FRO - Third Quarter and Nine Months 2016 Results
November 29 2016 - 2:30AM
Frontline Ltd. (the "Company" or
"Frontline"), today reported unaudited results for the three and
nine months ended September 30, 2016:
Highlights
-
Achieved net income attributable to the Company
of $5.5 million, or $0.03 per share, for the third quarter of 2016
and $98.7 million, or $0.63 per share, for the nine months ended
September 30, 2016.
-
Achieved net income attributable to the
Company adjusted for certain non-cash charges of $16.6 million, or
$0.11 per share, for the third quarter of 2016 and $154.7 million,
or $0.99 per share, for the nine months ended September 30, 2016.
-
Announces a cash dividend of $0.10 per
share for the third quarter of 2016.
-
Secured bank financing in a total amount of up
to $870 million to partially finance all of the Company's
newbuilding contracts.
-
Five of the six medium range tankers, which the
Company agreed to sell in June 2016, were delivered to the buyer in
the third quarter. The final vessel was delivered in
November.
Robert Hvide Macleod, Chief Executive Officer of Frontline
Management AS commented:
"While the summer is typically a
slower period in the tanker markets, seasonal weakness was more
pronounced this year as supply disruptions, easing refinery margins
and inventory drawdowns led to reduced oil flows and a
slowdown in tanker demand. In addition, the global fleet expanded
as newbuilding vessels were delivered from shipyards. We believe
that our performance in the third quarter against this market
backdrop, further highlights Frontline's competitive position in
the market and efficient operations. Frontline's low cash
breakeven rates, large commercial scale, and historically
successful access to capital are significant differentiators that
support our leading position in the tanker market."
The average daily time charter
equivalents ("TCE") earned by Frontline in the third quarter are
shown below:
($ per
day) |
Spot and
time charter |
Spot |
Spot
Guidance |
%
covered |
|
Estimated
average daily BE rates |
|
Q3
2016 |
Q2
2016 |
Q3
2016 |
Q2
2016 |
Q4
2016 |
|
2016 |
VLCC |
27 900 |
45 200 |
26 900 |
48 100 |
28 000 |
75 % |
|
21 200 |
SMAX |
21 200 |
30 300 |
19 200 |
28 600 |
19 000 |
55 % |
|
17 300 |
LR2 |
23
800 |
24 300 |
20
600 |
22
300 |
16 000 |
60 % |
|
15 300 |
Inger M. Klemp, Chief Financial
Officer of Frontline Management AS, added:
"We are pleased to have secured
bank financing of up to $870 million to partially finance all of
the Company's 16 newbuilding contracts and the four vessels which
were delivered during the third quarter. We consider the
terms achieved highly attractive, enabling us to maintain our low
cash breakeven levels."
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.
3rd 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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