Frontline Ltd. (the "Company" or "Frontline"),
today reported unaudited results for the three months and year
ended December 31, 2016:
Highlights
-
Achieved net income attributable to the Company
of $18.3 million, or $0.12 per share, for the fourth quarter of
2016 and $117.0 million, or $0.75 per share, for the year ended
December 31, 2016.
- Achieved net income attributable to the Company
adjusted for certain non-cash items of $34.5 million, or $0.22 per
share, for the fourth quarter of 2016 and $188.9 million, or $1.20
per share, for the year ended December 31, 2016.
- Announces a cash dividend of $0.15 per share for
the fourth quarter of 2016.
- Completed a public offering generating gross
proceeds of $100.0 million in December 2016.
-
Frontline, together with its affiliates,
acquired approximately 16.4% of the outstanding common stock in DHT
Holdings, Inc. (NYSE: DHT).
-
In January, Frontline approached DHT with a
proposal for a possible business combination whereby the Company
would acquire DHT in a stock-for-stock transaction, which was
declined by DHT's Board.
-
In February, Frontline presented an improved and
final offer of 0.80 Frontline shares per DHT share, which was
declined by DHT's Board.
-
Agreed with Ship Finance to terminate the long
term charter for the 1998 built VLCC Front Century upon the sale
and delivery of the vessel to a third party.
-
Acquired two VLCC resales
delivering Sep and Oct 2017 from DSME, Korea at $77.5 million
net per vessel
Robert Hvide Macleod, Chief
Executive Officer of Frontline Management AS commented:
"The improvement in crude tanker
rates in the fourth quarter was attributable to seasonality as we
approached winter in the Northern Hemisphere as well as a strong
increase in OPEC volumes ahead of the implementation of production
cuts. We remain of the opinion that 2017 will see pressure on
freight rates as further newbuildings are delivered. As DHT's
largest shareholder we are surprised that DHT's Board has declined
our repeated attempts to discuss a business combination that we
believe is clearly in the best interest of all shareholders. We
continuously evaluate various ways to expand our fleet and are
pleased to have acquired two VLCC resales at historically low
prices without adding to the size of the global fleet. We continue
to maintain our leading position in the tanker market, supported by
our very low cash breakeven rates, large commercial scale and
consistent access to capital. These are clear differentiators that
the market has consistently ascribed value to."
Inger M. Klemp, Chief Financial
Officer of Frontline Management AS, added:
"Frontline's
newbuilding program as of December 31, 2016 is fully financed. The
Company has already initiated dialogues with banks to finance our
two newly acquired resale VLCCs and are confident that we will be
able to secure financing at attractive terms."
The average daily time charter
equivalents ("TCE") earned by Frontline in the fourth quarter and
year ended December 31, 2016 are shown below:
($ per
day) |
Spot and
time charter |
Spot |
Spot
Guidance |
%
covered |
|
Estimated
average daily BE rates |
|
Q4
2016 |
Q3
2016 |
YTD
2016 |
Q4
2016 |
Q3
2016 |
YTD
2016 |
Q1
2017 |
|
2017 |
VLCC |
32 900 |
27 900 |
43 200 |
32 200 |
26 900 |
43 100 |
38 000 |
74 % |
|
22 300 |
SMAX |
23 500 |
21 200 |
26 400 |
21 700 |
19 200 |
24 800 |
23 000 |
71 % |
|
17 300 |
LR2 |
22
700 |
23 800 |
23
800 |
18 800 |
20 600 |
20
800 |
19 000 |
60 % |
|
15 500 |
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.