Frontline Ltd. (the “Company” or “Frontline”), today reported unaudited results for the year ended December 31, 2015:
Frontline achieved net income attributable to the Company of $58.6 million for the fourth quarter of 2015 and net income attributable to the Company of $154.6 million for the year ended December 31, 2015.
The Company announces a cash dividend of $0.35 per share for the fourth quarter of 2015.
On November 30, 2015, Frontline completed the previously announced merger with Frontline 2012 Ltd. (“Frontline 2012”).
The Company paid a dividend of $0.25 per share in December 2015 (adjusted for a 1-for-5 reverse stock split that was approved in January 2016).
The Company signed a new $500 million term loan facility in December 2015, reducing the average daily cash cost breakeven TCE rates per operating vessel by approximately $1,400 per day for 2016.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS commented:
“We are very pleased to report yet another strong quarter with net income attributable to the Company of $58.6 million. In the fourth quarter, we completed our merger with Frontline 2012. This was a transformational event for Frontline as we emerged as a much stronger company with a large, diversified fleet of crude oil and refined product tankers. We believe that due to Frontline’s brand, financial flexibility, and scale, it holds a unique position among its peers.
The average daily time charter equivalents (“TCE”) earned by both Frontline and Frontline 2012 in the fourth quarter were strong across all segment classes, as shown below:
|($ per day)||Spot and time charter||Spot||Spot guidance||% covered||Estimated average daily BE rates|
|Q4 2015||Q3 2015||Q4 2015||Q3 2015||Q1 2016||2016|
|VLCC||57 700||44 300||62 700||49 600||73 100||88 %||22 500|
|SMAX||38 400||28 400||42 000||30 600||36 700||62 %||17 600|
|LR2||25 500||27 000||37 600||42 700||26 500||72 %||15 000|
|MR||19 300||25 700||19 700||25 700||21 000||63 %||13 900|
These TCE rates are indicative since they do not conform with the figures in the Company’s US GAAP financial statements. The US GAAP figures are based on the results of Frontline 2012 for October and November and those of the merged company for the month of December.
We are off to a very good start thus far in 2016, buoyed by continued strength in the tanker market, and we are pleased with the earnings we have secured thus far in Q1. The market has corrected downwards over the recent weeks, but overall demand for tankers remains high. Our highly competitive cash breakeven rates enable us to achieve higher cash flow generation per day, and makes Frontline robust during downturns in the market, thus enhancing returns to our shareholders.”
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
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.