Tankrederiet Frontline had a net loss of 5.5 million dollars in the third quarter, down from 61,9 million dollars in the corresponding period last year, according to the interim report on Tuesday.
the decline comes despite the fact that revenues rose to 157,2 from 107,5 million dollars in the period. Costs rose, however, so that net operating income fell to 198,8 from 68,8 million dollars.
While the summer typically is a slow period in the tanker market, the seasonal weakness more evident this year. Leveringsforstyrrelser, lower raffineringsmarginer and pull at the store led to reduced oil flow and the inertia in the demand for tankers, ” says Frontline ceo Robert Hvide Macleod in a comment.
Macleod says that the global fleet grew, as more newbuilds were delivered from the shipyard.
It was in advance expected a net loss of 7,3 million dollars of revenue of 135 million dollars, according to SME Direkt for TDN Finans.
“Very competitive”
– We believe that what we achieved in the third quarter against this backdrop, further accentuates the Frontlines competitive position in the market and effective operation. Frontlines low lønnsomhetsrater (“cash breakeven rates”), large commercial-scale and historically successful access to capital is a significant punctuation mark that supports our leading position in the market, ” says Macleod.
oil storage on tankers: the Party might be over
the Third quarter brought with it ratefall for Fronline, that achieved 27.900 dollars per day for their very large tankers (so-called VLCC-is). This is a decrease from the 45.200 dollars in the second quarter.
Also, the rates for suezmax ships fell, to 21.200 dollars from 30.300 dollars. The decline was less for produkttankflåten (LR2).
If these levels hold, however, will Frontline earn money through the rest of the year. They estimate the so-called “breakeven rates” for the three skipsklassene respectively 21.200, 17.300, and 15.300 dollar.
“the Company believes that these rates are very competitive”, they write in the report.
Funded new ship
Frontline opts for the way that it has secured bank funding of up to 870 million usd, for partial funding of all nybyggkontraktene.
We are pleased to have secured bank funding of up to 870 million dollars for the partial financing of the company’s 16 nybyggkontrakter and the four vessels that were delivered in the third quarter. We believe that the terms we achieved was very attractive, and allows us to maintain our favorable lønnsomhetsnivå, ” says cfo Inger M. Klemp.
For the quarter will the company pay out a dividend of 0.1 dollars per share.
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