FRO - Second Quarter and Six Months 2016 Results
August 31 2016 - 02:00AM
Frontline Ltd. (the "Company" or
"Frontline"), today reported unaudited results for the three and
six months ended June 30, 2016:
Highlights
-
Achieved net income attributable to the Company
of $14.3 million, or $0.09 per share, for the second quarter of
2016 and $93.2 million, or $0.60 per share, for the six months
ended June 30, 2016.
-
Achieved net income attributable to the
Company adjusted for certain non-cash charges of $48.7 million, or
$0.31 per share, for the second quarter of 2016 and $138.1 million,
or $0.88 per share, for the six months ended June 30, 2016.
-
Announces a cash dividend of $0.20 per
share for the second quarter of 2016.
-
Secured bank financing of up to $548 million and
is in the final stages of obtaining approval for further bank
financing of up to $325 million to part finance twenty newbuilding
contracts.
-
Sold six medium range tankers for an aggregate
price of $172.5 million to an unaffiliated third party.
-
Acquired two VLCC newbuildings for a purchase
price of $84 million each.
Robert Hvide Macleod, Chief Executive Officer of Frontline
Management AS commented:
"In the second quarter the tanker
market experienced a downward pressure on rates which has continued
into the third quarter. While these are quarters typically
characterized by seasonal weakness, the market was also affected by
crude oil supply disruptions in the Atlantic basin, high levels of
crude inventories, 13 vessels delivering from the
newbuilding fleet and easing congestion in ports around the world.
All factors considered, the tanker market has been reasonably well
balanced, and we are encouraged by our performance in the second
quarter. The spot market is currently at a 24 month low, and
although we expect the rate environment to improve from current
levels, the second half of 2016 will be significantly weaker than
the first half of the year. We remain focused on maintaining our
competitive breakeven levels and strong balance sheet. Frontline's
scale, strong shareholder base and cost-effective operations are
significant strengths that position us well in the tanker
market."
The average daily time charter
equivalents ("TCE") earned by Frontline in the second quarter are
shown below:
Average daily time charter equivalents
("TCEs") |
($ per day) |
Spot and time charter |
Spot |
Spot Guidance |
% covered |
Estimated average daily BE rates |
|
Q2 2016 |
Q1 2016 |
Q2 2016 |
Q1 2016 |
Q3 2016 |
2016 |
VLCC |
45 200 |
65 400 |
48 100 |
70 200 |
30 800 |
76 % |
21 200 |
SMAX |
30 300 |
32 000 |
28 600 |
33 400 |
19 000 |
81 % |
17 200 |
LR2 |
24 300 |
24 700 |
22 300 |
24 800 |
22 500 |
79 % |
15 100 |
MR |
16 300 |
19 800 |
16 000 |
20 300 |
15 000 |
88 % |
13 700 |
Inger M. Klemp, Chief Financial
Officer of Frontline Management AS, added:
"We are very pleased to have
secured bank financing of up to $548 million. We are also in what
we expect to be the final stages of obtaining approval for further
bank financing of up to $325 million. This new financing will
partially finance 20 of our newbuilding contracts at highly
attractive terms and we maintain our very low cash breakeven
levels. STX recently applied for court receivership, and it is
unclear whether the four VLCC newbuildings under contract at this
shipyard will be delivered. These vessels have therefore not
yet been financed."
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.
2nd Quarter 2016 Results
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Frontline Ltd. via Globenewswire
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