FRO - First Quarter 2017 Results
May 30 2017 - 2:31AM
Frontline Ltd. (the "Company" or "Frontline"), today reported
unaudited results for the three months ended March 31, 2017:
Highlights of the quarter
- Achieved net income attributable to the Company of $27.0
million, or $0.16 per share, for the first quarter of 2017.
- Achieved net income attributable to the Company adjusted for
certain non-cash items of $27.9 million, or $0.16 per share, for
the first quarter of 2017.
- Announces a cash dividend of $0.15 per share for the first
quarter of 2017.
- Acquired two VLCC resales delivering September and October
2017 from DSME, Korea at $77.5 million net per vessel.
- Ordered two VLCC newbuildings scheduled to be delivered during
December 2018 and April 2019 and obtained options for two
additional sister vessels scheduled to be delivered during August
and November 2019 from HHI, Korea at $79.8 million per vessel.
- Signed a senior secured term loan facility in an amount of up
to $321.6 million provided by China Exim Bank and insured by China
Export and Credit Insurance Corporation to partially finance eight
newbuildings.
- Obtained further financing commitment for two senior secured
term loan facilities in an aggregate amount of up to $221.0 million
from Credit Suisse and ING to partially finance four recent VLCC
resales and newbuilding contracts.
Robert Hvide Macleod, Chief Executive Officer of Frontline
Management AS commented:
"Notwithstanding near-term pressure on crude
tanker rates, we believe the market will ultimately return to
balance as demand for crude oil continues to increase and vessel
scrapping will begin to offset the negative effect of newbuilding
deliveries. The recent market weakness and other factors have
contributed to a historically low asset price environment that has
presented us with opportunities to acquire modern tonnage at
attractive prices.
We are pleased that we continue to grow our
fleet while also divesting of older vessels, as we recently did
with the charter termination of four VLCC's and two Suezmax
tankers, vessels which have put pressure on our earnings lately and
particularly in the first quarter. As we have stated before,
older vessels are increasingly difficult to trade, a fact that is
amplified in a softer rate environment. In the last 12
months, we have taken steps to both grow and modernize our fleet
through six resale purchases and newbuilding contracts. We
will continue to strive to create value for our shareholders by
expanding our fleet through accretive transactions.
Notwithstanding any potential outcome related to
our proposal to effect a business combination with DHT, there are
many opportunities to continue our strategy of fleet growth and
renewal, and we are confident in our ability to execute on this
strategy."
Inger M. Klemp, Chief Financial Officer of
Frontline Management AS, added:
"Frontline's continued ability to access
attractively priced capital is indicative of the financial strength
of our platform as well as our deep relationships within the
lending community. We are very pleased to have secured financing
for the newly acquired four VLCC resales and newbuilding contracts
in an amount of up to $221.0 million. The financing carries an
interest rate of LIBOR plus a margin of 190 basis points and has an
amortization profile of 18 years, which supports Frontline's low
cash break-even levels."
The average daily time charter equivalents
("TCE") earned by Frontline in the quarter ended March 31, 2017 and
the prior quarter are shown below, along with the estimated average
daily break-even ("BE") rates:
($ per day) |
Spot and time charter |
Spot |
Spot Guidance |
% covered |
|
Estimated average daily BE rates |
|
Q1 2017 |
Q4 2016 |
Q1
2017 |
Q4 2016 |
Q2 2017 |
|
2017 |
VLCC |
34 400 |
32 900 |
34 700 |
32 200 |
25 000 |
64 % |
|
22 300 |
SMAX |
23 400 |
23 500 |
22 200 |
21 700 |
16 000 |
61 % |
|
17 300 |
LR2 |
22 400 |
22 700 |
19
000 |
18 800 |
14
000 |
67 % |
|
15
500 |
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 84Inger 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.
Attachments:
http://www.globenewswire.com/NewsRoom/AttachmentNg/d3b512ee-15d0-4300-8717-797f4463fe68
Frontline (NYSE:FRO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Frontline (NYSE:FRO)
Historical Stock Chart
From Apr 2023 to Apr 2024