The Board of Frontline, at a meeting in Hamilton Bermuda, met and discussed the Companys results for the third quarter of 1999. The Board is disappointed to report a net loss of $17.3 million, compared with net income of $8.3 million for the third quarter of 1998. The result is in line with what the Board predicted in the second quarter report. Earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter, including earnings from associated companies were $16.4 million, compared with $36.7 million for the 1998 period. The average daily time charter equivalents (TCEs) earned by the VLCCs, Suezmax tankers, and Suezmax OBO carriers were $19,400, $14,100 and $15,300, respectively, (1998 - $34,200, $22,200 and $18,600, respectively). These TCEs do not include the vessels on time charter to BP since the earnings are subject to subsequent semi-annual adjustment. Total days offhire in the 1999 quarter were 45 for the VLCCs and 9 for the Suezmax fleet, of which 38 days were for scheduled docking. Total operating costs, administrative expenses and depreciation have increased due to the expansion of the fleet and the Company.
Net other expenses for the quarter were $18.5 million (1998 - $13.9 million). This reflects an increase in the average debt resulting from the fleet expansion and the further investment in ICB at the end of the quarter. In addition, the Company incurred a total of $1.7 million fees relating to the renegotiation of debt covenants and arrangement fees in connection with the refinancing of the debt associated with ICB.
Earnings per share for the quarter were $(0.37), (1998 - $0.18). On September 30, 1999, the Company issued a total of 12,945,000 shares in two capital transactions discussed below, resulting in 59,051,860 shares outstanding at September 30, 1999 and a weighted average number of shares outstanding for the quarter of 46,247,567 (as at September 30, 1998 and for the quarter then ended - 46,106,860). Cashflow per share for the quarter was $(0.05), compared with $0.49 for the same quarter in 1998.
For the first nine months of 1999, the Company incurred a net loss of $20.7 million (1998 - net income of $32.2 million) and EBITDA of $62.6 million (1998 - $104.3 million). The average daily TCEs earned by the VLCCs, Suezmax tankers, and Suezmax OBO carriers were $21,400, $17,100 and $17,600 respectively, compared with $33,600, $24,300 and $23,200 in the first nine months of 1998.
Net other expenses for the nine months were $40.3 million (1998 - $34.3 million). As for the quarter, this principally reflects an increase in the average debt resulting from the fleet expansion and the acquisition of ICB, offset by the ICB dividend received in the second quarter.
Earnings per share for the 1999 year to date were $(0.45), (1998 - $0.70) and cashflow per share was $0.48 (1998 - $1.51).
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