of vessel days on VLCCs less than 15 years in the third quarter.
- Terminated three long-term charters with Ship Finance.
- Positioning for the "IMO 2020" regulations by acquiring 20% in Feen Marine Scrubbers Inc. ("FMSI"), a leading manufacturer of exhaust gas scrubbers ("EGCS"), and securing the capacity to source a large volume of EGCS for the Company.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS commented:
" Despite the current weak rate environment, we believe cyclical changes are underway and as a result we are more optimistic on tanker rates. The factors supporting our expectation include continued scrapping ahead of 2020 offsetting new deliveries and increased demand for seaborne trade as a result of expected growth in both US exports and OPEC production of crude oil. Additionally, crude oil demand remains strong, and the end of the inventory draw cycle seems increasingly inevitable. We are actively positioning for IMO 2020 and we are pleased that we have been able to secure ownership in a scrubber producer and capacity to buy a large volume of scrubbers at a very competitive price. We will continue to look for the right investment opportunities to further position the Company for the expected recovery."
The average daily time charter equivalents ("TCE") earned by Frontline in the quarter ended June 30, 2018, the prior quarter and in the year ended December 31, 2017 are shown below, along with spot estimates for the third quarter of 2018 and the estimated average daily cash break-even ("BE") rates for the remainder of 2018:
| Average daily time charter equivalents ("TCEs") | |||||||
| ($ per day) | Spot | Spot estimates | % covered | Estimated average daily BE rates | |||
| YTD 2018 | Q2 2018 | Q1 2018 | YTD 2017 | Q3 2018 | 2018 | ||
| VLCC | 13,300 | 11,700 | 14,900 | 22,400 | 20,000 | 78% | 22,500 |
| SMAX | 14,800 | 14,100 | 15,400 | 17,300 | 13,900 | 64% | 18,500 |
| LR2 | 13,200 | 11,700 | 14,800 | 14,400 | 15,500 | 57% | 16,200 |
The full report can be found in the link below.
Questions should be directed to:
Robert Hvide Macleod: Chief Executive Officer, Frontline Management AS +47 23 11 40 84
Inger M. Klemp: Chief Financial Officer, Frontline Management AS +47 23 11 40 76
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. Words, such as, but not limited to "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Frontline believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the control of Frontline, Frontline cannot assure you that they will achieve or accomplish these expectations, beliefs or projections. The information set forth herein speaks only as of the date hereof, and Frontline disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
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