FRO - Second Quarter and Six Months 2009 Results
(Thomson Reuters ONE) - Highlights* Frontline reports net income attributable to the Company of $27.8 million and earnings per share of $0.36 for the second quarter of 2009.* Frontline reports net income attributable to the Company of $104.4 million and earnings per share of $1.34 for the first half of 2009.* Frontline announces a cash dividend of $0.25 per share for the second quarter of 2009.* The second VLCC newbuilding from Waigaoqiao, Front Queen, was delivered on May 18, 2009.* Frontline agreed with two shipyards to cancel four Suezmax and two VLCC newbuilding contracts representing 33 percent of the newbuilding program and a total contractual cost of $556 million.* Frontline secured long term pre- and post delivery financing for two further VLCC newbuildings in an amount of $146.4 million, representing 70 percent of contractual cost.* Frontline amended the time charter agreements on Front Lady and Front Highness to bareboat charters and extended the periods to mid 2011. The vessels will be operated as floating storage units and have ceased to trade as regular tankers.* Frontline has agreed to terminate the long term charter party for the single hull VLCC Front Duchess and will receive a compensation payment of approximately $2.8 million.Second Quarter and Six Months 2009 ResultsThe Board of Frontline Ltd. (the "Company" or "Frontline") announcesnet income attributable to the Company of $27.8 million for thesecond quarter of 2009, equivalent to earnings per share of $0.36,compared with net income attributable to the Company of $76.6 millionand earnings per share of $0.98 for the preceding quarter. Netoperating income in the second quarter was $62.1 million comparedwith $111.0 million in the preceding quarter.The reported earnings reflect a weaker spot market. The average dailytime charter equivalents ("TCEs") earned in the spot and periodmarket in the second quarter by the Company's VLCCs, Suezmax tankersand Suezmax OBO carriers were $38,400, $26,800 and $42,700,respectively, compared with $50,300, $37,900, and $44,200,respectively, in the preceding quarter. The spot earnings for theCompany's double hull VLCCs and Suezmax vessels were $38,700 and$24,400, respectively, in the second quarter of 2009, compared with$56,200 and $38,300, respectively, in the preceding quarter.Profit share expense of $8.0 million has been recorded in the secondquarter as a result of the profit sharing agreement with Ship FinanceInternational Limited ("Ship Finance") compared to $14.5 million inthe preceding quarter. Ship operating expenses increased by $2.2million compared with the preceding quarter primarily as a result ofincreased dry docking costs.Charterhire expenses decreased by $6.8 million in the second quartercompared with the preceding quarter due to the weaker spot market,which has resulted in reduced expenses on floating rate charters andprofit share payments on two vessels.Interest income was $5.6 million in the second quarter, of which $5.0million relates to restricted deposits held by subsidiaries reportedin Independent Tankers Corporation Limited ("ITCL"). Interestexpense, net of capitalized interest, was $40.1 million in the secondquarter of which $10.3 million relates to ITCL.Frontline announces net income attributable to the Company of $104.4million for the six months ended June 30, 2009, equivalent toearnings per share of $1.34. The average daily TCEs earned in thespot and period market in the six months ended June 30, 2009 by theCompany's VLCCs, Suezmax tankers and Suezmax OBO carriers were$44,200, $32,300 and $43,500, respectively, compared with $84,300,$61,100 and $43,600, respectively, in the six months ended June 30,2008. The spot earnings for the Company's double hull VLCCs andSuezmax vessels were $47,600 and $31,600, respectively, in the sixmonths ended June 30, 2009.As of June 30, 2009, the Company had total cash and cash equivalentsof $628.3 million, which includes $507.7 million of restricted cash.Restricted cash includes $317.4 million relating to deposits in ITCLand $189.6 million in Frontline, which is restricted under thecharter agreements with Ship Finance.In August 2009, the Company has average total cash cost breakevenrates on a TCE basis for VLCCs and Suezmaxes of approximately $31,900and $25,200, respectively.CorporateOn August 27, 2009, the Board declared a dividend of $0.25 per share.The record date for the dividend is September 11, 2009, ex dividenddate is September 9, 2009 and the dividend will be paid on or aboutSeptember 24, 2009.77,858,502 ordinary shares were outstanding as of June 30, 2009, andthe weighted average number of shares outstanding for the quarter was77,858,502.The full report is available for download in the link enclosed.The Board of DirectorsFrontline Ltd.Hamilton, BermudaAugust 27, 2009Questions should be directed to:Jens Martin Jensen: Chief Executive Officer, Frontline Management AS +47 23 11 40 99Inger M. Klemp: Chief Financial Officer, Frontline Management AS +47 23 11 40 76Forward Looking StatementsThis press release contains forward looking statements. Thesestatements are based upon various assumptions, many of which arebased, in turn, upon further assumptions, including Frontlinemanagement's examination of historical operating trends. AlthoughFrontline believes that these assumptions were reasonable when made,because assumptions are inherently subject to significantuncertainties and contingencies which are difficult or impossible topredict and are beyond its control, Frontline cannot give assurancethat it will achieve or accomplish these expectations, beliefs orintentions.Important factors that, in the Company's view, could cause actualresults to differ materially from those discussed in this pressrelease include the strength of world economies and currencies,general market conditions including fluctuations in charter hirerates and vessel values, changes in demand in the tanker market as aresult of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in the Company's operatingexpenses including bunker prices, dry-docking and insurance costs,changes in governmental rules and regulations or actions taken byregulatory authorities, potential liability from pending or futurelitigation, general domestic and international political conditions,potential disruption of shipping routes due to accidents or politicalevents, and other important factors described from time to time inthe reports filed by the Company with the United States Securitiesand Exchange Commission.http://hugin.info/182/R/1337836/318956.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 28.08.2009 - 07:49 Uhr
Sprache: Deutsch
News-ID 5204
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