FRO - Third Quarter and Nine Months 2009 Results
(Thomson Reuters ONE) - Highlights* Frontline reports a net loss attributable to the Company of $5.6 million and a loss per share of $0.07 for the third quarter of 2009.* Frontline reports net income attributable to the Company of $98.8 million and earnings per share of $1.27 for the nine months ended September 30, 2009.* Frontline announces a cash dividend of $0.15 per share for the third quarter of 2009.* Frontline continue to outperform the market and the Company's peers in the third quarter of 2009 with spot earnings for the double hull VLCCs and Suezmax tankers in the Gemini Suezmax pool of $26,800 per day and $14,866 per day, respectively.* Losses related to the five Suezmax tankers chartered in from Eiger were $14.6 million in the third quarter and $29 million year to date. Early November 2009, Frontline redelivered two of the vessels and expects to redeliver two vessels in December 2009 and the remaining vessel in the first quarter of 2010.* The Board has progressed with a plan to strengthen Frontline's resistance in the case the current weak oil demand will continue to negatively influence tanker earnings.Third Quarter and Nine Months 2009 ResultsThe Board of Frontline Ltd. (the "Company" or "Frontline") announcesa net loss attributable to the Company of $5.6 million for the thirdquarter of 2009, equivalent to loss per share of $0.07, compared withnet income attributable to the Company of $27.8 million and earningsper share of $0.36 for the preceding quarter. Net operating income inthe third quarter was $28.2 million, compared with $62.1 million inthe preceding quarter.The reported loss reflects a weaker spot market. The average dailytime charter equivalents ("TCEs") earned in the spot and periodmarket in the third quarter by the Company's VLCCs, Suezmax tankersand Suezmax OBO carriers were $32,100, $15,900 and $42,200,respectively, compared with $38,400, $26,800, and $42,700,respectively, in the preceding quarter. The spot earnings for theCompany's double hull VLCCs and Suezmax tankers were $26,800 and$12,800, respectively, in the third quarter of 2009, compared with$38,700 and $24,400, respectively, in the preceding quarter. TheGemini Suezmax pool had spot earnings of $14,866 per day in the thirdquarter.Profit share expense of $4.8 million has been recorded in the thirdquarter as a result of the profit sharing agreement with Ship FinanceInternational Limited ("Ship Finance") compared to $8.0 million inthe preceding quarter. Ship operating expenses increased by $1.8million compared with the preceding quarter, primarily as a result ofincreased dry docking costs as one additional vessel dry docked inthe third quarter compared to the second quarter.Charterhire expenses decreased by $7.4 million in the third 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 third quarter, of which $5.2million relates to restricted deposits held by subsidiaries reportedin Independent Tankers Corporation Limited ("ITCL"). Interestexpense, net of capitalized interest, was $39.8 million in the thirdquarter of which $10.6 million relates to ITCL.Frontline announces net income attributable to the Company of $98.8million for the nine months ended September 30, 2009, equivalent toearnings per share of $1.27. The average daily TCEs earned in thespot and period market in the nine months ended September 30, 2009 bythe Company's VLCCs, Suezmax tankers and Suezmax OBO carriers were$40,200, $26,600 and $43,000, respectively, compared with $81,100,$61,800 and $43,800, respectively, in the nine months ended September30, 2008. The spot earnings for the Company's double hull VLCCs andSuezmax tankers were $40,700 and $24,900, respectively, in the ninemonths ended September 30, 2009.As of September 30, 2009, the Company had total cash and cashequivalents of $584.7 million, which includes $478.9 million ofrestricted cash. Restricted cash includes $293.8 million relating todeposits in ITCL and $184.3 million in Frontline, which is restrictedunder the charter agreements with Ship Finance.In November 2009, the Company has average total cash cost breakevenrates on a TCE basis for VLCCs and Suezmaxes of approximately $32,900and $27,100, respectively.On November 26, 2009, the Board declared a dividend of $0.15 pershare. The record date for the dividend is December 8, 2009, exdividend date is December 4, 2009 and the dividend will be paid on orabout December 22, 2009.The full report is available for download in the link enclosed.The Board of DirectorsFrontline Ltd.Hamilton, BermudaNovember 26, 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/1357572/330295.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 27.11.2009 - 07:50 Uhr
Sprache: Deutsch
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