FRO - Third Quarter and Nine Months 2017 Results
November 22 2017 - 2:30AM
Frontline Ltd. (the
"Company" or "Frontline"), today reported unaudited results for the
three and nine months ended September 30, 2017:
Highlights
-
Reports a net loss attributable to the Company
of $24.1 million, or $0.14 per share, for the third quarter of
2017, primarily due to weak average spot daily time charter
equivalent ("TCE") earnings achieved by our fleet and a $5.8
million loss on the termination of the charter of Front
Ardenne.
-
Reports net loss attributable to the Company of
$16.4 million, or $0.10 per share, and a net loss attributable to
the Company adjusted for certain non-cash items of $9.4 million, or
$0.06 per share, for the nine months ended September 30,
2017.
Robert Hvide Macleod, Chief
Executive Officer of Frontline Management AS commented:
"The impact of the significant
fleet growth over the last two years was felt across the industry
and is reflected in our results for the third quarter. Indeed, the
rate environment presented in the quarter was the weakest we have
experienced since 2013. During this time, we showed commercial
discipline by not accepting unreasonably low offers from
charterers. This resulted in extended waiting time, particularly on
our VLCC's, and impacted our average TCE earnings. We continue to
take proactive steps to increase the earnings potential of our
fleet as demonstrated by reducing the average age of our fleet from
8.1 to 5.4 years since 2016. We believe we are well positioned to
continue to execute our strategy over a long term horizon with the
goal of returning value to shareholders."
Inger M. Klemp, Chief Financial
Officer of Frontline Management AS, added:
"Frontline is proactively focused
on establishing and maintaining low cash break-even rates as we
grow our fleet and the financing of our current newbuilding program
has been completed on terms which support Frontline's low cash
break-even levels."
The average daily time charter equivalents ("TCE") earned by
Frontline in the quarter ended September 30, 2017, the prior
quarter and in the nine months ended September 30, 2017 are
shown below, along with estimates for the fourth quarter in 2017
and the estimated average daily cash break-even ("BE") rates for
the fourth quarter of 2017:
($
per day) |
Spot and time charter |
Spot |
Spot estimates |
%
covered |
Estimated
average cash BE rates |
|
Q3 2017 |
Q2
2017 |
YTD
2017 |
Q3 2017 |
Q2
2017 |
YTD
2017 |
Q4
2017 |
|
Q4 2017 |
VLCC |
13 200 |
23 800 |
24 000 |
13 200 |
23 600 |
23 500 |
19 200 |
76 % |
21
600 |
SMAX |
15 300 |
16 400 |
18 100 |
14 100 |
14 300 |
16 500 |
18 200 |
67 % |
17
700 |
LR2 |
17 200 |
18 100 |
19 000 |
12
300 |
13 200 |
14
400 |
17 000 |
60 % |
15 700 |
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.
3rd Quarter 2017 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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