FOURTH QUARTER AND FINANCIAL YEAR 2001 RESULTS
Frontline reports earnings before interest, tax, depreciation, and amortisation including earnings from associated companies (EBITDA) of $69.5 million and net income of $43.7 million for the fourth quarter of 2001. Basic earnings per share for the quarter were $0.57 and cashflow per share for the quarter was $0.99. The average daily time charter equivalents ("TCEs") earned by VLCCs, Suezmax tankers, and Suezmax OBO carriers were $19,900, $20,600 and $20,300, respectively, down from $30,800, $23,100 and $23,000, respectively in the immediately preceeding quarter.
Net interest expense for the quarter was $18.1 million (2000 - $25.0 million). This compares with $19.7 million the third quarter of 2001. The decrease primarily reflects lower interest rates in the fourth quarter. Other financial items for the quarter were positive $5.9 million of which $1.8 million is attributable to the market value adjustment on interest rate swaps and $4.4 million the Equity Swap Line discussed below. In the fourth quarter of 2001 the Yen weakened significantly against the US Dollar, resulting in an unrealised foreign currency exchange gain of $19.0 million primarily relating to the revaluation of Yen debt in certain subsidiaries. There is a similar foreign currency impact on the share of results from associated companies due to the revaluation of Yen debt within certain of these companies.
On February 25, 2002, the Board declared a dividend of $0.20 per share for the fourth quarter. The record date for the dividend is March 13, 2002, and ex dividend date is March 8, 2002. The dividend is to be paid on or about March 20, 2002.
For the year ended December 31, 2001, the Company has EBITDA of $528.8 million and net income of $382.7 million. This net income includes $32.3 million relating to the cumulative effect of the change in the accounting policy for drydockings that was implemented in the third quarter of 2001. These results compare with EBITDA of $481.8 million and net income of $313.9 million for the year ended December 31, 2000. The average daily time charter equivalents ("TCEs") earned by VLCCs, Suezmax tankers, and Suezmax OBO carriers for the year 2001 were $40,800, $30,700 and $28,900, respectively.
Net interest expense for 2001 was $78.8 million (2000 - $89.3 million). This decrease reflects the benefit of lower interest expense on debt as interest rates fell during 2001 and increased interest income arising from higher average cash balances. Other financial items for 2001 were negative $5.7 million which is attributable to the market value adjustment on interest rate swaps following the adoption of FAS 133 on January 1, 2001. This is partly offset by the effect of the Equity Swap Line mentioned above. For the full year 2001 there is an unrealised foreign currency gain of $28.3 million due to the Yen depreciation discussed above. There is a similar foreign currency impact on the share of results from associated companies due to the revaluation of Yen debt within certain of these companies. Earnings per share for the year 2001 year were $4.99 (2000 - $4.28) and cashflow per share was $6.58 (2000 - $5.53).
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