Frontline Ltd. (the "Company" or "Frontline"), today reported unaudited results for the three months and year
ended December 31, 2017:
Highlights
- Reports net loss attributable to the Company of $248.4 million, or $1.46 per share, for the fourth quarter of 2017, including
non-cash impairment losses of $255.8 million
- Reports net income attributable to the Company adjusted for certain non-cash items of $5.0 million, or $0.03 per share, for
the fourth quarter of 2017.
- Reports net loss attributable to the Company of $264.9 million, or $1.56 per share, and a net loss adjusted for certain
non-cash items of $4.4 million, or $0.03 per share, for the year ended December 31, 2017.
- Agreed with Ship Finance to terminate the long-term charter for the 1998-built VLCC Front Circassia.
- Extended the terms of its senior unsecured loan facility of up to $275.0 million facility with an affiliate of Hemen Holding
Ltd. by 12 months to November 2019.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS commented:
"The spot rates in the fourth quarter were weak, as inventory draws impacted a freight market that was already
suffering from high fleet growth. At the same time, the key drivers for the tanker market, crude oil demand and the world
economy remain strong, and we may also be nearing the end of the cycle of inventory draws. The headwind factors experienced in
2017 could turn in our favour possibly towards the end of the year. The quarter shows Frontline's resilience in weak markets, which
is the direct result of low break-even levels and access to competitively priced
capital."
Inger M. Klemp, Chief Financial Officer of Frontline Management AS, added:
"With asset values, rates and Frontline's cash break-even rates at historically low levels our downside risk is limited. We are
in a unique position to capitalize on increases in both asset values and rates and we have a strong liquidity position in excess of
$300 million as at the end of December 2017."
The average daily time charter equivalents ("TCE") earned by Frontline in the quarter ended December 31, 2017, the prior quarter
and in the year ended December 31, 2017 are shown below, along with estimates for the first quarter of 2018 and the estimated
average daily cash break-even ("BE") rates for the remainder of 2018:
| Average daily time charter equivalents
("TCEs") |
| ($ per day) |
Spot and
time charter |
Spot |
Spot estimates |
% covered |
Estimated average daily BE rates |
| |
Q4 2017 |
Q3 2017 |
YTD 2017 |
Q4 2017 |
Q3 2017 |
YTD 2017 |
Q1 2018 |
2018 |
| VLCC |
19,400 |
13,200 |
22,800 |
19,400 |
13,200 |
22,400 |
17,000 |
68% |
22,200 |
| SMAX |
19,600 |
15,300 |
18,500 |
19,500 |
14,100 |
17,300 |
15,600 |
66% |
18,200 |
| LR2 |
18,400 |
17,200 |
18,800 |
14,400 |
12,300 |
14,400 |
15,300 |
73% |
16,000 |
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.
Attachment:
http://www.globenewswire.com/NewsRoom/AttachmentNg/3e0d250d-796c-40e7-b1de-7c98250fc419
