FRO - Second Quarter and Six Months 2016 Results
(Thomson Reuters ONE) -
Frontline Ltd. (the "Company" or "Frontline"), today reported unaudited results
for the three and six months ended June 30, 2016:
Highlights
* Achieved net income attributable to the Company of $14.3 million, or $0.09
per share, for the second quarter of 2016 and $93.2 million, or $0.60 per
share, for the six months ended June 30, 2016.
* Achieved net income attributable to the Company adjusted for certain non-
cash charges of $48.7 million, or $0.31 per share, for the second quarter of
2016 and $138.1 million, or $0.88 per share, for the six months ended June
30, 2016.
* Announces a cash dividend of $0.20 per share for the second quarter of 2016.
* Secured bank financing of up to $548 million and is in the final stages of
obtaining approval for further bank financing of up to $325 million to part
finance twenty newbuilding contracts.
* Sold six medium range tankers for an aggregate price of $172.5 million to an
unaffiliated third party.
* Acquired two VLCC newbuildings for a purchase price of $84 million each.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS
commented:
"In the second quarter the tanker market experienced a downward pressure on
rates which has continued into the third quarter. While these are quarters
typically characterized by seasonal weakness, the market was also affected by
crude oil supply disruptions in the Atlantic basin, high levels of crude
inventories, 13 vessels delivering from the newbuilding fleet and easing
congestion in ports around the world. All factors considered, the tanker market
has been reasonably well balanced, and we are encouraged by our performance in
the second quarter. The spot market is currently at a 24 month low, and although
we expect the rate environment to improve from current levels, the second half
of 2016 will be significantly weaker than the first half of the year. We remain
focused on maintaining our competitive breakeven levels and strong balance
sheet. Frontline's scale, strong shareholder base and cost-effective operations
are significant strengths that position us well in the tanker market."
The average daily time charter equivalents ("TCE") earned by Frontline in the
second quarter are shown below:
Average daily time charter equivalents ("TCEs")
--------------------------------------------------------------------------------
Estimated
average
($ per Spot and time Spot daily BE
day) charter Spot Guidance % covered rates
+--------+------------------+---------------+---------------------+------------+
| |Q2 2016 Q1 2016 |Q2 2016 Q1 2016| Q3 2016 | 2016 |
+--------+------------------+---------------+---------------------+------------+
VLCC |45 200 65 400 |48 100 70 200 | 30 800 76 % | 21 200
| | | |
SMAX |30 300 32 000 |28 600 33 400 | 19 000 81 % | 17 200
| | | |
LR2 |24 300 24 700 |22 300 24 800 | 22 500 79 % | 15 100
| | | |
MR |16 300 19 800 |16 000 20 300 | 15 000 88 % | 13 700
Inger M. Klemp, Chief Financial Officer of Frontline Management AS, added:
"We are very pleased to have secured bank financing of up to $548 million. We
are also in what we expect to be the final stages of obtaining approval for
further bank financing of up to $325 million. This new financing will partially
finance 20 of our newbuilding contracts at highly attractive terms and we
maintain our very low cash breakeven levels. STX recently applied for court
receivership, and it is unclear whether the four VLCC newbuildings under
contract at this shipyard will be delivered. These vessels have therefore not
yet been financed."
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.
2nd Quarter 2016 Results:
http://hugin.info/182/R/2038448/759705.pdf
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
Unternehmensinformation / Kurzprofil:
Datum: 31.08.2016 - 08:00 Uhr
Sprache: Deutsch
News-ID 491913
Anzahl Zeichen: 7046
contact information:
Town:
Hamilton
Kategorie:
Business News
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"FRO - Second Quarter and Six Months 2016 Results"
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