Frontline Ltd. (the “Company” or “Frontline”), today reported unaudited results for the three months and year ended December 31, 2017:
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|
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.