Frontline Ltd. (the "Company" or "Frontline"), today reported unaudited results for the three and nine months ended September 30, 2017:
- 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 a net loss attributable to the Company adjusted for certain non-cash items of $23.1 million, or $0.14 per share, for the third quarter of 2017.
- 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 $0.06 per share, for the nine months ended September 30, 2017.
- Terminated the long-term charter for the 1997-built Suezmax tanker Front Ardenne in the third quarter of 2017.
- Took delivery of five newbuildings, including two VLCCs, one Suezmax and two LR2/Aframax tankers in the third quarter of 2017.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS commented:
"The impact of the significant fleet growth over the last two years was felt across the industry and is reflected in our results for the third quarter. Indeed, the rate environment presented in the quarter was the weakest we have experienced since 2013. During this time, we showed commercial discipline by not accepting unreasonably low offers from charterers. This resulted in extended waiting time, particularly on our VLCC's, and impacted our average TCE earnings. We continue to take proactive steps to increase the earnings potential of our fleet as demonstrated by reducing the average age of our fleet from 8.1 to 5.4 years since 2016. We believe we are well positioned to continue to execute our strategy over a long term horizon with the goal of returning value to shareholders."
Inger M. Klemp, Chief Financial Officer of Frontline Management AS, added:
"Frontline is proactively focused on establishing and maintaining low cash break-even rates as we grow our fleet and the financing of our current newbuilding program has been completed on terms which support Frontline's low cash break-even levels."
The average daily time charter equivalents ("TCE") earned by Frontline in the quarter ended September 30, 2017, the prior quarter and in the nine months ended September 30, 2017 are shown below, along with estimates for the fourth quarter in 2017 and the estimated average daily cash break-even ("BE") rates for the fourth quarter of 2017:
|($ 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
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.